BROADCAST media network ABS-CBN Corp. expects to trim its mobile unit’s losses to P400 million this year and is hoping to reach breakeven down the road with a strategy that is workable for the platform.
“In terms of contribution to results of operations for 2017, we expect the losses of [ABS-CBN] Mobile will still be about P400 million, which is lower compared to when we started,” Aldrin Cerrado, chief financial officer at ABS-CBN, told reporters in an interview.
He said the television network is crafting a mobile strategy to score breakeven for the unit and is seeking to address the millennial market’s appetite for watching content programs using only smartphones.
He did not say when they expect ABS-CBN Mobile will reach breakeven as the unit remains in the assessment stage. “I can’t really commit and say the target [date]because the whole business of Mobile is being reviewed,” he added.
Cerrado said monetizing the network’s content from a mobile platform could be done in “various ways.” He noted ABS-CBN has opened up its mobile content to the two mobile providers in the country, Smart Communications and Globe Telecom.
He said their Globe contract is up for renewal by June or July next year.
“That’s our way of cushioning our losses … but definitely ABS-CBN has to have a mobile so strategy as to maximize the revenue potential of our content in as many platforms as possible, including the mobile platform,” Cerrado said.
Cerrado said they have seen improvement in the unit’s subscriber take-up, which is now “close to one million subscribers.”