ABS-CBN losing close to P60M revenue a day since closure: P1.424M per 30-sec for prime time ads

Image from CNN Philippines

The shutdown of media giant ABS CBN is like a burning hole in the pockets of its major stockholder, the Lopez family.

ABS CBN’s closure after the cease and desist order issued by the National Telecommunications Commission (NTC) forced the network to sign off on May 5 and which greatly affected its operations.

In a report by Bilyonaro, the Lopez-led media network’s latest financial report as of September 2019 showed that it earned P23.3 billion in revenues, of which 68 percent or P15.98 billion came from free-to-air advertising.

The company has forgone roughly P58 million in estimate per day or P580 million since channels 2 and 23, DZMM 630 and MOR 101.9 radio stations went off the air.

“The actual impact on MNSE operations is difficult to estimate at this point since it will depend, among other things, on the duration of the time its television and radio stations are off-air, and its ability to generate alternative sources of revenues to make up for the shortfall,” ABS-CBN said.

“Even as the impact of the COVID-19 pandemic on the Philippine and global economy is yet to be fully realized, the order will put additional financial burden on the Company,” it added.

According to the obtained documents of Bilyonaryo, ABS CBN charges much as P1.424 million per 30 seconds of commercials on prime-time programs like “Ang Probinsyano” and “TV Patrol” from 6 p.m. to 10 p.m.

Meanwhile, the network charges as much as P83,020 per 30 seconds on provincial TV stations; P128,430 per 30 seconds on prime time DZMM radio; P28,540 per 30 seconds on MOR 101.9.

The Kapamilya, on the other hand, said that it would continue to produce and distribute content thru its active channels, which include the The Filipino Channel (TFC) and ABS CBN News Channel (ANC).

“The Company is exploring alternative means to reach its audience and substitute sources of revenues, such as but not limited to, expanding its digital platforms and developing new products,” it said.

On May 13, the House’s Committee of the Whole approved on second reading House Bill No. 6743 which grants the network a franchise until October 31, 2020.