PTV-4 NOT TO AIR ENTERTAINMENT PROGRAMS; DENIES GMA'S ACCUSATIONS OF DIRECT COMPETITION!

Programs on PTV-4 would allow block time programming (the scheduling of similar television programs back-to-back) “provided that it is focused on education, history, propagation of Philippine culture and quality entertainment."

He added that the majority of programs would focus on “news and public information.”

Entertainment shows, on the other hand, will not “compete directly” with private stations' programs.

“We do not intend to produce entertainment shows like the telenovela of the type that they have produced. Perhaps we can have a telenovela featuring the heroism of our Medal of Valor or Gold Cross awardees, or of the Dangal ng Bayan awardees of the civil service, or outstanding public school teachers, outstanding policemen, soldiers,” Coloma said.

“Telenovelas that will edify the nobility of the Filipino public servant, that will be our orientation, not the telenovela that is commercially available at present. So it is farthest from our intention to compete directly with private media,” he added.

GMA Network, Inc. strongly opposed the government’s plan to privatize state-owned broadcast station People’s Television Network, Inc. (PTV) as it would be unfairly competing with private players

Coloma said the new law addresses two main problems of PTV-4: the “financial hemorrhage” marked by the depletion of the station’s capital and the lack of a stable source of income.

“So it was important that the new law provided for new capitalization and permitted the network to generate commercial revenues, so that there will be a stable source of sustenance for the network,” Coloma stressed.

These provisions were the subject of a complaint expressed in December 2012 by Felipe L. Gozon, chair of GMA-7 operator GMA Network Inc.

Gozon had said it is "very unfair" that PTV-4 will receive funds from the national budget derived from the taxes collected from and paid by taxpayers, which include commercial broadcasters.

While receiving subsidies from the taxes and fees paid by broadcasting institutions, the network will be competing with the same companies for the source of income providing the said funds: commercial ads and airtime.

Gozon had claimed that PTV-4 will have the upper hand in competing with the private sector in terms of generating ad revenue since the state-funded competitor can provide airtime value at lower rates, which may diminish the ability of private broadcasters to attract ad revenues.

“If they want to sell airtime then they have to remove the subsidy. We pay billions in taxes and part of those taxes will be used by PTV 4,” stressed Gozon.

Rappler.com

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