Friday, May 15, 2020

Closure of ABS-CBN broadcast operations affects Filipinos in far-flung areas amid Ambo’s onslaught

Some checkpoint authorities in the border of Aurora Province were hopeful that media giant ABS-CBN will resume its broadcasting operations as the country faces its first typhoon, claiming it is the only network that has signal in far-flung areas.

Jeff Canoy, one of the network’s broadcast journalists who cover disasters, shared that he and his team encountered these police officers when they reached Aurora for the Typhoon “Ambo” (international name: “Vongfong”) coverage.

He narrated that when the authorities listed their names as they presented their identification cards issued by the Inter-Agency Task Force, one of the police officers asked him if he is one of the reporters who usually cover natural disasters.

Canoy confirmed this and he was later asked, “Babalik na ba kayo, sir?”

The reporter told the police officer that he and his team are just on their way to Aurora but the cop later clarified that he was referring to the network’s broadcasting operations and not their itinerary.

“Hindi sir. ‘Yung ABS, babalik na ba?” the officer asked.

Canoy answered that he is hoping the network can resume its broadcasting operations soon.

The police officer then told him that he is likewise hopeful for the network’s return, citing mobile signal woes.

“Facebook na lang ba kayo? Hirap ng data dito sa bundok, sir,” the officer said.

ABS-CBN went off the air on May 5, a day after its 25-year legislative franchise granted by the Congress on March 30, 1995 expired.

This was in compliance with the cease-and-desist order issued by the National Telecommunications Commission on May 5.

The network shifted its broadcasts to online platforms and other properties not affected by the closure order on May 7, where viewers can watch and listen to its news provided they have a stable internet connection.

The police officer claimed that in Aurora, only ABS-CBN has a strong network signal.

“ABS lang ang malakas ang signal dito. May bagyo ngayon, ‘di namin malaman kung ano nangyayari,” he told the reporter.

“Sana makabalik na kayo sir,” the police officer added.

Aurora is one of the provinces directly affected by Typhoon “Ambo” which has since made six landfalls ever since it entered the Philippine area of responsibility and initially landed on Eastern Samar on Thursday.

As of 11 a.m. today, parts of the province are under tropical cyclone wind signal number three which carries winds measuring 121 to 170 km/h expected in 18 hours.

The typhoon has so far complicated the country’s response in fighting the novel coronavirus as authorities enforce physical distancing measures in evacuation centers, among others.

Meanwhile, Canoy shared the whole story of the incident on Facebook, where it has gone viral with more than 6,000 shares and 39,000 reactions. He also shared this on Twitter.



Struggle of getting news updates

Other Filipinos in the comments section shared similar stories of residents supposedly having a hard time receiving news updates, citing that ABS-CBN is the only channel which their television and radios can pick signals from, living in far-flung areas.

“I got a tweet with similar concerns. Nag-aalala daw siya sa parents niya kasi malayo siya at sa lugar ng parents niya, ABS lang ang meron,” a Facebook user wrote and then shared a screengrab of the tweet.

The tweet reads, “Namomroblema po tuloy ang parents ko sa Sorsogon kasi sa munisipyo pa kami, malayo sa (siyudad). Wala silang mapapanoodan. Hay naku. Ngayon pa talaga. Without consideration ang NTC.”

Similar sentiments on the issue could also be found on the microblogging platform where Filipinos shared concerns about getting information while a typhoon is ravaging some parts of the country.




Another ABS-CBN broadcast journalist, Jervis Manahan, shared his fears over families affected by the typhoon whose only source of information is Channel 2.

“Nakakaiyak basahin ang mga comments at tweets ng mga taong nangangamba para sa mga kapamilya nilang taga-malayong lugar o isla ngayong may bagyo at walang ABS-CBN. Akala kasi ng publiko, lahat ng Pinoy may data, signal, o access sa social media. Hindi pala,” he said on Facebook.

“Nalalagay tuloy sa panganib ang mga tao. Sa halip na maging ligtas, mas nalalapit sila sa peligro. Paano kung hindi sila nakapaghanda sa bagyo?” Manahan added.

He recalled a past coverage where he interviewed a group of fishermen in Palawan who was nearly victimized by Typhoon “Vinta” which claimed more than 200 lives.

“Noong January 2018, sa Palawan, may mga na-interview akong mangingisda. Inabutan ng bagyo sa dagat. Na-radiohan naman noong malapit na ang Bagyong Vinta,” Manahan said.

