Published by Philippine Competition Commission(PCCom) on June 15, 2020.
Requested from PCC by I. Canua at 01:01 AM on
June 15, 2020.
Purpose: Research, analyses
Date of Coverage: 06/15/2020 - 06/15/2020
Tracking no: #PCCom-912013606742
I.CANUA
June 15, 2020, 1:01 a.m.
Good day,
In the senate hearing last February 24, 2020, the anti-trust body said that closure of ABS-CBN could be a "cause for concern" in terms of competition".
Commissioner Johannes Bernabe said the market share will "gravitate" towards the competition. In other jurisdiction, an increase of market share of at least 10 percent already "raises a red flag.
31 percent to 44 percent they hold as market share will gravitate in proportion to what you already see now...The consumers will obviously have less choice in so far as available newscasts and programs are concerned.
I.CANUA
June 15, 2020, 1:05 a.m.
"We cannot make any judgment or conclusions at this point. Suffice it to say, other jurisdiction would tend to see it as something that might have an effect on competition which is a cause for concern".
KBP President said that continued shutdown of ABS-CBN deprives audiences and advertisers of the benefits arising from competition; specifically, the impetus to continuously raise the bar of programming excellence and free market mechanisms reining in television advertising rates.
He mentioned the deleterious effects of eliminating a major player in the broadcasting industry:
1. Lack of competition limits the quantity, quality, and diversity of programming choices for Filipino audiences.
2. A virtual monopoly of the free-TV market removes the ability of advertisers to craft an optimized media mix.
3. In the event that only some ABS-CBN viewers shift to GMA, there will be an overall reduction in TV-viewing audiences.
4. Consumption of ABS CBN’s content in their digital platforms will increase but probably will not supplant its free-to-air broadcasting.
5. A continued shutdown of ABS-CBN will slow down the transition to digital terrestrial television and delay the availability of a nationwide emergency broadcast system.
I.CANUA
June 15, 2020, 1:23 a.m.
When the ABS-CBN receives the CDO from the NTC resulting of the shutdown of free tv operations, it shows in the screenshot post from the social media sites that the Nationwide TV viewership of GMA network's 24 oras from May 6 to 8 receives the 53% of viewers or 46 million projected number of TV viewers without indicating the other networks.
Questions :
1. What is the response of PCC regarding to the shutdown of ABS-CBN?
2. Is the post of GMA network about the viewership of their news program 24 oras considered as competitive or anti-competitive?
3. What is the response of PCC regarding to the statement of the KBP President?
4. After the shutdown of ABS-CBN, is the percentage of free tv market shares to GMA network considered as competitive or anti-competitive?
5. What are the actions of PCC in order to maintain the free tv or viewership competition?
6. Will the PCC look into the surveys from Nielsen, Kantar Media and others in the programs of the tv networks in order to be competitive?
F.OFFICER
June 15, 2020, 10:43 a.m.
June 15, 2020
Dear Ishmael Sam,
Thank you for your request dated Jun 15, 2020 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Free TV Market.
We received your request on Jun 15, 2020 and will respond on or before Jul 04, 2020 01:01:00 AM, in accordance with the Executive Order's implementing rules and regulations.
Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://realinagencies11072018-dot-efoi-ph.appspot.com/requests/aglzfmVmb2ktcGhyHwsSB0NvbnRlbnQiElBDQ29tLTkxMjAxMzYwNjc0Mgw, for request with ticket number #PCCom-912013606742.
Thank you.
Respectfully,
FOI Receiving Officer
FOI Officer
P.DECISION MAKER
July 4, 2020, 9:02 p.m.
4 July 2020
Mr. Ishmael Sam Canua
Blk 11 Unit 14 18-C Rowhouse Pilot Area,
Commonwealth, Quezon City
Dear Mr. Canua,
This has reference to your request dated 15 June 2020, denominated as a Freedom of Information (“FOI”) Request under Executive Order (E.O.) No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
Your request
In your request, you asked several questions relevant to free TV market.
Response to your request
1. What is the response of PCC regarding to the shutdown of ABS-CBN?
Your request is APPROVED.
PCC has not given its official comments on the ABS-CBN shutdown. However, PCC was requested to submit its position paper on the franchise renewal of ABS-CBN.
2. Is the post of GMA network about the viewership of their news program 24 oras considered as competitive or anti-competitive?
Your request for information is DENIED.
The query propounded does not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis and a determination of law by the Commission.
3. What is the response of PCC regarding to the statement of the KBP President?
Your request is APPROVED.
PCC has not given its official comments or position on this matter.
4. After the shutdown of ABS-CBN, is the percentage of free tv market shares to GMA network considered as competitive or anti-competitive?
Your request for information is DENIED.
The query propounded does not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis and a determination of law by the Commission..
5. What are the actions of PCC in order to maintain the free tv or viewership competition?
Your request is APPROVED.
Pursuant to the powers and functions of the PCC as stated under Section 12of the Philippine Competition Act, PCC continues to monitor and analyze the practice of competition in markets that affect the Philippine economy, implement and oversee measures to promote transparency and accountability, and ensure that prohibitions and requirements of competition laws are adhered to. It also actively advocates to establish pro-competitive policies of the government by: (1) reviewing economic and administrative regulations, motu proprio or upon request, as to whether or not they adversely affect relevant market competition, and advising the concerned agencies against such regulations; and (2) advising the Executive Branch on the competitive implications of government actions, policies and programs.
6. Will the PCC look into the surveys from Nielsen, Kantar Media and others in the programs of the tv networks in order to be competitive?
Your request for information is DENIED.
The query propounded does not fall under the purview of a request for “Access to Information” under Executive Order No. 2, s. 2016 or the Freedom of Information policy, but instead requires legal and economic analysis and a determination of law by the Commission.
For further assistance you may review the FAQ section of the eFOI site: https://www.foi.gov.ph/help.
Thank you.
Respectfully,
Faye Condez-de Sagon
FOI Decision Maker