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Company Town : NBC Forges a Partnership With Mexican Broadcaster : Television: The network will advise TV Azteca on programming, promotions and advertising.

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TIMES STAFF WRITER

NBC, which has been forging links with broadcasters around the globe, on Monday said it is forming an alliance with Mexican broadcaster Television Azteca.

A former state-owned TV company acquired by Grupo Azteca last year as part of the government’s privatization program, TV Azteca is attempting to challenge Grupo Televisa, the powerful commercial broadcaster that controls 90% of the Mexican TV market.

NBC will forge a broad relationship with TV Azteca that will encompass a range of activities from adoption of the American network’s famous peacock logo to advice for the Mexican broadcaster on programming, promotion and advertising. NBC has set up an “advisory management team” headed by Roger Ogden, president of NBC-owned KCNC-TV in Denver, to consult with TV Azteca.

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NBC has a three-year option in which to invest in TV Azteca, but initially the role of the network will be largely advisory.

TV Azteca will also carry NBC-produced programming from the network’s news, entertainment and sports divisions as well as programming supplied by its cable channel, CNBC, and Canal de Noticias, a Spanish-language TV news service launched by NBC earlier this year.

TV Azteca consists of two national networks, channels 7 and 13, which together reach a country of about 15 million TV homes. The total annual TV ad market in Mexico is about $1.2 billion.

For TV Azteca and NBC, however, cracking the fast-growing Mexican TV market will be an uphill battle. Under its new owners, TV Azteca has increased its share of the audience to 14% from 10%, but the market is still overwhelmingly dominated by Televisa, which has strong links both to the government and to advertisers.

Grupo Azteca was the dark horse victor that acquired TV Azteca last year for $640 million after a fierce bidding war against some of the country’s biggest media moguls. Grupo Azteca, which is one of Mexico’s largest consumer appliance retailers, bid $100 million more for the network than the runner up.

NBC and TV Azteca officials believe that by introducing aggressive American-style marketing, programming and promotion techniques at the network, it can attract as much as 20% to 25% of the audience.

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NBC’s alliance with TV Azteca is part of the network’s broader strategy of investing and teaming up with other emerging networks around the world.

Last year, NBC bought Super Channel, the London-based pan-European satellite service. In addition, NBC will shortly begin beaming its programming across Asia on the Apstar-2 satellite, and is expanding its ties with Newsvision in Australia.

All three U.S. networks--especially ABC--are stepping up efforts to invest and forge alliances with overseas broadcasters as decades of state regulation end.

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