TV5 ends content deal with ABS-CBN after delayed payment

More than two years since it inked a five-year content agreement with TV5, ABS-CBN is now facing yet another turmoil after the Kapatid Network issued a notice of termination amid the former’s failure to pay its financial obligations.

ABS-CBN confirmed it received a notice of termination of its TV Content Supply Agreement with TV5, but it denied claims that it “willfully delayed payment,” saying it was just about recouping its losses following the network’s shutdown and loss of franchise in 2020.

In a statement released on Thursday, Deceber 4., the Kapamilya Network lamented the partnership termination amid the “critical juncture in [their] recovery” from losing its franchise. It likewise asked for more time to be able to pay its dues.

“Contrary to media reports, the amounts and manner of the claims remain disputed. We acknowledge our obligations to TV5 and are doing everything we can to address these payments. We have sought additional time to resolve this matter and are working urgently within the thirty-day period we have been given.

“While this timeline is challenging given our current circumstances, we are committed to finding a way to fulfill our obligations—not only to TV5 but to all our partners and stakeholders. We remain open to fair and reasonable solutions that recognize the extraordinary circumstances our company has faced.” ABS-CBN said.

ABS-CBN then dismissed claims of its supposed deliberate delayed payments.

“There is no truth to any insinuation that ABS-CBN willfully delayed payment. Such characterizations fail to acknowledge the severe financial constraints imposed on us through circumstances beyond our control,” it said.

It then noted that while some revenue streams have since recovered after losing its franchise, “ABS-CBN continues to operate at a loss as we work to rebuild.”

Despite the looming termination of its partnership with TV5, the media company vowed to its audience to find ways to reach them.

“Just as we overcame the initial difficulties after losing our franchise, we will not abandon our Kapamilya and will find ways to continue serving you,” it added.

ABS-CBN and TV5 signed in 2023 a five-year content agreement which included co-producing projects and the airing of the former’s programs on the latter’s primetime slots.

INQUIRER.net has reached out to TV5 regarding the matter, but has yet to receive a response as of this writing. /edv