Felipe Gozon

 

Consistently topping the ratings in the greater Manila area, also known as “Mega Manila,” GMA Network has set as its mission the enrichment of the lives of Filipinos everywhere. With its two networks, the flagship GMA-7 and its sister channel QTV, GMA Network has been catering to local viewers with a mix of imported series, format adaptations and, increasingly, original dramas such as the recent hit Darna. The company has also been ramping up its international business, offering locally developed content to the worldwide market through its GMA Worldwide division, and rolling out two channels, GMA Pinoy TV and GMA Life TV, targeting the estimated 11 million Filipinos living around the world. Felipe Gozon, the company’s chairman, president and CEO, is widely praised for leading GMA’s ratings resurgence since taking the helm in 2000. He speaks with TV Asia Pacific about his strategy for steering the company’s continued growth.

 

TV ASIA PACIFIC: How are you serving viewers in the Philippines with your two channels?

GOZON: Over the years, we have confirmed that Filipino viewers have diverse and fast-changing tastes and preferences when it comes to television programs. Having two free-to-air TV channels to program has given us the opportunity and the advantage we need to be able to deliver differentiated content which caters to such varied audience preferences. With our increased reach and improved signal we are now able to serve more audiences not only in the Philippines, but also worldwide.

 

TV ASIA PACIFIC: You are credited with turning around the performance of the GMA Network. How did you achieve this?

GOZON: When I took over the helm of GMA, in October 2000, as CEO, I wasted no time in planning to have the company rise to the number one position. I found that I had to change the defeatist attitude of our employees and to rally everyone to abide by the paradigm shift. We closed down all losing subsidiaries to devote and marshal all our resources to achieve our goal to become number one. We bought new equipment and modernized our facilities, improved our programs, removed the “misfits” in the organization and appointed those whom we thought could do the job, listened to our people and gave them the opportunity to shine, among [other things]. In a short period of time, we were able to turn around the performance of the network.

 

TV ASIA PACIFIC: How important is original content creation for GMA Network?   

GOZON: The importance of original content creation for GMA Network cannot be overemphasized. With its content creation and innovation, GMA Network was catapulted by the viewers and the local advertising industry to where it is now. Since then it has had supremacy in original content and innovation in programming, which kept GMA steadfast in its position, and this will most likely be the case in the years to come. With other platforms fast emerging and with the significant increase in distribution channels, original content will, in all probability, prove to be even more vital for GMA Network in the future.

 

TV ASIA PACIFIC: What are the strengths of your programming schedules?

GOZON: Some audience studies conducted in Mega Manila over the past year further revealed that GMA was perceived by most TV viewers as having a good, balanced and more versatile programming mix in weekday prime time relative to its closest competitor, which banks primarily on drama programs. Specifically, our Telebabad block (daily prime time) offers more variety of content than our main competitor. Each program offers a unique viewing experience. Currently, we have First Time (feel-good viewing), Panday Kids (exciting, action-packed adventure drama), The Last Prince (magical romance), Diva (easy viewing, laughter and [music] with drama), and Queen Seon Dok (sweeping historical adventure drama).

 

TV ASIA PACIFIC: How has the ad market held up in the Philippines, given the global downturn?

GOZON: Based on a Nielsen report, total ad-industry expenditure increased by 12.5 percent in 2009. Television, in particular, which accounts for about a 75-percent share of total industry spend, also grew by 12 percent in 2009. Net of media inflation, however, the estimated real growth, is just about 3 percent. Growth actually came from local FMCGs (Fast-Moving Consumer Goods) and a few of the multinational advertisers.

 

TV ASIA PACIFIC: What other revenue streams are you pursuing?

GOZON: Other revenue streams we are pursuing would include revenues from our other media platforms such as regional television, new digital media, international TV channels, radio, production and branded entertainment. There is a very high demand for a 360-degree approach, and we are geared towards providing our clients with holistic and integrated media solutions that deliver results.

 

TV ASIA PACIFIC: What are your plans for your international business, in terms of your channels and your content-sales arm?

GOZON: We are planning to grow our subscriber base—which by March 2010 reaches 250,000 or more—by adding more carriers in presently underserved areas and by adding more areas we are not yet serving. Further, we may be able to add one more channel to our existing two international channels once we are able to aggregate enough content for this additional channel.

 

TV ASIA PACIFIC: How have you expanded GMA into the new-media business, be it online, on mobile or on demand?

GOZON: In 2009, we aggressively expanded our efforts in digital media by undertaking more video broadband initiatives and strategic alliances with top telecommunications companies in the mobile distribution of our proprietary content. GMA New Media has also partnered with Google-owned YouTube for myGMA.com.ph, the network’s Internet TV service. YouTube, the leader in online video, is now the platform provider for all GMA Internet TV content, thus allowing our viewers around the globe free and easy access to GMA videos online.

 

Our programs command high ratings, and our websites now reach millions of Filipinos every day in pursuit of timely and reliable news and public-affairs programs, entertainment and community content.

 

TV ASIA PACIFIC: How are you planning for the analogue switch-off in 2015?

GOZON: While our local regulatory agency (NTC) has not yet finalized the digital-TV standard to be adopted in the Philippines, we have already completed drafting a preliminary digital terrestrial platform blueprint. Covering key TV market areas in Luzon, Visayas and Mindanao, the blueprint is complemented by studies related to the practical and feasible applications of the technology in anticipation of its eventual adoption.

 

TV ASIA PACIFIC: What are your broad goals for the company in the next 12 to 14 months?

GOZON: Our goal is to advance further in the ratings race and gain the number one position nationwide. We shall complete the improvement of our facilities in the regions this year. We have completed the facility upgrades in key market areas and have now commenced upgrading facilities in the identified secondary markets in the next 12 months. We have 11 more TV transmitter projects to complete in South and North Luzon, the Visayas and Mindanao. We have seen the benefits of this project in our regional TV [ad] sales performance. And as we near the completion of this project, we are shifting our focus to building our brand and expanding our audience base outside Mega Manila through intensive promotional activities.

 

We are repositioning our QTV channel to take advantage of the channel’s full potential and expanding its appeal through changes in programming. Hopefully, this will increase the ratings of QTV’s programs.

 

We have also been increasingly expanding the distribution of our content abroad through the efforts of GMA International and our subsidiary, GMA Worldwide.

 

We shall continue to pursue new initiatives to achieve further growth from our national and international operations, film ventures, film and program syndication and other businesses. We have reason to be optimistic about the future, given that the Philippines’ economy is on the road to recovery and that economic growth has started to gain momentum.