HIGHER TALENT FEE PUSHED ABS-CBN'S EXPENSES UP!

ABS-CBN Corp., the biggest broadcasting company, said competition is putting pressure on its cost, especially on talent fees, after rival TV5 offered higher pay on its artists.

“There will be some pressure in our costs, talent fees in particular,” ABS-CBN chief financial officer Rolando Valdueza said.

He said the practice of “pirating” major stars and the transfer of a few to TV5 had prompted the ABS-CBN management to renegotiate and improve contract terms of talents.

“[We effected] adjustment in their talent fees [and gave] more work to do,” Valdueza said.

He said other stars whom ABS-CBN had groomed and turned into famous celebrities remained loyal despite attractive offers from TV5.

“I give credit to our major stars because most of them, they grew with us and they value relationship with us,” Valdueza said.

“Most of them have signed another contract with us already,” he added.

Willie Revillame, Aga Muhlach, Mariel Rodriguez have transferred from ABS-CBN to TV5 while Sharon Cuneta and John Lloyd Cruz were reported to have been wooed by the TV network of Philippine Long Distance Telephone Co.

Cruz recently signed another contract with ABS-CBN while Cuneta was not present in Channel 2’s Christmas station ID.

ABS-CBN last week reported a 23-percent drop in profits to P2.24 billion in the first nine months of the year as a result of slowing revenues from advertising.

SOURCE