GMA Network steps up overseas expansion

Broadcast firm GMA Network Inc. is stepping up its major overseas expansion program this year to boost profitability and establish a strong presence in the global arena.

The move is part of efforts to set up new and stronger growth platforms, built around a strategy of aggressive expansion in the international markets, the company said.

GMA said it launched its international operations in Japan early this month and in Guam just last week via direct-to-home (DTH) satellite. The network’s locally-produced shows can be seen through GMA Pinoy TV.

The broadcasting giant has also signed an agreement with IPS Inc. for the carriage of GMA Pinoy TV in Japan via the DTH platform.

GMA International Channel head of operations Joseph Francia said that since GMA Pinoy TV began its test broadcast in Japan last March 1, numerous inquiries for subscription and applications have been received. "While we have not done an official count as we are still on test broadcast, the response has been really positive," he said.

As for its Guam venture, GMA partnered with Guam Cablevision LLC for the distribution of GMA Pinoy TV.

Francia said subscribers of Guam Cablevision will be able to preview GMA Pinoy TV on Channel 21 for free until March 31 this year as actual subscription starts April 1.

GMA Pinoy TV delivers majority of GMA Network’s most popular news and public affairs and general entertainment programs that have made the network the top-ranked TV station in Metropolitan Manila.

The company said plans are under way to offer its programs to audiences in the United States and the Middle East. It is also keen on expanding its operations in Australia where an estimated 30,000 Filipino households are potential subscribers.

GMA is set to launch its international channel in the US next month and is close to hammering out an agreement with a leading cable company.

The network is also looking into marketing its soap operas in other countries, with the programs dubbed in the country’s local language.

GMA has spent about $4 million to upgrade its facilities in preparation for its international channel operations.

GMA is now debt-free after it fully settled a P1.9-billion five-year loan using internally generated funds. The network paid more than P543 million in principal and interest last Feb. 28. The loan, drawn in 2000, was used to upgrade its facilities and infrastructure and improve its production capabilities.

GMA chairman president and chief executive officer Felipe Gozon earlier said the company does not need to go public at this time as it has enough financial resources to sustain its expansion projects.

For this year, GMA has earmarked P600 million for its capital expenditures, which not include requirements for the international channel and Channel 11.

Citynet, a subsidiary of GMA, earlier entered into a co-production and blocktime agreement with Zoe Broadcasting Network which owns Channel 11. This would provide GMA with a new platform to showcase more innovative shows.

The controlling shareholders of GMA are the Gozon family which owns 35 percent, the Jimenezes (35 percent), and the Duavit family (30 percent).