History and Trends

Television could not develop in Puerto Rico as early as it did in other areas of the region, due to Puerto Rico’s condition as a territory of the United States, which put the communication industry under the overriding control of the FCC. When the FCC implemented the television freeze and “ordered applications for new TV stations placed in the pending file” on September 29, 1948, Puerto Rico had no choice but to postpone its incursion into the new medium.

The agency renewed the process for the issuance of broadcasting licenses on April 12, 1952, and soon thereafter, on July 24, 1952, it granted the first permit for the construction of a commercial television station in a U.S. territory to El Mundo Broadcasting Company. WKAQ-TV, Telemundo, was founded by Angel Ramos, who also owned El Mundo newspaper and WKAQ radio (Radio el Mundo), the first radio station in Puerto Rico (established in 1922). Telemundo received its FCC license to transmit over Channel 2 in San Juan on February 12, 1954, and went on the air with regular programming on March 28, 1954. The second permit for the construction of a commercial television station was granted to Ramón Quiñónez, owner of WAPA Radio on August 12, 1952. WAPA-TV received its FCC license to transmit over Channel 4 in San Juan on March 15, 1954. It started regular transmission on May 1, 1954. Programming at both TV stations extended from 4:30 P.M. to 10:30 P.M. and included varied genres such as live comedy and drama, variety shows, women’s programs (cooking shows), news programs, and films (mostly Mexican).

Competition has always been fierce among these two broadcasters, which have alternated in their success at being the first to offer videotape technology (1966), color television (1968), and satellite broadcasting (1968)—many times achieving these accomplishments within a week of each other. They have also alternated in obtaining the largest share of the audience and the top programs. Due to their early successes, these two stations attracted the attention of mainland corporations. A succession of sales took place and continues to this day; in fact, changes in ownership have accelerated since approval of the Telecommunications Act of 1996.

WKAQ-TV, Telemundo, was first sold to John Blair and Company, a diversified, publicly traded U.S. company on April 14, 1983. Blair and Company then sold the station in October 1987 to Reliance Inc., the owners of Telemundo, the Spanish-language television network in the United States. Thus, Telemundo of Puerto Rico became part of the large network of Hispanic TV stations on the mainland. In October 2001 NBC, a division of General Electric, acquired Telemundo Communications Group, which includes Telemundo of Puerto Rico, in a package deal worth $2.7 billion. Regulatory approval by the Federal Trade Commission (FTC) has been granted; FCC approval was expected shortly.

WAPA-TV, or Televicentro, has changed ownership several times since 1975. It was acquired first by Western Broadcasting in the United States; later sold to Screen Gems, a subsidiary of Columbia Pictures; and acquired in 1980 by Pegasus Inc., a subsidiary of General Electric. In December 1999 WAPA-TV was sold to LIN Television, a subsidiary of diversified media company Chancellor Media Corporation, which also owns and operates eight FM radio stations in Puerto Rico through Primedia Broadcast Group.

In the early 1950s the Department of Education, headed by Mariano Villalonga, lobbied for the establishment of public broadcasting. On June 25, 1954, the Puerto Rican Legislature approved Joint Resolution Number 94, which authorized and assigned the funding for the creation of the Public Radio and Television Service and the installation and operation of public TV and radio stations. After obtaining approval by the FCC to transmit over Channel 6, WIPR-TV went on the air on January 6, 1958, thus becoming the first educational TV station in Latin America. Offering educational and cultural fare unavailable in commercial broadcasting, it initially transmitted from 3:30 P.M. to 9:00 P.M. on weekdays and for only three hours on weekends. Its affiliation with the National Educational Television and Radio Association in 1961 increased its programming. Also in 1961, a second station, Mayagüez’s WIPM-TV (an affiliate of WIPR-TV), retransmitted programs to the west coast over Channel 3. Trailing the commercial stations, WIPR-TV first offered regular programming in color on May 12, 1971. By 1979 WIPR-TV and WIPM-TV joined the Public Broadcasting Service (PBS), further increasing their offerings and bringing English-language programs from the United States to Puerto Rican viewers. On January 21, 1987, radio and TV broadcasting was transferred from the Department of Education to a newly created state venture, named Corporación para la Difusión Pública (Corporation for Public Broadcasting). An increased budget has since allowed improvements in physical facilities, equipment, and programming, with airtime gradually extended to 24 hours a day. The public TV stations created a news department in November 1995, and two editions of its newscast are presented daily. Export of local productions to some U.S. markets has been intermittent.

