Latino Media Powers Up

Latino Media Powers Up

A Venezuelan couple started Media Vista with just $15,000 in equipment five years ago. Now the company has its own television station and high-tech studio. Revenues are expected to hit $2 million next year.

COVER STORY by Jean Gruss | Editor/Lee-Collier

When Orlando and Mayela Rosales moved to Naples from Venezuela 10 years ago, it was uncommon to hear anyone speaking Spanish. Unlike Miami, Naples historically never had a large Hispanic population.

Despite the relatively small Hispanic population back then, the Rosaleses knew it was just a matter of time before more Spanish-speaking people would call Southwest Florida home. Back then, the only Spanish TV station was an Univision channel that played imported shows and films.

Sensing an opportunity to provide local programming, the Rosaleses started a small Naples-based company called Media Vista Group in 2001. They started filming a local news show in Spanish and it quickly became a hit on the local UPN affiliate owned by cable company Comcast.

Looking back, their timing was perfect. Today, Hispanics make up about 25% of Collier County's population, according to San Diego-based market research firm Claritas. By 2011, Hispanics will account for 29% of that county's population, the firm projects. Measured by median household income, Collier Hispanics in the highest income brackets are projected to grow by triple digits in the next five years.

In addition to a daily television show called D'Latinos, Media Vista also publishes a slick magazine and hosts an elaborate Web site that's constantly updated. What's more, the company bought a half-interest in a television station that will beam local Spanish-language shows from new studios in Naples to thousands of Hispanic households in Southwest Florida.

The story of Media Vista provides insight into the fast-growing Hispanic market for anyone who does business along the Gulf Coast. How the Rosaleses built the company starting with little more than their talent shows the rewards of catering to that segment of the population.

From pilot to daily show

Orlando, 36, and Mayela Rosales, 34, never intended to start a media company when they moved to Naples in 1996 from Maracaibo, a Venezuelan city near the Gulf of Mexico and the Colombian border.

Orlando had been hired by a Naples company to handle software issues. Previously, he had worked for Venezuela's oil and phone companies, but was eager to work in the U.S. and move ahead.

But Mayela's background was in journalism and public relations. She and Orlando saw the growth of the Hispanic population in Southwest Florida, especially wealthier people moving west from the Miami area, and bemoaned the lack of local Spanish programming.

So in 2001, they formed Media Vista and bought a digital camera, microphones and an editing station for $15,000. They didn't have to borrow to start their venture. "Orlando was making good money," Mayela says.

They bought airtime on the local UPN affiliate and they rented some industrial space in a corporate park where they started filming a show called Que Pasa SW Florida. Mayela hosted the show, which was a mix of area news and interviews with local officials on a broad range of subjects, from politics to health and housing.

Orlando Rosales taught himself to shoot the camera and edit the footage. "I didn't know anything about TV," he recalls. "The first show, I didn't sleep all night."

Que Pasa started airing in July 2002 on Saturday evenings at 6:30 p.m. The half-hour show was an instant hit with viewers and advertisers. Mayela sold ad space and her first clients included McDonald's and NCH Healthcare System, a Naples hospital group.

But Orlando and Mayela had only planned to shoot 13 half-hour shows as a pilot project. Although it was a success, Mayela initially was reluctant to continue the project because she was pregnant with her second child. The station manager persuaded her otherwise.

So in August of 2002, the Rosaleses renamed the show D'Latinos and it became a regular half-hour staple on Saturday evenings. By March 2004, the weekly show had grown to 90 minutes long and all the advertising spots were sold out.

By then, the company was profitable and there was no competition for local television news in Spanish. What's more, the area it covered, from Marco Island to Port Charlotte, had grown from 67,000 Hispanics in 2001 to about 170,000 today, with an estimated purchasing power of $2 billion a year.

So many advertisers clamored for space on the show that the Rosaleses decided to create a daily version starting in March 2005. The D'Latinos show now runs for an hour every morning starting at 7 a.m. on the same UPN Channel 8. Orlando Rosales says he has no trouble selling each show's 21 30-second television spots at $150 apiece.

"Advertisers look for localization, local tie-ins and local promotion," says Bob Turner, president of New York City-based Azteca America Spot Sales, which handles Media Vista's sales to national companies such as Heineken, Verizon, Chevrolet and American Airlines.

Turner estimates Hispanic television stations can charge 20% more on average for advertising on a local show. For example, companies that sell cooking products would prefer to advertise during a segment that features a local chef preparing a dish.

Joining forces

Realizing competition for Hispanic viewers in Southwest Florida would not be far behind, the Rosaleses realized they needed their own television station to grow. "I wanted to have more than a show," says Orlando Rosales.

