A lawmaker has raised concerns over the brand licensing agreement between ABS-CBN Corporation and Manny Villar’s Advanced Media Broadcasting System Inc. (AMBS), suggesting the deal might be a “backdoor” strategy for the media giant to reclaim its former free-to-air television frequency.
In a privilege speech delivered on Monday, May 4, PhilRECA Party-list Representative Presley de Jesus criticized the arrangement, which allows ABS-CBN programs to broadcast on ALLTV2—the channel currently utilizing the frequency previously held by the Lopez-led network. The speech coincided with the eve of the sixth anniversary of ABS-CBN’s broadcast shutdown.
De Jesus argued that the extensive integration of ABS-CBN’s content on the channel blurs the line between a content provider and an actual broadcaster.
“When a single entity supplies nearly all the programming, defines the identity of a free channel and effectively dictates what the public sees and hears, it is no longer just buying airtime, it is operating as a broadcaster, everything but name,” de Jesus stated.
The lawmaker questioned whether the setup undermines the authority of the House of Representatives, which holds the sole constitutional power to grant legislative franchises.
“Are we now to accept a situation where Congress can deny a franchise only for the same entity to return through a back door. Are we to pretend that the law has been followed simply because the arrangement has been dressed up in technical compliance?” he asked.
According to de Jesus, reports suggest that ABS-CBN is managing the bulk of the programming for the Villar Group’s television platform using the Channel 2 frequency. He added that the arrangement allegedly directs the majority of the channel’s revenues to the Kapamilya Network, which he believes circumvents congressional oversight and creates an unfair playing field for other media networks.
“It’s not only a legal issue. It’s a matter of institutional integrity. It is also a matter of fairness. Other networks have gone through the constitutional process. They secured franchises. They subjected themselves to regulation. Yet, here we are, faced with the scenario where one entity appears to enjoy the reach and influence of a broadcaster without bearing the same legal burden,” de Jesus added.
Furthermore, the lawmaker revived previous controversies surrounding ABS-CBN, including alleged labor issues and claims regarding the citizenship of three members of its board of directors.
“Reports now indicate that ABS-CBN is effectively providing the entirety of programming for television platforms under the Villar Group, utilizing the former Channel 2 frequency in such arrangement,” the lawmaker noted.
De Jesus is now seeking a formal House investigation into the partnership between ABS-CBN and AMBS, alongside its other blocktime and content agreements with ZOE Broadcasting Network’s A2Z and GMA Network.
The partnership in question involves a brand licensing agreement that transitioned parts of the ALLTV2 lineup into “ABS-CBN sa ALLTV2,” following the termination of a prior content supply agreement between ABS-CBN and TV5. Under the current terms with AMBS, ABS-CBN can fill the station’s broadcast hours with its content in exchange for programming fees from the Villar-owned media firm.
ABS-CBN Corporation has yet to release an official statement regarding the lawmaker’s remarks.