“Pero nasira pa rin ang bangka, mabuti na lang at nakaligtas sila.Kaya naman napakahalaga ang access sa impormasyon at balita, kasi minsan, buhay ang nakataya,” he continued.

Manahan hoped that people who are against the network would consider others in far-flung areas whose only means of information is through television or radio which could only gather signals transmitted by Channel 2, especially in times of disasters.

Franchise renewal woes

The ABS-CBN shutdown affected 42 analog television stations, including the network’s flagship Channel 2, ten digital broadcasting channels, 18 FM radio stations and five AM radio stations.

The network’s franchise was supposed to be renewed by the legislative body this year but it has since languished in the Congress, particularly the lower House, where at least 11 of different bills have already been filed.

A blame game occurred among some members of the House of Representatives in which House Speaker Alan Cayetano accused the NTC of “ambushing” the lower House who he claimed was supposed to tackle the bill.

The NTC was reportedly threatened by Solicitor General Jose Calida prior to the issuance of the cease-and-desist order.

The lower chamber has since approved a bill giving the network provisional franchise up to December 31, 2020. Latest reports indicate that ABS-CBN’s provisional franchise has already been approved on the second reading.

Once it gets the House’s nod on the third deliberation, it would then be tackled by the Senate and will later be up for the president’s approval.

https://www.interaksyon.com/politics-issues/2020/05/15/168549/closure-abs-cbn-broadcast-operations-affects-filipinos-in-far-flung-areas-amid-ambos-onslaught/

ABS-CBN says 'all conditions, qualifications' present for franchise renewal

ABS-CBN Corp told the stock Friday that it has "all the conditions and qualifications" to renew its franchise, adding its shutdown would significantly affect media, networks and studio entertainment operations.

The country's largest media and entertainment company said it "has not committed any violation" of its franchise that would merit its non-renewal or the suspension of its broadcast operations.

On Wednesday, the House of Representatives passed on second reading a bill that would grant ABS-CBN a temporary franchise until Oct. 31. This will give lawmakers time to deliberate on pending bills for a fresh 25-year license.

ABS-CBN signed off on May 5, a day after after its franchise expired, on orders from the National Telecommunications Commission. The NTC later apologized to the House for failing to notify lawmakers of the shutdown order.

The MNSE or Media, Networks, and Studio Entertainments (MNSE) operations tallied revenues of P23.3 billion at the end of September 2019, of which, P15.9 billion or approximately 68 percent was from free-to-air advertising, ABS-CBN said.

Free-to-air advertising accounted for half of consolidated revenue fo the same period.

"Even as the impact of the COVID-19 pandemic on the Philippine and global economy is yet to be fully realized, the Order will put additional financial burden on the company," it said.

ABS-CBN is "exploring alternative means to reach its audience and substitute sources of revenues," which includes expanding its digital footprint, according to the disclosure.

The network's flagship newscast, TV Patrol, started airing on YouTube and Facebook, gaining millions of views.

The company will implement cost control measures reduce overhead expenses and rationalize capital expenditures. It is also formulating measures to protect the welfare and interest of its employees, according to the disclosure.

Below is the full text of ABS-CBN Corp's disclosure to the Philippine Stock Exchange on May 15, 2020:

Under the Order, the Company was directed to immediately cease and desist from operating its radio and television stations in Metro Manila and other regional stations (Channel 2, Sports and Action, DZMM, and MOR). On the same day, the Company advised its audience of the development and thereafter, signed off-air its television and radio stations in compliance with the Order of the NTC.

The Order will significantly impact the Company’s Media, Networks, and Studio Entertainments (MNSE) operations. For the period ended September 30, 2019, the revenues of this segment amounted to Php23.3B, of which, Php15.9B or approximately 68% of MSNE revenues, was free to-air advertising.

On a consolidated basis, free-to-air advertising was approximately 50% of the Company’s consolidated revenue for the period ended September 30, 2019. The actual impact on MNSE operations is difficult to estimate at this point since it will depend, among other things, on the duration of the time its television and radio stations are off-air, and its ability to generate alternative sources of revenues to make up for the shortfall.

Even as the impact of the CoVID19 pandemic on the Philippine and global economy is yet to be fully realized, the Order will put additional financial burden on the Company. As developments on these are still quickly evolving and changing from day-to-day, the Company finds that the transforming scenarios make assumptions, assessments and projections challenging and may not necessarily be valid or accurate for future scrutiny. Nonetheless, the Company has already undertaken and will continue to undertake measures to mitigate this impact and effect. Thus:

A. The Company continues to operate the following:

1. Media, Networks, and Studio Entertainment:

Content Creation – entertainment, news, sports, movie, music, channels, other content.