Rosales started talking to Gaston Cantens, a Miami real estate investor who had bought and sold lots in Cape Coral for years. He owned WTPH-TV/Channel 14, a television station in Cape Coral that was affiliated with Azteca America, a small but fast-growing network. But Cantens, whose son is a Florida legislator with the same name, says he needed local programming to make the station more profitable. "We purchased the channel [three years ago] and we started with nothing," Cantens recalls. He concedes it's been a struggle because advertisers prefer stations offering local content to attract viewers.

Enter Orlando and Mayela Rosales. Together, they purchased a half-interest in WTPH in February. "He needed help and we needed a station," Orlando Rosales says. In addition to the D'Latinos show, the channel will air a 6 p.m. local newscast in Spanish starting this summer.

Except for a loan from Fifth Third Bank to purchase their headquarters building in Naples, the Rosaleses say they've financed their expansion from their own savings and Media Vista's profits. They've spent $500,000 in equipment alone and expect revenues to hit $1 million this year and $2 million in 2007.

The Rosaleses and Cantens are now close to signing an agreement with Comcast to carry the channel.

Growth opportunities

Cantens says combining stations with successful local shows can be replicated elsewhere. "We are planning to purchase other stations in Florida, Georgia, South Carolina and North Carolina," Cantens says, plans that include the Rosaleses.

All the new stations will be affiliated with Azteca America, which is already present in 41 U.S. markets. Its rivals include Univision, which private investors recently bought for $12.3 billion.

Meanwhile, television isn't the only growth opportunity. On the print side, Media Vista launched D'Latinos Magazine in 2003, a free glossy monthly with a circulation of 15,000. "It's a great cross-marketing tool," says Mayela Rosales. "We have lots of advertisers who do both [television and magazine]." The magazine is available in 200 locations, including Publix supermarkets and Hollywood video stores.

Media Vista also beefed up its Internet site, where users can watch streaming video of the D'Latinos show. Advertisers include NCH and Eye Centers of Florida.

To fuel these ventures, the Rosaleses have had to be creative in their recruitment efforts. The company currently has about a dozen employees, but it's always looking for more talent. They recruit young professionals from Miami and Latin America with the promise of working in a fast-paced environment. Because of the high cost of housing in Naples, Orlando Rosales owns rental properties and he rents housing to new employees.

"We want to help people feel like they have a big future," says Mayela Rosales.

By the Numbers

Fast-Growing Southwest Florida Hispanic Market

The Latino market is projected to grow by double-digit percentage rates in many Southwest Florida counties over the next five years, according to Claritas, a San Diego-based market-research firm. Here's a breakdown of the Latino demographics from the region that stretches from Hillsborough to Collier counties. The Claritas 2006 estimates and 2011 projections are based on U.S. Census data.

Hillsborough County

Latino 2006 2011 %

Population Estimate Projection Change

Total 1,139,830 1,264,811 11%

Latino 243,638 305,752 25%

Mexican 49,416 63,053 28%

Puerto Rican 72,165 91,286 26%

Cuban 45,362 55,187 22%

Other Latino 76,695 96,226 25%

Latino Median Household Income

(number of households)

Income $50,000 - $74,999 13,924 18,557 33%

Income $75,000 - $99,999 6,733 9,750 45%

Income $100,000-$124,999 3,418 5,298 55%

Income $125,000-$149,999 1,690 2,862 69%

Income $150,000-$199,999 958 1,782 86%

Income $200,000 or more 1,167 1,735 49%

Latino median income $37,919 $41,480 9%

Non-Latino median income $48,994 $54,528 11%

Housing

Non-Latino owner-occupied 245,732 266,723 9%

Latino owner-occupied 43,858 56,519 29%

Non-Latino renter-occupied 122,537 129,284 6%

Latino renter-occupied 34,611 43,365 25%

Pinellas County

Latino 2006 2011 %

Population Estimate Projection Change

Total 937,182 959,546 2%

Latino 59,503 74,515 25%

Mexican 15,909 19,992 26%

Puerto Rican 17,433 21,785 25%

Cuban 6,021 7,501 25%

Other Latino 20,140 25,237 25%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 3,684 4,786 30%

Income $75,000-$99,999 1,552 2,278 47%

Income $100,000-$124,999 864 1,197 39%

Income $125,000-$149,999 406 689 70%

Income $150-$199,999 303 455 50%

Income $200,000 or more 354 535 51%

Latino median income $38,935 $41,587 7%

Non-Latino median income $43,755 $47,781 9%

Housing

Non-Latino owner-occupied 290,386 295,494 2%

Latino owner-occupied 9,234 11,729 27%

Non-Latino renter-occupied 113,689 114,304 1%

Latino renter-occupied 10,048 12,777 27%

Sarasota County

Latino 2006 2011 %

Population Estimate Projection Change

Total 367,161 403,990 10%

Latino 23,263 32,272 39%

Mexican 9,308 12,593 35%

Puerto Rican 3,746 5,403 44%

Cuban 2,944 4,145 41%

Other Latino 7,265 10,131 39%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 1,364 1,915 40%

