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PHILIPPINES IN VIEW 2021 EXECUTIVE SUMMARY IN VIEW 2021

EXECUTIVE SUMMARY

1. Overall TV Market Environment has resulted in a digital video ad spend year on year growth of 4.8% and a total digital The Philippine television (TV) market has advertising spend in the Philippines being experienced major disruptions in recent years, valued at US$558 million in 2020, despite total including the ongoing effects of the coronavirus ad spend shrinking slightly by 4% year on year. 2019 (COVID-19) pandemic. Nonetheless, the growth of online video continues unabated, The local TV industry has gone through a powered by the increasing number of mobile rollercoaster in comparison. Kantar Group internet users. This puts pressure on an research showed that total TV viewership industry in the process of digitalization as it (traditional or -to-air (FTA) TV and pay TV undergoes switching to the Japanese ISDB-T or cable and satellite) saw a significant drop standard for digital (DTT), between 2019 and 2020, with afternoon and expected to be completed in 2023. evening dayparts seeing the biggest change (Figure 1). Much of this could be attributed to More are turning to the internet, a slew of devastating incidents that captured and alongside traditional modes of viewing, the attention of Filipinos, including the forced almost all of them are accessing online video shutdown of Philippine TV giant ABS-CBN and from mobile devices wherever they want and the ongoing COVID-19 pandemic that put the whenever they want1. That surge in demand country into a nationwide lockdown.

Figure 1. TV Viewership (Traditional and Pay TV) in 2020 (By Dayparts)

Total TV decreased significantly in 2020 compared to past years The afternoon and evening dayparts experienced the biggest drop.

2017 2018 2019 2020

50

45

40

35

30

25 Rtg% 20

15

10

5

0 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 24:00 25:00

Source: Kantar Media Channel: Total TV; Unit: Rtg%; Region: Total Philippines

1 https://datareportal.com/reports/digital-2020-philippines

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While Filipinos spent more time on TV after a on mobile commerce or mobile advertising, nationwide lockdown was imposed to curb the livestreaming platform Bigo Live and video spread of COVID-19, the bump in viewership streaming subscription service topped the was quickly offset by the decision of Congress list of apps Filipinos spend money on2. to revoke the franchise of firm ABS-CBN in May 2020, forcing the network and According to Kantar, total advertising spend eventually ABS-CBN TV Plus and Direct to on FTA and pay TV from January to September go off-air. 2020 plunged by 20% year on year to around P313 billion. This translated to 1,042,179 Audiences continued to watch other channels, campaign insertions for TV during the period with GMA quickly taking up the market share (down 7% previously), or 420,703 minutes of left by its competitor. Yet, overall TV viewership total advertising time aired. 90% of the spend has not recovered since. By the end of the year, went to FTA networks, while the remaining 10% viewership dropped to almost one hour less went to pay TV. compared to the beginning of the government’s “enhanced community quarantine” (ECQ), However, industry revenue decline is a fallout of recovering only slightly with the entry of FTA general economic turmoil due to the COVID-19 blocktime broadcast network A2Z — the joint pandemic rather than the symptom of a venture of ABS-CBN and ZOE Broadcasting flailing industry. Disruptions in the landscape Network, Inc. — in October. Likewise, TV reach could very well signal a paradigm shift in declined quarter on quarter until it saw a the relationship between consumers and TV significant bounce back in the fourth quarter of networks and, in particular, the manner in 2020. which consumers access media. Over-the- top (OTT) media services, which offer media There is a likely possibility that many TV directly to viewers via the internet, and include viewers are turning to online platforms for their online curated content (OCC) services such viewing experiences. There were roughly 73 as , Netflix, , and million internet users and 173.2 million mobile WeTV have continued to grow, with revenue connections in the Philippines recorded in in the total SVOD segment projected to reach January 2020. Of those internet users, 98% were US$101 million this year.3 With an expected recorded to be consuming online video, 69% compounded annual growth rate (CAGR) of were found watching TV content via a streaming 13.56%, market volume could hit US$167 subscription every month. When ranked by million by 2025. User penetration will be 5.7% total consumer spend excluding revenues made this year and is expected to hit 6.9% by 2025.

