Franchise FAQ

why abs-cbn franchise is not renewed

by Vernice Moore Published 1 year ago Updated 1 year ago
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ABS-CBN's franchise was delayed because it was not prioritized by Congress Claim: A series of graphics on Facebook says that ABS-CBN Corporation’s pay-per-view service is the reason Congress did not renew their franchise.

Disputes between the government of President Rodrigo Duterte and ABS-CBN arose on the terms and conditions of the franchise renewal agreement. Amid the controversy, the Congress of the Philippines, country's legislature, was unable to renew the franchise before its expiration date.

Full Answer

Why was ABS CBN denied a franchise?

On July 10, members of the House of Representatives, particularly the Committee on Legislative Franchises, voted 70–11 to deny the franchise application of ABS-CBN, citing several issues on the network's franchise. ABS-CBN Corporation v. National Telecommunications Commission

Will ABS-CBN's franchise be renewed?

ABS-CBN is in danger of not having its franchise renewed when it expires on March 30, 2020. In the latest development, Senate Minority Leader Franklin Drilon filed a joint resolution seeking to extend ABS-CBN's franchise until the end of 2022.

Is Congress urged to decide on ABS-CBN franchise renewal Bills on merits?

^ "Congress urged to decide on ABS-CBN franchise renewal bills on merits". ABS-CBN News. January 24, 2020. Archived from the original on March 25, 2020.

What is the new channel of ABS CBN?

On June 4, 2020, ABS-CBN announced on TV Patrol that a cable-and-satellite channel named Kapamilya Channel will launch on June 13, resuming the productions of ABS-CBN's dramas and live entertainment shows and airing its entertainment, educational and current affairs programming, along with temporary movie blocks.

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Who assessed the worthiness of ABS-CBN?

In so doing, Congress assessed the worthiness of ABS-CBN to use the free airwaves owned by the state, through a thorough congressional deliberation on the many alleged violations of the said media network. The hearings were attended by members of Congress, ABS-CBN’s executives and lawyers, as well as resource persons from various government ...

Where is ABS-CBN headquarters?

This view shows the ABS-CBN network headquarters in Quezon City in the Metro Manila area on 5 May, 2020. (AFP Photo) After 13 comprehensive and exhaustive congressional hearings – the controversial franchise application of ABS-CBN was finally concluded on 10 July. On that day, members of the House of the Representatives Committee on Legislative ...

Why is a franchise given to a mass media entity?

The primordial consideration of why a franchise is given to a mass media entity is fundamentally based on the notion of the promotion of public good and public interest as deemed determined to be important by the state.

How long can a Philippine media network broadcast?

On the other hand, under Philippine laws, a media network needs a congressional franchise to broadcast via television and radio for 25 years.

Is ABS-CBN still in business?

ABS-CBN’s franchise has expired thereby it needs to apply for a new franchise for it to be able to operate. In the course of its application, Congress found the broadcaster to be underserving of a grant for a new legislative franchise. Therefore, Congress denied the application of ABS-CBN.

Is ABS-CBN a People's Initiative?

On another note, after the denial of its franchise application, ABS-CBN supporters are now pursuing a “People’s Initiative” (PI) to allow the media network to get its franchise. A lawyer who is a supporter of ABS-CBN has already drafted a proposal for a petition to grant the media network a franchise through a PI, arguing that the sovereign people can directly pass a law granting the media a franchise under Republic Act No. 6735 or the Initiative and Referendum Act.

Is ABS-CBN a public or private entity?

The ABS-CBN franchise application by its very nature and character is not a public legislation but a private one. The granting of a mass media franchise again is the exclusive entitlement of Congress and cannot be substituted by a PI.

How can ABS-CBN renew its franchise?

The process starts in the Legislative branch, where a House Representative must file a Bill for the franchise renewal. The attempt to renew happened several times now.

What is the franchise and why does ABS-CBN need a franchise?

Every TV and radio network in the Philippines needs a franchise to be able to broadcast their content over the airwaves.

Why is ABS-CBN in danger of not getting a franchise?

The simple answer is that President Rodrigo Duterte has openly declared that he would object to the renewal of an ABS-CBN franchise.

What happens to ABS-CBN if it loses its franchise? Will it cease operations?

