ABS-CBN to lose big if franchise not renewed

IF troubled TV network giant ABS-CBN fails to retain its franchise, this will inflict a massive toll on the Lopez-led group’s performance in the market, an analyst said.

“Telebroadcasting is a significant part of ABS-CBN, so a non-renewal of its franchise would be a drag to the company,” Japhet Louis Tantiangco, research analyst at Philstocks Financial Inc., told The Manila Times on Friday.

Tantiangco said without the franchise, the company would go through “challenging times as it builds new business strategies to cope with the new circumstances.”

It was in early 2017 when Duterte started his tirade against the network for allegedly airing biased stories against him. This was fanned by ABS-CBN’s airing of a political ad showing him cursing and making rape jokes.

The President in late December said it would be wise if the media giant sold the company because “it’s only now that Filipinos would be able to get back at your wrongdoings.”

ABS-CBN has kept mum on the issue.

Tantiangco said, however, that while the non-renewal of the franchise would be a “heavy opportunity loss” for the network, “it would most likely survive given that its income sources are diversified.”

Tantiangco said ABS-CBN could stamp its footprint in other businesses, including digital, cosmetics and financial technology.

In 2019, ABS-CBN began its venture into other industries, outside of media, which may “serve as a cushion” amid uncertainties with its franchise renewal. The network pursued its deals with cosmetics brand Ever Bilena Cosmetics Inc., information and technology firm iBayad Online Ventures and The Chosen Bun Inc.

On TV5’s openness to air ABS-CBN shows, Tantiangco said: “The blocktime agreement offer would entail costs for ABS-CBN, so we’ll have to look into this first.”

Cagayan de Oro Rep. Rufus Rodriguez said the House of Representatives should start acting on the pending franchise renewal, as he expressed support for the TV station.

“Congress must uphold the Constitution to ensure press freedom,” Rodriguez said.

The National Union of Journalists of the Philippines also launched an online signature campaign for 1 million signatures to urge Congress to extend ABS-CBN’s franchise.

As of 12 noon on Sunday, more than 26,000 people had signed the petition.

‘No constitutional crisis’

Palace spokesman Salvador Panelo said there would be no “constitutional crisis” if the Office of the Solicitor General (OSG) would file a case against ABS-CBN over alleged violations on its franchise.

Panelo was reacting to Sen. Panfilo Lacson’s warning of a “constitutional crisis” if the Supreme Court would grant the OSG’s quo warranto petition to revoke the media network’s franchise because its renewal was in the hands of Congress.

Panelo said Solicitor General Jose Calida had the responsibility to file cases against violators of the law. He added that charges in violation of the franchise were different from the issuance of a franchise.

Panelo said the unpaid taxes of the Lopez Holdings Corp., the parent company of ABS-CBN, was one of the bases for the quo warranto petition.

ABS-CBN’s franchise is set to expire in March. Republic Act (RA) 7966, which granted it 25-year franchise, was enacted on March 30, 1995.

Nine bills seeking to extend ABS-CBN’s franchise have been filed and are pending deliberations at the House of Representatives’ Committee on Legislative Franchises. Under RA 3846, radio and television broadcast stations are required to seek a franchise from Congress before being allowed to operate.

WITH DIVINA NOVA JOY DELA CRUZ

https://www.manilatimes.net/2020/01/20/news/top-stories/abs-cbn-to-lose-big-if-franchise-not-renewed/675896/