2 https://datareportal.com/reports/digital-2020-philippines 3 www.statista.com/outlook/dmo/digital-media/video-on-demand/video-streaming-svod/philippines

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2. OCC Market Environment Currently there are three leading companies in the The COVID-19 pandemic has put the Philippines Philippines: DITO, Globe Telecom, Inc., and into one of the world’s longest lockdowns, PLDT, Inc. (including its mobile arm Smart restricting economic activity and mobility Communications, Inc.). Other major internet among the population. The more-than-a- service providers in the country are Converge year-long (and counting) lockdown and the ICT Solutions, Inc. and . consequent, temporary shutdown of major entertainment establishments, like movie One industry expert noted that there has houses, have led to an increase in the demand been a recent rise of OTT consumers in the for online video streaming platforms. Philippines, as more Filipinos stay at home in accordance with the COVID-19 restrictions. Around 36 million Filipinos consumed OTT Around 55% of OTT consumers are watching content last year. In a 2020 survey about more content amid the pandemic and 65% wish media consumption habits of around 4,500 to continue watching more post-pandemic.6 Southeast Asian consumers, 32% of the Filipino respondents were heavy OTT users — Piracy of video content is still prevalent in the consuming more than four hours of content country, making this another obstacle for OCC daily.4 to thrive according to an industry expert.

There were an estimated 73.91 million Filipino In a survey commissioned by AVIA in 2020, internet users as of January 2021, representing YouGov reported that 49% of 1,098 surveyed 67% of the population. Of those internet users, Filipinos still access streaming piracy websites the data shows that the average time they or torrent websites. It also showed that 47% of spent watching TV, including broadcast (linear) consumers who accessed pirate sites cancelled TV and content delivered via streaming and some part of their local and foreign content VOD services averaged three hours and 30 services.7 minutes per day. Meanwhile, the total time spent using the internet on all devices averaged OCC market in the Philippines ten hours and 56 minutes — topping 40 other Among the top ten apps in terms of consumer countries in the survey.5 spend in the Philippines last year, two of

4 https://pages.thetradedesk.com/rs/527-INM-364/images/The Future of TV Report Philippines.pdf 5 https://datareportal.com/reports/digital-2021-philippines 6 https://pages.thetradedesk.com/rs/527-INM-364/images/The Future of TV Report Philippines.pdf 7 https://avia.org/new-survey-shows-philippines-among-highest-in-online-piracy-in-southeast-asia/

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them offer online video content — Netflix for an online video subscription whilst the and YouTube, which ranked second and ninth, majority were willing to pay between P151 and respectively.8 According to App Annie, the P300.11 rankings are based on iOS App Store and Google Play earned from paid downloads and Competition in-app purchases and excludes earnings from Competition among OCC players in the in-app advertising.9 Philippines has kept challenging the dynamics and flexibility of these companies. Currently, Nearly all Filipinos aged 16 to 64 watch online there are more than ten active players in the videos while 83% watch vlogs and 82.2% listen market. However, challenges posed by the to music streaming services. This was also pandemic forced some players to pull out of the evident after YouTube took the lead across most competition or shift gears differently. used social media platforms after cornering a 97.2% share in 2020.10 As of April 2020, players HOOQ and Fox+ are no longer accessible in the country. Indeed, HOOQ Meanwhile, more than half of the Filipinos has subsequently struggled globally and closed. surveyed by Ovum in 2019 were subscribed to Meanwhile, Fox+ has announced through its at least one paid online video service bundled telco partner Globe that it is no longer available to either a mobile or fixed phone line. 11% of in the country, in preparation for the new them were willing to shell out more than P600 Disney+ platform.

