Duterte asks police to step up arrest of those not wearing masks
President Rodrigo R. Duterte ordered the police to intensify arrests and detentions of those who violate government rules on wearing masks and social distancing, as coronavirus cases continue to surge.
“A simple violation of not wearing mask seems trivial, but during times of health issues, it can be a serious crime,” Mr. Duterte said in a taped meeting with Cabinet officials aired Tuesday. “We don’t have any qualms on arresting people.”
The government will buy as many masks as possible and distribute them to the public for free, he added. Mr. Duterte also said he’s willing to borrow more or sell government property to buy vaccines against the coronavirus once available.
The Philippine leader has tapped the police and military to implement health protocols during the pandemic, with retired soldiers leading anti-virus efforts. He told authorities in April to shoot protesters attempting to riot during the lockdown.
The Philippines aims to conduct coronavirus tests on 10 million individuals or a tenth of the population by next year, Health Secretary Francisco Duque said at the same televised meeting. More than 1 million have been tested so far, with 68,898 positive results as of Monday.
As the economic impact of the pandemic continued to bite, only a quarter of private school students enrolled for the school year that’s slated to start in August, Education Secretary Leonor Briones said at the meeting. Most of them have transferred to state-funded schools, although only 77% of all students have enrolled for classes with limited face-to-face interactions. — Bloomberg
Wave of promising study results raise hopes for coronavirus vaccines
CHICAGO — Early data from trials of three potential COVID-19 vaccines released on Monday, including a closely-watched candidate from Oxford University, increased confidence that a vaccine can train the immune system to recognize and fight the novel coronavirus without serious side effects.
Whether any of these efforts will result in a vaccine capable of protecting billions of people and ending the global pandemic that has claimed more than 600,000 lives is still far from clear. All will require much larger studies to prove they can safely prevent infection or serious disease.
The vaccine being developed by British drugmaker AstraZeneca along with Oxford University induced an immune response in all study participants who received two doses without any worrisome side effects.
A coronavirus vaccine under development by CanSino Biologics Inc and China’s military research unit, likewise showed that it appears to be safe and induced an immune response in most of the 508 healthy volunteers who got one dose of the vaccine, researchers reported.
Some 77% of study volunteers experienced side effects like fever or injection site pain, but none considered to be serious.
Both the AstraZeneca and CanSino vaccines use a harmless cold virus known as an adenovirus to carry genetic material from the novel coronavirus into the body. Studies on both vaccines were published in the journal The Lancet.
“Overall, the results of both trials are broadly similar and promising,” Naor Bar-Zeev and William Moss, two vaccine experts from Johns Hopkins Bloomberg School of Public Health, wrote in a commentary in The Lancet.
However, the CanSino candidate again showed signs that people who had previously been exposed to the particular adenovirus in its vaccine had a reduced immune response.
The study authors called that “the biggest obstacle” for the vaccine to overcome.
German biotech BioNTech and US drugmaker Pfizer Inc. released details from a small study in Germany of a different type of vaccine that uses ribonucleic acid (RNA)—a chemical messenger that contains instructions for making proteins.
The vaccine instructs cells to make proteins that mimic the outer surface of the coronavirus. The body recognizes these virus-like proteins as foreign invaders and can then mount an immune response against the actual virus.
In the not-yet peer reviewed study of 60 healthy adults, the vaccine induced virus-neutralizing antibodies in those given two doses, a result in-line with a previous early-stage US trial.
The burst of announcements followed publication last week of results of Moderna Inc.’s vaccine trial, showing similarly promising early results. Moderna’s vaccine also uses a messenger RNA platform.
“It’s encouraging that all these vaccines seem to induce antibodies in people,” said former World Health Organization (WHO) assistant director-general Marie-Paule Kieny of the French research institute Inserm. “This proves that the science is moving forward very quickly, which is a good sign.”
‘LONG WAY TO GO’
None of these leading contenders has shown side effects that could sideline their efforts so far, but all must still prove they are safe and effective in trials involving thousands of subjects, including those at high-risk for severe COVID-19, such as the elderly and people with diabetes.
Historically, just 6% of vaccine candidates end up making it to market, often after a years-long testing process. Vaccine makers hope to dramatically compress that timeline through faster trials and by manufacturing at scale even before the products prove successful.
Several manufacturers have US government backing with a goal of having a coronavirus vaccine by year’s end as cases continue to rise at a record pace.
The Oxford/AstraZeneca vaccine is one of 150 in development globally, but is considered the most advanced. Late-stage trials have begun in Brazil and South Africa and are due to start in the United States, where the infection prevalence is highest.
