ABS-CBN confirms receiving notice of termination for content partnership with TV5
ABS-CBN has confirmed media reports about receiving a notice that its TV Content Supply Agreement with TV5 "may end," but assured the public that it will find ways to reach its viewers no matter the outcome.
On Wednesday, Dec. 3, media outlet Bilyonaryo, citing documents it obtained, reported that ABS-CBN had a "ploy to delay" payments that "choked off nearly P1 billion in cash needed for day-to-day operations."
The Kapamilya network released a statement the following day, Dec. 4. “We deeply regret that this action has been taken at this critical juncture in our recovery, particularly as we continue to navigate the unprecedented challenges arising from our franchise loss,” it read.
ABS-CBN, however, noted that the "amounts and manner of the claims" in circulating reports "remain disputed."
The media giant stressed that it acknowledges its obligations to the Kapatid network and is “doing everything we can to address these payments.” These include seeking more time to resolve problems as they work urgently within the 30-day period they were given.
“While this timeline is challenging given our current circumstances, we are committed to finding a way to fulfill our obligations—not only to TV5 but to all our partners and stakeholders. We remain open to fair and reasonable solutions that recognize the extraordinary circumstances our company has faced,” it said.
“There is no truth to any insinuation that ABS-CBN willfully delayed payment. Such characterizations fail to acknowledge the severe financial constraints imposed on us through circumstances beyond our control,” it added.
ABS-CBN noted that it had to cease radio broadcasts and free-to-air TV in May 2020 to comply with the cease-and-desist order it received from the NTC. It also pointed out that its bid for a new franchise was rejected by the House of Representatives two months later, which it said “significantly reduced ABS-CBN’s revenues, causing the company to sustain losses for the first time since its return after Martial Law.”
“This was not a matter of choice or mismanagement, but a direct result of regulatory action that stripped away our primary revenue source. While some revenue streams have since recovered, ABS-CBN continues to operate at a loss as we work to rebuild,” the network stressed.
“Despite these formidable challenges, our transformation into a storytelling company has shown steady performance improvement, demonstrating our resilience and commitment to our stakeholders. While we are still short of realizing a full turnaround, our trajectory is clear and our dedication unwavering,” it added.
If the termination of their content partnership with TV5 pushes through, ABS-CBN assured the public that it will find ways to reach its audiences. “Just as we overcame the initial difficulties after losing our franchise, we will not abandon our Kapamilya and will find ways to continue serving you.”
“It is our sincere desire to continue serving the Filipino and finding solutions that reflect the spirit of collaboration and mutual understanding—solutions that are best not only for our partners and us, but for the millions of Filipinos who depend on quality content,” it said. “Being in the service of the Filipino will continue to guide all our actions, always putting the well-being of our audiences at the heart of our work.”
ABS-CBN thanked Kapamilyas—including its employees, artists, advertisers, and audiences “for their unwavering support and trust in ABS-CBN during this challenging period. Your solidarity gives us strength as we navigate these difficulties.”
The media company said further updates will be provided as they come.
TV5 says ABS-CBN 'failed to pay what's due' despite 'repeated appeals'
In a statement released later in the day, TV5 said while it recognizes the value of ABS-CBN's programs to its viewers, "their failure to meet their financial commitments to us has made it very difficult for us to compensate our own employees, talents, and partners who help deliver these programs to your homes."
The Kapatid network pointed out that its partnership with ABS-CBN "requires them to remit, on a timely basis, TV5’s share of revenues they collect from advertisers."
"These amounts collected, our share being held by ABS-CBN for TV5, has reached such material value as to severely affect TV5’s ability to settle its own obligations," it added.
"Despite our repeated appeals, ABS-CBN has failed to pay what is due. Neither have they given assurances, nor indicated, that they can or will," TV5 claimed.
The media network noted that it values its content agreement with ABS-CBN and understands the latter's financial difficulties as they are part of the same industry.
"But TV5 is also faced with its own challenges," it continued. "We need the funds owed to us to continue serving you, our viewers. Our leniency, as well as forbearance, must now yield to the realities of this business."
"To you, our viewers, rest assured that we are committed to serving you with the best programming, no matter what ensues from all these issues. Nananatili kaming tapat sa inyo, mga KAPATID!" it concluded.
ABS-CBN x TV5 partnership
ABS-CBN and TV5 in August 2022 announced that they had signed their long-negotiated joint venture to air Kapamilya shows on the Kapatid network.
In a joint statement, the two parties said they executed an "investment agreement" allowing the Kapamilya network to acquire 6,459,393 primary common shares in TV5. This represents 34.99% of the total voting and outstanding capital stock of TV5, for an aggregate subscription price of P2.16 billion.
Disclaimer: The Philippine STAR is part of MediaQuest, which also owns and operates TV5.
