The Philippine Competition Commission (PCC) warns that requiring National Telecommunications Commission (NTC) approval for blocktiming agreements could stifle competition in the Philippine free TV market.
A recent study by the Philippine Competition Commission ( PCC ) has revealed potential 'significant negative impacts' on market competition stemming from the requirement of National Telecommunications Commission ( NTC ) approval for blocktiming agreements.
The PCC's market study, titled 'Blocktiming Practices in the Philippine Free TV Industry,' highlights concerns that the NTC's memorandum order on blocktiming agreements, issued on June 23, 2022, could create barriers to entry for blocktimers, inflate costs, introduce regulatory uncertainty, and distort market competition. Furthermore, the PCC argues that the memorandum might expand the NTC's authority by granting it the power to regulate content, a responsibility traditionally held by the Movie and Television Review and Classification Board (MTRCB) and the National Council for Children's Television (NCCT).Blocktiming, a common practice in broadcast media, involves purchasing specific time slots for content producers unaffiliated with the network. The PCC study contends that the 50-percent limitation on airtime allocation imposed by the NTC could hinder smaller TV networks' ability to establish a presence in the free TV market, as their capacity to produce content in-house is often limited. However, the PCC acknowledges that even before the NTC implemented the 50-percent restriction, TV networks predominantly prioritized their own content, allocating less than half of their airtime to blocktiming agreements as a strategic business decision.On the other hand, the study recognizes that the emergence of over-the-top (OTT) platforms like Netflix and YouTube has provided alternative distribution channels for content producers, potentially mitigating the anti-competitive effects of existing blocktiming practices. The PCC urges the confirmation of the NTC's jurisdiction over blocktime agreements before implementing specific regulations within this industry segment. It recommends transparent communication of the reasoning behind the memorandum to all stakeholders, considering the potential impact on content diversity and accessibility of airtime for content producers. The PCC also emphasizes the need for clear rules and guidelines to facilitate compliance for blocktimers seeking access to broadcasting frequencies.
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