ESPN Leaps Into Spanish-Language Arena

ESPN is finally playing ball in Spanish.

After considering the move for more than three years, the sports network said Monday that it would launch a 24-hour Spanish-language sports channel next year, ESPN Deportes (ESPN Sports).

The move taps into one of television's fastest-growing markets: the 10.7 million Latino households in the U.S., a potential viewing audience of more than 35 million.

But it also puts ESPN in competition with Spanish-language networks that use sports as a cornerstone of their programming and that have locked up some key broadcast rights to sports popular with Latino audiences.

Broadcasting giant Univision Communications Inc., for example, has rights to 10 of the 20 Mexican League soccer teams, including the popular Guadalajara and Club America.

The Century City-based Spanish-language broadcaster also has rights to a host of major soccer tournaments, including the 2006 World Cup for men and the 2003 Women's World Cup. In July, Univision's Los Angeles station, KMEX-TV Channel 34, outdrew ABC's local station, KABC-TV Channel 7, by more than 2 to 1 in airing Brazil's victory over Germany in the World Cup finals.

Spanish-language networks Telemundo, Azteca America and Fox Sports World Espanol also have significant sports rights.

ESPN President George Bodenheimer said the ESPN name's international popularity would give it a leg up. In recent years, ESPN has emerged as the crown jewel of the television operations of parent Walt Disney Co.

"I think right off the bat we will be very effective competitors. Our brand will carry us a long way," Bodenheimer said.

Univision spokeswoman Stephanie Pillersdorf said the network welcomed ESPN's move because it recognizes the importance of sports broadcasts in Spanish: "The entry of any new competitor brings additional and much-needed attention to the growing Spanish-language sports market, especially among advertisers."

Media analyst Gordon Hodge of Thomas Weisel Partners in San Francisco said that while the number of Latino homes with cable TV remains relatively low--about 40% in Los Angeles--the potential is huge.

"I think there's a big opportunity in the Hispanic media space, so I can understand why ESPN would want to explore this option. Having said that, I don't look at this as much of a threat to either Telemundo or Univision at this stage," Hodge said.