Broadcast network TV5 is confident it can steal away a significant chunk of advertising revenues from its more established rivals as it spends more money to improve programming and acquire more talents, both old and new.
The company denied rumors that “Megastar” Sharon Cuneta signed a billion-peso five-year contract with the network, but TV5 president Ray C. Espinosa said this did not mean the company was skimping on any aspect of the competitive media business.
“We are launching a new international channel and obviously, we’re getting revenues from Channels 2 and 7,” Espinosa said, noting the steady improvement of the studio’s ratings relative to ABS-CBN and GMA Network.
TV5, operated by Associated Broadcasting Network (ABC), expects to end the year with P2.5 billion in gross revenue, from only P800 million in 2010.
ABC is now owned by MediaQuest Holdings, a subsidiary of the Philippine Long Distance Telephone Co. (PLDT) Beneficial Trust Fund, led by businessman Manuel V. Pangilinan.
The expected revenue, Espinosa said, was still below the company’s goal of topping P3 billion on the second year after the group took over the station’s operations.
By next year, Espinosa said the company would set a target of about P5 billion in revenue.
He said the company would continue to spend on improving its production capabilities and talent development.
TV5, under the Pangilinan group’s management, is the first serious threat to the dominance of GMA Network Inc. and the Lopez-led ABS-CBN Corp.
Earlier this year, Espinosa said the company had set aside P8 billion to improve its facilities as it aimed to be one of the country’s major broadcasting companies.
The bulk of the fund will go to the construction of the company’s new headquarters in Mandaluyong City, which will complement its current facility in Novaliches, Quezon City.
Pangilinan earlier said 2011 would likely be the “bloodiest” year for the company so far as it ramps up operations. The company expects to post profit in about five years’ time.