ABS-CBN rewind/redux?

A bit of news that was in the main and social media last week was the filing by Congressman Salceda of House Bill No. 11252, to grant ABS-CBN a new 25-year franchise for a nationwide broadcasting network. This bill is actually the fifth bill filed to grant ABS-CBN a franchise, after their previous franchise was not renewed when Duterte was president, as the renewal was voted down by majority of congressman. Congressmen Rufus Rodriguez, Castro, Brosas, Bordado, and Pimentel have previously filed similar bills years back, but have not reached the House floor for deliberations.

Salceda’s bill got media attention because of his filing/timing it in the current fight between BBM and Duterte. There were allegations that Duterte orchestrated the non-renewal of the franchise due to the refusal of the network to show/air some of his campaign propaganda materials, and for taking the side of other presidential candidates. So, now that Duterte and VP Sara are out of the BBM administration, this is the best time for an ABS-CBN rewind/redux.

In the explanations in support of the Bill to grant ABS-CBN a new franchise, it stated that ABS-CBN had no pending SEC violations, no BIR tax cases/violations, or labor cases pending in the DOLE. More than 11,000 employees had to be terminated in the closure of the network after the end of its franchise. If the agencies, contractors, sub-contractors, and other ancillary business that serviced/supported ABS/CBN, the closure affected more than 100,000 workers and their families.

The shutdown also caused the closure of the extensive regional TV and radio stations of the network, and deprived the country and the people of a vital media and information conduit, especially during the time of the COVID pandemic and other national disasters/calamities. At the time of the closure, 38% of the Filipinos got their news and entertainment from ABS-CBN.

Still, there is an enormous irony in the ABS-CBN closure and the subsequent events. While it may have lost its physical network status and incurred large financial losses, after four years it is on the way to regaining its size, influence, and profitability. The rapid advances in information, transmission, and digital technologies made ABS-CBN regain and even expand its audiences.

It has become a successful content creator of news and entertainment that are fed into many multimedia and social media channels in the Philippines and in countries with large Filipino communities. Its news and entertainment contents are shown in almost all cable TV channels, YouTube, Facebook, Twitter, and even competing TV channels. It has become the top content creator in the Philippines, and already reaching a large audience even without a nationwide broadcasting franchise. In the current run-up to the mid-term Philippine elections, the political advertisements of many congressional/senatorial candidates who may have killed the ABS-CBN franchise are carried in the various media channels of ABS-CBN.

At this time, even if the ABS-CBN stock market price shot up by 20% last week, the principals and stockholders of ABS-CBN have not shown an urgency of getting a new nationwide broadcasting franchise. The business model that they have now seems to be working and the bank creditors are happy with the developments. They will have to be convinced that a revised business model incorporating a nationwide network will be as profitable and a long-term viability/strategy.

However, there is a nobler reason for an ABS-CBN rewind and redux, which is for the sake of the Philippines democracy and progress. A broad multi-owned and active media community is necessary for a vibrant functioning economy and democracy, and ABS-CBN has to be a major player in this fast-changing media environment.

In the short term political horizon, we can speculate who will benefit in the redux of ABS-CBN. So, let us see what will happen to the ABS-CBN franchise in the next three months and in the years leading to the 2028 presidential elections.