Table 1. Major OCC Players in the Philippines

Local players Regional and international players Play Amazon Prime Video GMovies Apple TV+ iWantTFC HBO Go NBA League Pass Netflix Viu WeTV YouTube/YouTube Premium

8 www.appannie.com/en/go/state-of-mobile-2021/ 9 https://s3.amazonaws.com/files.appannie.com/2101_State_of_Mobile_2021_Methodology_EN.pdf 10 https://datareportal.com/reports/digital-2021-philippines 11 www.amdocs.com/sites/default/files/Ovum-OTT-market-study-2019-20.pdf

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Mergers and acquisitions have also been as a more competitive pricing strategy against a strong opportunity for OCC players to international players that are also active in the strengthen their market position. Last year market. The subscription price for the mobile saw three cases such as the acquisitions of plan that is only accessible on mobile devices and iflix by Funimation Global like cell phones and tablets was 50% lower than Group, LLC and Tencent Holdings Ltd., its basic plan. respectively; as well as the merger of iWant and TFC Online. Still, subscription decisions depend heavily on the attractiveness of each OCC’s content WeTV/iflix, owned by Tencent, just launched variety, special features, platform quality, and its services in the country with its core Asian pricing strategy. content.12 It announced in November 2020 that it will offer popular Chinese, Korean, and Thai Exclusive content is the driving force for OCC dramas alongside a mix of local content. The platforms to position themselves in the market. company further said it will add 20 exclusive Among the 30 most-watched Netflix titles in films and 12 original productions this year to its 2020 by users in the Philippines, more than 90% platform. are exclusively offered on the platform.14

Among global media companies, as noted in Meanwhile, ABS-CBN Corp.’s iWantTFC Table 1, HBO Go and Netflix are available in allocated P347 million out of the company’s the Philippines (through partnerships with P791 million production budget in 2019 for various telcos as well as on a stand-alone basis producing and boosting the platform’s original for Apple and Android.) Other international content.15 Apart from its effort in producing players may also enter the Philippine market in original content, the homegrown player also the near term. stepped up to offer some Filipino-dubbed content. Filipinos as consumers of internet services have been a mobile-centric niche. Netflix noted Viu also offers a dubbed feature for its its users in the country spend an average of Korean content on the platform. Meanwhile, 3.3 hours watching content on their mobile international players like Amazon Prime Video devices.13 In response, the company launched and Netflix provide several audio languages in its mobile plan in the Philippines in March 2020 select content.

12 www.abs-cbn.com/newsroom/news-releases/2021/3/17/wetv-iflix-abs-cbn-partnership?lang=en 13 www..com/technology/netflix-mobile-plan-philippines-p149 14 https://about.netflix.com/en/news/what-philippines-watched-2020 15 https://docs.google.com/viewerng/viewer?url=https://data-corporate.abs-cbn.com/corp/medialibrary/dotcom/ corporate+governance/company+policies/accs_cfs1219+abscbn+corporation_sec+(signed)_2.pdf?ext%3D.pdf

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OCC regulatory environment in the In its 2020 Media Year in Review, research Philippines firm Kantar observed that total TV viewing in Amazon Prime Video, Netflix, Viu and WeTV iflix the Philippines decreased significantly in 2020 are among the many legitimate, international compared to past years. video streaming platforms that are running their businesses and earning revenues in the While TV viewing surged at the onset of the Philippines. Like other markets around the quarantine last year, it decreased by 24% at world, this is possible virtually, without the the time ABS-CBN Channel 2 was shut down need for physical offices. This has led to a focus on May 5th, 2020 and went further down by by regulators on whether and how to capture 21% when ’s and TV Plus’ operations some of the economic returns generated by were halted more than a month later. However, these services. Kantar saw an uptick in viewing in October at a time when ABS-CBN’s cable and online platform Recently in the Philippines, as in other Asian started airing on Cignal TV. markets, the spotlight has turned to the question of taxation on international digital Despite this, pay TV viewership has been services. Like other governments the Philippine observed to have increased significantly during government is keen to introduce a mechanism primetime. However, pay TV tallied significantly to capture extra-territorial tax and has lower viewing minutes, especially during the proposed legislation to achieve this. At the time third and fourth quarters of 2020. of writing this report that legislation has yet to be passed. Findings from Kantar’s TV Establishment Survey, 2019, show that cable subscriptions remained 3. Traditional Pay TV Market relatively stable, with Urban North and South Environment Luzon marking double-digit increases and almost all rural segments tallying increases. The Philippine pay TV industry, comprised Satellite subscription, meanwhile, inched up of cable, satellite, and more recently digital to 21% of total Philippine households from streaming services, has been challenged to 18%, driven by growth in Urban , thrive and remain relevant amid the disruptions Urban Visayas, and Urban Mindanao (Figure brought by the still ongoing COVID-19 pandemic 2). Notable growth was also seen for satellite — among them the shutdown of broadcaster subscription in all rural segments, with the most ABS-CBN on its terrestrial TV (both analog and significant growth coming from Rural North digital) Sky Direct, and ABS-CBN TV Plus, as well Luzon and Rural Mindanao (Figure 3). as the increased use of OTT or SVOD platforms.

