ABS-CBN Corporation on Thursday confirmed it has received a notice from TV5 terminating their content supply agreement, but firmly denied allegations that it deliberately delayed payments owed under the partnership.
In a statement, ABS-CBN said it “deeply regrets” TV5’s decision, describing it as a setback at a time when the company is still navigating the financial challenges brought about by the loss of its broadcast franchise in 2020.
“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,” the network said.
ABS-CBN also clarified that contrary to reports circulated ahead of its statement, both the amounts and manner of the claims remain disputed. It added that it has asked for additional time to address the matter and is working within the 30-day period given by TV5.
”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,” the statement read.
Franchise loss
In the midst of the COVID-19 pandemic in May 2020, ABS-CBN was ordered by the National Telecommunications Commission to halt its free-to-air TV and radio broadcasts. Two months later, the House of Representatives denied its bid for franchise renewal, officially taking the network off air.
According to ABS-CBN, the franchise loss significantly reduced revenues and led the company to post losses for the first time since its return after Martial Law. The network stressed that the downturn “was not a matter of choice or mismanagement, but a direct result of regulatory action that stripped away our primary revenue source.”
While ABS-CBN noted steady improvements through its transition into a storytelling company, it said it continues to operate at a loss as it works toward a full financial turnaround.
The content supply agreement with TV5, signed in 2023, had been among ABS-CBN’s key strategies to regain free-to-air presence following the franchise denial.
Despite the possibility of the partnership ending, ABS-CBN said it will not abandon its audience.
“Should this partnership be terminated, we will find ways to reach you, our audiences,” the statement read. “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.”
ABS-CBN added that it remains committed to collaboration and hopes for “fair and reasonable solutions” that reflect mutual understanding and uphold the welfare of the millions of Filipinos who rely on its content.
