Software company Stratpoint Technologies, Inc. shared how ABS-CBN’s shutdown affected their company’s revenue last year.
In an online briefing, Stratpoint’s CEO Mary Rose Dela Cruz said their revenue plunges last year following the shutdown of one of its biggest clients, ABS-CBN Corporation.
“The revenue decrease, a lot of it — I mentioned that ABS-CBN was a big client of ours — was due to ABS-CBN. We were actually impacted a lot by the shutdown of ABS-CBN,” Dela Cruz said.
Although there is an increase in demand due to the pandemic where businesses are shifting to cloud-based solutions, the company still dropped 30% in revenue last year due to their big clients scaling down.
“There’s increased demand, but what happened was that a big client of ours really scaled down, she added, noting that it caused a decline of up to 30% of the company’s revenue last year,” she said.
Dela Cruz added that the company grew 62.5% in their revenue in 2019 and they are hoping to return to that kind of growth in the coming year.
“Stratpoint, as an AWS company, is a builder of modern applications.” The company “specializes in providing agile software development, cloud, data engineering, and artificial intelligence (AI) services,” according to an article on Businessworld.
ABS-CBN has been bleeding financially following the shutdown of its free TV operations. The closure has impacted not just the media giant but other business which depending on it.
According to Direk Joey Reyes in an article by LionhearTV also, the representatives who voted against the renewal of ABS-CBN’s franchise did not realize that the Network’s closure has caused a significant change in the landscape of free TV, advertising, and other ancillary industries.
“What ‘they’ do not realize is that the closure of ABS-CBN does not only mean the end of a network but a major change in the landscape of free tv, advertising, and other ancillary businesses & industries,” said Direk Joey.
He also noted that the closure has implications on the economy and free entertainment.
“The implications to the economy and the very structure of free entertainment are now undergoing this drastic shift that can obliterate the model of accessible entertainment as we knew it before,” Direk Joey noted.