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Figure 2. Pay TV Subscription (Urban Philippines), 2018 vs. 2019

Pay TV Subscription (% of TV Homes) Pay TV subscription increased from 2018 by around 14%. South Luzon and MIndanao saw the biggest growth at 29% and 34%, respectively. Urban Philippines Meanwhile, the pay TV subscription in the Suburbs declined by around 49%.

2018 2019

44

34 35 32 30 31 28 27 26 26 22 23 22 23 17 18 17 15 11 6

Total Urban Mega Suburbs Urban North Urban Central Urban South Urban Visayas Urban Philippines Philippines Luzon Luzon Luzon Mindanao

Source: Kantar TV Establishment Survey 2019. Base: TV Homes

Figure 3. Pay TV Subscription (Rural Philippines), 2018 vs. 2019

Pay TV Subscription (% of TV Homes) Pay TV continued to grow in rural areas, with almost all sectors seeing double-digit increases this 2019. Rural Philippines

2018 2019 55 46 45 44 42 40 35 34 33 32 28 23

13 14

Total Philippines Rural Philippines Urban North Luzon Urban Central Rural South Luzon Rural Visayas Rural Mindanao Luzon

Source: Kantar TV Establishment Survey 2019. Base: TV Homes

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Satellite is even seen as the leading mode of but also in terms of providing digital devices, pay TV in the future, with a recent market such as its own digital set-top box called GMA reception survey of SES in the Philippines Affordabox and digital TV mobile receiver revealing that satellite TV ranked highest GMA Now. Coupled with the launch of GMA’s in terms of the satisfaction of users with own digital TV services is the launch of its their TV service, having gained 76% of the own digital channels such as the Asian drama- respondents16. In addition, DTH and IPTV are oriented channel Heart of Asia, music channel expected to drive the growth of revenues in Hallypop, and, most recently, movie channel I pay TV services in the country for the next five Heart Movies. years, according to GlobalData.17 The past year saw collaboration between Cable TV continues to be dominated by these Cignal TV and TV5, which currently serves as players: SkyCable Corp., a subsidiary of ABS- the network’s content provider. Moreover, CBN Corp. with coverage across the country; with the return of the National Basketball , now under the ownership of Association (NBA) later in 2020, TV5 and Cignal SkyCable and with operations in Metro Manila served as the sole carriers of the games, with and ; and , owned by Cable Link NBA TV Philippines adding to Cignal’s exclusive and Holdings Corporation with coverage across channels.18 most of the Greater Manila Area. ABS-CBN, meanwhile, has reinvented the On the other hand, Satellite TV in the way it reaches audiences. Its entertainment Philippines is led by Cignal TV, GSat and SatLite department partnered with Cignal and TV5 (also owned by Cignal TV). to air shows such as ASAP Natin ‘To, FPJ’s , , on TV519. A2Z Programming on cable and satellite remains Channel, the Zoe Broadcasting Network-owned mixed, with various standard definition (SD) and FTA channel where some of ABS-CBN’s programs high definition (HD) channels centered on news, are aired, is also made available on cable and sports, entertainment, movies, music, religious, satellite. Jeepney TV and also children, learning, and foreign channels, aside started airing on Cignal at the start of 2021, yet from FTA channels. the network is also open to include its other pay TV channels, ABS-CBN News Channel, GMA Network, Inc. emerged in the past months CinemaOne, and Teleradyo, in the program not only as the leading channel of choice, lineup of Cignal. Moreover, the broadcasting