ABS-CBN will have to stop its broadcasting arm , which includes its television and radio channels. The following TV stations may be taken off the air: ABS-CBN channel 2, ABS-CBN Sports and Action, The Filipino Channel, Kapamilya Box Office, Jeepney TV, Knowledge Channel, Metro Channel, Myx, O Shopping, and all its regional channels.

What is the quo warranto petition filed against ABS-CBN?

Although this is still about ABS-CBN’s franchise, it is not connected to the bills seeking a franchise renewal submitted to Congress.

How long does ABS-CBN license last?

Only then can it become a law that will extend ABS-CBN’s license to operate for another 25 years. The bill will then have to be signed by President Rodrigo Duterte or it can automatically lapse into law if the President fails to sign it and does not veto.

What is the OSG against ABS-CBN?

Solicitor General Jose Calida claimed that the Kapamilya network committed “highly abusive practices” that should result in the outright cancelation of its franchise.

When did ABS-CBN shut down?

In my view, the shutdown of ABS-CBN on May 5, could not have happened at a worse time – in the midst of a do-or-die battle against an unseen enemy that has wrought medical, financial, and sociological havoc on the lives of every Filipino.

What percentage of consumers rely on TV?

Since market studies show that up to 90 percent of consumers rely on TV and almost 60% on radio for relevant information before making purchase decisions, it is easy to see why there is no comparable substitute for broadcast airtime when it comes to reaching and convincing the largest target audience base.

Does the shutdown limit the ability to concoct an optimized media mix?

Not only does the shutdown limit the ability to concoct an optimized media mix, it also creates an artificial shortage of advertising inventory by substantially slashing the supply of prime advertising airtime.

Is ABS-CBN an early adopter?

By being an early-adopter of DTTV, ABS-CBN is a major market force that compels other networks to follow suit, thereby accelerating the digital transition timetable. Without an early-adopter willing to take the risks inherent in shifting to new technologies, the transition to DTTV in the Philippine broadcasting industry would be much slower.

Does ABS-CBN have free to air?

That said, the digital platforms of ABS-CBN, while robust, will not supplant its free-to-air broadcasting, at least in the short term, because the media giant relies on its brick-and-mortar operations to create content and generate revenues.

Is ABS-CBN a franchise?

Absent a congressional broadcast franchise license, ABS-CBN has reached out and remained relevant to global and local audiences via its digital platforms. In similar fashion, loyal consumers are also using these Internet platforms to preserve connections with their favorite ABS-CBN programs and personalities.

Will ABS CBN supplant free to air?

4. Consumption of ABS CBN’s content in their digital platforms will increase but probably will not supplant its free-to-air broadcasting.

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Overview

The ABS-CBN franchise renewal controversy is a national dispute in the Philippines regarding the renewal of the congressional franchise that would have allowed Philippine media network ABS-CBN to continue broadcasting.
Disputes between the government of President Rodrigo Duterte and ABS-CBN arose on the terms and conditions of the franchise renewal agreement. Amid t…

Background

As prescribed by the American Insular government-era Act No. 3846, or the Radio Control Act, which became effective in 1931 (later amended in 1963), broadcasting networks require a congressional franchise to operate television and radio stations, which usually lasts for up to 25 years. ABS-CBN, which had been operating since June 13, 1946, made its first television broadcast on October 23, 1953, had last been granted a 25-year franchise extension on March 3…

History

In 2014 and 2015, ABS-CBN requested the 16th Congress to tackle the extension of its franchise early, although its renewal was not due until six years later, in 2020.
Media sources in the legislature indicated that the network's 2016 initiative was the result of having been "particularly singled out" by supporters of President-e…

Reactions, impacts, effects, and aftermath

Before the expiration of the broadcast franchise, ABS-CBN talents and employees conducted weekly demonstrations in front of its headquarters in Quezon City as well as in its regional stations from January to February 2020. During these demonstrations, presidential daughter and incumbent Davao City mayor Sara Duterte-Carpio expressed support for the franchise renewal.

See also

• Media of the Philippines
• Television in the Philippines
• 1972 Martial law under Ferdinand Marcos - era lasted from 1972 until 1981 that forced the closure of ABS-CBN for the first time.
• 2007 Venezuelan RCTV protests – triggered by similar government action to shut down a private television network

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