While Speaker Alan Peter Cayetano and his 70 allied congressmen thought rejecting ABS-CBN’s franchise will only affect the Lopezes, in reality, the shutdown has also affected the government.
During the budget hearing for MTRCB in the Senate, MTRCB Chair Rachel Arenas said the agency is in need of additional budget because of its dwindling income primarily due to the ABS-CBN shutdown.
Arenas said about 40% of revenue loss is projected by the agency due to the ABS-CBN’s closure.
“It would be about 40 percent,” MTRCB Chairperson said.
According to the report presented by MTRCB, ABS-CBN was able to contribute 22.7 million pesos in review fees to the agency in 2019. But in 2020 the Kapamilya network has only paid 7.40 million to the MTRCB because of its shutdown.
MTRCB earned P22.74 million in review fees from ABS-CBN in 2019, but only got P7.40 million this year after the Philippines’ largest broadcaster was denied of a Congressional franchise in May. pic.twitter.com/BM4KKLff2i
— Kat Domingo (@_katrinadomingo) October 2, 2020
ABS-CBN shut down its free TV broadcast on May 5 after NTC issued a cease and desist order following the network’s franchise expiration on May 4.
The house committee on legislative franchises through the votes of 70 congressmen rejected the Kapamilya network’s franchise application. Although several government agencies and departments have cleared ABS-CBN of violations as alleged by the Kapamilya network oppositors, the Cayetano-led Congress still voted to deny the ABS-CBN franchise application.
However, little they know that ABS-CBN’s non-renewal of the franchise will also have effects on the government as what the MTRCB is now revealing.
And that must be the reason why MTRCB is proposing to add online streaming services to their jurisdiction of media that will pass through their review process.
During the Senate hearing on Thursday, September 3, on the Internet Transactions Act, MTRCB legal affairs division chief Atty. Jonathan Presquito proposed for the regulation of Netflix and other streaming services.
“Streaming services like Netflix are video-on-demand platforms. We have to regulate those platforms,” he said.
Meanwhile, apart from MTRCB, the government will also feel ABS-CBN’s absence with the upcoming tax paying season.
From the previous years, ABS-CBN has been known to be one of the top taxpayers in the country. With their meager income from their cable channel, it will be a blow to the BIR that a large amount of tax will be lost this time from ABS-CBN and its retrenched employees.
