Republic of the Philippines

Polytechnic University of the Philippines

Sta. Mesa, Manila

In Partial Fulfillment of the requirements of the subject in

OPERATIONS MANAGEMENT AND TQM

A Case Study Presented to the

Faculty of the Polytechnic University of the Philippines

THE PENDING CONTRACT RENEWAL OF ABS-CBN CORPORATION

Submitted by:

Submitted by: Submitted to:

Ahig, Abegail Prof. Ma. Jocelyn Guevarra

Aquino, Angela Merice P.

Ancheta, Dan Paulo

Azur, Florianne Mae

Bautista, Venson

Bentazar, Christine Laye

Cabanos, Abegail

De Guzman, Camela Joy

BSMA 2-1
HISTORY OF ABS-CBN CORPORATION

ABS-CBN, one of the biggest networks in the Philippines originally traced its history from

when Bolinao Electronics Corporation (BEC) was established in 1946 by James Linderberg,

known as the father of Philippine television. In 1951, Linderberg partnered with Antonio Quirino

in order to try venturing into television broadcasting and so in 1952, BEC was renamed as Alto

Broadcasting System or ABS. In 1953, the network was able to put up its own TV tower and were

able to import 300 television sets. Followed by the year 1956, Chronicles Broadcasting Network

(CBN) was organized which was owned by Eugenio Lopez, Sr. Then by 1957, Lopez acquired

ABS from Quirino and Linderberg and it was only in 1967 that corporate’s name was changed into

ABS-CBN.

During 1960s, the network became the leading radio industry and made also a big

impact when it comes to the TV industry by being the country’s first color TV broadcast, first

satellite feed, and first use of videotape. For the following years, the network kept on expanding

especially when it comes to provincial regions such as Cebu and Bohol and by the year 1970, the

network currently owned that time 2 national television networks, 12 regional television stations,

6 national radio and 15 radio station nationwide.

Martial Law Era

During the Martial Law years, ABS-CBN was among the companies seized from

the Lopez. Geny Lopez, the president of the company, was imprisoned and held without trial for

five years. Marcos, at that time, ordered the takeover of media firms and as a result, all media

networks including ABS-CBN, were placed under military control. The network itself was taken

over by Roberto Benedicto, a presidential crony, who used the Broadcasting Center at Bohol
Avenue, then renamed as "Broadcast Plaza", and it became the home of the three TV stations that

were controlled by the Marcos regime. As the People Power Revolution broke out in the eighties,

the reformists in the military contended the broadcasting network would be a vital asset for victory.

Thus, on February 24, 1986, they attacked and took the ABS-CBN Broadcast Center and so the

long hibernation of the station ended in March.

The network soon after they returned, relaunched a live musical special titled, “The

Start Network: Ang Pagbabalik ng Bituin”. This relaunch gave the station a boost in the ratings

and the network earned the title of Philippines’ number one TV network.

Controversies and Scandals

ABS-CBN network have faced numerous scandals especially around 2000s which

includes the incident during the one-year anniversary of Wowowee, the writ of Amparo, copyright

case, and the current 2020 franchise renewal.

Wowowee Scandals and Incidents, 2005

The celebration of Wowowee’s first year anniversary didn’t go well as a stampede

occurred in the venue which killed 73 people and injured around 400 people. It began when the

organizers of the show started to hand out tickets to the people in the crowd. Among those crowds

are some people who have been camping for days to acquire tickets. When they overheard the

news about the handing out of tickets, that’s when the stampede began as the people started trying

to get ahead of the queue and became agitated. People started pushing forward and shoving

towards the gate, this prompted the security guards to close the gate. The pushing continued which
caused the gates gave way and so the people at the front collapsed from exhaustion while others

behind them stumbled.

