By Ashley Erika O. Jose, Reporter
TV5 NETWORK, Inc. said ABS-CBN Corp.’s failure to meet its financial obligations under their content supply agreement has become a burden, prompting the company to terminate the deal.
“TV5 recognizes the value of ABS-CBN’s well-loved programs to our viewers. However, their failure to meet their financial commitments to us has made it very difficult for us to compensate our own employees, talents, and partners who help deliver these programs to your homes,” TV5 Network said in a statement on Thursday.
ABS-CBN confirmed that it received the termination notice issued by TV5 for their five-year content supply agreement signed in 2023. The company said it remains committed to resolving the dispute.
“We have sought additional time to resolve this matter and are working urgently within the 30-day period we have been given. 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,” ABS-CBN said.
The company also denied that it deliberately withheld payments, saying such claims do not reflect its current financial situation.
“Should this partnership be terminated, we will find ways to reach you, our audiences. Just as we overcame the initial difficulties after losing our franchise, we will not abandon our Kapamilya and will find ways to continue serving you,” it added.
TV5 said the agreement required ABS-CBN to remit its share of advertising revenues on time.
“These amounts collected, our share being held by ABS-CBN for TV5, has reached such material value as to severely affect TV5’s ability to settle its own obligations,” the statement said.
TV5 noted that despite repeated appeals, ABS-CBN has not paid what is due or indicated its intention to do so.
“To be clear, we value the partnership with ABS-CBN and, as part of the same industry, understand ABS-CBN’s financial difficulties. But TV5 is also faced with its own challenges. We need the funds owed to us to continue serving you, our viewers. Our leniency, as well as forbearance, must now yield to the realities of this business,” TV5 said.
ABS-CBN said the financial challenges stem from the loss of its broadcast franchise, which “significantly reduced” revenues and caused ongoing losses.
“We deeply regret that this action has been taken at this critical juncture in our recovery, particularly as we continue to navigate the unprecedented challenges arising from our franchise loss,” ABS-CBN said.
For the third quarter, ABS-CBN’s net loss widened to P1.28 billion from P389.87 million a year earlier. Combined revenues rose 19.63% to P3.48 billion, while total expenses fell 7.85% to P4.58 billion.
Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said TV5’s termination is a major setback for ABS-CBN’s collaborative broadcast strategy and financial growth.
“[It] highlights deep operational and financial tensions between the two networks,” Mr. Arce said. “In the near term, the collapse of the deal could weigh on ABS-CBN’s expected revenue growth for 2026, as free-to-air partnerships have been critical in expanding audience reach and monetization after the loss of its own broadcast franchise.”
He added that the dispute could affect future partnerships, noting that termination may make potential partners more cautious.
“Escrow arrangements, and stricter payment terms likely to become standard in future content-sharing or block time agreements,” Mr. Arce said.
ABS-CBN said its transformation into a storytelling company has shown “steady performance improvement.”
In June, it projected a return to profitability within 18 months, citing higher advertising revenue and contributions from digital, film, and music operations.
For the nine months to September, ABS-CBN reduced its net loss to P2 billion from P2.41 billion despite lower revenues. Gross revenue fell 3.05% to P11.75 billion, while expenses dropped 10.99% to P13.52 billion. Advertising revenue rose 14.68% to P5.47 billion, while consumer revenue expanded 13.31% to P3.66 billion.
On Thursday, ABS-CBN shares fell by seven centavos, or 2.03%, to close at P3.38 apiece.
TV5 Network is part of MediaQuest Holdings, Inc., whose unit Hastings Holdings, Inc. — under the PLDT Beneficial Trust Fund — holds a majority stake in BusinessWorld through the Philippine Star Group.