WRIK-TV was established in Ponce, on the south coast of Puerto Rico, after receiving an FCC permit to go on the air on Channel 7 on February 2, 1958. Its owner was Alfredo Ramírez de Arellano, and, lacking its own programming, the station retransmitted Telemundo’s fare. By 1970 it was bought by United Artists, moved to San Juan, renamed Rikavisión, and started to produce its own programming without much success. In 1979 it was acquired by Puerto Rican producer Tommy Muñiz and became WLUZ-TV. Economic problems forced Muñiz to sell the station in 1985 to Malrite Communications Group. The station became WSTE-TV, and in 1991 it was sold to Jerry Hartman, a Florida entrepreneur. Known locally as SuperSiete, it is a limited outlet for independent producers, who buy time to present their programs during periods other than the 57 weekly hours contracted through a long-term marketing agreement to transmit Channel 11 programming.

In 1960 Rafael Pérez Perry received authorization to start WKBM-TV and transmit over Channel 11. At the time, he owned one of the most successful radio stations on the island (WKBM-AM). However, his success in radio did not extend to television. As has happened to Channel 7, Channel 11’s competition with Channels 2 and 4 was never effective, and, after Perry’s death, the station’s economic problems worsened, leading it to declare bankruptcy, and close in 1981. In 1986 Lorimar Telepictures acquired the station from Bankruptcy Court and renamed it WSII-TV. It was subsequently sold to Malrite Communications Group in 1991. Called Teleonce, Channel 11 has achieved great success, and since 1995 it has been capable of truly competing with Channels 2 and 4, obtaining equal or better shares and ratings in several time periods. In 1998 it was sold to Montgomery, Alabama–based Raycom Media, only to be sold again in June 2001 to Univisión Communications, the leading Spanish-language media company in the United States. Through their subsidiary Univisión Radio, they also own and operate four radio stations acquired in 2003 in Puerto Rico’s lucrative radio market.

During the 1980s and early 1990s, other commercial stations, all lesser players, struggled without much success. WPRV-TV, Channel 13; WSJU-TV, Channel 18 (the oldest of this group dating back to the mid-1960s); WSJN-TV, Channel 24; and WRWR-TV, Channel 30, were all unable to effectively compete with the older, more solidly established stations. Serious economic problems forced some into bankruptcy, and all went off the air. In recent years, all of these stations started to transmit again, albeit with changes in ownership, call letters, and programming.

WPRV-TV, Channel 13, was bought by the Catholic Church, Archdiocese of San Juan, in January 1995. Known locally as Teleoro, it is a commercial station built around social, religious, and cultural programming.

WSJU-TV, Channel 18, was acquired in December 1990 and belongs to International Broadcasting Corporation. This Puerto Rican enterprise catered to independent producers, had scarce programming, and mostly played Spanish-language music videos. Its call letters changed to WAVB-TV and most recently to WTCV-TV. In February 2001 Channel 18 entered into a local marketing agreement with the Home Shopping Network to carry the network’s Spanish-language edition. WVEO-TV, Channel 44, and WIEC-TV, Channel 48, are affiliate stations retransmitting to the west and south, respectively.

WSJN-TV, Channel 24, was bought by S&E Network, a Puerto Rican venture that went on the air on November 1994 and produced some 50 hours a week of sports programs and studio-based talk shows. The station’s call letters were changed to WJPX-TV, and in 1997 it was sold to Paxson Communications, a Florida-based TV and radio company, together with two affiliate stations (WKPV-TV, Channel 20, and WJWN-TV, Channel 38). In July 2001 the network, known as Telenet, was acquired by LIN Television, which has put Channel 24 and its affiliate stations under the control of Televicentro. This has increased the reach of WAPA-TV, Channel 4, to areas of weak signals.

With new call letters, WSJU-TV, Channel 30, was launched in March 2000, when its license was granted to the Puerto Rican firm Aerco Broadcasting Corporation. WSJU plays only Spanish-language music videos.

