With three–quarters of households in the Philippines glued to the TV screen, the potential for growth remains strong with continued investment in broadcast infrastructure and tie– ups between telco operators and TV networks. Media investment company GroupM estimates gross ad expenditure at US$1,038 million; TV leads the traditional media platforms garnering 77 percent of ad spend. According to a report from Kantar Media Philippines, ABS– CBN remained the national giant in 2009 with a 52.64 percent share of the free–to–air (FTA) market, followed by GMA at 40.09 percent, while TV5 holds a 7.27 percent share of the national FTA market. However, in the key Mega Manila market, GMA reigns supreme with a 49.29 percent FTA channel share, followed by ABS–CBN at 40.43 percent and TV5 with 10.28 percent. TV ratings ABS–CBN continued to lead the national primetime ratings in 2009, buoyed by a strong national broadcast infrastructure. ABS–CBN’s most popular programme May Bukas Pa (There is Still Tomorrow), with its theme of hope, resonated with viewers in a rough year caused by the global recession and catastrophes that hit the country. The programme topped the national primetime rankings chart at 37.3 percent. Bagging the second and third spots were other ABS–CBN programmes featuring the network’s top matinee idols – the local adaptation of the Korean series Only You (36.3 percent), starring Angel Locsin, Diether Ocampo and Sam Milby; and I Love Betty La Fea (36 percent), starring Bea Alonzo as the Pinay Beatriz Pengson. The network’s dramas Dyosa and Tayong Dalawa rounded up the top five. ABS–CBN’s TV Patrol World’s 34.1 percent share was responsible for making the show the country’s number one newscast and the only primetime news program to make it to the top ten (at sixth place) in Kantar Media’s survey. The ABS–CBN reality–drama show Pinoy Big Brother Double Up, which scored its strongest season to date with an average of 32.2 percent in its pilot airing, ranked seventh on the national primetime ratings list. Meanwhile ABS–CBN’s Katorse, which brought to life the story of Nene (Erich Gonzales) who got pregnant at the early age of 14, came in at eighth on the rankings list with an average rating of 30.2 percent. Lovers in Paris, another ABS–CBN drama, came in at ninth with 29.7 percent. The lone GMA programme, Mars Ravelo’s Darna rounded up the top ten with a TVR of 29.2 percent. GMA had a stronger showing in daytime ratings, with seven of its programmes making the top ten list. The nation’s current obsession with boxing proved to be a boon for GMA, which bagged the exclusive rights to air all Manny Pacquiao fights through a deal with Solar Sports, the agency which holds the Pacman’s contract up to 2013. Firepower Pacquiao vs Cotto topped the daytime ratings list at 45.2 percent, followed by The Battle of East and West: Pacquiao vs Hatton at 41.4 percent. Another Pacquiao match, against Cotto The Primer, came in fourth on the ratings list at 28.1 percent. Even without the Pacman, boxing matches remain a huge draw for daytime audiences. ABS– CBN’s broadcast of Mayweather vs. Marquez Number One Numero Uno came in third on the top–rated national daytime programmes with a TVR 32.5 percent, while GMA’s The Flash and the Furious, another boxing programme, rounded up the top five with a TVR of 27.8 percent. Meanwhile, GMA continues to dominate Metro Manila primetime ratings, with nine of its programmes in the top 10 chart. Mars Ravelo’s Darna tops the list with a TVR of 36.5 percent. Free–to–air The long–awaited entrance of Mediaquest, a PLDT subsidiary which bought TV5, is shaking things up. While ABS–CBN and GMA remain hard to beat, TV5 is slowly making headway in breaking the Philippine FTA duopoly. Appealing to a younger demographic it refers to as ‘Bagong Pinoy’ or new Filipino, the network is hoping to get an edge through its telco ties. Roberto ‘Bobby’ Barreiro, TV5’s executive vice president and chief operating officer looks forward to a challenging year. “For the longest time, viewers only had a choice between the two major players in the country. Our goal is to provide high–quality alternatives that will engage the viewers,” he said. With strong financial and infrastructure backing, the network is determined to give local viewers broader options. In October last year TV5 was bought by the Beneficial Trust Fund of PLDT, the country’s largest telco provider. PLDT chairman Manny Pangilinan took over the chairmanship of TV5, with EPLDT CEO Ray Espinosa as president. Since its purchase by PLDT, TV5 has embarked on a massive upgrade of its transmission equipment to enhance signal strength and expand its reach and coverage. On the content side, the network is assembling a high–caliber team of broadcast journalists, creative writers, producers and other key people for its new lineup of programmes. TV5 is also aggressively pursuing ties with content suppliers from around the world. Barreiro said the network has allocated over US$100 million to fund the upgrade, expansion and programming of the network. “Our chairman (Manny Pangilinan) is the first to admit the climb will not be easy,” Barreiro added. “We do not have illusions of an overnight success story, even if we are starting to win some battles this year. We anticipate a long, arduous, steep uphill climb. We expect all the players to step up their offensive.” One of TV5’s content strategies include breaking away from time–tested programming formulas to offer fresh alternatives. It recently launched talent search contest Talentadong Pinoy, and Jerry Springer style talk show Face to Face, which has paid off for the network. The grand finals of TV5’s Talentadong Pinoy beat ABS–CBN’s Pilipinas Got Talent in primetime ratings, garnering a 30.5 percent share of TV households in Mega Manila while the ABS–CBN programme had a 25.7 percent audience share, according to AGB Nielsen. In daytime ratings, Face to Face started strong in the pre– noontime ratings with a 10.6 percent