GMA Network subsidiary pulls out of Kapisanan

GMA Network Inc. has withdrawn the membership of its subsidiary Cotabato Television, Inc. from the Kapisanan ng mga Brodkaster ng Pilipinas (KBP), even as the country’s second largest television network stood pat on its decision to resign from KBP until its demands are met, highly placed sources told The STAR.

Industry officials said GMA will return to the fold of KBP only if the latter agrees to deregulate commercial loading. At present, KBP rules provide that a TV station is allowed a maximum of 18 minutes of commercial load per hour of broadcast. The rule is aimed at protecting not only the viewers and the advertisers, but also the smaller TV stations in case of concentration of commercials in one or two networks only.

GMA’s television station officially resigned from the KBP last Sept. 1. Its radio network RGMA remains a member of KBP but sources revealed that RGMA may also pull out from KBP if the stand-off between GMA and KBP is not settled.

The KBP board earlier said it could not act on GMA Network’s resignation until the various cases against GMA now pending with KBP have been resolved, as provided for in its rules. Just recently, the KBP decided with finality to suspend GMA’s privileges for one year after Startalk host Rosanna Roces was found to have violated the Television Code provisions against the use of indecent language on-air. There are two more cases pending, one for commercial overloading and another against GMA broadcaster Mike Enriquez for lambasting rival station ABS-CBN on television.

Realizing later on that its withdrawal from KBP might have a backlash from the advertising sector, GMA top executives met recently with two of the country’s premier advertising industry groups, namely 4As (Association of Accredited Advertising Agencies) Philippines and the Philippine Association of National Advertisers (PANA) to explain its decision to withdraw from the KBP.

Members of the KBP are currently practicing self-regulation (regulation not by government but by the members) and are governed by the Television and Radio Code which they themselves prepared. GMA’s withdrawal means that it will not be subject to the usual regulations (except for MTRCB).

The Advertising Board of the Philippines (AdBoard), whose members include KBP and the different advertising associations, said it will tackle the different concerns raised by GMA that led to its withdrawal from KBP, after which it will make recommendations to the AdBoard’s trade practices and conduct committee.

Reliable sources told The STAR that the AdBoard has promised GMA Network that it will study whether or not the 18-minute maximum commercial load per hour has sufficient basis. According to GMA, no study was conducted to determine what should be the maximum load.

During the meeting with the advertisers, GMA Network chairman, president and CEO Felipe Gozon said that although they withdrew their membership from the KBP, the network will continue to act responsibly and is always prepared to listen and consider the views and suggestions of its valued partners in the industry.

On its withdrawal from KBP, GMA officials said that the doors are not closed for reconciliation. "It is important that our grievances are taken into consideration and properly addressed so that the advertisers know that something is being done. Our hope is that the advertisers hear our side and understand where we are coming from and what led to this decision," GMA Marketing president and chief operating officer Manuel Quiogue said.

GMA officials also explained that prior to the network’s withdrawal, Gozon held a dialogue with KBP chairman Cerge Remonde and executive director Rey Hulog to inform them of the network’s intention to cease its membership from the organization. "We cannot wait indefinitely for reforms, so we agreed on a two-week period or up to Aug. 28 for them to get back to us," Gozon said.

"This just proves that our withdrawal was not a knee jerk reaction," Gozon emphasized, adding that the right to join a voluntary organization includes the right not to join or withdraw from such organization and that there is no involuntary membership in a voluntary organization.

He also pointed out that the KBP should focus and concentrate on promoting the common interest of its members, like what the Makati Business Club and the various chambers of commerce do.

GMA officials also explained that the KBP was born out of the need of the Martial Law regime to create the impression that there was still freedom of the press in the country through the regulation of broadcast media by the KBP. "But Martial Law had long been lifted. The freedoms of speech and of the press have long been restored. We are now in a free enterprise system operating under a free, competitive environment," according to Gozon.

Some KBP and AdBoard members admit though that there might be a need to review the current regulations or even completely deregulate and just have a Code of Ethics, considering that KBP is already 30-years old.