Other TV stations—educational, commercial, and religious—have emerged since the mid-1980s. WMTJ-TV, Channel 40, is an educational station belonging to the Ana G. Méndez Foundation, a private university. It was inaugurated in 1985 as a PBS affiliate, and, besides PBS programming, it also offers its own news, current affairs programs, and televised college courses. Its affiliate station, WQTO-TV in Ponce, retransmits to the southern coast over Channel 26. WZDE-TV, Channel 52, is an independent commercial station broadcasting music videos. It belongs to Puerto Rican firm R&F Broadcasting, Inc. and started transmission early in 2003 after a long battle with a cable television franchise over the mandated FCC must-carry rule. WELU-TV, Channel 32; WDWL-TV, Channel 36; WCCV-TV, Channel 54; WUJA-TV, Channel 58; and WECN-TV, Channel 64, all are religious stations belonging to diverse Protestant groups. Programming on these stations includes religious services, revivals, testimonials, interviews, fundraising, and news programs.

With the exception of a limited number of programs, all stations transmit in Spanish. Commercial television content mostly consists of Puerto Rican productions, particularly comedy, children’s programs, news, talk shows, and variety shows. Dubbed American TV series and movies, and Mexican, Colombian, and Venezuelan soap operas, comprise the rest of the offerings. Teleonce’s acquisition by Univisión in 2001 initiated a move toward more canned programming from their stateside studios that was directed to the Hispanic-American population in the United States. This is now standard fare and is altering the offerings of Puerto Rico’s television. The amount of local programming is diminishing while imported programs are on the rise. The other commercial stations, following a global trend, have emulated this. Reality TV, both imported and locally produced, is also a new and rapidly increasing trend. There are very limited European or Canadian offerings, except for BBC or CBC specials carried over PBS stations WIPR-TV and WMTJ-TV. Interestingly, public television has increased the amount of local productions during this same time-frame but still command a minuscule number of the television audience.

An estimated 1,325,610 households exist in Puerto Rico, of which 1,313,223 have at least one television set, for a penetration of 99.1 percent (Mediafax, June 2003). A number of affiliate stations exist on the island, which means that TV signals of major stations reach all geographic areas. Channels 2, 4, and 11 consistently get the largest share of the audience, with all other channels trailing far behind. Television audience measurements are an important element for marketing and programming decisions, and, through the years, several companies have performed this function. The earliest measurements took place in September 1956, but it was not until the 1970s that companies like Clapp and Mayne and Stanford Klapper made inroads into a field that was rapidly developing and which determined where the advertising dollar would go. Mediafax is the only company offering television audience measurements, with television stations and local advertising agencies subscribing and paying a fee for these services. Kantar Media Research, a subsidiary of British global company WPP Group, acquired Medi-afax in July 2001.

Cable Television

The cable television industry has transformed the land-scape of television in Puerto Rico. Plagued by problems in the beginning, it is now an evolving alternative to local television and its programming strategies. Since 1996 the Junta Reglamentadora de Telecomunicaciones (Telecommunication Regulatory Board) has overseen operations of cable TV in Puerto Rico; it now authorizes franchises, a responsibility previously held by the Public Service Commission. In the mid-1960s, the availability of Puerto Rico Cablevision, a sub-sidiary of International Telephone and Telegraph, was limited to major San Juan hotels. The first franchise for residential service for the area of San Juan was granted in 1970 to the Cable Television Company of Puerto Rico. By 1976 the company was bankrupt, and Cable TV of Greater San Juan took over the franchise in March 1977. It was bought by Century Communications in 1986, and major investments in infrastructure took place. Other cable TV operators were granted franchises to offer cable service on the rest of the island.

In the early 21st century, four cable companies covered the ten franchise areas that serviced more than 90 percent of the island and reached an estimated 407,979 subscribers (Mediafax, June 2003). Current cable companies are Adelphia Communications, which in October 1999 completed its acquisition of Century Communications and is now the parent company of Cable TV of Greater San Juan and Community Cable-vision; Centennial Cable TV of Puerto Rico, which since September 2000 has bought Pegasus Communications of Puerto Rico (two franchise areas), Teleponce Cable, and Cable TV del Noroeste; Liberty Media, which acquired TCI Cablevision of Puerto Rico (three franchise areas) in February 2000; and Digital TV One (previously Telecable of Puerto Rico), the only remaining Puerto Rican company.