As a result of the tragedy, the network was forced to temporarily cancel the show

and postponed the anniversary presentation. The CEO of that time, Eugenio Lopez, III, promised

to provide aid and financial assistance to the victims and their families. On October 2006, the

relatives of the victims filed a class suit against the network and only 2 years after that when the

Supreme Court ruled with finality dismissed the ABS-CBN’s case of junking the investigation by

the DOJ. The DOJ indicted all of those involved in the stampede except for Willie Revillame.

Writ of Amparo, 2008

On 2008, Jacqueline Park of the International Federation of Journalists (IFJ),

supported the petition for writ of amparo filed by the ABS-CBN Broadcasting Corporation’s 11

employees with the Supreme Court to rule on the legality of journalists’ arrests concerning the

failed Manila Peninsula rebellion.

Copyright Case

Willie Revillame had a show in TV5 called Willing Willie which the ABS-CBN

deemed that show was similar to that of Wowowee. Because of the similarities found by ABS-

CBN, including the set-ups, the programs, performance numbers, etc., the network demanded 127

million pesos from Willie Revillame, citing copyright infringement. The ruling was later made

during 2015 which junked the case against Revillame, declaring it moot.
2020 Franchise Renewal

Since 2017, the network has been receiving a lot of complaints and backlash

coming from the President of the Philippines such as the refusal of the network to air his 2016

presidential campaign ads. The network was also accused of the claims of not paying taxes which

was later proved as not true. Other accusations were also faced by the network such as the allowing

of foreign ownership and the selling and offering of KBO as an entirely new TV channel. Calida,

the one who stated about the network’s violations, filed to the higher court a quo warranto petition

against ABS-CBN.

At the present, final decision has yet to be made regarding the franchise renewal of

the network. The network will further undergo hearings and investigations regarding this case.
TIME CONTEXT

ABS-CBN, being the largest media branch in the Philippines, faces an uncertain future

beyond March 30 as the renewal of their franchise is yet to be clear.

After the late President Fidel V. Ramos signed RA 7966 granting a 25-year franchise to

ABS-CBN Corporation on March 30, 1995, it took the network to air freely. However, during the

campaign period for 2016 elections, former Senator Alan Peter Cayetano who is President Rodrigo

Duterte’s running mate for the presidential elections, got a Taguig court on May 6, 2016 to issue

a temporary restraining order stopping ABS-CBN from airing TV commercials against Duterte.

This leads to Duterte unleashing his public rants on November 8, 2018 against the said network

for failing to air his campaign advertisements calling Gabby Lopez, the networks chairman

emeritus, a thief. He said that he will reject the renewal of ABS-CBN’s franchise. On July 1, 2019,

Rep. Micaela Viologo refiles her bill for the franchise renewal with other 20 other House members

signing up as co-authors of the measure. Ten other bills are filed to give ABS-CBN a fresh legal

mandate. Also, on July 28, 2019, Sen. Ralph Recto files a similar bill to extend ABS-CBN’s

franchise for another 25 years where Sen. Leila De Lima was asked to be the co-author of the

measure.

However, on December 3 of the same year, President Duterte said he will personally see

to it that ABS-CBN will be out of business by 2020 telling the Lopezes to just sell the network to

a new owner.

On February 10 of the current year, Solicitor General Jose Calida headed to the high court

with a quo warranto petition against ABS-CBN for committing two grave violations of its existing

franchise: (1) the network allowed foreign investors to control the company by selling Philippine
Depository Receipts and (2) it offers KBO which is a pay-per-view as an entirely new TV channel.

The network apparently refutes Calida’s claim, saying, it did not violate the law.

Palace said that the ABS-CBN’s fate is up to the Congress, according to the Supreme

Court, dated February 11. A petition by the government’s top lawyer to invalidate the company’s

franchise will be decided by the Supreme Court while granting ABS-CBN a fresh 25-year

franchise is up to the Supreme Court. It is also stated that the President has nothing to do with it.

On the same date, the Supreme Court asks ABS-CBN to comment on franchise challenge.

