ABS-CBN’s Digital-Future Revenue Shows Signs of Erosion

An estimated decline in non-cable subscription revenue complicates the media company’s effort to rebuild around streaming, international distribution and direct-to-consumer services.

ABS-CBN Corp. has spent years trying to build a future beyond broadcast television and the shrinking cable business. Its latest financial report suggests the road may be getting harder.

The Philippine media company’s total subscription revenue fell to ₱2.08 billion in the first half of 2026, from ₱3.01 billion a year earlier, a decline of roughly 31%. Much of that contraction can be traced to its Cable TV and Broadband segment, whose revenue dropped to ₱1.12 billion from ₱1.92 billion.

The more troubling signal lies outside that legacy operation.

After subtracting Cable TV and Broadband segment revenue from total subscription revenue, ABS-CBN appears to have generated about ₱964 million in non-cable subscription revenue during the six months ended June 30. That compares with approximately ₱1.09 billion in the same period last year, implying a decline of nearly 12%.

The calculation is necessarily an estimate. ABS-CBN doesn’t separately disclose how much subscription revenue comes from its streaming platform, international channels, and other direct-to-consumer offerings. The Cable TV and Broadband segment also includes some revenue that isn’t classified as subscription revenue, including installation services.

Even after adjusting for separately reported installation revenue, however, the direction remains negative. On that basis, estimated non-cable subscription revenue declined to approximately ₱997 million from ₱1.10 billion, a drop of about 9%.

That matters because streaming and direct-to-consumer distribution are widely viewed as central to ABS-CBN’s post-broadcast strategy.

Following the loss of its free-to-air broadcasting franchise in 2020, the company increasingly relied on partnerships, content licensing, international distribution and digital platforms to reach viewers. It consolidated its domestic and international streaming offerings under the iWant brand and has described the platform’s relaunch as a driver of subscription growth.

The first-half figures indicate that those initiatives haven’t yet produced enough momentum to offset pressure elsewhere in the subscription business.

ABS-CBN’s filing doesn’t establish that iWant revenue itself declined. Non-cable subscription revenue can also include The Filipino Channel and other international distribution arrangements. Without a more detailed breakdown, investors can’t determine whether the weakness came primarily from streaming subscriptions, international subscribers, pricing changes, currency movements or some combination of those factors.

Still, the estimated decline challenges a key part of the recovery narrative. If cable revenue is shrinking and the remaining subscription pool is also contracting, ABS-CBN may have fewer dependable sources of recurring revenue to support its content-production costs.

A recovery short on recurring growth

ABS-CBN generated ₱6.88 billion of consolidated revenue in the first half, down about 17% from ₱8.27 billion a year earlier. It reported negative earnings before interest, taxes, depreciation, and amortization of about ₱498 million, followed by a net loss of approximately ₱1.83 billion.

Its gross-profit margin was roughly 18%, reflecting the heavy cost of producing and distributing programming across multiple platforms. General and administrative expenses and finance costs placed additional pressure on the bottom line.

That cost structure makes recurring subscription revenue particularly valuable. Advertising can fluctuate with economic conditions, corporate marketing budgets and election spending. Licensing and ancillary revenue can be lumpy, depending on individual programs, distribution contracts and production schedules. Subscription revenue, by contrast, can provide a steadier base from which a media company funds content and operations.

That base appears to be weakening.

Estimated non-cable subscription revenue represented approximately 14% to 15% of ABS-CBN’s consolidated first-half revenue. Although still meaningful, it wasn’t large enough to absorb the deterioration in cable and broadband or restore the group to operating profitability.

The contrast with GMA Network Inc. is notable. GMA reported ₱343 million in international subscription revenue for the first half of 2026, up around 6% from ₱325 million a year earlier. GMA’s subscription operation is smaller than ABS-CBN’s estimated non-cable business, but it moved in a positive direction.

ABS-CBN’s estimated non-cable subscription revenue remained roughly three times as large as GMA’s. The gap, however, narrowed because ABS-CBN’s comparable revenue declined while GMA’s increased.

Streaming’s difficult economics

ABS-CBN isn’t alone in confronting the difficult economics of streaming. Digital distribution can expand a media company’s reach, but it also introduces intense competition for subscribers’ money and attention. Platforms must continually invest in programming, technology, marketing and customer retention, often before subscription revenue reaches sufficient scale.

For ABS-CBN, the challenge is compounded by its financial position. The company ended June with negative shareholders’ equity of approximately ₱1.08 billion. Its recovery therefore depends not simply on attracting digital viewers, but on converting those viewers into profitable, durable revenue.

A larger online audience doesn’t automatically solve that problem. Free viewing can increase reach and advertising inventory, but it can also reduce consumers' incentive to purchase a subscription. Paid streaming can produce recurring revenue, yet viewers have many alternatives and can cancel services quickly.

ABS-CBN must balance both models while continuing to finance local programming, films, news, music, talent, and international distribution.

The company’s diversified revenue mix offers some protection. Advertising accounted for about 34% of first-half revenue, subscriptions contributed around 30%, and ancillary rights and other revenue provided approximately 27%. That mix is less dependent on advertising than GMA’s.

Diversification, however, is useful only if the individual businesses generate adequate returns. ABS-CBN’s negative EBITDA shows that its current collection of revenue streams still doesn’t cover the group’s operating cost burden.

A disclosure gap for investors

The latest results also highlight the need for more detailed digital reporting.

ABS-CBN discloses total subscription revenue and segment results, but it doesn’t provide separate revenue, subscriber counts, or average revenue per user for iWant. Nor does it clearly divide non-cable subscriptions between streaming and international television distribution.

Those disclosures would let investors determine whether streaming is scaling, whether subscriber retention is improving, and whether digital growth can eventually offset the decline in traditional distribution.

For now, the available figures support a more cautious conclusion. ABS-CBN’s Cable TV and Broadband revenue is falling rapidly, while its estimated subscription revenue outside that segment also declined from the previous year.

Streaming and direct-to-consumer services may still be part of ABS-CBN’s future. The first-half report suggests they aren’t yet growing fast enough to secure its financial recovery.

The company’s turnaround is no longer simply a race to replace lost broadcast and cable revenue. It is becoming a test of whether ABS-CBN can build a recurring-revenue business before continuing losses further restrict its ability to invest in the content needed to attract and retain paying viewers.

Analytical note: The estimated non-cable subscription figures aren’t directly disclosed by ABS-CBN. They are calculated from total subscription revenue less Cable TV and Broadband segment revenue, with an alternative estimate that adjusts for installation-service revenue. The calculation shouldn’t be described as iWant or streaming revenue alone because the residual likely includes international subscription revenue and other subscription arrangements.

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Disclaimer: This is for informational purposes and is not investment advice. Figures come from company disclosures and exchange data; valuation ratios reflect the author’s calculations based on cited inputs.