GMA Network in talks with Globe, Smart on distribution partnership

GMA Network Inc. is currently in talks with telcos Smart Communications Inc. and Globe Telecom Inc. to widen its content distribution platform without involving any equity buyout, Network officials told analysts and reporters Tuesday.

 

"We are open to partnership agreements to further distribution and monetization. We are in discussions with major telcos," president and COO Gilberto Duavit said during the Network's briefing on first half results in Quezon City.

 

"In fact, earlier, there was an allusion to the emergence not only of technology but also of capacity that will allow for the monetization of content, not only in limited music content, but also in moving-image content," he added.

 

In a separate interview with reporters, Chairman and CEO Felipe L. Gozon said talks between GMA and Globe and Smart have been going on for some time. "It could be closed by year-end dahil matagal na kaming nag-uusap," he added.

 

"Partnership lang, walang buyout. We are talking about [mobile content], that's part of the partnership. I don't know how it will become, what kind of partnership that will be. I don't want to preempt the discussion," he said.

 

Gozon explained that the telco will be using the network's content while GMA will "use their highway to deliver cars."

 

In May, rival ABS-CBN Corp. signed a P3-billion network sharing agreement with Globe. The deal called for the telco to provide ABS-CBN Convergence Inc. capacity and coverage through the telco's cellular mobile network on a nationwide basis. 

 

The partnership also allows the two companies to share assets like server towers and switches.

 

ABS-CBN chairman Eugenio Lopez III earlier said ABS-CBN Convergence would offer traditional telecommunications services such as voice calls and short messaging system as well as wireless internet to deliver content. — VS, GMA News