At the rate things are going, the business relationship between ABS-CBN Broadcasting Corporation and TV5 is shaky and can end anytime as soon as their contracts warrant.
Based on recent developments, TV5 has sent a demand letter to ABS-CBN on unpaid dues of the Lopez conglomerates to the Manny V. Pangilinan's giant media company.
It must be remembered that ABS-CBN is showing some of its biggest shows like "Batang Quiapo" and other teleseryes on TV5 as a free television network on blocktime bases not for free but on corresponding airtime fees.
As is, ABS-CBN has incurred a lot of undue payments to TV5, according to the latter.
In its official statemen, ABS-CBN acknowledges its obligations to TV5.
Here's ABS-CBN's side to the story:
"ABS-CBN confirms receipt of a notice of termination of its TV Content Supply Agreement with TV5. We deeply regret that this action has been taken at this critical juncture in our recovery, particularly as we continue to navigate the unprecedented challenges arising from our franchise loss.
"Contrary to media reports, the amounts and manner of the claims remain disputed. We acknowledge our obligations to TV5 and are doing everything we can to address these payments. We have sought additional time to resolve this matter and are working urgently within the thirty-day period we have been given. 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. We remain open to fair and reasonable solutions that recognize the extraordinary circumstances our company has faced," said the statement partly.
TV5, on the other hand, said that as per agreement, ABS-CBN would pay its part with the former.
"ABS-CBN requires the latter to remit on a timely basis TV5’s share of the revenues collected from advertisers," said TV5.
It said that ABS-CBN has “failed to pay what is due” despite their repeated appeals.
TV5 said that the amount reached “such material value as to severely affect TV5’s ability to settle its own obligations.”
Meanwhile, ABS-CBN clarified that there is no truth to any insinuation that it willfully delayed payment.
"Such characterizations fail to acknowledge the severe financial constraints imposed on us through circumstances beyond our control," ABS-CBN argued.
TV5 delineated its situation after ABS-CBN allegedly failed to settle accounts.
"It has made it very difficult for us to compensate our employees, talents, and partners who help deliver these programs to your homes,” said the statement.
But the network made it clear that it values its partnership with ABS-CBN and it understands its financial difficulties since they belong to the same industry.
"However, the network has its own challenges. 'We need the funds owed to us to continue serving you, our viewers. Our leniency, as well as forbearance, must now yield to the realities of this business,'” TV5 said.
In 2020, when the House of Representatives denied renewal of franchise to ABS-CBN, the network started to experience setbacks but it persisted to give the audience the best programming.
What will happen to the loyal televiewers of ABS-CBN, like Region 8's Samar and Leyte audiences, if the contract is terminated with TV5?
According to ABS-CBN, it will find ways to reach out to its loyal followers all over the world.
"It is our sincere desire to continue serving the Filipino and finding solutions that reflect the spirit of collaboration and mutual understanding—solutions that are best not only for our partners and us, but for the millions of Filipinos who depend on quality content," said ABS-CBN.
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