ABS-CBN confirms receipt of a notice terminating its TV Content Supply Agreement with TV5. We deeply regret that this action comes at a critical point in our ongoing recovery, as we continue navigating the unprecedented challenges stemming from the loss of our franchise.
Contrary to media reports, the amounts and terms of the claims remain disputed. We fully acknowledge our obligations to TV5 and are taking all possible measures to address these payments. We have requested additional time to resolve this matter and are working diligently within the thirty-day period provided. While this timeline is challenging under our current circumstances, we remain committed to fulfilling our obligations—not only to TV5 but to all our partners and stakeholders. We continue to seek fair and reasonable solutions that account for the extraordinary challenges our company has faced.
There is no truth to claims that ABS-CBN has willfully delayed payment. Such characterizations overlook the severe financial constraints imposed by circumstances beyond our control.
In May 2020, shortly after the COVID-19 lockdowns, 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 franchise renewal application, officially taking ABS-CBN off the air.
The loss of our franchise caused a significant decline in revenues, leading the company to sustain losses for the first time since its post-Martial Law return. This was not a matter of choice or mismanagement but a direct result of regulatory action that removed our primary revenue source. While some revenue streams have since partially recovered, ABS-CBN continues to operate at a loss as we work toward rebuilding.
Despite these challenges, our transformation into a storytelling-focused company has shown steady improvement, demonstrating our resilience and dedication to our stakeholders. While full recovery is still a work in progress, our trajectory remains clear, and our commitment unwavering.
Should this partnership with TV5 be terminated, we remain determined to reach our audiences. Just as we overcame the difficulties following the franchise loss, we will continue to serve our Kapamilya and ensure access to quality content.
Our sincere desire is to continue serving the Filipino people while finding solutions grounded in collaboration and mutual understanding—solutions that benefit our partners, our company, and the millions of Filipinos who rely on our content. The well-being of our audiences will always guide our decisions.
We extend our deepest gratitude to our Kapamilyas, employees, stars, talents, advertisers, and audiences for their unwavering support during this challenging period. Your solidarity strengthens us as we navigate these difficulties.
Further updates will be shared as developments occur.