The expansion of the cable industry is indicated by the steady growth in the number of subscribers. In 1980 there were 35,000 subscribers, increasing to 127,400 by 1985, 218,900 in 1990, 352,000 in 2001, and 408,000 in 2003 (PR Cable Subscriber History, 1994; Mediafax, 2001; June 2003). A conservative estimate puts their yearly billing at over $300 million. Expansion is expected to continue, although not as fast as previously thought because of the inroads made by satellite television since 2001. Still, cable penetration is only about 31 percent compared to around 70 percent in the United States (Caribbean Business, September 14, 2000; Mediafax, June 2003). Additional consolidation and convergence of services is anticipated and will further transform the cable TV industry.

Cable TV systems carry all local stations and more than 150 North American channels via satellite. A move to digital cable is well advanced among all providers. Their fare is mostly in English and includes all major networks such as ABC, CBS, NBC, and FOX, as well as channels specializing in sports (ESPN, ESPN2), news (CNN), finance (CNBC), music (MTV, VH1), movies (American Movie Classics, HBO, HBO2, Showtime, Cinemax, The Movie Channel), cartoons (Cartoon Network), children’s programs (Nickelodeon, The Disney Channel), science (The Discovery Channel, The Learning Channel), arts (A&E, Bravo!), public affairs (C-Span, C-Span2), comedy, (Comedy Central), religion (EWTN), shopping (HSC, HSN, QVC, QVC2), weather (The Weather Channel), and many other areas. There are also some 70 pay-per-view channels offering movies, sports, and adult fare as well as 45 satellite music channels. Channels featuring programming in Arabic, Chinese, Hindi, Italian, French, and Japanese, although limited, are available. Few Spanish-language channels are available through cable TV. Among these are TV Chile, Venevisión, TV3, and Spanish TVE.

The Telecommunications Act of 1996 allows cable companies to become integrated providers of the full spectrum of interactive broadband network services. This is rapidly changing the nature and reach of cable companies, as well as the services they offer. The convergence of services now permitted has allowed cable companies in Puerto Rico recently to start launching cable modem service, by which cable subscribers are able to access the Internet at very high speeds through the cable TV network. While not all cable systems offer this service yet, and those that do do not have it available in all areas they control, this is a rapidly changing situation. Cable companies have most of the required infrastructure ready, and with the completion of the Americas II submarine fiber-optic cable, all will further diversify their offerings.

Satellite Television

Unregulated by local agencies, the operations of satellite television in Puerto Rico are overseen by the FCC. As with cable TV, satellite television had its share of problems in the beginning. Initially, small mom-and-pop operators sold and installed deep-dish antennas, from the late 1970s. These never operated any sort of large-scale enterprise and were mostly unreliable. The island’s first taste of organized satellite TV came with the Alphastar service launched in 1997. Alphastar went dark, however, after falling into bankruptcy problems.

Direct-to-home satellite television was again made available through DirecTV Puerto Rico, which was established in mid-1999. It is a subsidiary of DirecTV Latin America (formerly Galaxy Latin America), a multinational company owned by Hughes Electronics Corporation and Darlene Investments, an affiliate of the Cisneros Group of Companies. DirecTV has grown rapidly and aggressively in Puerto Rico. It offers 130 video and audio channels, has 470 employees, and in late 2003 claimed to have 165,000 clients (DirecTV, January 2004). The other provider of satellite television is Dish Network, a subsidiary of EchoStar Communications Corporation, which predates DirecTV, operates only through dealerships, and has no offices locally. Independent information about this industry is still unavailable. Unverified data points to a conservative estimate of 300,000 subscribers to satellite television services at the end of 2003. If accurate, this would imply a penetration of about 23 percent for satellite services and a total penetration of close to 54 percent for both satellite and cable TV services combined. Since data available for satellite services is unverifiable and does not allow knowing whether the same households subscribe to both services or not, and if so, in which percentage they do, these last two statistics are only notional. Mediafax has plans to include audience measurements of satellite television homes in the near future.

Conclusion

The trends seen in Puerto Rico’s television industry suggest that further expansion and acquisitions, mergers, and realignments will take place. Minor players unable to compete will either disappear or be taken over. The post-1996 era has proven Puerto Rico to be an important market of interest to global players. Already major U.S. media companies such as NBC, LIN Television, and Univisión have obtained control of the principal television networks, and everything points to a continuation of this trend. Educational broadcasters enjoy relative success in that their audience share, although small, is steady, and investment in infrastructure and programming is increasing. Insufficient data exists to speculate about the future of religious channels. As for cable and satellite television, undoubtedly growth will continue in a still-developing market that has consolidated amid acquisitions by major U.S. and global media companies.