Content Distribution –The Filipino Channel (TFC), ABS CBN News Channel (ANC), Teleradyo, Cinema One, Metro Channel, Myx, Cinemo, Jeepney TV, and Yey

2. Cable, Satellite, and Broadband – Sky Cable, Sky Broadband, Sky Direct, and Sky on Demand

3. Digital and Interactive Media –iWant, abs-cbn.com, YouTube, Facebook, and other digital and other social media platforms

4. Consumer Products and Experiences – merchandise and promotional licensing, and physical experience business

B. The Company is exploring alternative means to reach its audience and substitute sources of revenues, such as but not limited to, expanding its digital platforms and developing new products.

C. The Company will continue to implement cost control measures, reducing general administrative expenses (GAEX) or overhead and rationalizing capital expenditures.

D. The Company is formulating measures to protect the welfare and interest of its employees.

As of September 30, 2019, the Company’s long-term debts amounted to Php21.336B. In light of the Order, the creditor banks have been apprised and are aware of the Company’s situation.

During these challenging and unprecedented times, the Company is committed to honor all existing obligations for goods delivered and services rendered by its third party suppliers.

Currently, we expect to pay all our bank debts in accordance with the existing payment schedule.

The Company intends to pursue such courses of action and shall exhaust all legal remedies available to it in order to resume its broadcasting operations. On May 7, 2020, the Company filed with the Supreme Court a Petition for Certiorari and Prohibition (the “Petition”), with urgent application of the issuance of a Temporary Restraining Order and/or a Writ of Preliminary Injunction (G.R Case No. 352119). In the Petition, the Company sought relief from the Supreme Court, as follows: (i) issuance of a Temporary Restraining Order, (ii) the issuance of a Writ of Preliminary Injunction after proceedings held and while the Petition is pending; and (iii) after further proceedings, the annulment and setting aside of the Order and declaration of permanent injunction, against the implementation of the Order. The following basic arguments were put forth and extensively discussed in the Petition in support of its prayer:

1. Direct resort to the Supreme Court is necessary and justified given the urgency and transcendental importance of the subject matter, and the grave and irreparable repercussions on public interest brought about by the issuance of the Order;

2. There is no plain, speedy and adequate remedy available to ABS-CBN other than the Petition;

3. Congress has the plenary power to grant and renew legislative franchises. Thus, instead of issuing the Order, the NTC should have just deferred to Congress;

4. The issuance of the Order deviated from past practice and violated the Company's right to equal protection of the law;

5. The Order likewise violates the Company's right to due process, because it was issued without due notice and hearing; violates the right of the public to information and curtail freedom of speech as well as cause serious and irreparable damage on ABS-CBN and thousands of its employees. Thus, strong public interest and equity demand that the Company be allowed to continue its operations.

Even as this Petition is pending, the Company is actively pursuing the renewal of its franchise from Congress and is ready to participate in any hearings or proceedings that may be scheduled at
any time.

In the current (or 18th) Congress, there are eleven bills, seeking the renewal of ABS-CBN’s franchise, which are currently pending with the House Committee on Legislative Franchises, as well as three (3) Resolutions in relation to the renewal or extension of ABS-CBN’s franchise.

As of May 11, 2020, the following developments transpired in the House of Representatives:

a. included in its Order of Business on said date the first reading of House Bill No. 6694, entitled: An Act granting the ABS-CBN Corporation (formerly ABS-CBN Broadcasting Corporation) a franchise to construct, install, operate and maintain television and radio broadcasting stations in the Philippines, and for other purposes.

b. issued an Order, dated May 11, 2020, requiring the NTC and its Commissioners to explain why they should not be cited for contempt or proceeded against for issuing the Order.

c. three (3) Congressmen filed a resolution seeking an investigation on the alleged violations of ABS-CBN Corporation of its legislative franchise.Then, on May 13, 2020, the House of Representatives Committee of the Whole approved on second reading House Bill No. 6732 (HB 6732) or “An Act Granting the ABS-CBN Corporation A Franchise to Construct, Install, Operate and Maintain Radio and Television Broadcasting Stations in the Philippines, and For Other Purposes”, which bill grants ABS-CBN Corporation a franchise valid until October 31, 2020.

In the Senate, two (2) Bills seeking the renewal of ABS-CBN’s franchise, as well as a bill seeking to extended the term of the franchise, have also been introduced before and pending with the
Senate Committee on Rules. Upon approval of HB6732 on third reading, it is expected that the bill will be transmitted to the Senate for its concurrence.

