Kenny Lim
Dec 5, 2008

GMA Network sues Media Prima subsidiary

MANILA - The Philippines' leading broadcaster GMA Network has filed a lawsuit against rival network ABC-5 for allegedly entering into an unlawful blocktime agreement with Malaysia's Media Prima Berhad (MPB) subsidiary, MPB Primedia.

GMA Network sues Media Prima subsidiary
GMA wants to nullify a blocktime agreement between MPB Primedia and ABC-5 that violates Filipino laws. MPB Primedia’s supposed agreement allows the firm to control and manage ABC-5's programming and airtime sales and constitutes intervention by a foreign company as MPB has a 70 per cent stake in Primedia.

Under the country’s constitution, mass media is a nationalised business activity and non-Filipinos are prohibited from intervening in the management and operations of any nationalised activity.

GMA further complained that the blocktime agreement results in unfair competition and is seeking PHP 11 million (US$223,000) in damages due to loss of revenue from the agreement.

MPB has turned ABC-5’s fortunes around since its investment in the network in May and the setup of its Filipino subsidiary. From capturing just one per cent viewership and adspend, ABC-5 has since become the number three network, trailing just ABS-CBN Broadcasting and GMA Network in the Philippines.

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