Where SpongeBob meets Shakira; Nickelodeon for the youngest, MTV for the next generation—serving the region's youth markets has proven profitable for MTV Networks Latin America - MTV Networks Latin America

South Florida CEO, Oct, 2003 by Rochelle Broder-Singer

Music and youth are what MTV and Nickelodeon are all about, and that works in just about any country. You can see it from the moment you walk in the door to the Miami Beach offices of MTV Networks Latin America. Amid wall murals of cartoon character SpongeBob SquarePants and television sets playing music videos are staffers with hair tied back in bandannas and clothing that is somewhat less than formal. Presiding over the networks is Antoinette Zel, dressed today in a modern black pantsuit and a red t-shirt with a peace sign on it.

"We are the youth experts," says Zel. "MTV kind-of adapts, as long as the core of the brand is right, which is to be honest and true to youth culture." Certainly, advertisers are finding what they want. The two networks have seen double-digit advertising growth over the past five years, and 16 percent growth in total advertising sales in just the past year. There are 150 employees in Miami Beach, plus another 50 in-country.

Back in 1993, when MTV owner Viacom asked Zel (a Cuban-American former entertainment attorney) to move from company headquarters in New York back to her native Miami to help start the channel, a pan-regional network had never been contemplated before--let alone one that would produce primary content specifically for the region. "It was the first time that a company of our size was betting on this as a first market," says Zel. "Viacom really took a leap of faith." MTV Networks Latin America celebrated its tenth birthday in October, and has grown from a single MTV Latin America channel, broadcasting to 22 countries, to nine separate feeds: MTV Mexico, MTV Argentina (which also serves Uruguay and Paraguay), MTV Central, Nickelodeon North, Nickelodeon South and Nickelodeon Brazil (MTV Brazil is a separate company).

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It's all done with a delicate balance. MTV stays relevant with "musicologists" on the ground in Miami and in several Latin American countries, as well as plenty of communication with record labels. The music on MTV Latin America is not just Spanish-language. Zel says the juxtaposition of acts from their own country, Spanish-language acts from the region, and international stars such as Madonna and the Red Hot Chili Peppers is what makes MTV so attractive to viewers. Nickelodeon's biggest star--the bumbling SpongeBob--is translated into Spanish and Portuguese, but the networks there also feature plenty of original programming. "It is so fun! Can you imagine Nick in Spanish?" Zel says with a smile.

In the past couple of years, MTV Networks has suffered in one of its most important markets--Argentina. Three years ago, the company invested time and money into building a team in that country, which had the largest cable penetration in Latin America. When the economy collapsed in late 2001, sales there died.

"That was a real impact on our business. But, some other markets over-performed. That is the beauty of having a multi-country strategy," says Zel. "The Miami resources were able to say, 'Okay, where can we go to other markets?' It allows a tremendous amount of efficiency." Zel says that's one reason why MTV Networks Latin America has been profitable for the last five years.