EMI Music and Grupo Televisa, the world’s largest Spanish-language media company, have announced a major new partnership that will include the formation of a new joint-venture record company in Mexico and enlist Televisa’s aid in strengthening EMI’s Latin operations in the U.S., the companies announced today.

The 50/50 joint venture, to be named Televisa EMI Music, will focus on developing and market music from the stars of Televisa’s “telenovela” programs, which have titles such asd “Rebelde” and “Complices al Rescate.” TEMIM will also produce TV-advertised compilation albums, to be manufactured and distributed by EMI’s existing infrastructure.

TEMIM also plans to sign and develop recording artists in Mexico, a market which the IFPI valued at $360 million in 2004. That’s a before-piracy figure, of course.

As part of the deal, EMI will provide Televisa with working capital and will license various compilations and artist releases. For its part, Televisa will provide media support. EMI Music’s existing EMI Music Mexico division will continue as a separate operation.

Meanwhile, Televisa will team with EMI Music in the latter’s U.S. Latin-market operations, which will be renamed EMI Televisa Music. Miami-based EMITM, which will include such artists as Thalia, Intocable, AB Quintanilla & Kumbia Kings and Vico C. Televisa will contribute media support in a bid to broaden EMITM’s presence in the growing U.S. Latin market.

Both TEMIM and EMITM will be headed by Rodolfo Lopez-Negrette, currently the Director of Televisa Music. He will report to both EMI Music Latin America President/CEO Marco Bissi and Televisa Entertainment General Director Javier Prado.

Said EMI Music Chairman/CEO Alain Levy of the pact, “Developing local artists and music from all regions is central to EMI Music's strategy. By partnering with the largest media company in the Latin market, we will further develop our already strong artist base, drive growth and generate significant new revenue streams in our Latin American and U.S. Latin businesses. We are looking forward to combining our knowledge of the music market with Televisa's experience and direct connection to consumers and powerful reach to grow our share significantly in the Latin market over the coming years.”

Said Grupo Televisa Chairman and CEO Emilio Azcarraga Jean, “Televisa is delighted to reenter the music business through this partnership with EMI, one of the biggest record companies in the world. This partnership fits with Televisa's strategy to look for new opportunities in the U.S. Latin Market and will enrich Televisa's sources for content while leveraging its different media platforms. We are looking forward to partnering our resources with EMI's strength, experience, vast distribution network and infrastructure in the music business, which will undoubtedly contribute to Televisa's expansion and consolidation in Latin America.”

As part of the Televisa EMI Music deal, either EMI or Televis will have the right to acquire the other's interest in the venture according to a mutally-agreed-upon formula. In the case of EMI Televisa Music, a buy/sell clause will provide that Televisa may require EMI to purchase its rights, or EMI may require Televisa to sell its rights to Televisa's participation.

Both ventures will proceed pending regulatory approval.