In its Phase I trial, the vaccine induced so-called neutralizing antibodies—the kind that stop the virus from infecting cells—in 91% of individuals a month after they got one dose, and in 100% of subjects who got a second dose. These levels were on par with the antibodies produced by people who survived COVID-19—a key benchmark of potential success.
Oxford researcher Sarah Gilbert said the trial could not determine whether one or two doses would be needed to provide immunity.
The vaccine, known as AZD1222, also induced the body to make T cells—activating a second part of the immune system that experts increasingly believe will be important for a lasting immune response.
Recent studies show that some recovered patients who tested negative for coronavirus antibodies developed T cells in response to their infection. Scientists think both are important aspects of an effective coronavirus vaccine.
Dr. Mike Ryan, head of WHO’s emergencies program, said the generation of both T-cell and neutralizing antibody responses was positive, adding, “there is a long way to go.” — Reuters
Contacless delivery: How it keeps businesses and customers safe from the virus
Due to the current COVID-19 situation, some businesses are forced to cease or limit their operations while others, especially retailers, bringing their products and services online—this changes, drastically, the game in e-commerce as more businesses need to ensure not that they deliver fast services but also, contactless delivery.
The “New Normal” has dawned on everyone across the globe to avoid contracting the virus. This situation also urged businesses to observe specific hygiene practices set by the authorities to help prevent the further spread of the 2019 novel coronavirus(2019-nCoV).
According to the World Health Organization (WHO), COVID-19 spreads through droplets released into the air, mainly through coughs or sneezes. The virus is also able to stay on surfaces for days, with several studies underway to determine how pervasive it is, most saying that it can live for up to 14 days.
This perspective makes contactless as an incredibly important practice that ensures the safety and sanitation of both the delivery person and the customer receiving the product. The set-up of contactless delivery can be tedious, but the impact, in the end, will make a difference.
For retailers and other businesses, this means regular sanitation of warehouses, working personnel, packaged goods, and delivery partners. Providing PPE such as masks, gloves, and hand sanitizer can go a long way in ensuring that the delivery is truly contactless.
The customer will then also need to have their hygiene practices upon receiving the product by either sanitizing the packaging or immediately placing the product to a sanitized container.
Customers may also ensure contactless delivery by choosing that option on e-commerce apps that has the option or communicate it to the online seller and create an agreement on how to do it. This will require the customer to pay through online transactions and have a designated area where the delivery person will leave the product.
The most important factor in doing contactless delivery will be to create a bond of trust that will ensure the safe delivery of the product, and also the safety of both parties. In creating a trustworthy transaction, online sellers will need a reliable delivery partner to finish the contactless delivery process.
J&T Express, the leading e-commerce delivery in Southeast Asia, offers their services with fast deliveries and affordable rates. They also ensure the safety of your products with real-time tracking for you and your customers, as well as, provide insurances and other safety precautions for it.
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Work on Bulacan airport to start in Oct.
By Arjay L. Balinbin, Reporter
SAN MIGUEL Corp. is planning to break ground on the P734-billion Bulacan airport project in October, according to the Department of Transportation (DoTr).
“They said they will do the groundbreaking after the ghost month,” Transportation Assistant Secretary Goddes Hope O. Libiran told BusinessWorld in a phone message on Monday.
“Ghost month” refers to the seventh month in the Chinese lunar calendar. In business, starting a venture during this month is believed to be inauspicious. This year, ghost month runs from Aug. 19 to Sept. 16.
Groundbreaking for the airport mega-project was initially scheduled in January.
SMC Chief Finance Officer Ferdinand K. Constantino said during the company’s annual stockholders’ meeting on June 30 the Bulacan airport project will proceed despite the coronavirus crisis. He said jobs that will be created through SMC’s projects will help reset the economy.
San Miguel Holdings Corp. (SMHC) is the SMC subsidiary handling the project, which involves the construction of a 2,400-hectare aviation hub with four parallel runways (expandable to six runways), eight taxiways and three passenger terminal buildings.
The first two runways are expected to be finished in three years at the earliest, while the rest will be completed in four to five years.
SMHC and DoTr signed the concession agreement for the airport in September 2019. Under the concession deal, SMHC will build, operate and maintain the New Manila International Airport for 50 years.
The project also includes the construction of an 8.4-kilometer toll road which will link the gateway to the North Luzon Expressway.
