TV5 expects to cut losses by half in 2018 amid ESPN deal, restructuring

The country's 3rd largest media network also says it expects to break even in 2019

Broadcast firm TV5 Network, Inc. expects to cut losses by 50% in 2018, mainly on the back of its continuous restructuring program and a new partnership with global sports broadcaster ESPN. This, in turn, is seen to help TV5 finally break even in 2019.

The country's 3rd largest media network had originally targeted to break even in 2013. It was then pushed back to 2017 and then 2019.

Former TV5 president and chief executive officer Emmanuel "Noel" Lorenzana in 2013 implemented a voluntary early retirement program for employees to curb financial losses. During that year, TV5 also slowed down the launch of new shows to cut expenses.

When Vincent "Chot" Reyes replaced Lorenzana, TV5 shifted its focus to sports and news programs in a bid to finally be in the black.

"We had a very good 2017. Our business improved by 43% in 2017, from 2016....If we go on the same kind of phase, then I think we will be able to achieve our target. Our partnership with ESPN enhances our ability to break even in 2019," Reyes said in a roundtable interview in Makati City on Monday, January 29.

Last October, Reyes had announced that ESPN 5 will replace Sports 5, starting with the PBA Finals Game 1 between the Barangay Ginebra San Miguel and Meralco Bolts that month.

Since the announcement, the TV5 chief said his network has seen significant improvement in its bottomline.

"There were 24 million page views in ESPN in December 2016. In 2017, that number jumped to 30 million views for the month of December. That's still ESPN, not yet ESPN 5, not localized yet. We just announced it in October last year in the Philippines, and that already jumped. So the traffic is going to give us opportunity to monetize and generate revenue," Reyes said.

"When we started showing NFL (National Football League) on TV5, the traffic in ESPN grew by 37%....It's not just TV but it's online, on your mobiles, desktops, that's the kind of business model that we're looking at for TV5," he added.

360-degree perspective

It was in 2009 when the PLDT group, through its unit MediaQuest Holdings, Inc., acquired ABC Development Corporation, the operator of TV5 in 2009. MediaQuest bought TV5 from the Cojuangco group for P4 billion, and acquired MPB Primedia of Malaysia, the network's major block-timer, for $16 million.

To cut expenses, TV5 terminated its partnership with Viva Communications, which handled the network's entertainment programs.

Reyes said restructuring is an ongoing concern for TV5, like most companies, as its business model evolves.

"It's not something peculiar. The reason it is an ongoing concern is because our business model keeps on evolving. By that alone, definitely there will be more changes," Reyes said.

The network's online news portal, InterAksyon, is also set to close down on March 31 "to consolidate all brands under News5.com.ph."

"We're approaching it really from a 360-degree perspective, not only in our content but even the way we monetize the content. If before we had an ad sales group that is focused on selling TV ads, now it's 360, even digital as well, online, are all part of that package," Reyes said.

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PTV and NEC Launch Digital Terrestrial Broadcasting Services in the Philippines

People’s Television (PTV), the Philippines’ public broadcasting network, has gone from analog to fully digital after the launch of the network’s digital terrestrial broadcasting system on January 2017. NEC Philippines, Inc. provided overall support for the introduction of digital terrestrial TV equipment, including its installation and the training of personnel, as part of enabling viewers to enjoy their favorite programs with better and clearer reception.

A “switch-on” ceremony was held at PTV’s studio in Quezon City and was led by the Secretary of the Presidential Communications Operations Office (PCOO), Martin Andanar.

Andanar said, “The administration’s goal of bringing the government closer to its people is now more achievable than ever.” At the time of his appointment, Andanar pushed efforts to modernize the state network. He envisioned PTV to be on par with its local counterparts in the country, and expanded the breadth and depth of PTV’s educational, cultural andinternational programs.

PTV General Manager, Dino Apolonio, said that the network must keep pace with its counterparts, both locally and abroad. “As the state network, we have to take it upon ourselves to lead the charge towards digital transition. It will be very beneficial for the people first of all, and we have to keep up with the rest of the world,” he said.

“NEC is proud to be working with PTV to expand the delivery of high quality broadcasting to a larger audience in the Philippines,” said Elizabeth Pangan, President, NEC Philippines. “As part of NEC’s focus on providing Solutions for Society, this equipment will help to ensure that broadcasting and access to information is reliably maintained, especially during times of emergency, such as when powerful storms strike the region,” she added.

DOTr to pursue unsolicited proposal for MRT-3 maintenance, operation

The Department of Transportation (DOTr) is pursuing an unsolicited proposal for the 30-year operation and maintenance of the Metro Rail Transit-3 to end the blame game associated with the repeated breakdowns of the MRT-3’s rolling stocks.

“Many of MRT-3’s problems in recent years resulted from successive short-term and fragmented maintenance contracts, and from finger-pointing due to having different entities maintaining and operating MRT-3,” the DOTr said in a statement over the weekend.

“DOTr is addressing this by pursuing an unsolicited proposal for the 30-year operation and maintenance of MRT-3. Original proponent status has been given to the proponent, Metro Pacific Light Rail Corp., and the proposal will be soon endorsed to NEDA [National Economic and Development Authority],” it added.

The DOTr also said it has formalized an arrangement with Japan for assistance in rehabilitating and maintaining the MRT-3, with the government of Japan nominating a service provider that “must be highly qualified and with a proven track record.”

The agency also apologized for the a smoke emitted from one of the seats of an MRT-3 train on Friday afternoon, causing the unloading of 600 passengers who had to walk along the sides of the railway to the nearest stations. The incident happened between the Cubao and Kamuning stations.

“The DOTr expresses [its]sincere apologies to those who were affected and inconvenienced by the recent smoke incident,” the DOTr said.

“Fault analysis is ongoing and in the interest of accuracy and transparency, DOTr has directed MRT-3 management to release to the public their technical findings at the soonest possible time,” it added.

The former maintenance provider for the MRT-3, Busan Universal Rail Inc. (BURI), said DOTr must stop blaming other parties and take full responsibility over the recent problems experienced by the MRT-3.

“DOTr fails to recall the fact that when they hurriedly took over the maintenance of the MRT3, it was an operational and safe MRT3. They failed to organize a transition team, composed of experienced rail engineers, to ensure the continuing safety and efficient maintenance of the MRT3,” BURI said.

“Is it not obvious that under BURI’s watch, such incidents like the uncoupling of trains on the mainline never happened?” the company added.