GMA7, TV5 expected to boost investments in content and infrastructure

Broadcast media firms, especially GMA Network, Inc. and TV5 Network, Inc., are expected to boost their investments in content and infrastructure to take advantage of ABS-CBN Corp.’s shutdown.

“If you are in the analog TV space, you need to invest in content. Will the media companies be able to produce programs that will click with the Filipino viewers? Will they be able to invest in and set up infrastructure fast enough to ensure that they can approximate the footprint of ABS-CBN particularly in rural Philippines which still accounts for about 50% of our population?” Kantar Media Philippines Managing Director Jay G. Bautista said in an e-mailed reply to questions last week.

GMA Network Chairman and Chief Executive Officer Felipe L. Gozon told BusinessWorld via e-mail on Monday that the network, aside from the additional digital channels it plans to launch within the year, will also announce a “major project” soon.

“It is important to note that all these were conceptualized prior to the coronavirus disease 2019 (COVID-19) pandemic,” he added.

GMA has launched its own digital terrestrial television (DTT) receiver called the “Affordabox.”

PLDT, Inc. Chairman, President and Chief Executive Officer Manuel V. Pangilinan, who also chairs TV5, said in December that he was open to a blocktime deal with ABS-CBN.

In June, he said Cignal TV, a PLDT-affiliated company, was in talks with ABS-CBN.

Mr. Pangilinan did not immediately respond to BusinessWorld’s request for comment and interview on Monday, but he was quoted as saying in a Philippine Star report that TV5 is “revving up” its entertainment content; hence, it is ready to offer jobs to ABS-CBN’s displaced employees.

Voting 70 to 11, the House of Representatives Committee on Legislative Franchises had rejected the application for a franchise renewal of ABS-CBN — a media company critical of President Rodrigo R. Duterte — saying the broadcaster was “undeserving” of the privilege.

“As we all know, around 70% to 80% of TV viewing was shared between ABS-CBN and GMA, prior to ABS-CBN’s shutdown. With the non-renewal of ABS-CBN’s franchise, GMA has a virtual monopoly garnering almost two-thirds of TV viewing,” Ruperto “Jun” S. Nicdao, Jr., president of Kapisanan ng mga Brodkaster ng Pilipinas (KBP), said in an e-mailed reply to questions last week, citing the latest survey by Nielsen Media Research.

He noted that the other networks such as TV5 and GMA News TV, operated by GMA Network’s wholly owned subsidiary Citynet Network Marketing and Productions, Inc., also increased their shares after the shutdown of ABS-CBN.

“TV5 rose from around 2.8% to 9.5% while GMA News rose from 1.2% to 4.3%,” Mr. Nicdao said.

Nielsen told BusinessWorld via e-mail that CNN Philippines is currently at rank 21st.

“Overall TV viewing suffered a decline which indicates that not all former ABS-CBN viewers shifted to competition. Some continued to follow ABS-CBN content on their digital platforms, but the increase in digital viewing is nowhere near what they lost in terrestrial TV. I think ABS-CBN will continue to push these non-terrestrial platforms (digital and cable) and will probably accelerate the digital transformation of a lot of viewers,” Mr. Nicdao said.

From May 6 to May 12 — when ABS-CBN went off air — the total day viewing in the Philippines had declined by 5%, equivalent to 4.3 million viewers, from 20.9% total day viewing from April 29 to May 5, Nielsen said in its latest report.

Also based on a survey by Nielsen, 81.60% of ABS-CBN’s viewers said they would switch to other free-to-air channels while 13.20% would go to cable TV. About 9% said they would go to other online platforms while only 4.20% expressed they would follow ABS-CBN’s programs on its online platforms.

“GMA will benefit given their reach and comparative content to ABS-CBN while it will be interesting to see how the other networks (free to air and pay TV) will position themselves to attract the analog viewers of ABS-CBN who do not have the disposable income to go online and follow their favorite shows,” Kantar Media’s Mr. Bautista said.

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KBP’s Mr. Nicdao said the non-renewal of ABS-CBN’s franchise limits the options for advertisers to reach their customers, and they will probably be looking at alternative platforms including “digital and below-the-line executions.”

Philippine Association of National Advertisers (PANA) President Martin Tiu Lim said in a recent interview with dzMM that advertisers are now forced to transition to online platforms and other means.

In the first quarter, advertisers spent a total of P114.33 billion on TV, 5% lower than P120.66 billion spent during the same period last year, according to Nielsen.

Mr. Lim said due to the pandemic crisis, many advertisers have stopped their advertisements in each network. “But not all advertisers from ABS-CBN will go to the other networks. They will possibly go to online platforms, radio and newspapers,” he added.

In a phone interview, Community Broadcasters Association of the Philippines (CBAP) President Sammuel T. Batiancila said small radio companies will surely benefit from ABS-CBN’s absence.

“We are planning to open an office in Manila to represent all community radio stations in the country,” he said. “The group will meet with giant companies for possible advertisement deals.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
By: By Arjay L. Balinbin, Reporter|BusinessWorld

Source: Peso Economics