ABS-CBN confirms receipt of a notice of termination of its TV Content Supply Agreement with TV5. 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.
Contrary to media reports, the amounts and manner of the claims remain disputed. We acknowledge our obligations to TV5 and are doing everything we can to address these payments. We have sought additional time to resolve this matter and are working urgently within the thirty-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. We remain open to fair and reasonable solutions that recognize the extraordinary circumstances our company has faced.
There is no truth to any insinuation that ABS-CBN willfully delayed payment. Such characterizations fail to acknowledge the severe financial constraints imposed on us through circumstances beyond our control.
In May 2020, two months after the COVID-19 lockdowns started, ABS-CBN was forced to cease its free-to-air TV and radio broadcasts following a cease-and-desist order from the NTC. Two months later, the House of Representatives denied our application for franchise renewal, officially taking ABS-CBN off air.
The franchise loss significantly reduced ABS-CBN’s revenues, causing the company to sustain losses for the first time since its return after Martial Law. This was not a matter of choice or mismanagement, but a direct result of regulatory action that stripped away our primary revenue source. While some revenue streams have since recovered, ABS-CBN continues to operate at a loss as we work to rebuild.
Despite these formidable challenges, our transformation into a storytelling company has shown steady performance improvement, demonstrating our resilience and commitment to our stakeholders. While we are still short of realizing a full turnaround, our trajectory is clear and our dedication unwavering.
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 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. Being in the service of the Filipino will continue to guide all our actions, always putting the well-being of our audiences at the heart of our work.
We thank our Kapamilyas, our employees, our stars and talents, our advertisers, and our audiences for their unwavering support and trust in ABS-CBN during this challenging period. Your solidarity gives us strength as we navigate these difficulties.
Further updates will be provided as developments warrant.