The SC has given the corporation and its subsidiaries 10 days to comment on a petition seeking to

nullify their franchises and to comment to the Office of the Solicitor General’s plea for the issuance

of a temporary restraining order or preliminary injunction against ABS-CBN’s movie channel

Kapamilya Box Office.

On February 13, the Palace stated that ABS-CBN can apply for new franchise if quo

warranto succeeds. With regards with this issue, President Rodrigo Duterte has not discussed the

Solicitor General’s quo warranto petition against the corporation and one of its subsidiaries. It is

also stated that it is an independent move on the Solicitor General.

According to his spokesperson, President Duterte stated on February 18, that he ‘does not

want’ ABS-CBN to close, despite the chief executive’s repeated criticism of the network. The

president told the media that “he does not want that to happen. It’s for Congress to decide, it’s not

his. He doesn’t have the power and even if he has, his power can be overruled by the Congress

itself”.

As time passed by, more and more issues are popping up about the renewal of franchise of

the ABS-CBN Corporation. More issues and complaints are to look forward to day by day because

of the upcoming expiration of its franchise.

VIEWPOINT

For over 73 years of operating, ABS-CBN became the Philippines' highest media and

entertainment organization.

According to the various news regarding the renewal of the ABS-CBN Corporation

Broadcasting franchise, a lot of claims and statements by the ABS-CBN spread around the social

media and to the public to prove their innocence from the allegations handed out to them by the

Solicitor General Jose Calida. ABS-CBN claims that the Philippine Depository Receipts issued by

its holding company were “evaluated and approved” by the Securities and Exchange Commission

before offering it to the public. They reiterate that everything they do is in accordance with the law

and that they did not violate the law.

In addition, the organization cited that all of their broadcast offerings which also include

their KBO, received the necessary government approval and were not prohibited by their current

franchise. The ownership of ABS-CBN in ABS-CBN Convergence was also approved under the

Public Telecommunications Policy Act, according to an official statement of ABS-CBN last

February 10, 2020. In line with this, the ABS-CBN had declared that they have no unpaid taxes

and that they were claimed as one of the Top 200 Non-Individual Taxpayers nationwide (Official

Statement of ABS-CBN, February 11, 2020) and that this was also proven by the Bureau of Internal

Revenue (BIR). Moreover, the ABS-CBN proclaims that "We remain committed to our mission

to serve the Filipino people especially at this time when millions of Filipinos rely on our services

in delivering information".

Thus, the researchers believe that the closure of ABS-CBN affects the press freedom and

the loss of jobs for more than 11,000 employees and entertainers of the giant network.
PROBLEM
AREAS OF CONSIDERATION

There are different areas and factors to consider in order to execute and implement

the prescribed certain course of action for a particular issue or problem. In order to analyze the

main topic of the issue, an analysis called SWOT analysis is used.

SWOT analysis is a vital strategy applied in an effort to realize the strengths, weaknesses,

opportunities, and threats of either an organization or individual. In the business context, this

strategy enables a business to discover its internal strong and weak points, thus enabling it to

survive both the internal and external forces that may affect their overall operation. SWOT analysis

also helps in understanding the external opportunities and threats that a business organization can

use as a guide in order to maximize their external opportunities in order to increase profit and

minimize external threats for better industry position in the economy.

For this part of the case study, it will discuss the different strengths, weakness,

opportunities and threats of ABS-CBN Corporation. It includes a detailed discussion about the

possible characteristics of the network that they can use or eliminate in order to renew the contract.

STRENGHTS

1. WELL-KNOWN CORPORATION

ABS-CBN Corporation is a very well-known corporation in the Philippines as it operates

as a free television network locally. They have established their own name as they provide different

shows that caters the satisfaction of Filipino viewers. As a local television network, they have

already formulated their own strategy on how to capture audiences with the different variety of

shows that they offer. They have used the opportunity of giving unique, intriguing and good quality

shows which gave way to the corporation’s popularity. Until today, ABS-CBN has continued to
remain a very well-known corporation that is why the network was able to gather a lot of

investment and subsidiaries whether locally or internationally.

