ABS-CBN links up with Direct TV for direct-to-home satellite feed in US

ABS-CBN Broadcasting Corp. has entered into an affiliation deal with DirecTV Group Inc., one of the leading providers of direct-to-home satellite systems in the US.

Under the deal, ABS-CBN and its unit, ABS-CBN International, have granted DirecTV the exclusive right to sell "TFC Direct" as a package and a required buy-through for any additional programming that maybe offered by DirecTV.

ABS-CBN said the TFC Direct package includes video channels such as The Filipino Channel (TFC), Cinema One, ABS-CBN News Channel, Pinoy Central TV and radio stations DZMM and DWRR.

Over 80,000 existing TFC Direct subscribers will be switched free of charge from ABS-CBN International’s equipment to the DirecTV platform over the next year. In exchange, DirecTV will pay license fees to ABS-CBN valued on the basis of subscribers to the channels availing of the DirecTV service during the migration period, ABS-CBN said.

The network said ABS-CBN International will have a 50 percent share from subscription fees paid to DirecTV for the channels.

ABS-CBN said the 10-year affiliation deal will allow it to focus instead on developing US-based content that will cater to its Filipino-American audience such as movies, dramas and comedies.

ABS-CBN is embarking on a major regional expansion program this year. It recently launched its direct-to-home cable operations in Hong Kong via a partnership with Hong Kong Cable TV Network’s Cable TV, the biggest pay TV operator in the former Crown Colony. The move is part of ABS-CBN’s efforts to expand its reach in the Asia Pacific and address the continuing clamor of overseas Filipino workers for Phillipine-made TV programs.

Apart from Hong Kong, ABS-CBN is also looking at penetrating Taipei, Malaysia and Indonesia.

ABS-CBN’s international operations account for 30 percent of its total revenues, although the broadcast giant expects its to grow significantly in the next three years.

To date, ABS-CBN has 1.6 million Filipino viewers overseas, and intends to bring TFC to three million viewers in the next five years. The market of overseas Filipino viewer is currently placed at seven million.