Contributing Factors To Network's Demise
Many factors contributed to HTVN's demise, but three major issues stand out:
- Overly aggressive growth. HTVN's owners spent tremendous amounts of money to give HTVN maximum coverage and the very best facilities early on. It was a business strategy that was common in the late 1990s and early 2000s and it often proved disastrous, as revenues couldn't catch up with expenses fast enough to allow the company to continue operating.
- Too-narrow market focus. HTVN proudly announced that its focus would be on Mexican Hispanics, which are estimated to make up two-thirds of all Hispanics in the United States. However, that strategy reduced the potential market by up to 33% and omitted two of the top three Hispanic television markets in the United States, New York (whose main Hispanic demographic was Puerto Rican) and Miami (predominately of Cuban origin).
- Slow economy. HTVN launched at a time when the nation's economy was stumbling and conditions were exacerbated with the September 11, 2001 attacks, which further sent the economy reeling, drying up revenue.
Read more about this topic: Hispanic Television Network
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