Market domination in the broadcast industry, or the share held by a small group, has risen in the past years, influenced by block timing practices after television giant ABS-CBN Corp. lost its franchise.

This was revealed in a study undertaken by the Philippine Competition Commission (PCC) on the impact of block timing practices on competition in the free-to-air television sector.

Based on the study, dubbed “Blocktiming Practices in the Philippine Free TV Industry,” it discussed among others the non-renewal of ABS-CBN Corp.’s franchise.

Blocktiming refers to agreements wherein content producers buy airtime (or “blocks” of time) from TV networks to broadcast their programs and content.

Input foreclosure means exclusive

The PCC related that the study observed an increase in market concentration following the non-renewal of ABS-CBN’s franchise.

“GMA Network now commands roughly 93 percent of the free TV market. The study evaluated the ability of a dominant network to engage in input foreclosure, which occurs when a TV network refuses to offer time slots to content producers that are not affiliated with the network; or when it charges exorbitant prices for time slots, making it difficult for non-affiliated content producers to secure them,” the PCC statement on Friday said.

However, the anti-trust agency study found existing practices disincentivize TV networks from foreclosing airtime.

It added most networks give priority to airing content over block time agreements, as seen in their historical programming choices.

Such practices of the dominant network have its downside.

“Foreclosing airtime could reduce audience reach and make networks less attractive to advertisers, impacting revenue. Since foreclosure strategies limit the range of aired television content, it may lead to a decrease in audience reach and reduce the number of potential advertisers and revenue-generating opportunities,” according to the study.

The study also pointed to the rise of over-the-top platforms (such as Netflix and YouTube) as helping mitigate the potential anti-competitive effects by providing alternative distribution channels for content producers and promoting diverse programming options for viewers.

“Indeed, the media landscape in the Philippines is undergoing a significant shift towards internet-based content delivery. Factors such as market concentration, regulation on blocktime agreements, the possibility of input foreclosure, and the rise of OTT platforms are reshaping competition, content variety, and viewer preferences,” the report said.

“Thriving in the landscape means industry stakeholders must grasp how elements impact the sector and tackle competition issues effectively,” the study concluded.