CNN Philippines ceases operations on Jan 31

Due to severe financial losses, CNN Philippines will stop operations on January 31, according to a statement made on Monday by the network's operator, Nine Media Corp. (NMC).

“It is with deep regret that the management of Nine Media Corp. announces the discontinuation of its news and production operations on all media platforms, branded as CNN Philippines (CNNPH),” the company said in a statement.

The corporation stated that financial losses were the driving force for this decision, despite efforts to adjust to the evolving media landscape.

Through an airtime agreement with Radio Philippines Network, CNN Philippines began airing on free TV in March 2015; the monthly airtime fee was P8.2 million. NMC declared a P5 billion loss on its books.

CNN Philippines' closure will probably have an effect on listed media businesses if it is thought to be a sign of a larger trend in the media industry, according to Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc. The closure may also put certain investors at risk.

If the CNN Philippines shutdown is considered an isolated incident, it might not have a major effect on the media landscape. Juan Paolo E. Colet of China Bank Capital Corp. advises investors to put their money into reputable, well-established media companies.

The closure highlights the difficulties of operating a successful broadcast media company in the Philippines. Prospects for profitability have also been hampered by the growth of digital media and content production.

Via Bworldonline