ABS-CBN's payment delays force TV5 to call off deal

Media giant ABS-CBN Corp. has suffered a setback in its bid to return to profitability, as one of its biggest partners on free TV terminated their partnership on payment disputes.

- By ELIJAH FELICE ROSALES

In a statement, ABS-CBN confirmed it has received a notice of termination from TV5 Network Inc. for their TV Content Supply Agreement because of delays in payments.

Without a legislative franchise, ABS-CBN is working with partners like TV5 to find a platform for its content, including audience magnet “Batang Quiapo” and noontime show “ASAP.”

In these agreements, ABS-CBN is sharing the revenue with its partners, obliging the company to remit payments based on agreed upon terms.

However, ABS-CBN said it is challenging to settle obligations in its current position where it is still at a net loss.