LOPEZ ADMITS COMPLACENCY CAUSED GMA & TV5 TO ADVANCE IN THE NETWORK WAR!

MANILA, Philippines - Never take competition for granted.

That was the lesson ABS-CBN Chairman and CEO Eugenio "Gabby" Lopez III learned the hard way when his company was overtaken by main rival GMA Network Inc., owned by Felipe "Henry" Gozon, years back.

Lopez said the same lesson will guide him as ABS-CBN takes on another fast-growing contender, now Manuel Pangilinan-led TV5.

"We went through a period where we got complacent. When we were number one for many, many years, we went through a period of complacency. When Henry woke us up rudely, it was a very difficult time for the network, but fortunately, I believe we've overcome that obstacle," Lopez shared during the 22nd Philippine Advertising Congress in Camarines Sur.

"TV5, they're definitely going to be around to stay. They're very, very vigorous... a competitor you should not take for granted. I speak for Henry and me, I don't think either of us will take Manny Pangilinan for granted," he added.

TV5 as competitor

Pangilinan-chaired Philippine Long Distance Telephone Co., through MediaQuest Holdings Inc., acquired in 2009 a majority stake in ABC Development Corp., former owner and operator of ABC 5, which is now known as TV5.

MediaQuest plans to invest billions of pesos into the network over the next few years to build state-of-the-art facilities that will allow it to compete head to head with ABS-CBN and GMA 7.

Pangilinan said TV5 will be the force that will break the duopoly of the biggest television networks in the Philippines.

Pangilinan, who was also present during the 22nd Ad Congress, said, "We intend to be here in the long term. It's difficult, no doubt, because you have very strong incumbents."

"But we're betting on the changes in the future. We will be an active catalyst in changing the future. Otherwise, we will be number three forever."

Not just 3-way competition

Lopez, however, believes that the industry battle is not just three-way.

"Actually, if you think about it, there's so many channels and they're all over the place. In time, there will be more choices for consumers that will come from channels abroad. When the tablet goes below $100, I think that's gonna be a significant choice for many, many Filipinos. So you have to be very clear where you want to put yourself and what kind of content you want to create."

For ABS-CBN, he said, content will always be one that "connects to the heart."

"The future of media will be shaped by the people's needs, which at its core, is emotional. At ABS-CBN, we believe that technology will change everything, except the human nature that craves for recognition, for affirmation, for connection and for inspiration to be the best that they can be."

"We will invest in enabling technologies, but more than obsessing about connecting gadgets to gadgets, we will continue leveraging our ability to connect to the heart."

Lopez said his company will always be guided by its vision of being "in the service of the Filipino."