Entravision, the owner of a slew of Spanish-language TV stations, has altered an agreement where Univision serves as its rep firm. Entravision will now pay Univision a percentage of all local and national sales generated at a particular station, rather than just a commission on national business.
Under the agreement, which went into effect Oct. 1, Entravision will pay Univision 9.4% of all net sales generated at one of its Univision or TeleFutura affiliates. Previously, it had paid 15% of national business that Univision’s rep firm delivered.
Entravision CFO Chris Young told investors this week that based on 2010 results, the new deal would have brought the company a savings of $800,000 that year.
The altered arrangement is part of Entravision’s affiliation deal with Unvision, which runs through 2021. Under terms, Unvision is the exclusive national and regional rep firm.
Entravision owns the Univision affiliates in markets such as Washington, Boston, Orlando and Denver. In 20 markets, it has a Univision-TeleFutura duopoly.
Young also reiterated that the company expects to return to where the auto category makes up about 25% of all ad dollars at stations. It’s about 17% now.
The telecom category has been a trouble spot, where ad dollars should be relatively flat as marketers move dollars out of smaller markets, Young said.