The Company is confident that it is has not committed any violation of the terms of its franchise, permits and licenses or any applicable law or regulations as to merit the non-renewal of its franchise or suspension of its broadcast operations as a consequence.

Thus, the Company believes that while a franchise is a privilege which is the sole prerogative of Congress to grant, it possesses all the conditions and qualifications to have its franchise renewed.
We are prepared to update this disclosure in due course and as soon as new developments arise.

https://news.abs-cbn.com/business/05/15/20/abs-cbn-says-all-conditions-qualifications-present-for-franchise-renewal

Multiply Tries for a Comeback Seven Years After Closed



KEY POINTS

  • When Multiply ceasing all business operations on May 31, 2013, its lenders took over its intellectual property, including the Multiply brand name.
  • Magdalinski is owning the company itself, which will operate the business supporting those brand.
  • Much of their business plan remains uncertain. It is exploring many options, including offices and partnerships.

Some former Multiply executives are looking to bring back the iconic website and all.

Multiply closed as a social networking site on December 1, 2012 and close down last May 6 and ceasing all business operations on May 31, 2013 along with the official online channels for the site had been removed along with all their content, including its YouTube, Twitter, Facebook and Instagram accounts, after years of financial and managerial turmoil and following a failed bid to reinvent itself from being a social networking site to a vibrant e-commerce destination in Southeast Asia.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced Friday on its website.

After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.

Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to businesses of its users.

“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

Whether the Multiply, can continue to operate in another form remains unknown. At issue is whether to withdraw liquidation petition against the company.

Mainland investor Si Rongbin’s China Culture Media, had sold the controlling stake in the former E-commerce and social networking site, refused to call it quits and pledged to keep Multiply’s brand name alive through archive photo and video services.

On June 12, 2013, Magdalinski said they had put in place Rp 8.9 billion for wages owed to former Multiply staff.

The Labour Department said earlier that around 400 former Multiply staff had applied for compensation through the Protection of Wages on Insolvency Fund, a safety net for employees affected by business closures.

On June 9, 2014 the company had earlier declared bankruptcy, saying it owes some $800 million from Philippine banks aside from $10 billion in debts from lenders in Hong Kong, Indonesia, Japan, Malaysia, Singapore and South Korea.

The company expected the financial restructuring to reduce its debt by $30 billion, as well as adding $3 billion of new investment, and refinancing other debt.

It was scheduled to announce the launch of a mobile application that allows to download and view their old photos and videos from Friendster, Multiply and Webshots accounts on the computers, smartphones and tablets.

Multiply Investor Secretary Rong Rongbin pledged shares of Star Platinum Corporation, which holds 99% of its shares, to borrow HK$300 million from Xiesheng Xiefeng to save the Multiply website but did not repay on time; therefore, Xiesheng Xiefeng in July 2013, it acquired the full equity of Star Platinum. It was also reported that about HK$35 million in unpaid wages of 640 former employees and HK$18 million of Insolvency Fund were also paid after the company has acquired its majority stake.

Its lenders, including Solus Alternative Asset Management and the Angelo Gordon investment firm, took control of the company's intellectual property, which include the Multiply brand name.

As of May 15, 2020, Multiply Media LLC based in Saint Louis, Missouri to own and manage the website, when the website itself to become its flagship brand.



Multiply is headquartered in Jakarta, Indonesia. Other employees include former Multiply workers, though it will be a "much tighter team overall" than those employed.

The full business plan for Multiply is still a work in progress, Magdalinski told CNBC. The new company is exploring multiple options, including offices. When asked whether Multiply would partner with Instagram, Magdalinski said he would “not take anything off the table at all.”

Its focus will be on growing the Multiply name. Globally, the website continues to operate worldwide, not just Indonesia and the Philippines, generating more than $20 billion in overall business operations in 2013.

“The Philippines is the biggest social networking market in the world,” said Magdalinski. “Fundamentally, this is the place where the business began Peter Pezaris.”

Multiply will look to avoid some of the pitfalls that brought down its predecessor. Unlike Multiply, which was criticized for failing to invest in its website and digital strategy, Multiply will put an emphasis on technology, Magdalinski said.

Still, to be successful, Multiply will need to win over social networking sites, many of which had fractured relations with Instagram following its closure. During its closure, the company had continued to operate from June 1, 2013 up to June 30, 2028.

“We fully appreciate the impact the bankruptcy had on our partners, and fact that it left our vendors impaired,” said Magdalinski. Although they were upset, Magdalinski said social networking users “recognize the value” Multiply brought to the industry.