San Miguel tapped Groupe ADP (Aeroports de Paris), Meinhardt Group and Jacobs Engineering Group for the design of the project.
The airport targets to have an annual capacity of 100 million travelers, which the government hopes will help decongest Ninoy Aquino International Airport in Pasay City.
SKEPTICISM REMAINS
However, Avelino D.L. Zapanta, an aviation industry expert, remains skeptical about the proposed airports in Bulacan and Cavite, especially as the country faces a crisis.
“I have been skeptical about both the Bulacan and Sangley projects. I believe the timetable for both will now be pushed back if not terminated,” he said in a recent e-mail interview, adding that the airports are currently “the ones putting much restrictions on airline operations.”
Aside from the Bulacan airport, another airport project is being proposed in Sangley, Cavite. The province of Cavite has yet to receive from MacroAsia Corp. and its Chinese partner the post-qualification requirements for the proposed $10-billion Sangley Point International Airport.
“Even the local government units that used to court airport construction are the ones rejecting flights. Unless the vaccine is discovered, the apprehension will remain and the demand will remain weak,” Mr. Zapanta, former CEO and president of Philippine Airlines, said.
Bond markets to remain on fire as global coronavirus crisis intensifies
By Beatrice M. Laforga, Reporter
INVESTORS will probably continue buying bonds for the rest of the year as the market remains awash with cash, the yield of 10-year bonds is at a 13-year low and players return to safety amid uncertainty about how deep and long a coronavirus-induced recession might be.
“Record low local interest rates especially for long-term tenors could reduce borrowing costs for the government, companies and consumers,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC) said in an e-mail.
“But this could prompt a search for higher returns from riskier asset classes,” he said, adding that investors might shift their focus to longer-term bonds to maximize yields.
Policy makers have launched unprecedented fiscal and monetary support globally to shield their economies from various lockdown levels and the resulting liquidity challenges.
Central banks around the world dusted off nearly every available tool — from policy rates to reserve ratio cuts — to keep markets liquid and support economic growth.
The US Federal Reserve cut rates to zero, resumed quantitative easing and launched various facilities in pursuit of its dual mandate to promote maximum employment and stable prices.
Other central banks including the Bangko Sentral ng Pilipinas (BSP) have taken similar actions to support credit flow and keep markets functioning.
BSP’s Monetary Board has cut benchmark interest rates by 175 basis points to a record 2.25%, 2.75% and 1.75% for the overnight reverse repurchase, lending and deposit facilities, respectively.
Bonds have become the “flavor of the year” for investors seeking safety as the Philippine economy braces for its first recession in nearly two decades.
“Job prospects are bleak and the overall outlook is downbeat, so investors will naturally have a heightened preference for cash and investments that can provide a more sure-footed return — fixed income assets such as bonds,” Nicholas Antonio T. Mapa , a senior economist at ING Bank N.V. Manila Branch, said in an e-mailed reply to questions.
The economy shrank by 0.2% in the first quarter and the contraction is widely expected to have widened further last quarter as the impact of the lockdown came into full swing.
President Rodrigo R. Duterte locked down the entire Luzon island in mid-March, suspending work, classes and public transportation to contain a coronavirus pandemic that has sickened almost 70,000 and killed about 1,800 people in the Philippines. People should stay home except to buy food and other basic goods, he said.
He extended the lockdown for the island twice and thrice for the capital region. The lockdown in Metro Manila has since been eased, with many businesses allowed to reopen with minimal workforce. Mass gatherings remained banned.
The Treasury bureau has issued P1.153 trillion of government securities in the five months through May — P234.02 billion in Treasury bills, P307.86 billion in T-bonds, P311 billion in retail T-bonds and P300 billion that BSP had bought through a repurchase agreement.
The bureau also launched its second retail T-bonds for the year on July 16, selling five-year debt at a coupon rate of 2.625%, with tenders surging to P278.572 billion on the first day of sale.
STRONG DEMAND
“Retail Treasury bonds are an attractive investment proposition for smaller investors to enjoy relatively much higher interest income for a minimum investment compared with other deposit products,” RCBC’s Mr. Ricafort said.
The central bank has also announced a plan to issue central bank securities by the third quarter, with a preference for short-term tenors and small volume offers, adding to risk-free assets that investors can buy.
There would be “very strong demand” for both government and corporate bonds as the market remained very liquid,” said Carlyn Therese X. Dulay, first vice-president and head of institutional sales at Security Bank Corp.
“We can expect more bond issuances from both the government and the corporate side as well since yields are now very attractive to issuers,” she said in an e-mail.