2. HIGH CONFIDENCE IN THE MARKET

Since ABS-CBN is a well-known local corporation, it was able to generate high

revenues through the investments, advertisements, and of course, because of their viewers. This

particular strength of the network can be used as a reason to renew the contract of the franchise

because the economy of the Philippines will be greatly affected if ABS-CBN will shut down. Many

local and foreign investment may be lost and the unemployment rate in the country will surely

increase due to the said closure.

3. CUSTOMER LOYALTY

One of the reason of ABS-CBN Corporation’s success is the support of its local

viewers and audiences. Their continued support to the networks’ services is the source of the

corporations’ revenue. These services includes the local television shows, mobile applications like

iWantv, TV plus go, and etc. Through the years of existence, the local viewers are the lifeblood of

ABS-CBN’s operation that is why they are providing high quality and entertaining shows to the

audience to return the favor. With the help of their loyal customers, ABS-CBN can possibly win

the case through different petitions in favor of the network.

4. SOCIAL RESPONSIBILITY

One of ABS-CBN’s mission is to provide significant public service to Filipinos

worldwide. The network is doing their social responsibility by reaching out to every Filipinos

home. They provide shows that are very relatable for every viewer so that they can sympathize

with the character. Because of the consistent effort of the corporation to always satisfy their
viewers, their social responsibility became their strength as this became a way for them to retain

loyal customers.

5. PEOPLE

The people inside ABS-CBN is their biggest strength as a corporation. All the

people who is working behind the camera are the real gem of the network. They are the ones who

maintains the operation of the business. Without them, the corporation will not be as successful as

it is today. That is why the closure of the network will greatly affect a lot of employees and families

in general.

WEAKNESSES

1. BIASED

Many critics has always pointing out the biased side of ABS-CBN especially in

their news department. The network is said to report only the unpleasant side of the issues

particularly those that are about the government. Although many people has pointed this out, the

corporation has stated that they always maintain objectivity in their field of work and they assure

that they are not taking any sides in every issue whether political or not.

2. COMPETIVE MARKET

ABS-CBN is not the only free local television network in the Philippines. The

competition is tight as there are other networks that is also providing different services for the local

viewers. When it comes to competition, ABS-CBN has a competitive advantage when it comes to

providing entertainment. But, the network is considered weak in the field of news. Television

network such as GMA Network provides more high quality news items than ABS-CBN. Also,
according to the reports, one of the reason why the president of the Philippines wanted to stop the

renewal of the franchise is because of the biased news airing of the network.

3. SUBJECT TO DIFFENT ISSUES

Since ABS-CBN is known as a large corporation, it is normal that it will be subject

to different issues arising in its field. Through the years, the corporation has faced a lot of

difficulties and scandals relating to its operation particularly with regards to its legality. The latest

issue that the corporation is facing today is its renewal of contract. These hindrances serves as a

weakness of the network because although they have already established a name in the industry,

they are still not that reliable and people keep on questioning their corporation.

OPPORTUNITIES

1. OFFERING NEW PRODUCTS AND SERVICES

ABS- CBN Corporation is very diverse and daring with regards to venturing in different

areas of businesses that provides them more opportunities to achieve their goals and objective and

to become more profitable. Some of their businesses include, tv and studio, pay tv networks, home

shopping and many more. The company can still provide other types of services that will surely

help the Filipinos. Venturing in different areas of business is strong opportunity because they are

already well-known company and they will not have a hard time in promoting their products and

services.

2. UTILIZING ONLINE PLATFORM

 As of the present, technology is very helpful especially in businesses. Using online

platform will give the company an opportunity not just to promote their products and services

but also to generate more income. The company can generate more income by uploading variety

of online contents, in that way they can gain more sponsors and advertisements that will surely

help them become more profitable. Aside from that, uploading contents online will help them

reach out to more audiences suchlike those Filipinos who live outside the country.

