Rappler
[ANALYSIS] How ABS-CBN’s exit will hurt the PH economy
The denial of a new franchise for ABS-CBN will significantly impact the Philippine economy, extending beyond concerns for press freedom.
The House of Representatives voted against renewing ABS-CBN's franchise, leading to its permanent closure on free TV and radio after its previous franchise expired on May 4.
The government could have allowed ABS-CBN to continue operating while awaiting a new franchise, a precedent previously set for other media groups.
The most immediate economic consequence is the potential loss of jobs for approximately 11,000 workers across ABS-CBN's broadcasting operations, subsidiaries, and foundation.
This includes talents, writers, production crew, and management who are now at risk of unemployment due to the network's exit from traditional media.
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News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
ABS-CBN Corporation announced it will begin downscaling operations and implementing layoffs starting August 31, 2020, after its franchise bid was rejected by Congress.
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Senate Majority Leader Juan Miguel Zubiri expressed confidence that ABS-CBN's franchise would be renewed if the House of Representatives would allow its members to vote according to their conscience.
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The Commission on Human Rights (CHR) stated that the House of Representatives' denial of ABS-CBN's franchise application creates a chilling effect on press freedom.
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The House of Representatives overwhelmingly rejected ABS-CBN's franchise renewal application with a vote of 70 to 11, deeming the media giant "undeserving" of the 25-year extension plea.
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The Philippine Stock Exchange (PSE) suspended trading of ABS-CBN Corp. shares after Congress denied its franchise bid, affecting 11,000 employees and causing up to P35 million in daily advertising losses.
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