Economists at First Metro Investment Corp. (FMIC) and University of Asia and the Pacific (UA&P) traced the strong liquidity to the central bank’s aggressive move to slash key rates and the reserve requirement for banks to cushion the effects of the COVID-19 pandemic.
“There may be more volatility in the longer end of the curve as the market seems unsure of the domestic borrowing intentions of the National Government,” according to their June issue of The Market Call.
There were 16 new listings of corporate bonds in January to June worth P175.5 billion, according to the Philippine Dealing & Exchange Corp. (PDEx). The first company to list its bonds on PDEx this semester was BDO Unibank, Inc., selling P36 billion worth of 1.75-year fixed-rate bonds on July 3.
BDO’s issuance was the 17th listing for the year, bringing the year-to-date total of new listings to P211.5 billion. So far, tradeable corporate debt has hit P1.45 trillion issued by 56 companies.
Strong liquidity and the low-interest rate environment could push returns of these safe-haven, fixed-income assets lower.
Companies would probably sell more bonds for the rest of the year to take advantage of low rates, Philippine National Bank (PNB) Head of Research Alvin Joseph A. Arogo said.
‘LEAP OF FAITH’
“The low interest rate environment will be an incentive for more companies to issue corporate bonds, allowing them to lower their average debt cost,” he said in an e-mail.
But FMIC and UA&P said there would be “less activity for new corporate bond issuances, except for refinancing maturing debt due to banks’ risk aversion and large firms’ cutback on capital expenditures in 2020.”
Mr. Mapa said the funds that the government and companies would raise from their bond issuances were likely to be used to make up for forgone income, pay off existing debt and beef up short-term working capital.
“Some companies may look to invest in a new COVID-19 strategy as pre-pandemic plans were shelved,” he said.
Rates of fixed-income securities in the secondary market have fallen since April, as investors’ flight to safety prevailed during the lockdown.
Bond yields have dropped by an average 34.5 basis points (bps) month on month across-the-board from end-May to end-June, according to the Philippine Dealing System, citing Bloomberg data.
The decrease was more apparent when compared with levels in mid-March, when the yields shot up as uncertainties during the start of the lockdown spooked investors.
Rates plummeted by an average 167.1 bps from March 16 — when Luzon first experienced one of the world’s longest lockdowns — to June 30.
“Uncertainty and anxiety will continue to dominate” as strict lockdowns across the country are slowly eased, Mr. Mapa said. Economic recovery will depend on restoring confidence and boosting the capacity of the nation’s public healthcare system, he added.
Rates would “remain near historic lows” because the Philippine central bank “has so much room to keep an accommodative posture to help restart the economy,” said Jonathan L. Ravelas, chief market strategist at BDO Unibank, Inc.
Improved business and consumer sentiment “should help businesses to take a leap of faith to borrow and slowly restart, while additional stimulus should boost the economy as well,” he added.
Travel firms brace for huge losses
MOST tourism-related businesses in the Philippines expect revenue losses of over 50% this year, amid travel restrictions and business closures due to the coronavirus disease 2019 (COVID-19) pandemic, a survey from PwC Philippines/Isla Lipana & Co. showed.
The survey found that 88% of Philippine tourism businesses expect over 50% revenue losses, while seven percent expect 40-50% in losses and three percent expect 30-40% in losses.
Less than half or 42% of the businesses expect their operations to normalize between six to twelve months, while 21% expect their businesses to normalize after a year.
PwC, in partnership with the Tourism department, surveyed 247 tourism “decision makers” in May 2020, with 70% from tourism services such as travel agencies and tours. Meanwhile, 34% of the respondents are in accommodations, six percent are in food services and entertainment, four percent are in transportation and one percent are in the conferences and events sectors.
The pandemic led businesses to halt or reduce some operations, with 78% saying they stopped offering a product or service due to restrictions and 61% saying they did so due to lack of demand.
Up to 44% of the respondents reduced the level of operations, while 22% deferred their expansion plans.
Tourism employment suffered, with 43% of the respondents reducing employee headcount to save on costs.
A third of the companies experienced productivity loss due to a lack of remote working capabilities, and 29% saw a change in staffing due to low demand while 27% said they laid off staff.
In terms of funding, 14% availed of loans or funds from external sources, while seven percent used company properties for other purposes to generate revenues. Three percent availed of loans or funds from existing shareholders.
Assessing the additional funding they need to normalize their operations after the lockdown, 31% said they need P500,000 to P1 million, while 30% said they need less than P500,000. Just 17% said they need P1 million to P5 million and nine percent said they need none at all.