3. POSIBLE JOINT VENTURE WITH OTHER WELL- KNOWN COMPANY

Since the company is very open with the possibilities of providing more products and

services, joint venture with other well known companies will give them a competitive advantage

and will guide them on starting up. One example of successful joint venture of the company is its

joint venture with Globe Company to come up with ABS-CBN mobile. The other companies are

already well- experienced in their respective fields so having a joint venture will really guide the

company.

4. RISING DEMAND

Most of Filipinos nowadays have their televisions and mobile phones, thus they are well-

equipped and they can easily access the services that the company offers. Aside from that, Filipinos

are really into watching television, movies and news. Those factors are very helpful in

continuously rising the demand thus helps the company in generating more profits.

THREATS

1. GROWING COMPETION

Other networks also provide great services to the Filipinos and they are also very skilful in

different areas. GMA network is well-known for providing great and unbiased news, GMA News
TV is great in providing us with documentaries, travel shows and many more. Aside from that,

other tv networks have very known shows that are very hard to beat with regards to ratings such

as the Kapuso Mo, Jessica Soho of GMA network.

2. TRANSFER OF TALENTS AND ARTISTS

Having great talents and artists is one of the advantages of a certain network. Artists and

talents help the company in gaining more audiences thus providing them higher ratings and

generating more profit. Transferring of a well-known artist to the other network can greatly affect

the company.

3. CONSUMERS ABILITY TO PAY SERVICES AND GOODS

Since the company now also provides ABS-CBN TVplus, a Cable TV Box with Exclusive

Channels, it can be both advantage and disadvantage to the viewers. Those who can afford to buy

it can have an access to exclusive channels but, those who couldn’t may just shift to other channel

enable to have an access to variety of shows. Aside from that ABS-CBN TVplus has this “KBO”

which is a channel that can only be viewed if you pay for it.

4. POSSIBLE SHUTDOWN

ABS-CBN’s franchise may not be renewed because of the petition filed by Solicitor

General Jose Calida who sought to nullify the company’s existing franchise. Solicitor General said

that the company is conducting an alleged "highly abusive practices” such as foreign ownership

and operational issues.

ALTERNATIVE COURSES OF ACTION

Based on the aforementioned findings drawn with regards to the case of the renewal of the

ABS-CBN Corporation franchise, the following alternative courses of action are put forward:

1. SHUT DOWN VOLUNTARILY AND ESTABLISH A NEW CORPORATION UNDER A

NEW NAME

This is one of the most convenient solution that ABS-CBN can execute. The

network can wait for the expiration of the old corporation contract and register the company

with a new corporate business name, new investors, and new standard operating

procedures. It may take a while because of the issue of the network but if it is proven that

the company has not violated any law with regards to registering with a new corporation

then ABS-CBN can start again with their operation. It can be said that this is one of the

most convenient solution because ABS-CBN can start again from scratch. Even though

they have changed their corporation name, a lot of people has already known them, and

this will become an opportunity for them to establish again their name in the industry.

Aside from the given reasons, one of the advantages of this action is that if ABS-CBN can

register under a new name and operating procedures, their contract life will now has the

chance to be perpetual.

Under the Revised Code, “a corporation shall have perpetual existence unless its

articles of incorporation provide otherwise. This new law repeals the prior 50 year

maximum corporate term. The new law grants perpetual existence to corporations whose

corporate terms have not yet expired. Corporations who intend to be bound by a specific

corporate term must notify the SEC.

A corporation whose corporate term has expired may submit an application to the

SEC for a revival of its corporate existence, together with all the rights and privileges
 under its certificate of incorporation and subject to all of its duties, debts, and liabilities

existing prior to its revival.” The researchers believe that this can be an alternative course

of action.

