GMA Network Inc. yesterday said it continues to ramp up strategic partnerships with ABS-CBN Corp. and other platforms and pursue the expansion of its digital terrestrial television (DTT) amid the slowdown in advertising revenues.
“The advertising industry slowdown is caused by global events beyond our control — the Russia-Ukraine war, the rising fuel prices, the shortage of raw materials for some industries, rising inflation, rising underemployment, and unemployment, etc.,” said Felipe Gozon, GMA chairman and chief executive officer, at the company’s stockholders meeting yesterday.
Gozon said the network is working on several initiatives: a strategic distribution deal with Netflix Philippines, over-the-top video streaming service provider Viu and ABS-CBN’s The Filipino Channel (TFC) and iWantV for its expansion in Europe and the Middle East.
Under the agreement with iWantTFC, GMA shows will now reach Filipinos overseas in select countries in Asia Pacific, the Middle East, North Africa, Europe and South Pacific/Caribbean Islands.
GMA has also collaborated with ABS-CBN for the co-production of a drama teleserye.
“We are into production deals with various producers outside GMA — we work with TAPE, Regal, VIVA, ABS-CBN, and even independent producers,” Gozon said.
GMA is spending more than P500 million for the total production cost, including TV and digital rights for multiple years for the broadcast of the Japanese anime television series Voltes V.
For the expansion of its DTT nationwide, GMA plans to build 19 stations this year.
“GMA has so far implemented the migration of existing analog TV stations to DTT and likewise the construction of new DTT stations. As of today, GMA has 19 operational DTT stations nationwide and is in the process of completing/implementing 19 additional DTT stations for the balance of 2023,” Gozon said.
Since its launch in mid-2020, GMA said, it has sold more than two and a half million units of GMA Affordabox. For the first quarter of 2023, units sold increased by 38 percent compared to the same period in 2022, due to the reduced price and increased market coverage, it added.
In the first three months of 2023, GMArevenues decreased by 31 percent compared to the same period in 2022. Operating expenses inched up by 6 percent.
Earnings before interest, tax, depreciation and amortization tumbled by 62 percent while net income after tax was lower by 72 percent. – Myla Iglesias