With the denial of their 25-year franchise license, ABS-CBN suffered major losses in their revenue, prompting the network to downsize its operations and to let go of thousands of employees.
After suffering P3.93 billion in losses, ABS-CBN has already initiated its retrenchment program where they are letting go of major units within the network.
ABS-CBN has shifted its focus on businesses that don’t require a legislative franchise such as international licensing and distribution, digital and cable businesses, and content syndication through various streaming services in order to reduce the impact of the denial.
Despite the odds, the network still has multiple upcoming ‘teleserye’ projects with prominent celebrities like Kathryn Bernardo and Daniel Padilla, Bea Alonzo and Richard Gutierrez, and Ivana Alawi. The main hurdle with this is the cost of production which would have been covered by revenue from the free TV airing of the said programs.
The major portion of the media company’s revenue comes from free TV through advertising since it has the largest audience compared to other platforms.
According to Star Magic Head Johnny Manahan, there are ongoing negotiations with GMA7 and TV5 regarding the projects of Star Magic talents.
“With the rejection of the franchise, cable and cyberspace became the only venues for network content. We began to look elsewhere for opportunities for our artists. Talks are currently underway with contacts from Channel 5 (TV5) and Channel 7 (GMA 7),” said Manahan,
With the negotiations, rumors surfaced regarding the plans of ABS-CBN to air their ‘teleserye’ projects with GMA Network and TV5 through a block time agreement.
TV5 head Manny V. Pangilinan says they are open to the idea of providing block time to ABS-CBN, while GMA Network has yet to make a statement. It is to be noted that GMA Network previously had block time arrangements with TAPE. Inc.
ABS-CBN can also possibly move into a new home like Zoe Channel (Channel 11) given that Zoe channel does not have a partnership with GMA Network.