2. COMPROMISE TO CONDITIONS GIVEN BY THE GOVERNMENT

Compromising is one of the best solutions to the problem because the ABS-CBN

surely cannot operate without renewing their franchise. The government on the other hand,

will surely be affected if ABS-CBN Corporation will stop on operating because the

company is one of the highest tax payer of our country so they provide great sum of money

that is being used by the government in financing our country’s needs. Aside from that,

ABS-CBN shutdown will cause a huge problem to the country and economy as a whole

because a lot of Filipino employees will be unemployed thus increasing the unemployment

rate of the country. This issue will also have a negative effect on investor confidence as it

is a direct government interference on a company that produces services desired by the

public. The government may just impose a penalty to the company instead of completely

stopping its operation, they may also compromise with regards to what they think the

company is violating so that ABS-CBN can do an action with regards to those.

Compromising is a win-win situation to both parties.

3. FILE A CASE AGAINST THE GOVERNMENT REGARDING MEDIA OPPRESSION

Throughout their existence, ABS-CBN has always been subject to the issue of being

biased. Since they are a huge network, they can influence a lot of viewers with the programs

and news stories that they publicly air. Many critics has pointed out that ABS-CBN seemed

to be a biased network as it tends to only air those news headline that is against the

government. This issue is seen to be one of reason why the solicitor general has filed a quo-

warranto against the network. Everything seems so fast especially that the tactic of filing a
 quo-warranto has also been used to eject former chief justice Maria Serreno. If ABS-CBN

will be able to prove their innocence regarding the issues thrown at them and the

government still insists for the immediate dismissal of the franchise, then it is a proof of

media oppression. It is considered as a hindrance when it comes to freedom of the press.

This issue of media oppression will not just affect the nation but it can also draw attention

from the international media. ABS-CBN can gather their support to fight against the threat

of media oppression and dictatorship.

4. VETO OF ABS-CBN FRANCHISE RENEWAL BY THE PRESIDENT

Although this solution can be quite impossible to achieve due to the lack of trust

and some hint of distaste of the current President Rodrigo Duterte to the ABS-CBN

corporation, he may have the power to veto the petition of quo warranto filed by the

Solicitor General. The veto power according to Article IV, Section 27 of the 1987

Constitution, every bill passed by the Congress shall, before it becomes a law, be presented

to the President. If he approves the same, he shall sign it; otherwise, he shall veto it and

return the same with his objections to the House where it originated, which shall enter the

objections at large in its Journal and proceed to reconsider it. Moreover, according to

presidential spokesperson Salvador Panelo, the renewal of television network ABS-CBNs

congressional franchise is entirely up to the Congress, which could even overturn a

presidential veto. Under the 1987 Constitution, the Congress, itself, can overturn a

Presidents’ veto if two-thirds of the respective membership of each chamber agree to pass

the bill.
 From this, the Congress still has the power and right to renew the legislative

franchise of a broadcast network. It is then will be the President's decision and mercy if he

will grant the renewal of the ABS-CBN franchise.

5. EXTENSION OF ABS-CBN FRANCHISE

According to the CNN Philippines news, Senate resolution seeks to extend ABS-

CBN franchise until December 2022. Due to a number of urgent bills that had been passed

before the issue of this quo warranto, various House Leaders claimed that they may not be

able to tackle it immediately. With this extension, the case may still be reviewed, and that

ABS-CBN may still have time to defend themselves fairly. Also, Filipino workers under

the ABS-CBN corporation can still be able to prepare themselves more with the possible

shutdown of the network as this issue was just too sudden to turn out in the public.

6. A SIGNATURE CAMPAIGN AGAINST ABS-CBN SHUTDOWN

From a Rappler report, the National Union of Journalists (NUJP) launched a

signature campaign last January 17, asking Congress to renew the franchise of broadcast

giant ABS-CBN, which President Rodrigo Duterte has vowed to block. It is currently in

the hands of House Leaders. Several factors may arise with the non-renewal of the

franchise of the ABS-CBN broadcasting network such as the blocking of the press freedom,

risk of loss of the jobs of Filipino employees, etc. This calls the Congress to be just and

fair on their final judgments with due process and should not be influenced by the other

judicial and executive branches of the government.

