Nearly five years after the events of May 5, it has become a subject matter in the lower House anew.
On Wednesday, February 5, the House Committee on Legislative Franchises, led by Rep. Gus Tambunting, held a briefing for the five bills seeking the revival of ABS-CBN franchise.
In the said meeting, various points were discussed, such as the recent Philippine Competition Commission (PCC) market study of the free-to-air television landscape in the country and the stance of ABS-CBN itself on the matter.
PCC REPORT
Representatives of the PCC expounded on their earlier market study, where they explained that in 2020, the year ABS-CBN shut its free TV operations, the market concentration in the terrestrial television industry increased.
The events of that year led to GMA Network, then-ABS-CBN’s chief rival, increase its market share (in terms of revenue) to 92.8 per cent, with the next big player, TV5, only stood at over 4 per cent.
Meanwhile, a year prior, in 2019, ABS-CBN’s market share was at 51 per cent, followed by GMA at 44 per cent.
Aside from its findings, the PCC also shared its recommendations before the House committee.
The commission said that it “supports government interventions and policies that promote a competitive and dynamic television industry in the Philippines.“
Some measures they hope lawmakers would be taking include the awarding of licenses to new players, enforcement of clear and consistent regulatory rules, and encouraging these policymakers to vouch for laws that promote consumer choice and access to content.
Johnny Pimentel, vice chairman of the committee, reacted to the PCC report, noting, “Clearly, the closure and the revocation of the franchise of ABS-CBN has greatly benefited GMA Network based on the presentation with a 92.8% market share and that is precisely a compelling reason on why we should grant a franchise to ABS-CBN.“
“I believe during that time ABS-CBN was airing, they were part of the Filipino culture already. We grew up with ABS-CBN. They gave us entertainment, they gave us information,” he continued.
“Actually, lahat ng kailangan na impormasyon natin sa pang-araw araw na buhay natin, karamihan ay nanggagaling sa ABS-CBN. Pero ito ay nawala sa isang saglit, because we decided to revoke the ABS-CBN franchise,” Pimentel added.
Meanwhile, Rep. Rufus Rodriguez, author of another bill seeking to grant a new franchise for the Kapamilya network, has called the the denial of its franchise in the previous Congress as “grave injustice” and “contrary to the Constitutional provisions on freedom of the press, the right of information of the people, and substantive due process of the law.“
Meanwhile, the National Telecommunications Commission (NTC) briefed the panel about the status of the free television industry in the Philippines.
It said that there are currently several players in the landscape and that it submits itself to the wisdom of Congress on whether they will grant ABS-CBN or any other company a new franchise.
In addition to that, the NTC also confirmed the availability of frequencies in some areas in the country. Which, in the event that the Congress grants a fresh legislative franchise for the Kapamilya network, the commission will be able to readily award to the station.
The Kapisanan ng mga Broadkaster ng Pilipinas (KBP) said that it is in support of a fresh franchise, noting that ABS-CBN was an active member of the organization prior to its shutdown.
Additionally, during the years that the Kapamilya network was operating, the market was able to saw a duopoly, where two major players were able to compete for supremacy in the free TV game.
The Movie and Television Review and Classification Board (MTRCB) also sided with the PCC report, as it shared that GMA Network also currently dominates the terrestrial television landscape on both analog and digital services.
ABS-CBN COMMENTS ON THE MATTER
The ABS-CBN management team, represented by its chief partnership officer Roberto Barreriro, also made their appearance before the panel.
He read a statement on behalf of the entire company, “Nagpapasalamat din po kami sa lahat ng miyembro ng Kongreso na naniniwala sa layunin ng ABS-CBN na maglingkod sa ating mga kapwa Pilipino.“
“We especially thank members of Congress who have authored, co-authored, or co-sponsored the House bills to grant ABS-CBN a new franchise.“
“ABS-CBN has always been guided by a clear mission: to be in the service of the Filipino and our audiences worldwide. Even as everything around us changes, we strive to deliver on this mission by creating quality content that touches, inspires, and empowers our audiences.“
“Our audiences now demand greater control over how and when they consume our content. It is therefore important for us to remain relevant by distributing our content on the widest array of platforms that technology will allow.“
“While we want to reach our audience anytime, anywhere, and in any medium and device, we know that for many Filipinos, the most practical and pervasive platform is still free-to-air television.“
“For this reason, we have continued making our programs available on television through content supply and partnership agreements with other TV networks. We are unrelenting in our desire to serve in the best way we can.“
ABS-CBN currently has active partnerships with GMA, TV5, Zoe Broadcasting Network (A2Z), Advanced Media Broadcasting System (ALLTV), and BEAM TV.
“We are grateful to our television partners who have helped us bring our stories to Filipinos nationwide.“
“The biggest loss has been our ability to reach our former audiences and the farthest and poorest in the country.“
“Nabawasan din po kami ng mga palabas na para sa current affairs at sa news.”
At present, ABS-CBN’s news programming on free TV only comprises of its flagship newscast ‘TV Patrol’ and current affairs shows ‘Tao Po’ and ‘My Puhunan.’
“If restoring our franchise allows us to reach them again and provide more options to all viewers, and if Congress feels this is a worthwhile objective, [then] we would fully support the achievement of this shared ambition.“
“However Congress decides, ABS-CBN will remain committed to continuing to transform lives by telling meaningful stories, being a catalyst of love of country, and promoting human good. It is this mission that keeps us going day in and day out, fuelling our passions in storytelling and service, now and in the future.“
Barreiro was also asked whether the network is committed to getting a new franchise, he said that they will be with the Congress “all the way,” should lawmakers feel it is a worthy firm to be given one.
ABS-CBN also added that they acknowledge and appreciate the PCC study, highlighting that their position of being in support of free, fair competition in mass media.
ABS-CBN FRANCHISE DEBACLE
In 2020, the Kapamilya network faced a major crisis when its legislative franchise to operate free-to-air stations on television and radio was not renewed by Congress.
It was served a cease-and-desist order by the National Telecommunications Commission (NTC) in May of that year, which affected its flagship channel 2 in Mega Manila, radio stations MOR and DZMM.
In July that year, 70 lawmakers voted to deny ABS-CBN’s franchise renewal application, while 11 rejected the motion.
That led to a major retrenchment exercise in the company by August of that year, with staffers in multiple departments like Current Affairs, Sports, Regional, and subsidiaries like KidZania affected.
Another blow to the network was the NTC’s recall order of frequencies it once operated, which were later reassigned by the commission to ALLTV, Aliw Broadcasting Network, and SMNI in early 2022.
Since then, ABS-CBN has largely pivoted into a content creation powerhouse, inking partnerships with multiple partners in television and streaming media.
Although, financially speaking, ABS-CBN Corporation has not yet posted any profit in the five years following the loss of its franchise.
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