The (OTI) opened a selection process to choose the host broadcaster for the seventh edition of the
OTI Festival, to which all its member broadcasters were eligible to apply. , which had won the
1977 festival for
Nicaragua with the song "Quincho Barrilete" performed by Eduardo González, had the intention to host the contest at the
Rubén Darío National Theatre in
Managua, according to an internal committee of the company. However, the
Nicaraguan Revolution was boosted by the
Sandinistas in order to topple the dictatorship of
Anastasio Somoza Debayle. The outcome of the revolution was a violent civil war which caused a human and economical catastrophe in the country, which prevented the broadcaster from submitting his candidacy. This was the first time that the winning broadcaster of the previous edition didn't host the following year. In March 1978, the OTI accepted at its 7th General Assembly the proposal of the Chilean broadcasters, among the applications it had received, and designated them as the host broadcasters of the 1978 festival. Four Chilean national television networks joined forces in order to host the festival. (TVN) organized the event together with (UCTV), (UTV), and (UCVTV). They agreed to allocate a budget of US$240,000 for the event. The
Teleton 1978, which was originally scheduled to take place on the day chosen for the festival, was pushed one week to 8–9 December, since TVN and UCTV had already made agreements with the OTI. The Chilean broadcasters staged the OTI Festival 1978 in
Santiago. The venue selected was the
Municipal Theatre, which is the most important stage theatre and opera house in the country, and can seat more than 1,500 spectators. It was opened in 1857 and was designed by Claudio Brunet des Baines. The building was built in French Neoclassical style and its entrance has been preserved despite the frequent fires, reforms, and reconstructions. They had full access to the venue from 24 November. Right after the festival, a farewell dinner for the participating delegations was held at the 's pergola. == Participants ==