With this being said, the ABS-CBN Corporation still has extended many helps to

the Filipino people and to the economy of the Philippines. There is a huge possibility that

the country, itself, may experience a downfall in its economy if the shutdown of the ABS-

CBN Broadcasting Network continued. Thus, all of these should be considered and with
 this alternative solution, a signature campaign may only prove a number of supporters who

still believe to the ABS-CBN.

7. REDUCE NUMBER OF FOREIGN INVESTORS

The Philippine Constitution does not allow foreigners to own shares of any

Philippine media company and given that this is one of the accusation ABS-CBN is facing

right now, one of the possible solutions one could give to this is to prove that foreign

ownership does not really exist in the corporation. But despite of ABS-CBN already

proving that there’s no really foreign ownership in the corporation by showing that they

only issued a Philippine Depositary Receipts (financial instrument that grants foreigners to

invest in a media entity but does not grant ownership shares), the network is still being

accused of allowing foreign investors to have ownership over the corporation. Based on

the given information, 22% are being said to be owned by US and Singapore firms over

the network. Thus, if the network really insists on the fact that no such ownership exists,

they could, as one of possible solutions, to reduce first the number of foreign investors in

the company. They could try to minimize the number of investors or the amount they would

receive from foreign investors. Like for example, there is a fixed amount that they would

only be allowed to receive per month or per year and any investments that will exceed from

that said amount shall not accepted by the corporation. The network could also make a

policy such as investments made by foreigners shall not exceed the amount owned by

Filipino investors. Through this, the network could avoid future accusations regarding the

issue of foreign ownership.

FINAL ASSESSMENT

The case study has discussed the main problem of ABS-CBN Corporation which is the

pending renewal of their franchise contract. They are being accused of different violations of the

law that may result to the complete shutdown of the network. Aside from the different accusations

given to the network, President Rodrigo Duterte unleashes one of his public rants against ABS-

CBN for failing to air his campaign advertisements for the May 2016 elections. He curses the

network’s chairman emeritus, Gabby Lopez, and called him a thief, saying he will reject the

renewal of ABS-CBN’s franchise. Duterte previously slammed the media conglomerate for its

supposedly unfair labor practices, and earlier challenged the network to accompany him to the

central bank to open his bank accounts, amid reports that he had undeclared wealth. Duterte says

he will personally “see to it” that ABS-CBN will be out of business by 2020. He later tells the

Lopezes to just sell the network to a new owner.

Now that the solicitor general has filed a quo-waranto against ABS-CBN, the network is

now subject to be shutdown anytime soon. That is why, based on the given alternative courses of

action, the researchers has come up to suggest that ABS-CBN can conduct a series of campaign

and protest to the government while proving their innocence on the issues thrown at them by

compromising to the legal processes and hearings in the congress. Among the Alternative Courses

of Action (ACAs) handed above, this can be the most effective to solve this case or issue because

with a series of campaigns, protests and petitions, it may also bring various advantages to the ABS-

CBN Corporation because these acts can itself generate media attention and get the public

immediately to speak up, which can then translate into pressure on a company or a politician,

which will then respond to. This solution might appear to be the weakest action, but this may also

lead to awareness and it will open the eyes of the citizens with regards to media oppression.
EXECUTION PLAN

Campaign and protests are one of the most powerful course of action that has been proven

and tested in the Philippines. Nowadays, many Filipinos particularly the generation Z are open and

aware of the social issues in the country especially that the administration today is known for a lot

of controversies in the last three years.

Since ABS-CBN is a free television channel, they can get the support of the mass by having

campaigns and protest against the possible closure of the network.

ABS-CBN can start first by gaining signatures from different people in support or in favor

of the network. ABS-CBN shutdown will not just affect the profitability of the company but it can

also greatly affect the country and economy as a whole because a lot of Filipino employees will

be unemployed thus increasing the unemployment rate of the country. With this, ABS-CBN can

encourage the public to support not only the network but also the people behind the corporation’s

success.