16 www.ses.com/press-release/ses-unveils-first-tv-market-reception-survey-results-philippines 17 www.globaldata.com/pay-tv-services-revenue-philippines-grow-4-0-cagr-next-five-years-forecasts-globaldata/ 18 www.bworldonline.com/cignal-starts-role-as-new-home-of-nba-in-the-phl/ 19 www.bworldonline.com/tv5-airs-more-abs-cbn-shows-adds-game-shows-to-its-lineup/

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giant remarkably enhanced its digital presence the network’s operations, while critics of through re-building its online streaming service the shutdown decried it as a systemic attack as iWantTFC and adding its various content, both designed to create a chilling effect on press live and on-demand, on and YouTube. freedom.21 Some of the most notable effects of the shutdown was the alleged information gaps 3.1. Impact of ABS-CBN’s Shutdown on the during the typhoons22 that occurred in the final TV Industry quarter of 2020, particularly during Typhoon Goni (Rolly)23 and Typhoon Vamco (Ulysses),24 The decision of Congress not to renew the that left some parts of the country, including franchise that allowed ABS-CBN to broadcast in Valley and Bicol Region, without news the country caused considerable shockwaves — an allegation that the Duterte administration both locally and abroad.20 Proponents of denies25 — as these areas relied heavily on the the denial cited the alleged illegalities of network.

Figure 4. TV Audience Shares (March-October 2020)

After the shutdown, audiences continued to watch other channels GMA continues to hold the lion’s share of audiences, but saw some decline once classes started and A2Z started showing in FTA

ABS-CBN GMA Cinemo TV 5 Yey Others Kapamilya Ch A2Z

0.1 4.3 3.4 3.5 3.8 } 7.3% 16 18.7 26.3 23.6 4.2 28.8 2.2 4.1 30.2 5.4 1.8 7.3 1.4 0.1 4.3 6 5 0.4 7.5 0.4 6.5 32.6 9.5 32.4 2

65.5 59.8 53.6 54 39.6 35.7

Pre-ECQ ECQ Post-Shutdown DTT/TV Plus Start of Classes A2Z Airing Shutdown

Source: Kantar TV Audience Measurement Channel: TTV, Unit: Shares%; Region: Total Philippines Dates: Pre-ECQ: Jan 1-Mar 14; ECQ: Mar 15-May 5; ABS-CBN shutdown: May 6-Jun 30, 2020, DTT and Sky Direct shutdown: Jun 30-Aug 15; Start of Private School Classes: Aug 16-Oct 10; A2Z starts airing: Oct 10-Dec 31

20 www.nytimes.com/2020/07/10/world/asia/philippines-congress-media-duterte-abs-cbn.html 21 www.rappler.com/hustle/work/rolando-tolentino-media-culture-effects-abs-cbn-shutdown 22 https://newsinfo.inquirer.net/1360703/after-abs-cbn-shutdown-lack-of-ulysses-warning-made-cagayan-residents-suffer-robredo 23 https://newsinfo.inquirer.net/1355206/abs-cbn-shutdown-and-the-information-gap-amid-super-typhoon-rolly 24 www.rappler.com/nation/philippines-faces-super-typhoon-rolly-without-abs-cbn-news-regional-news 25 www.pna.gov.ph/articles/1120451

