The Philippine Competition Commission (PCC) has released a study assessing the impact of blocktiming practices on competition in the Philippine free TV industry, highlighting the consequences of ABS-CBN’s franchise non-renewal and raising concerns over market concentration.
The study, titled “Blocktiming Practices in the Philippine Free TV Industry,” found that after ABS-CBN ceased its free TV operations in 2020, GMA Network now commands 93% of the market, leading to concerns about limited competition, content diversity, and access to broadcasting frequencies.
The report examined input foreclosure, where a dominant network could potentially restrict or overprice airtime for independent content producers, limiting their ability to broadcast programs. However, the study noted that most networks prioritize their in-house programming over blocktiming deals and are unlikely to engage in foreclosure since restricting content could reduce audience reach and advertising revenue.
The PCC study also flagged new regulations by the National Telecommunications Commission (NTC) that impose restrictions on blocktime agreements, including prior NTC approval and a 50% cap on blocktime programming. The report warned that these measures could create barriers to entry, increase operational costs, and potentially be used by dominant networks to favor certain firms while excluding others.
Despite these challenges, the study acknowledged that the rise of over-the-top (OTT) platforms—such as YouTube, Netflix, and iWantTFC—has helped mitigate the impact of limited competition in free TV by providing alternative distribution channels for content producers.
To promote competition, the PCC recommended:
- Issuing licenses to new TV stations to break GMA Network’s dominance.
- Reevaluating the non-renewal of ABS-CBN’s franchise, considering its impact on industry competition.
- Reviewing the NTC’s oversight on blocktime agreements, given that the Movie and Television Review and Classification Board (MTRCB) already regulates content.
The PCC underscored that a competitive free TV sector benefits viewers by ensuring a diverse and fair media landscape.
In a related development, Rep. Joey Salceda (Albay, 2nd District) filed House Bill No. 11252 on January 7, 2025, seeking to grant ABS-CBN a 25-year franchise to resume its free TV operations.
Salceda emphasized that ABS-CBN has been cleared of tax and ownership violations by the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR). He also pointed out the network’s continued service to Filipinos through digital platforms and blocktime deals despite its free TV shutdown.
The non-renewal of ABS-CBN’s franchise in 2020, which led to over 11,000 job losses, remains a contentious issue. Critics argue that the Duterte administration’s move to deny the franchise was politically motivated, restricting press freedom.
With the House Committee on Legislative Franchises set to deliberate on the matter, the possibility of ABS-CBN returning to free TV remains a key issue for media competition and public access to diverse programming.
