ABS-CBN’s management, during several past occasions, had publicly stated it was no longer seeking a broadcast franchise after lawmakers during Duterte’s term killed its free television license, leading to heavy financial losses and thousands of job cuts during the pandemic.
“While we were not aware of Rep. Joey Salceda’s filing of a bill to grant a broadcast franchise to ABS-CBN today, we are deeply grateful for his support and belief in ABS-CBN’s contributions and mission to serve the Filipino public,” the media group said on Tuesday.
Previous bills were filed in Congress, but these continue to languish at the committee level, according to a report by Rappler.
“We would also like to express our sincerest thanks to Reps. Gabriel Bordado Jr., Arlene Brosas, France Castro, Raoul Manuel, Johnny Pimentel, and Rufus Rodriguez, who have previously filed similar bills,” ABS-CBN said.
Stock market reaction
ABS-CBN share price surged 23.4 percent to P5.06 each after news of the Salceda filing broke.
“There are pending bills but no action. Hopefully, the upcoming midterm elections would provide the impetus for lawmakers to act on the franchise renewal,” Alfred Benjamin Garcia, research head at AP Securities, said in a text message.
ABS-CBN shares were trading near P20 per share before its franchise bid was killed by lawmakers on July 10, 2020.
Why a franchise is less valuable today
Even if it obtained a broadcast license, the company’s original TV frequencies have already been reassigned to the powerful Villar family’s Advanced Media Broadcasting System (AMBS), which operates All TV.
To stem losses, the company was also forced to sell assets, including TV transmitter equipment, in recent years, according to its financial filings. Since then, it has shifted its focus to producing content such as television shows and movies.
This dramatic pivot proved successful, demonstrated by the record-breaking “Hello, Love, Again,” which earned over P1.4 billion as of last month.
“It’s unclear what they would do with a franchise now that AMBS holds the frequencies and they don’t have broadcasting equipment on-hand,” Garcia said.
Does ABS-CBN still want a TV franchise?
While recovering a television license can’t hurt, ABS-CBN CEO Carlo Katigbak had previously stated the company shifted its strategy to that of storytelling.
During the company’s 2022 annual stockholders’ meeting, Katigbak questioned the need for a franchise, stating they have “yet to decide whether a new franchise is aligned with our strategic plans.”
He issued similar statements in early 2024 when rumors spread they were seeking a new license to air television shows.
“We want to make this clear. There are no plans to apply for another broadcast franchise,” Katigbak said in a letter to employees on Jan. 31, 2024.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
