Manila, Philippines — Media giant ABS-CBN confirms receiving a notice of termination of its Content Supply Agreement with TV5, signalling an end to its supposed five-year agreement.
Signed in 2023, the dispute arose when reports of ‘delayed payment’ as well as ‘ploying to delay’ the payment of almost 1 billion pesos (US$16.9m) to TV5 emerged, to which ABS-CBN, in a statement, denied.
“There is no truth to any insinuation that ABS-CBN willfully delayed payment. Such characterisations fail to acknowledge the severe financial constraints imposed on us through circumstances beyond our control,” ABS-CBN clarified.
This pullout indicates that content agreement terms, including co-production of projects and airing of ABS-CBN programs on TV5, will be discontinued.
According to a report released by Bilyonaryo.com, TV5 demanded the payment of 946.16 million pesos (US$16m) on October 30 this year, an amount representing ABS-CBN’s share under the 2023 signed agreement. It was also stated that TV5 stressed these revenues underscore the latter’s alleged non-remittance.
ABS-CBN, on the other hand, issued on the same statement that they have been seeking ‘additional time to resolve this matter’, thus, working urgently within the thirty days allotted.
“While this timeline is challenging given our current circumstances, we are committed to finding a way to fulfill our obligations—not only to TV5 but to all our partners and stakeholders. We remain open to fair and reasonable solutions that recognize the extraordinary circumstances our company has faced,” the statement continued.
This notice of termination is said to be another stack added to the pile of what ABS-CBN stated as a ‘critical juncture in our recovery’.
It can be remembered that ABS-CBN was taken off air back in May 2020 after the National Telecommunications Commission (NTC) issued a cease-and-desist order, permanently stopping ABS-CBN’s free-to-air TV and radio broadcasting services.
While the media company has been adamant in applying for franchise renewal, the House of Representatives, two months after the order, has denied the re-application.
“It is our sincere desire to continue serving the Filipino and finding solutions that reflect the spirit of collaboration and mutual understanding—solutions that are best not only for our partners and us, but for the millions of Filipinos who depend on quality content,” wrote ABS-CBN.
In 2022, both TV5 and ABS-CBN entered a partnership deal where ABS-CBN is to acquire shares from the former. However, the said partnership was terminated just barely a month after the announcement due to regulatory concerns.