Income $75,000-$99,999 642 1,007 57%

Income $100,000-$124,999 284 542 91%

Income $125,000-$149,999 172 278 62%

Income $150,000-$199,999 80 174 118%

Income $200,000 or more 147 230 56%

Latino median income $40,570 $42,965 6%

Non-Latino income $49,223 $54,920 12%

Housing

Non-Latino owner-occupied 132,413 145,947 10%

Latino owner-occupied 3,785 5,566 47%

Non-Latino renter-occupied 31,120 32,687 5%

Latino renter-occupied 3,312 4,630 40%

Manatee County

Latino 2006 2011 %

Population Estimate Projection Change

Total 306,512 342,712 12%

Latino 36,388 47,982 32%

Mexican 22,067 28,723 30%

Puerto Rican 4,913 6,630 35%

Cuban 1,850 2,541 37%

Other Latino 7,558 10,088 33%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 1,595 2,114 33%

Income $75,000-$99,999 581 1,028 77%

Income $100,000-$124,999 235 403 71%

Income $125,000-$149,999 137 199 45%

Income $150,000-$199,999 132 213 61%

Income $200,000 or more 71 145 104%

Latino median income $34,880 $37,344 7%

Non-Latino median income $46,182 $50,965 10%

Housing

Non-Latino owner-occupied 93,877 104,715 12%

Latino owner-occupied 3,898 5,576 43%

Non-Latino renter-occupied 28,280 29,886 6%

Latino renter-occupied 4,770 6,304 32%

Charlotte County

Latino 2006 2011 %

Population Estimate Projection Change

Total 162,123 179,826 11%

Latino 6,987 9,255 32%

Mexican 1,266 1,676 32%

Puerto Rican 2,565 3,409 33%

Cuban 871 1,142 31%

Other Latino 2,285 3,028 33%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 470 646 37%

Income $75,000-$99,999 111 224 102%

Income $100,000-$124,999 69 93 35%

Income $125,000-$149,999 61 74 21%

Income $150,000-$199,999 18 52 189%

Income $200,000 or more 51 76 49%

Latino median income $38,046 $41,061 8%

Non-Latino median income $42,859 $46,740 9%

Housing

Non-Latino owner-occupied 60,962 68,069 12%

Latino owner-occupied 1,475 1,975 34%

Non-Latino renter-occupied 10,863 11,649 7%

Latino renter-occupied 704 744 34%

Lee County

Latino 2006 2011 %

Population Estimate Projection Change

Total 545,344 637,292 17%

Latino 75,893 111,766 47%

Mexican 27,447 38,926 42%

Puerto Rican 21,629 32,289 49%

Cuban 5,662 8,818 56%

Other Latino 21,155 31,733 50%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 3,727 6,435 73%

Income $75,000-$99,999 1,854 3,244 75%

Income $100,000-$124,999 766 1,717 124%

Income $125,000-$149,999 257 729 184%

Income $150,000-$199,999 205 373 82%

Income $200,000 or more 157 324 106%

Latino median income $37,443 $41,552 11%

Non-Latino median income $49,083 $55,940 14%

Housing

Non-Latino owner-occupied 170,235 195,739 15%

Latino owner-occupied 11,602 18,724 61%

Non-Latino renter-occupied 43,786 47,927 9%

Latino renter-occupied 10,066 14,580 45%

Collier County

2006 2011 %

Population Estimate Projection Change

Total 318,739 380,532 19%

Latino 78,736 110,020 40%

Mexican 41,178 54,295 32%

Puerto Rican 5,578 8,283 48%

Cuban 12,978 19,579 51%

Other Latino 19,002 27,863 47%

Latino Median Annual Household Income

(number of households)

Income $50,000-$74,999 4,045 6,592 63%

Income $75,000-$99,999 1,894 3,257 72%

Income $100,000-$124,999 923 1,744 89%

Income $125,000-$149,999 353 854 142%

Income $150,000-$199,999 193 424 120%

Income $200,000 or more 324 572 77%

Latino median income $41,537 $46,277 11%

Non-Latino median income $60,509 $67,067 11%

Housing

Non-Latino owner-occupied 90,703 105,838 17%

Latino owner-occupied 10,335 16,270 57%

Non-Latino renter-occupied 20,690 22,025 6%

Latino renter-occupied 9,635 13,249 38%