But some companies require significantly more resources, with seven percent saying they need over P20 million and four percent said they need funding between P5 million and P10 million.
Majority or 61% of the businesses said they will use the funding for working capital requirements, and 54% said they will use it for marketing purposes. Another 41% said they will use it to refinance existing obligations, while 33% said they need the money to improve company facilities and 32% said they will use it to rehire employees.
Up to 79% said they expect international tourist arrivals to decline by over 50% for the year.
Almost all or 92% of the respondents believe that pandemics should be part of insurance coverage.
Tourism Secretary Bernadette Romulo-Puyat said that the department plans to sustain the tourism industry through financial support and policies covered in their Tourism Response and Recovery Program.
“We are working towards the establishment of proper infrastructure, and enhanced health and sanitation protocols in line with the standards of New Normal. Our goal is to build a more sustainable, resilient, and inclusive tourism industry,” she said.
PwC Philippines Chairman and Senior Partner Alexander B. Cabrera said the industry should upskill employees and digitalize operations.
“Promoting medical tourism and agri-tourism may be among the programs that our country can prioritize to help restart the sector,” he said.
The United Nations Conference on Trade and Development (UNCTAD) said the country stands to lose up to $22.64 billion or seven percent of GDP if the tourism standstill extends to 12 months.
Last year, tourism contributed 12.7% to the country’s GDP and employed 5.7 million people.
Foreign arrivals declined 68% from January to June 2020. Tourism Undersecretary Benito C. Bengzon, Jr. in a mobile message on July 2 said the department has not yet come up with revised targets for the year.
He said the department had waived participation fees for international tourism fairs and facilitated wage subsidy programs, as well as crafted a recovery plan for the industry. — Jenina P. Ibañez
PHL may see slow recovery as coronavirus infections surge
THE Philippines may likely see a delay in its economic recovery as the number of coronavirus disease 2019 (COVID-19) infections continues to rise, an analyst from Fitch Solutions said.
“One of the things that we are particularly concerned about particularly in Asia is emerging Asian economies…like India and Indonesia, [the] Philippines, to some extent, which have seen a continued rise in the number of new cases as well as deaths over the past couple of months and they’re still experiencing so-called first waves so they haven’t yet flattened COVID-19,” Fitch Solutions Country Risk & Industry Research Head of Asia Country Risk Anwita Basu said in an interview with ANC on Monday.
“These countries which are sort of traditionally the drivers of growth in Asia will, we believe, see delayed recovery,” she added.
As of Monday, the Health department added 1,521 new COVID-19 infections, bringing the total tally to 69,898. This was the fifth straight day that the Department of Health reported over a thousand new cases. Death toll stood at 1,835, while recoveries were at 23,072.
Developed Asian countries such as Singapore, Japan, and South Korea, which appear to have contained the outbreak, are expected to see a gradual recovery in the second half of 2020, Ms. Basu said.
Fitch Solutions in May said it expects a 2% contraction in the Philippine gross domestic product (GDP) this year, a reversal from the 6.3% baseline growth forecast before the pandemic. Ms. Basu said they will revisit their outlook for the country once the second quarter GDP result is released.
After economic output dropped by 0.2% in the first quarter, analysts expect the contraction in the April to June period to be much worse given the extent of the lockdown during the period.
Ms. Basu said Fitch Solutions will also consider the size of the fiscal stimulus when updating the GDP forecast for the Philippines.
“I think either way stimulus or non-stimulus, 2020 is an economic write-off for these countries because they are so dependent on the informal sector, they are so dependent on movement of people,” she said.
Congress has yet to pass stimulus measures including the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill which allocates P1.3 trillion for mass testing, wage subsidies, and assistance for small businesses, among others.
The COVID-19 Unemployment Reduction Economic Stimulus (CURES) bill, which allocates P1.5 trillion primarily for infrastructure projects to minimize unemployment, is also still pending in Congress. — Luz Wendy T. Noble
Broadcast companies expected to boost investments in content and infrastructure
By Arjay L. Balinbin, Reporter
BROADCAST media firms, especially GMA Network, Inc. and TV5 Network, Inc., are expected to boost their investments in content and infrastructure to take advantage of ABS-CBN Corp.’s shutdown.
“If you are in the analog TV space, you need to invest in content. Will the media companies be able to produce programs that will click with the Filipino viewers? Will they be able to invest in and set up infrastructure fast enough to ensure that they can approximate the footprint of ABS-CBN particularly in rural Philippines which still accounts for about 50% of our population?” Kantar Media Philippines Managing Director Jay G. Bautista said in an e-mailed reply to questions last week.