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Regardless, the impact of the shutdown on the would have gone to ABS-CBN have also been country’s TV landscape is palpable, particularly directed to the network’s subsidiary Kapamilya as ABS-CBN had been the market leader before Channel, shifting FTA spend to pay TV. However, it was forced off the air (Figure 4), according to the decline could be attributed to the general data from Kantar Group, commanding a 39.6% downward trend of advertising spend in TV, share of the market prior to the enhanced signifying volatility in the industry. community quarantine in March 2020. 4. Piracy in the Philippines: Piracy Despite no longer airing in the latter half of Q2 and Unauthorized Distribution for onwards, ABS-CBN remained in the minds of Online and Traditional TV its audience at least on Twitter, according to Kantar Group’s Social TV Ratings. The network’s Media piracy is powered by technological shows still received significant engagement innovations and is ubiquitous due to digital on Twitter, with programs like ASAP Natin ‘To distribution. The illegal activities of duplication and TV Patrol garnering 177,224 and 74,555 and dissemination of original content remain on tweets, respectively, during the period. The the rise amid the COVID-19 global crisis. former bears noting as the program reclaimed the top rating spot in the latter half of the year SVOD services are projected to become a when it started airing on both Kapamilya and US$250-million industry in the country, led by A2Z channels, despite both networks having current players such as Amazon Prime Video, much less reach on TV. On the other hand, GMA HBO Go, Netflix, and Viu. However, about shows have the most presence on Facebook, US$120 million is lost to piracy as it continues with programs Eat… Bulaga!, Kapuso Mo Jessica to proliferate in the Philippines and harm the Soho, and consistently claiming the content industry and the economy.26 most interactions. Nowadays, the internet is a venue of global Though the network’s programs retained piracy via streaming websites, P2P file sharing, some semblance of their popularity among BitTorrent, deep linking, media boxes, and other audiences, this was not reflected in ad spend online services that host copyright materials for received by ABS-CBN. Even with the launch of unauthorized use. FTA network A2Z, total ad spend from both Kapamilya and A2Z channels declined by 37% Sadly, piracy is part of everyday life in the in the last quarter of 2020 compared to spend Philippines. Among more than 110 million from ABS-CBN in the comparable period of the Filipinos, the unauthorized production, previous year. Advertising expenditures that duplication, distribution, sale, and consumption

26 https://manilastandard.net/mobile/article/336880

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of soft or hard copyrighted materials is a enforcement procedures to disrupt the digital common practice. piracy ecosystem and migrate consumers to legal services. Effective anti-piracy initiatives, The Philippines continues to have one of the resulting in noticeable increases in local highest levels of online piracy in . and international OTT platform revenues, AVIA analyzed the viewing behavior of online have already been observed in neighboring Filipino consumers and revealed that 49% access countries.27 streaming piracy websites or torrent sites. Piracy levels soared to 53% for consumers whose age It is hoped that the current momentum within ranges from 25 to 34. The survey, conducted by government to amend legislation and more YouGov, revealed that 47% of those who visited effectively disrupt the digital piracy ecosystem, unlawful sites stopped subscribing to some local will come to fruition and boost the growth of and international content services. The study local and international content creation and also showed that Malaysia and Indonesia are distribution services in the country. doing well in their fight against piracy compared to the Philippines because they have introduced 5. Regulatory Environment for site-blocking against egregious piracy websites Digital Content leading to massive reductions in their online piracy in the past year. The economic losses incurred by the COVID-19 pandemic put pressure on the Philippine The Intellectual Property Office of the Philippines government to meet the shortfalls by creating (IPOPHL) also disclosed a surge in piracy in 2020 new revenue streams — including through based on the number of reports and complaints taxation of internet-streamed entertainment filed in their office. Reports and complaints on content over large international OCC services, suspected counterfeiting and piracy increased to and possibly, cable TV and OTT and cable 121 in 2020 as the pandemic presented lucrative boxes. Legislation was filed in response to a opportunities for illicit traders. proposal for taxing web-streamed content and services. Current efforts to amend the Intellectual Property Code (Republic Act 8293) to include House Bill No. 7425, which seeks to impose a administrative site blocking provisions, coupled 12% value-added tax on digital transactions that with the various anti-piracy initiatives driven includes streaming services as well as online by the IPOPHL, will hopefully result in the sellers such as Lazada and , passed the Philippines establishing effective rules and committee level last year.28

27 www.digitaltvnews.net/?p=36022 28 www.congress.gov.ph/legisdocs/first_18/CR00426.pdf