audience share. While it edged out GMA–7’s talent show Diz Iz It! (8.9 percent), it failed to dislodge pre–noontime ratings giant Showtime (15.9 percent) from ABS–CBN. TV5 is looking to shake things up even more in the year ahead. “Filipinos are clamouring for change in many ways,” Barreiro said. “With the right combination of resources, we hope to provide change in many forms. We also hope to connect Filipinos everywhere and enhance lives through timely, relevant and engaging media experiences.” Mediaquest is also exploring the possibility of acquiring other broadcasting companies in the Asia Pacific region. Earlier this year Pangilinan said following their acquisition of a 75 percent controlling stake in ABC Development Corp., the owner and operator of ABC Channel 5, they have been approached by a number of investment banks from the region. The offers from these banks include the possible acquisition of television stations within the region, he said. Pangilinan told local media they are also in discussions with television stations owned by businessman Anthony Salim, chairman of Hong Kong–based First Pacific Co., on possible tie–ups. “This includes the possibility of Mediaquest investing in these TV stations,” he revealed. Pay TV Pay TV still has a long way to go in the Philippines. With a 9.3 percent channel share, cable TV remains a premium medium, and the market has considerable potential for growth. According to the Cable and Satellite Broadcasting Association of Asia (CASBAA), there are 14 million TV households, but only about 1.2 million households legitimately subscribe to subscription TV. An accurate estimate of the total number of subscription TV households is, however, difficult to come by because of chronic under–reporting by operators. Government charges are levied on the number of viewers, so it is in the operators’ interest to downplay their viewing figures. CASBAA estimates just under 1.7 million subscription homes exist in total. In Metro Manila, Sky Cable, Global Destiny Cable and Cable Link are the primary cable operators. SkyCable also has provincial affiliates, which carry the former’s brand and programming may vary from the one provided in Metro Manila. Sky Cable, a sister company of ABS–CBN, reigns supreme in the pay TV arena. In April last year Sky Cable announced it will be providing two high–definition (HD) channels – Discovery HD Asia and The History Channel Asia HD – to its cable subscribers in Metro Manila. A few months later it aired the Philippines’ first HD broadcast by featuring the four–day Ryder Cup. The company is also starting to offer more a la carte channels, introducing the All Sports Network in October. Despite Sky Cable’s digital offerings, HDTV take–up outside Metro Manila remains slow due to the high cost of HD set–top boxes (at around US$42 each). But the company continues to push HDTV with plans to upgrade up to 90 percent of its franchise areas into digital serviceable areas. It also entered into a marketing tie–up with Sony Philippines and consumer electronics retailer Abenson to allow shoppers to experience HD content at selected outlets in Metro Manila. Mediaquest is also stepping up the multi–channel media platform game through its subsidiary Mediascape’s Cignal Digital TV. The subscription– based direct–to–home (DTH) satellite TV service, launched on NSS–11 at 108.2 degrees East, partners with telco SMART Communications to offer postpaid and prepaid services at a low cost. Cignal offers around eight HD channels, including HBO HD Asia, National Geographic Channel HD, ESPN Philippines and Star Sports. For a basic 20–channel package, the monthly subscription is around US$8.25, with an initial installation and equipment fee of US$115. Global Destiny has also launched a DTH service named GSAT on NSS–11. Traditionally a cable service provider, Global Destiny Cable is expanding into satellite DTH to reach out to the large number of non–passed TV households. Piracy remains a major issue in the pay TV industry. Recently, CATV operators called on the National Telecommunications Commission (NTC) to impose a moratorium on the issuance of licenses to new CATV companies to avoid over competition in an industry reeling from the effects of rampant cable signal piracy. Philippine Cable Television Association (PCTA) president Leo Wong said CATV operators “are asking the NTC to stop issuing provisional authorities to new cable TV companies, particularly in areas that are sufficiently served by existing cable firms.” He told local media an area should only have a maximum of three CATV operators to allow them to realize a return on their investments within a reasonable time frame. Wong pointed out that aside from stiff competition with other operators, cable firms are also suffering from high revenue losses due to rampant cable signal theft especially in the urban areas. The PCTA head estimated that for each paying cable subscriber, there one illegal cable TV user. The 1:1 ratio translates to losses of around Php6.5 billion each year, he said. Meanwhile, the country is preparing for the entry of digital TV. NTC commissioner Gamaliel Cordoba said although much of the country is eagerly anticipating the introduction of digital TV service, other sectors see the entry of the same with guarded optimism. “I would not be surprised if the local cable TV industry is preparing for the digital revolution. In as much as digital television may impact on the cable TV business, broadband may be the key for the CATV industry on softening this impact. Enhancing your cable TV business through the optimization of broadband technology would certainly complement your current cable TV service,” Cordoba told local media. He noted that broadband deployment is a key step in the information and communications technology sector’s role in spurring economic growth and finding the country’s proper niche in the global information economy in the 21st century.
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