Daven Tamayo

PCC flags 'competition concerns' in free TV after non-renewal of ABS-CBN's franchise

Article (news)

ABS-CBN News

MANILA - Regulations that limit the allowed blocktiming deals as well as the nonrenewal of the franchise of ABS CBN Corp have influenced competition practices in the free TV landscape, according to study released by the country&#x27;s antitrust body.  In the study &quot;Blocktiming Practices in the Philippine Free TV Industry,&quot; the Philippine Competition Commission cited &quot;challenges&quot; such as the &quot;increased market concentration,&quot; wherein GMA Network became the dominant player with 93 percent market share.  This, the PCC said, &quot;raises concerns about competition, access to broadcasting frequencies, and content diversity.&quot;  &quot;The exercise of market power may harm competition by curbing viewer choices and restricting the entry of content producers,&quot; it added.  In addition, the PCC also flagged the National Telecommunication Commission&#x27;s memorandum meant to regulate blocktime agreements, require prior NTC approval for blocktime deals and to limit airtime alloted to blocktime programming to 50 percent, among others.  Prior approval for blocktime deals &quot;could make it more difficult and expensive for firms to enter the market, raise prices, create regulatory uncertainty, and distort competition,” according to the study. It can also be used by TV networks to &quot;discriminate&quot; against certain firms or to favor others, it added. <div> PROMOTING COMPETITION </div> To address these competition concerns, the study recommends awarding more licenses to new TV stations, as well as the renewal of ABS CBN&#x27;S franchise.  &quot;Due to the current lack of rivalry in the free TV sector, the government could promote competition by awarding licenses to new TV stations, making it easier for new stations to start up. Likewise, relevant authorities may reconsider the renewal of ABS CBN&#x27;s franchise upon satisfying other regulatory requirements.  It also said it is crucial to evaluate whether the NTC&#x27;s prior approval over blocktime deals is effective, given that there are other bodies regulating contents such as the MTRCB.  Meanwhile, the study also cited that the impact of the issues raised were mitigated by the over-the-top (OTT) platforms, such as iWantTFC, YouTube and Netflix, which provide producers with alternative modes of distribution.  The PCC underscored the importance of fostering a competitive environment for the interest of the viewing public.  &quot;Ultimately, the success of free TV as a content distribution medium relies on robust competition and a supportive regulatory framework,&quot; the study said.  &quot;Enforcing regulations that fosters fair access to airtime, prevent discrimination, and encourage diversity and innovation can address these competition concerns protect consumer interests,&quot; it added.

Regulations that limit the allowed blocktiming deals as well as the nonrenewal of the franchise of ABS CBN Corp have influenced competition practices in the free TV landscape, according to study released by the country's antitrust body.

Regulations that limit the allowed blocktiming deals as well as the nonrenewal of the franchise of ABS CBN Corp have influenced competition practices in the free TV landscape, according to study released by the country's antitrust body.