[Requested by MJH]
AS AUGUST ends, I think it’s time to reflect on the company that runs the Network from Reliance, Mandaluyong: MediaQuest Holdings.
Brief History
PLDT established MediaQuest in 1998 through its Beneficial Trust Fund, a retirement fund agency.
They acquired Home Cable first. Then, they acquired Nation Broadcasting Corporation, which was later used for Radyo5 Network, from the consortium of the Yabut family and then-House Speaker Manny Villar — he will interestingly get into the TV venture later.
They purchased a controlling stake in GMA Network in 2001, but their attempt to acquire the network failed in 2006. The acquisition talks fell through in 2012.
The Galang family sold GV Broadcasting Systems and its owner Satventures Inc., a direct-to-home satellite provider and radio network, to MediaQuest in 2007. In 2009, this would be converted into Cignal; Roberto would later serve the TV network.
In March 2010, MediaQuest purchased ABC Development Corporation, which operates the main television network, TV5 after the ownership crisis.
MediaQuest made a print investment in 2013 and 2014, when it purchased BusinessWorld and The Philippine Star, respectively.
TV5’s own way year-to-date
TV5’s sister production companies and other non-Mother Ignacia production partners would not begin their promised shows until March, as promised during the last Christmas special.
Their channels have been preoccupied with election coverage and sports.
The sports intensification begins with their first coverage of the University Athletic Association of the Philippines (UAAP) — which marks a new chapter in the premier varsity league in two decades. Such coverage increased with Maharlika Pilipinas Basketball League (April) spilling over One PH’s programming grid. With tournaments (including the SEA Games) resuming after being postponed due to the pandemic, and men’s volleyball returning in a few days, TV5’s sports channels appear to be overloaded on their strong points.
Four of the eight promised programs have yet to be delivered on the main entertainment channel as of this writing. Other unannounced shows that have been on the air include Top Class, Suntok sa Buwan, and Sing Galing Kids.
The Wall Philippines, originally slated here for its Season 2, will premiere on GMA tomorrow.
50/50 Partnership
Mother Ignacia’s chances of regaining their former selves (i.e. before the free-to-air closure in 2020) are slim to none.
Their former frequencies were given to one of then-outgoing President Rodrigo Duterte’s closest friends (late January), and the recent presidential election (May) was predetermined despite the vocal marquee (exclusive) talents’ endorsement of a single common ideal candidate.
Their entertainment content has infiltrated TV5’s airwaves four times in two years: in January 2021 (Sunday afternoons), March 2021 (weekday primetime), June 2022 (weekend primetime), and July 2022 (Monday to Saturday afternoons).
In the recent wave (July 16, 2022), Lunch Out Loud, the former noontime variety show has evolved into Tropang LOL as a pre-noontime variety show. It has recently drawn criticism from rabid K-pop fans for the dubious phrasing of one question in one of its segments and calls for their cancellation.
The replaced noontime show took place with the airing cut off at 3 p.m. as scheduled. Though it was rude, DryedMangoez defends the network’s act as on Wednesdays and Fridays, the PBA must broadcast the scheduled games — and bumping the first game’s coverage by 20 minutes and ending up in overtime will aggravate the situation. The overtime for sports is REASONABLE but NOT regular entertainment programs.
After four years of that habit, haven’t the pandemic and loss of their original free-to-air network’s license enough to own up to that program’s errors of their ways? (That’s why some would not want that partnership.)
The 50/50 Partnership becomes a Joint Venture
Last August 10, the 50/50 Partnership ended up as a “joint venture” with Ignacia. Ignacia and Reliance signed a “convertible note agreement,” as announced the next day, for Ignacia’s investment in TV5 Network by acquiring 34.99% of the company’s common shares, with an option to increase its stake to 49.92% within the next eight years, with MediaQuest remaining as TV5’s controlling shareholder with 64.79% of the company’s common shares.
While the development is generally positive online, there are some vocal critics:
- Hardcore political apologists. Also known as the “well-mannered pack.” Closeted or outspoken, these cretins enjoy degrading the helping Kapatids on social media and forums as “delusional” or “people who refuse to grow up” from the past two years as they have never learned the lessons that led to the greed of the former TV giant. Speaking of greed and not learning their lessons…
- Rep. Rodante Marcoleta, who unapologetically shut down Ignacia two years ago, is attempting to pulverize not just the fixated company but the rising TV network from the public’s consciousness one day before the signing. He claimed that the joint venture would “leave a bad taste in the mouth,” and he wanted the Philippine Competition Commission to look into its legality and economic impact, but the PCC can only tinker with data-based calculations (such as the Herfindahl-Hirschman Index) before they call the greenlight of the merger and/or acquisition. Even if they have suggestions, GMA remains the undisputed leader in television because other players — including Marcoleta’s home channel, NET 25 — despite some structural efforts, stand numerically insignificant.
- Disenchanted media observers (like DryedMangoez). His rants last month were interpreted as a reaction to TV5’s surrender of creative and programming control and becoming a near clone. In his perspective, TV5 should handle on its own to give people “more choice, not less” and saw an excellent job of refreshing their primetime programming from August 2020 to March 2021; it’s just they failed to appreciate and thus last long because of the programmed mindset of South Triangle Duopoly fanatics that was instilled for a human generation.
Authorities’ stance
Before entering into the venture, National Telecommunications Commission Commissioner Gamaliel Cordoba asked the management of the already-judged media conglomerate to correct potential and confirmed violations. This chief agency was responsible for the memorandum last June that restricts blocktime deals on free-to-air television stations with valid Congressional franchises.
Just last Wednesday, the deal is put on hold due to the two political institutions’ concerns.
Ready for the initial public offering?
Whether one can agree or disagree with the 50-50 partnership or joint venture, a few dared to speculate on whether or not MediaQuest would go into initial public offering (IPO) on the Philippine Stock Exchange.
According to our May 2022 poll, 75% of people want MediaQuest to go public.
Officially, the listing requirements are published on the local bourse’s website (here’s the checklist for documentary requirements), and it appears that they will not make the cut based on the disclosed financial figures and trends. Not to mention that they must be committed to reporting the hard financial figures and other related disclosures diligently and on time.
Afterthought: Maybe legal but not ethical
Just because Reliance’s major business transaction this month is legal — for now — to end the two-year monopoly of Philippine television does not mean they are ideal or ethical.
- Far from ideal: People felt disenchanted with TV5’s significant loss – not in terms of money, but of its approach to the broadcast industry. They would rather see the network struggle on its own than accept a deal that would later turn out to be a near-clone of a former TV titan as a gesture to end the three-decade-long network war.
- Far from ethical: The noontime show ending on time would please PBA fans who dislike Ignacia, but it would be considered a breach of “contractual obligations.” The network must strike a balance between new and old partners. Every day, we, like everyone else, face ethical quandaries amidst the prevailing circumstances.
Finding the perfect solution to please or reframe anyone’s mind is difficult, especially for the closed-minded. When will they even admit that it is difficult but doable?
Photo courtesy of Wikimedia Commons
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