RPN banks on deal with Solar to boost privatization prospects

BY JEFFREY O. VALISNO, Senior reporter/BusinessWorld Sequestered broadcast firm Radio Philippines Network, Inc. (RPN-9) is optimistic about its financial prospects in the coming months as the government pursues the privatization of the state-run media company by next year. This as RPN signed a one-year programming deal with Tieng-led Solar Entertainment Corp. that will transform the government-owned station as the free-TV broadcast carrier of Solar’s cable channel Crime/Suspense. Edith A. del Rosario, RPN assistant general manager for operations, told BusinessWorld that under the contract, the shows that are aired over Crime/Suspense will be simulcast over RPN. "RPN will be entirely Crime/Suspense," Ms. del Rosario said in an interview. "Our programming will be exactly as what the viewers see on Crime/Suspense." She however declined to divulge how much the contract was worth, saying only it amounted to "several millions of pesos." Ms. del Rosario said RPN began test broadcasts of Crime/Suspense last Dec. 17, ahead of the actual 24-hour simulcasts which would start on Jan. 1. "We hope this move will boost RPN’s ratings, and eventually, this will make RPN more sellable," she said. Poor programming after the government sequestration of the broadcast company in 1986, brought about largely by the management’s insistence to produce its own shows, has caused RPN to suffer losses of up to P86 million in one year alone. RPN even defaulted on the payment of P238.6 million in various loans it previously obtained from the Philippine National Bank. RPN began to turn around only in 1996, thanks to the phenomenal Mexican telenovelas like "Mari Mar" and "Maria la del Barrio" that helped the broadcast network post a net income of P297 million that year. RPN then opened its programming to block timers, who bought airtime from the network. In the past 12 months, Solar has been aggressive in improving RPN’s prime time programming by coming up with locally produced shows. Most of the shows however, did not last after its first season (13 episodes). "We have been trying out different programming formats to improve our audience share. Hopefully, with Crime/Suspense, we will have better ratings," Ms. del Rosario said. Crime/Suspense carries widely popular American TV series like Heroes, Prison Break, and Sopranos. Crime/Suspense also broadcasts the phenomenal reality contest Survivor. Based on media research group AGB Nielsen reports, RPN’s audience share currently hits an average of 5% to 7%, at the bottom of the ratings charts behind dominant television companies GMA Network, Inc. and ABS-CBN Broadcasting Corp., which get an average of 40% and 30% respectively. While not privy to government negotiations regarding the sale of RPN, Ms. del Rosario expressed optimism that the changes in programming would boost the network’s chances of being sold at a higher price than earlier estimates. Sequestered The Presidential Commission on Good Government, the agency tasked to handle sequestered assets, estimates RPN to fetch a price of at least P1.3 billion when it is sold to the private sector. Among those reported to be keen on buying RPN are Philippine Long Distance Telephone Co. Chairman Manuel V. Pangilinan, Bro. Mike Velarde of the religious group El Shaddai, and Wilson Tieng of the Solar Group. RPN has eight television stations, 14 relay television stations, and 14 radio stations scattered in key cities nationwide. The government sequestered RPN in 1986 from tycoon Roberto S. Benedicto, a known friend of former President Ferdinand E. Marcos. The government got full ownership of RPN after Mr. Benedicto ceded ownership under a compromise agreement in 1990. The government currently owns 72.4% of RPN.