TV5 has issued a notice of termination to ABS-CBN, citing the latter’s failure to meet financial obligations related to their content supply agreement.
The development was confirmed on Thursday, Dec. 4, after both networks released separate statements addressing the issue.
Reports earlier surfaced that ABS-CBN had allegedly failed to remit nearly P1 billion in TV5’s share of advertisement revenues in their arrangement that allowed Kapamilya programs to air on TV5.
According to TV5, the unpaid amounts have already reached a level that “severely” affects the network’s capability to sustain its own operations.
As a result, the affected programs are expected to remain on TV5 only until January 2, 2026, unless the matter is resolved.
ABS-CBN issued a statement acknowledging that it had received TV5’s notice and emphasized its intention to resolve the matter during the limited time given.
“To our dear Kapamilyas, we want you to hear this directly from us: ABS-CBN has received notice that our partnership with TV5 may end. While we are doing everything we can to resolve this within the short time we’ve been given, we want to be transparent with you about what’s happening,” the corporation confirmed.
In its message, ABS-CBN also revisited the financial challenges it faced after losing its broadcast franchise in 2020 that forced the network to operate at a loss amid the pandemic.
“Since losing our franchise in 2020—in the midst of a pandemic—we have faced challenges unlike any in our history. We’ve had to rebuild from the ground up, operating at a loss while staying true to our mission. These financial constraints are real, but they have never diminished our commitment to you,” the statement read.
ABS-CBN said it is working to meet its obligations but assured the public that, regardless of the outcome, its service to viewers will continue.
“We know we have obligations to fulfill, and we’re working as hard as we can to honor them. But whatever happens, our service to you will continue. We will find ways to reach you, just as we found our way back to you after losing our franchise,” the network affirmed its viewers and supporters.
TV5, for its part, expressed that ABS-CBN’s failure to remit its share of revenues has impacted its ability to pay its employees, talents, and partners involved in producing and airing the shows.
“Their failure to meet their financial commitments to us has made it very difficult for us to compensate our own employees, talents, and partners who help deliver these programs to your homes,” the Kapatid network said.
The company explained that under the content agreement, ABS-CBN is required to remit TV5’s share of advertising revenue “on a timely basis.” However, the amounts held by ABS-CBN have grown significantly.
“These amounts collected, our share being held by ABS-CBN for TV5, has reached such material value as to severely affect TV5’s ability to settle its own obligations,” it added.
TV5 also said that despite “repeated appeals,” ABS-CBN has yet to pay the overdue amounts nor provide assurances that payment is underway.
“Despite our repeated appeals, ABS-CBN has failed to pay what is due. Neither have they given assurances, nor indicated, that they can or will.”
While the network acknowledged ABS-CBN’s financial difficulties, it noted that it must also protect its own operations.
“To be clear, we value the partnership with ABS-CBN and, as part of the same industry, we understand ABS-CBN’s financial difficulties. But TV5 is also faced with 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.”
