The report, authored by Shereena S. Salas and Gwyneth R. Ramos, also highlighted concerns that this dominance could reduce content diversity and limit airtime access for independent producers.
The PCC also examined the impact of more recent regulations on block time agreements, where content producers buy airtime from networks.
“Ultimately, the success of free TV as a content distribution medium relies on robust competition and a supportive regulatory framework,” the PCC noted in the study.
“Enforcing regulations that foster fair access to airtime, prevent discrimination, and encourage diversity and innovation can address these competition concerns and protect consumer interests,” it added.
NTC restrictions
The National Telecommunications Commission (NTC) also requires prior approval for these deals and has capped block time content at 50 percent of a network’s airtime.
The PCC study noted that the new block time regulations could impact smaller networks, which often depend on such agreements for operations. It also raised concerns that the regulatory approval process may influence market dynamics, potentially affecting access to airtime for some players.
Even before the restrictions, most networks prioritized their own content over block time programming. However, since the NTC issued its memorandum, no new block time applications have been filed, suggesting that the new rules have discouraged such deals.
Internet TV disrupts industry
The study also pointed out that the rise of over-the-top (OTT) platforms like Netflix, iWantTFC, and YouTube has helped balance the market by offering alternative distribution channels.
These platforms give content creators more opportunities to reach audiences, reducing reliance on traditional free TV.
PCC recommendations
Increased competition: The government can increase competition in free TV by allowing new stations and reviewing ABS-CBN’s franchise renewal if it meets all requirements. More competition means better content and more choices for viewers.
Streamlined regulations: The NTC should clarify its authority over block time agreements to ensure fair competition and transparency. Clearer rules will help content producers access airtime.
Consumer choice: Supporting competition among TV networks and online platforms like OTT services will give viewers more content options. Expanding broadband infrastructure will also help more people access quality entertainment.
PCC to focus on market oversight: The PCC should monitor dominant TV networks while supporting new competitors instead of heavy regulation. Since social media and streaming platforms like Netflix and YouTube serve as alternatives to free TV, the PCC should focus on industries with a bigger impact on consumers.