PLDT Group earmarks P7 billion this year to boost ABC-5

MANILA, Philippines - The PLDT Group, the new owners of TV network Associated Broadcasting Co. (ABC-5), is spending around P7 billion this year in a bid to make ABC-5 the leading network in the country.

Mediaquest Holdings president Ray Espinosa said out of the total budget, roughly P5 billion will be for capital expenditure and the remainder for programming. “We are prepared to put in capital,” he emphasized.

Mediaquest is a wholly-owned subsidiary of the PLDT Beneficial Trust Fund, the retirement fund of the Philippine Long Distance Telephone Co. (PLDT).

Espinosa also revealed that another P5 billion will be spent to enable the network to cover 90 percent of the country.

Mediaquest earlier acquired 100 percent of ABC Development Corp., the owner and operator of ABC-5, for P4 billion from a group led by businessman Antonio “Tonyboy” Cojuangco as well as from other minority owners. It also purchased Primedia, the broadcasting firm’s major block airtimer.

As the PLDT Group’s media arm, Mediaquest’s portfolio includes a 30-percent stake in BusinessWorld Publishing Corp., a 51-percent stake in Nation Broadcasting Corp. (NBC); and less than 10 percent stake in Lopez-led SkyCable Corp. It also owns a direct-to-home satellite television company which operates under the brand name Cignal

From a 60 percent network coverage, Espinosa said that they hope to cover 100 percent of the country by the middle of next year. “But we have a good signal in Metro Manila. We hope to have the same for the rest of the country. Our goal is to be the number one network,” he added.

The P5-billion capex budget is being spent for the upgrading of transmitters and the acquisition of other equipment. “We are basically starting from scratch although ABC-5 already has a number of facilities. We are rebuilding the broadcast transmission,” he pointed out.

Espinosa said they are investing in state-of-the-art equipment as well as in the building of a high-definition (HD)-ready studio, which observers believe is in preparation for the country’s bid to transition from analog to digital TV technology.

ABC-5 also plans to move out of its Novaliches studio to a new location either in Pasig or Mandaluyong. “We are looking for a place which is more accessible to people,” he said.

While refusing to reveal how much ABC-5 lost last year, Espinosa said they expect the network to break even in three years’ time.

He pointed out that ABC-5 will benefit tremendously from PLDT’s fiber optic backbone as well as its telecommunications facilities. “On the other hand, the PLDT Group, particularly its various media-related businesses such as Cignal, can utilize the content produced by ABC-5,” he said.

ABC-5, during Thursday night’s trade launch, unveiled its new set of officers, station ID, as well as programs and talents. Roberto Barreiro will be the network’s executive vice president and chief operating officer and will be in charge of programming.

During the launch, PLDT and Mediaquest chairman Manuel V. Pangilinan, emphasized that while they know that starting a greenfield project will be different and that the road ahead will be long, they are prepared to meet the challenge.

“There will be setbacks and false starts. But it is in our nature to keep trying until we succeed,” he said.

Pangilinan earlier revealed that aside from ABC-5, they are also looking at the possibility of acquiring other broadcasting companies within the region.

He disclosed that he has approached Anthoni Salim, chairman of Hong Kong-based First Pacific Co. of which Pangilinan is the managing director and CEO, on the possibility of Mediaquest acquiring Indosiar, a publicly-listed national television station in Indonesia majority owned by Salim.

Indosiar’s parent company, PT Indosiar Karya Media Tbk, is a member company of the Salim Group conglomerate.

“Anthoni said he will study it. Anyway, we can operate ABC-5 and Indosiar, possibly exchange talents between the Philippines and Indonesia,” he said.

Mediaquest officials also said they are looking at acquiring radio stations to complement ABC-5’s broadcasting business, as well as developing the network’s international business.  

Mediaquest earlier said the investments in ABC-5 and Primedia are in line with its strategy of developing media, content, and production resources to complement its other media assets and platforms such as Cignal.

They added that by investing in both ABC-5 and Primedia, Mediaquest expects to further enhance the station’s programming, ratings and sales, as well as improve the broadcast network’s coverage and signal strength throughout the country.

They noted that over the past year, TV-5 has significantly increased its viewership ratings and has established its position as a strong number three in the country’s Philippine television industry. 

Company officials added that Mediaquest’s partnership with PLDT and Smart Communications allows the development of new convergent services through the fusing of telecommunications services with rich multi-media content, which include the recent launch of PLDT’s WatchPad and Smart’s Sandbox.

They stressed that Mediaquest’s entry into free TV broadcasting will further broaden and strengthen this collaboration with the PLDT Group.