ABS-CBN's market value continues to soar as its diversification program gravitates attention from investors. The Media giant's market capitalization as of February 20, 2015 stood P53.17 billion, more than double the size of rival GMA Network, which saw its market value whittle to P21.11 billion. Local and foreign investors salivate with the Kapamilya Networks' foray into other businesses while maintaining its industry leadership on its traditional business.
The conglomerate recently entered into the Telecommunications business via ABS-CBNmobile, Enterprise data and networking solution via Skybiz, Digital Service via ABS-CBN TVplus and soon to launch Interactive Educational Center, KidZania Manila, via Play Innovations Inc. As the ubiquity of mobile and digital devices continues, video and media consumption are rapidly moving away from the traditional TV, Radio and Print. Advertising revenues on these traditional businesses are expected to shrink in the coming years as mobile platforms and applications like Facebook, Youtube and messaging apps eat up advertising spend.
The shift to Digital Service via DTT is also expected to boost reception of ABS-CBN's flagship channel, which will help improve tv ratings in Mega Manila. ABS-CBN has suffered poor signal in MM due to the channels' vulnerability to interference that partly explains its poor TV Ratings in the area. The digital service is expected to improve channel 2's TV Ratings in MM, earning it a better share of the advertising spend.
Meanwhile, GMA Network's hesitance to invest in new businesses staged its reliance to advertising, comprising 90% of its consolidated revenues. GMA Executives preferred to divest its cash hoard through dividends to its shareholders rather than utilize the profits to expand. GMA's stocks prices have been plummeting following the sale of majority stakes by its three controlling families to San Miguel chairman Ramon S Ang.
As the battle in the television industry wages on, the future of broadcasting increasingly becomes uncertain.
TV NETWORK WAR ORIGINAL