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The Movie and Television Review and as financial technology (fintech) firms have Classification Board (MTRCB), after being eventually learned to coexist with banks and criticized for attempting to introduce online shopping platforms with brick-and- regulations on OCC content, clarified last year mortar establishments, pay TV and OCCs may that it will instead ask online video streaming also learn to co-exist. services to adopt the local rating system for movies and TV shows.29 Several reports have shown cord-cutting to be on an uptrend in economically mature Current programs shown in the country are markets, where internet penetration is high classified in accordance with a seven-tier and traditional pay TV bundles are expensive. rating system based on appropriateness of the While this may be the case, estimates by content for the target audience. GlobalData show pay TV household penetration levels in “emerging” markets such as Indonesia, Meanwhile, chances are slim for ABS-CBN to get the Philippines and Thailand to rise between another shot at franchise renewal this year. One 2019 and 2024, bucking the trend observed academic expert remained cautious about the in developed markets.31 A similar finding can broadcaster’s success, considering the majority be found in a report by Frontier Economics of lawmakers who voted against the renewal.30 wherein the overall number of subscriptions to pay TV and online video service providers in the The direction that the Philippines’ TV industry Asia-Pacific region has been increasing steadily will take depends as much on legislative in recent years.32 reforms as it does on the industry’s own policies under the pertinent media laws — including the The country’s relatively low internet penetration laws governing internet use in the country. rate and slow internet download speeds may also suggest that pay TV can coexist with OCC/ 6. Future Trends OTT as Filipino households view TV and OCC platforms as complementary services. Moreover, The growth of the OCC market, coupled with recent arrangements wherein broadcasting rising disposable household income, leads firms have allowed OCC/OTT providers to license inevitably to discussions on whether Filipinos and stream the former’s movies and series will eventually “cut the cord.” However, just reinforces the possibility of cooperation.

29 https://news.abs-cbn.com/entertainment/10/02/20/mtrcb-urges-netflix-other-video-steaming-services-to-adopt-ph-ratings- system 30 https://newsinfo.inquirer.net/1427319/abs-cbns-ordeal-and-its-chilling-effect-on-media 31 www.globaldata.com/apac-pay-tv-penetration-to-stagnate-through-2024-due-to-cord-cutting-in-developed-markets-says- globaldata/ 32 www.frontier-economics.com/media/4451/broadcasters-adapting-to-digital-transformation-in-apac.pdf

12 About the Asia Video Industry Association The Asia Video Industry Association (AVIA) is the trade association for the video industry and ecosystem in Asia Pacific. It serves to make the video industry stronger and healthier through promoting the common interests of its members. AVIA is the interlocutor for the industry with governments across the region, leads the fight against video piracy and provides insight into the video industry through reports and conferences aimed to support a vibrant video industry. AVIA evolved from Casbaa in 2018.

Hong Kong Office Office 20/F Leighton Centre 5008 Ang Mo Kio Avenue 5 77 Leighton Road #04-09 Techplace II Causeway Bay, Hong Kong Singapore 569874 Tel +852 2854 9913 [email protected] www.avia.org

BusinessWorld, the Philippines leading business paper, represents more than five decades of professional economic journalism.

Founded by Ramon Magsaysay Awardee for Journalism, Literature and Creative Communication Arts Raul L. Locsin, BusinessWorld traces its roots to BusinessDay, Southeast Asia’s first business daily, which had its maiden issue in February 1967.

BusinessDay made its transition to BusinessWorld in July 27th, 1987. Since then, even as the world of business evolves with the dynamic pace of time, BusinessWorld has remained the best and most trusted business in the country.

In September 2013, ten years after Locsin’s death, telecommunications giant Philippine Long Distance Telephone Company (PLDT) acquired a minority stake in BusinessWorld through its Beneficial Trust Fund unit, MediaQuest Holdings, Inc. And in July 2015, acquired 76.63% of BusinessWorld Publishing Corp. from Hastings Holdings, Inc. in a move meant to “strengthen the distribution and operations” of the country’s premier business daily.

Building on its print legacy, BusinessWorld has successfully transformed itself into a multimedia entity by delivering its signature brand of business news and insights to new audiences in different platforms. This has further cemented its position as the most trusted source of news, analysis, and insights by the country’s business community.

© 2021. The Asia Video Industry Association holds all rights to this report, and no part thereof may be reproduced or replicated without prior explicit and written permission.