October 18, 2024 | 12:00am
Win some, lose some
MANILA, Philippines — They say you win some, you lose some, and ABS-CBN Corp. knows this too well, hitting a new milestone in expanding online reach, but letting go of about 100 workers due to cost constraints.
ABS-CBN yesterday celebrated hitting 50 million subscribers on YouTube to keep its lead as the most subscribed channel on the platform in Southeast Asia among media outlets.
However, ABS-CBN also suffered another setback in keeping its talents, as it laid off around 100 employees, or three percent of its labor force, to manage its costs.
The former broadcast leader on free TV attributed the layoff to declining advertising revenues. In general, advertisers are cutting their TV spending on weakening market demand, particularly for fast-moving consumer goods, which are the ones usually promoted on screen.
“The industry, as a whole, has been hurt by lower consumer spending, which translated to lower advertising spends. The company is also affected by the global decline in the pay TV business,” ABS-CBN said.
Although ABS-CBN has managed to cut its net loss by five percent to P2.02 billion as of June, it is struggling to stay afloat as debts are maturing quicker than it can increase revenues.
ABS-CBN saw its earnings decline by 11 percent to P7.79 billion, primarily because its revenues from cable and broadband are also sliding with no legislative franchise in hand.
The only positive for ABS-CBN is that it is expanding its online reach and overseas partnerships, raising P4.91 billion in income from content production and distribution.
“ABS-CBN made significant progress in many of its businesses this year. TV ratings continue to improve, Star Cinema has produced two hits so far – with one of them being the highest-grossing Filipino movie – and our music business has gotten a strong boost from the popularity of our girl band BINI,” ABS-CBN said.
The company vowed to provide full benefits and support for the workers that it had to lay off. It also extended gratitude to them for staying in what used to be the most dominant network on free TV prior to the political attacks it suffered from the previous administration.
ABS-CBN’s financial woes started after lawmakers rejected its bid for a fresh franchise in 2020, leading to job losses just as workers were struggling to survive the pandemic.
Since then, ABS-CBN has fallen into a territory where it was compelled to close down units, sell assets and trim its personnel.
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