1 month ago
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Louella Desiderio - The Philippine Star
February 2, 2025 | 12:00am
MANILA, Philippines — The government should consider facilitating the entry of new players, clarify the regulatory oversight on blocktiming, as well as support policies to expand consumer choice to promote a competitive television industry, according to a study published by the Philippine Competition Commission (PCC).
The recommendations were made in a PCC market study titled “Blocktiming Practices in the Philippines Free TV Industry.”
The study found that the non-renewal of ABS-CBN Corp.’s franchise led to increased market concentration, with GMA Network Inc. emerging as the dominant player with a 93-percent market share.
“This concentration raised concerns about competition and access to broadcasting frequencies, as well as potential limitations on content diversity and audience choice,” the PCC study said.
Despite the ability of dominant networks like GMA to limit airtime access, the study found that TV networks would not be incentivized in foreclosing airtime based on existing industry practice.
Foreclosure takes place when a TV network refuses to offer time slots to content producers that are not affiliated with the network or when it charges exorbitant prices for time slots.
As networks recognize the value of diverse content, the study said it is unlikely for networks to secure shows from just one producer.
For a competitive and dynamic television industry, the PCC study recommends that the government takes steps to promote competition by supporting the entry of viable firms.
“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,” the study said.
It also recommends that the government reconsider the renewal of ABS-CBN’s franchise, provided it satisfies other regulatory requirements.
The PCC study also recommends clarifying the jurisdiction of the National Telecommunications Commission (NTC) on blocktime agreements.
A memorandum was released by the NTC to regulate blocktime agreements by requiring prior approval and imposing limitations on their duration and airtime allocation.
The PCC study said this information should be effectively communicated to the concerned stakeholders to ensure effective oversight of the industry, particularly in terms of implementing rules that may affect market competition.
“This will also clarify any misunderstanding that may arise from the interpretation of and compliance to the subject memorandum. A predictable regulatory environment can help foster a level playing field among players in the industry,” the PCC study said.
Another recommendation made by the study is to support policies that promote consumer choice and accessibility to content by investing in infrastructure that supports the growth of OTT services.
“This could include upgrading broadband networks and expanding access to high-speed internet,” the PCC study said.
In addition, the study recommends that PCC takes no further action in the free TV sector aside from monitoring the entry of new viable competitors and possible abuses of dominance so it can allocate its resources to sectors with greater impact on consumer welfare.
