Changes in the TV landscape
Ahead of the signing of a sales purchase agreement, radio-television giant GMA Network Inc. announced recently that businessman Ramon Ang will acquire a minority interest in the company.
Ang, the top honcho of San Miguel Corp. (SMC), is investing in his personal capacity, reportedly paying P15.3 billion for an initial 30 percent equity interest. The shares will be drawn from the shareholdings of the three families that have majority control of the network.
Word in the market is Ang, in recognition of his status as GMA’s biggest individual stockholder, will assume the position of chair, which is presently being held in a concurrent capacity by CEO Felipe Gozon.
Earlier, Gozon expressed admiration over Ang’s skillful handling of SMC’s diversification program and said “he will bring a lot of ideas” to the network which is in close competition with ABS-CBN for primacy in the radio and television industry.
Ang’s smooth entry is in sharp contrast to two abortive offers by business tycoon Manuel Pangilinan, chair of ABC Development Corp. which owns TV5, to buy into GMA.
The negotiations then were marked by not-so-pleasant exchange of words in the media between Gozon and Pangilinan that made the proposed buy-in look like a hostile takeover attempt.
Treatment
Although Ang’s investment in GMA is personal in character, it cannot be totally dissociated from his shareholdings in SMC and its affiliate companies.
At present, the erstwhile beer distilling company that traces its roots to the Spanish colonial period either fully owns, has majority control or is part owner of several corporations engaged in food manufacturing, mining, infrastructure development, energy production and airline management.
All these businesses are closely supervised by government regulatory agencies and often invite widespread public criticism if they fall short of their customers’ expectations.
They are also the favorite whipping boys of congressmen and senators who want media mileage or concessions for their personal benefit.
It helps that, in case any of these corporations get caught in the sticky situations mentioned, they have in their corner media entities that can give full play to their side of the story, provide favorable coverage, or soften the effects of adverse publicity.
This is not to say that GMA will be less scrupulous in living up to its “fair and equal coverage” slogan, but it is common knowledge in the media industry that the interests of their owners or benefactors are not completely set aside in the treatment of news events if they are, one way or the other, affected.
After all, you don’t bite the hand that feeds you.
Disclosure
The score is now even on the TV platforms of the reputed “frenemies” in big ticket government projects. Pangilinan has TV5 and Ang has GMA7.
It will be interesting to see how GMA will be able to maintain its image of impartiality or fairness in the treatment of news in situations that involve SMC and its affiliate companies, including those owned by Ang.
To the credit of TV5, whenever a news report relates to a company that is owned or managed by Pangilinan (or the First Pacific Group he heads), the station discloses such ties at the end of the newscast.
The disclosure enables the listeners to make their conclusion on whether the news report was presented in an objective manner or biased in favor of Pangilinan’s interests.
The thin line that differentiates honest-to-goodness news from propaganda can be easily spotted by discerning TV viewers. And if they catch it, a flick of a finger on the TV remote control to change channels will provide quick relief from the spin story.
What’s more, a deliberate omission of important details or “messaging” of the news risks being exposed by social media or a recording uploaded to the Internet.
Never in our history has credibility in news reports been able to be tested in many ways and quickly relayed to a wide audience at the press of a button.
Commercials
For now, the forthcoming change in ownership structure in GMA is no cause for concern by its principal competitors in free TV, ABS-CBN and TV5. The three TV stations have their respective audience targets depending on their age, gender, income, social class, content preference and viewing hours.
According to some surveys, factors specific to certain regions in the country also affect viewing habits in those places.
The advertisement contracts they have for the season will remain in place until they reach their expiration dates or supervening events occur that justify their early termination. After that, it’s going to be a different ballgame for advertisers, advertising agencies and GMA’s competitors.
It is reasonable to expect SMC and its affiliate companies, including those identified with Ang, to give preferential treatment to GMA in airing its advertisements.
Charity begins at home, so the saying goes. And home for these companies is where someone of their own or with whom they maintain close financial ties has substantial interests.
And because they are considered family, price and placement concessions can be reasonably expected.
For strategic reasons, ABS-CBN and TV5 will not be totally shut out from the advertising budget of these companies. But it is doubtful if their advertising revenues would be as lucrative as before.
It remains to be seen whether the coming changes in the country’s TV landscape will be redound to the public’s benefit.
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