GMA Network Chairman and Chief Executive Officer Felipe L. Gozon told BusinessWorld via e-mail on Monday that the network, aside from the additional digital channels it plans to launch within the year, will also announce a “major project” soon.
“It is important to note that all these were conceptualized prior to the coronavirus disease 2019 (COVID-19) pandemic,” he added.
GMA has launched its own digital terrestrial television (DTT) receiver called the “Affordabox.”
PLDT, Inc. Chairman, President and Chief Executive Officer Manuel V. Pangilinan, who also chairs TV5, said in December that he was open to a blocktime deal with ABS-CBN.
In June, he said Cignal TV, a PLDT-affiliated company, was in talks with ABS-CBN.
Mr. Pangilinan did not immediately respond to BusinessWorld’s request for comment and interview on Monday, but he was quoted as saying in a Philippine Star report that TV5 is “revving up” its entertainment content; hence, it is ready to offer jobs to ABS-CBN’s displaced employees.
Voting 70 to 11, the House of Representatives Committee on Legislative Franchises had rejected the application for a franchise renewal of ABS-CBN — a media company critical of President Rodrigo R. Duterte — saying the broadcaster was “undeserving” of the privilege.
“As we all know, around 70% to 80% of TV viewing was shared between ABS-CBN and GMA, prior to ABS-CBN’s shutdown. With the non-renewal of ABS-CBN’s franchise, GMA has a virtual monopoly garnering almost two-thirds of TV viewing,” Ruperto “Jun” S. Nicdao, Jr., president of Kapisanan ng mga Brodkaster ng Pilipinas (KBP), said in an e-mailed reply to questions last week, citing the latest survey by Nielsen Media Research.
He noted that the other networks such as TV5 and GMA News TV, operated by GMA Network’s wholly owned subsidiary Citynet Network Marketing and Productions, Inc., also increased their shares after the shutdown of ABS-CBN.
“TV5 rose from around 2.8% to 9.5% while GMA News rose from 1.2% to 4.3%,” Mr. Nicdao said.
Nielsen told BusinessWorld via e-mail that CNN Philippines is currently at rank 21st.
“Overall TV viewing suffered a decline which indicates that not all former ABS-CBN viewers shifted to competition. Some continued to follow ABS-CBN content on their digital platforms, but the increase in digital viewing is nowhere near what they lost in terrestrial TV. I think ABS-CBN will continue to push these non-terrestrial platforms (digital and cable) and will probably accelerate the digital transformation of a lot of viewers,” Mr. Nicdao said.
From May 6 to May 12 — when ABS-CBN went off air — the total day viewing in the Philippines had declined by 5%, equivalent to 4.3 million viewers, from 20.9% total day viewing from April 29 to May 5, Nielsen said in its latest report.
Also based on a survey by Nielsen, 81.60% of ABS-CBN’s viewers said they would switch to other free-to-air channels while 13.20% would go to cable TV. About 9% said they would go to other online platforms while only 4.20% expressed they would follow ABS-CBN’s programs on its online platforms.
“GMA will benefit given their reach and comparative content to ABS-CBN while it will be interesting to see how the other networks (free to air and pay TV) will position themselves to attract the analog viewers of ABS-CBN who do not have the disposable income to go online and follow their favorite shows,” Kantar Media’s Mr. Bautista said.
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KBP’s Mr. Nicdao said the non-renewal of ABS-CBN’s franchise limits the options for advertisers to reach their customers, and they will probably be looking at alternative platforms including “digital and below-the-line executions.”
Philippine Association of National Advertisers (PANA) President Martin Tiu Lim said in a recent interview with dzMM that advertisers are now forced to transition to online platforms and other means.
In the first quarter, advertisers spent a total of P114.33 billion on TV, 5% lower than P120.66 billion spent during the same period last year, according to Nielsen.
Mr. Lim said due to the pandemic crisis, many advertisers have stopped their advertisements in each network. “But not all advertisers from ABS-CBN will go to the other networks. They will possibly go to online platforms, radio and newspapers,” he added.
In a phone interview, Community Broadcasters Association of the Philippines (CBAP) President Sammuel T. Batiancila said small radio companies will surely benefit from ABS-CBN’s absence.
“We are planning to open an office in Manila to represent all community radio stations in the country,” he said. “The group will meet with giant companies for possible advertisement deals.”
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.