Media conglomerate ABS-CBN announced that is now focused on its internet and cable interests following the closure of its main broadcast operations.
In order to minimize expenses, the organization announced that it would continue to introduce cost management steps, such as the elimination of labor costs, the rationalization of capital spending, and the streamlining of the workforce,
In a statement to the Philippine Stock Exchange on Thursday, July 23, the company announced that it will continue to operate in businesses that do not need a statutory franchise.
“The Company plans to continue to operate in other businesses that do not require a legislative franchise, such as, international licensing and distribution, digital and cable businesses, as well as, continue with the syndication of content through various streaming services.”
The business shift will also take into consideration the probable shift of consumer behavior especially in times of the COVID-19 crisis that we are experiencing,
“The Company takes into consideration the probable shift of consumer behavior in terms of accessing content, as well as, the ever-changing technology available to the public. Likewise, the Company takes into consideration the impact of COVID 19 in other business segments.”
ABS-CBN also announced that it would study existing business models for a “more flexible, efficient, and profitable organization.”
With this, the beleaguered media giant will pursue “any possible solutions” and “courses of action” while concentrating on its other businesses to move growth forward.
The House of Representatives Legislative Franchises Committee recently voted to reject ABS-CBN’s application for a new 25-year franchise, while the National Telecommunications Commission ordered the company to abandon its digital terrestrial TV network, resulting in drastic cuts and job losses for thousands of Filipinos.
The denial of the franchise impacted the free-to-air advertisement division of the group, which accounted for 50 percent of the combined sales at the end of September last year.