GMA Network Inc. said Wednesday said it is eyeing more content and production partnerships with local and foreign companies to generate new revenue streams amid the slowdown in the advertising industry.
GMA chairman and chief executive Felipe Gozon said during the annual stockholders’ meeting the network was working on various initiatives to address the slowdown in advertising industry, caused by global events beyond its control such as the Russia-Ukraine war, the rising fuel prices, higher inflation and rising underemployment and unemployment.
GMA’s revenues dropped 3.9 percent to P21.56 billion last year from P22.45 billion in 2021 due to the industry wide-reduction in advertising spending.
The company’s net income also went down by 27.7 percent to P5.44 billion from P7.53 billion in 2021.
Gozon said despite the decline in net income, 2022 was still a “stronger year” for the company.
He said the network was getting into strategic distribution partnerships with other platforms and production deals with various producers to generate additional revenue other than the traditional advertising sales.
“Recently, we signed a distribution deal with TFC/iWantTV for Europe and the Middle East … so we are pretty excited about the deal. We also work with TAPE, Regal, VIVA, ABS-CBN and even independent producers,” he said.
Gozon said the company introduced a pricing innovation this year called Incremental Digital Reach which provides incremental audiences to advertisers within the digital space.
“This means we are able to monetize our content on-air and online,” he said.
Gozon said that in terms of digitalization, GMA has 19 operational DTT stations nationwide and is in the process of completing/implementing 19 additional DTT stations for the rest of 2023.
“GMA has been very keen on complying with the regulations of NTC in all its DTT implementations like more digital channels to offer [regulatory encouraged], as well as realizing the additional services incorporated with the ISDB-T standard, i.e. use of electronic program guide, datacasting and likewise emergency warning broadcast system,” he said.