Actually, ABS-CBN is starting to conduct this action. Journalists have gathered in front of

the ABS-CBN office in Quezon City to drum up public support and they also conducted an online

petition launched last week which has gathered more than 150,000 signatures, those actions will

serve as a protest against the administration’s pressure on ABS-CBN. The act of creating a petition

can itself generate media attention, which can then translate into pressure on a company or

politician, which they will then respond to. Online petitions are an early-stage political tactic that

helps build a broader campaign and serve a number of purposes such as, it can send a signal of

public opinion to a decision maker, it can tell the media there is enough public attention to do a

story, it can build a list of people who are interested in an issue and it can spur additional action.

Currently, with over 200,000 people who signed the petition all per the Manila, it was already been
submitted to the House of the Representatives who authorizes bills renewing the ABS-CBN’s

franchise.

The advantage of this is that, ABS-CBN and their issue regarding the immediate shutdown

can be subject to media oppression. Oppressed means the exercise of authority or power in a

burdensome, cruel, or unjust manner. An act or instance of oppressing or subjecting to cruel or

unjust impositions or restraints. Since the president of the Philippines is known to have bad

relationship with the network, this can be used against him and ABS-CBN will have the

opportunity to prove that the decision regarding the corporation’s closure is due to the personal

interest of the president.

Furthermore, the researchers conclude that with the spread of this case of the ABS-CBN

Corporations pending franchise renewal and not being biased with the broadcasting network, this

simple but powerful mass communication of petitions, campaign signatures and protests can be

very beneficial to them and that can be one of the many solutions that the ABS-CBN can have

although uncertain events might happen during the process. Nonetheless, to think positive for the

good results from this passed signatures of the petitioners, ABS-CBN can be able to reach again

millions of people around the world freely once its franchise has been renewed.
REFERENCES

ABS-CBN and its struggle to obtain its franchise. (2019, December 13). Retrieved from

https://amp.rappler.com/views/imho/247059-opinion-abs-cbn-struggle-obtain-franchise

ABS-CBN in a bind over franchise renewal. (2016, June 10). Retrieved from

https://business.inquirer.net/210985/abs-cbn-in-a-bind-over-franchise-renewal/amp

Duterte ABS-CBN veto ‘can be overturned’. (2020, February 12). Retrieved from

https://newsinfo.inquirer.net/1228068/duterte-abs-cbn-veto-can-be-overturned/amp

Gatchalian wants Duterte to 'explain to him' ABS-CBN franchise stance. (2020, February 17).

Retrieved from https://amp.rappler.com/newsbreak/fact-check/252000-gatchalian-wants-duterte-

explain-to-him-abs-cbn-franchise-stance

Journalists, advocates call on Filipinos to back ABS-CBN franchise renewal. (2020, February 10).

Retrieved from https://amp.rappler.com/move-ph/251416-journalists-advocates-call-on-filipinos-

support-abs-cbn

Media groups say if ABS-CBN franchise expires its workers, public to suffer most. (2020,

February 11). Retrieved from https://www.philstar.com/headlines/2020/02/11/1992235/media-

groups-say-if-abs-cbn-franchise-expires-its-workers-public-suffer-most/amp/

News, A. (2020, February 18). ABS-CBN 'clear' with BIR except for 1 pending case, says deputy

commissioner. Retrieved from https://news.abs-cbn.com/business/02/18/20/abs-cbn-clear-with-

bir-except-for-1-pending-case-says-deputy-commissioner

NUJP submits 200,000 signatures to Congress for ABS-CBN franchise renewal. (2020, February

19). Retrieved from https://www.google.com/amp/s/amp.rappler.com/move-ph/252206-nujp-

submits-signatures-congress-abs-cbn-franchise-renewal
Senate resolution seeks to extend ABS-CBN franchise until December 2022. (n.d.). Retrieved from

https://www.cnnphilippines.com/news/2020/2/17/Senator-Drilon-resolution-extend-ABS-CBN-

franchise-December-2022.html