PRESS RELEASE
31 January 2025

PCC examines impact of blocktiming practices on competition in the Philippine free TV sector

The Philippine Competition Commission (PCC) has published a study examining the blocktiming practices in the free TV industry to assess the effects to competition of industry developments.

The study, entitled “Blocktiming Practices in the Philippine Free TV Industry”, discussed among others the non-renewal of ABS-CBN Corp.'s franchise. Blocktiming refers to agreements wherein content producers buy airtime (or “blocks” of time) from TV networks to broadcast their programs and content.

The study observed an increase in market concentration following the non-renewal of ABS-CBN’s franchise. GMA Network now commands roughly 93% of the free TV market. The study evaluated the ability of a dominant network to engage in input foreclosure, which occurs when a TV network refuses to offer time slots to content producers that are not affiliated with the network; or when it charges exorbitant prices for time slots, making it difficult for non-affiliated content producers to secure them.

However, the study found that the existing industry practices disincentivize TV networks from foreclosing airtime. Most networks already prioritize airing their own content over blocktime agreements, as seen in their historical programming choices. Foreclosing airtime could also reduce audience reach and make networks less attractive to advertisers, impacting revenue. Since foreclosure strategies limit the range of aired television content, it may lead to a decrease in audience reach and reduce the number of potential advertisers and revenue-generating opportunities.

The study also pointed out that the rise of over-the-top (OTT) platforms (e.g., Netflix, YouTube) helps mitigate the potential anti-competitive effects by providing alternative distribution channels for content producers and promoting diverse programming options for viewers.

For more information about the study and its findings, visit https://bit.ly/PCCMarketStudy2024-02 or send an email to eo-pmd@phcc.gov.ph.

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REFERENCES:  

publicaffairs@phcc.gov.ph
Public Affairs and Research Division
Communications and Knowledge Management Office

eo-pmd@phcc.gov.ph
Policy and Markets Division
Economics Office

LINK: https://www.phcc.gov.ph/resource-details/pcc-examines-impact-of-blocktiming-practices-on-competition-in-the-philippine-free-tv-sector