Digital monopoly tightens as PHL media contracts

By Francis Allan L. Angelo

Local newspaper operations are steadily collapsing across the Philippines as readers and advertisers shift to online platforms, tightening media concentration and leaving large areas with only one or no independent local news source.

Findings from the Philippine Institute for Development Studies (PIDS) report, “Analysis of the Competition Landscape of Philippine Mass Media,” presented by Senior Research Fellow Dr. Ramonette Serafica and Research Specialist Queen Cel Oren during a recent public webinar, show that this decline is reshaping the country’s media environment faster than expected.

Five regions—Cagayan Valley, Soccsksargen, Caraga, Mimaropa and the Bangsamoro Autonomous Region in Muslim Mindanao—now have no local newspaper establishments, while many others rely on only one or two outlets for community-level reporting.

Although digital platforms continue to expand, the researchers said they do not replace the need for localized reporting.

They added that access to online content remains uneven, leaving many areas outside Metro Manila with reduced access to credible local information.

DIGITAL SHIFT GROWS, BUT…

The decline in print coincides with the rising dominance of online platforms.

According to the study, the digital media segment is expected to surpass traditional media revenue by 2029.

Oren said “television and internet for social media… are the most commonly accessed media,” with online platforms capturing 52.17 percent of total advertising spending in 2023.

Print media, she noted, accounted for only 5.63 percent of ad spending in 2023, underscoring a massive revenue displacement that threatens the survival of traditional outlets.

However, this digital shift has not translated into sustainable operations for local newsrooms that face rising production costs, shrinking print revenues and substantial investment requirements to move fully online.

Even long-established institutions have shut down or downsized.

“The traditional media in the Philippines has struggled amidst the audience shifting to digital platforms, which led to the closure of some of these media organizations such as Baguio Midland Courier and CNN Philippines,” Oren said.

In the National Capital Region, the number of newspaper establishments fell from 76 in 2013 to 32 in 2021.

This contraction shifted the market structure from “moderately concentrated” to “highly concentrated” as smaller publications closed, Oren said.

The loss of these players means fewer independent voices are available to scrutinize power and document history.

RISING CONCENTRATION

The impact of concentration is most apparent in major markets where competition should be stronger.

In Metro Manila, the top four newspaper establishments account for 83 percent of total industry revenue.

The trend is even more pronounced in the television sector.

Television broadcasting remains highly concentrated nationwide, with some provinces in Region XI relying on a single broadcaster for news.

The study found that the closure of ABS-CBN in 2020 statistically lowered concentration in the NCR by removing a dominant player, yet it simultaneously created near-monopolies in areas where the network had previously served as a primary information source.

The researchers said this growing concentration limits the diversity of perspectives available to the public and raises the risk of information bottlenecks.

They warned that when only a few entities control news flow, the “marketplace of ideas” narrows, making it easier for certain narratives to dominate while others are marginalized.

STRUCTURAL FORCES

The tightening of media concentration is not driven solely by the decline of newspapers.

Serafica and Oren stressed that longstanding ownership structures in Philippine media have historically placed control in the hands of a few players, and the loss of smaller outlets only magnifies this imbalance.

“Media ownership has not waned through the years, and a trend toward increased concentration of media ownership is a growing concern globally,” Serafica said.

She added that the sector’s influence remains disproportionately large despite contributing only 0.25 percent to the Gross Domestic Product and less than 1 percent of employment in 2023.

The media’s economic footprint is small, she said, but its social and political influence is immense.

This disproportionate influence is heightened by the “amenity potential,” or the non-financial benefits such as political influence and social status that come with owning media outlets.

This dynamic often drives families with cross-sector business interests to maintain control of media companies, leading to potential conflicts of interest when news coverage intersects with their business ventures.

“Even if there is no demand or market conditions and technology are changing, there still needs to be a source of credible news at the local level… Government also needs this because they have to inform the public about their programs in public health or education,” Serafica said.

WIDENING INFO INEQUALITY

Discussant Dr. Carlos Juan “Chip” Vega, director of the Economics Office at the Philippine Competition Commission, said the patterns identified by PIDS show how unequal access to reliable information arises when traditional outlets disappear faster than digital alternatives can replace them.

“The combination of consumption moving towards online platforms and having poor internet connectivity outside the NCR underscores the importance of understanding competition,” he said.

He noted that rural areas often rely heavily on traditional outlets that are rapidly declining in number.

He added that while internet penetration is strong in urban centers, many provinces still face the “digital divide,” losing their newspapers before gaining reliable high-speed internet.

“As we approach a single voice… the value of that last marginal fringe voice increases,” Vega said.

He cautioned that the apparent abundance of online content can be misleading.

“You may have 20 stations or firms, but just a few firms might own them, so these stations would not truly be 20 different voices,” he said.

NEW ACTORS, NEW DANGERS

The webinar also featured a complementary study, “Digital Public Pulse: Mapping the Digital Landscape of Philippine Politics,” presented by Dr. John Benedict Bunkin of the University of the Philippines Diliman.

The study showed that while traditional media competition is tightening, the digital space is fragmenting in chaotic ways.

Bunkin reported that “gray actors”—non-political pages such as meme accounts, K-pop fandoms and lifestyle pages—have become key channels for coordinated political messaging.

These actors bypass traditional media gatekeepers, allowing politicians to communicate directly with the public without editorial scrutiny.

“Political actors no longer need the editorial gatekeeping of the press,” Bunkin said.

“They can directly communicate with their audiences, produce their own content, and issue statements without going through reporters.”

This shift has created “platform bailiwicks,” where specific politicians dominate entire digital ecosystems.

For example, Facebook emerged as a stronghold for the Marcos-Duterte tandem during the 2022 election period, while Twitter—now X—became a gathering point for supporters of former Vice President Leni Robredo.

The rise of social media, big tech and AI adds further risks to content distribution and media independence, especially in areas where traditional outlets have already diminished.

As professional newsrooms close, these unregulated digital spaces become primary information sources that often prioritize virality over verification.

POLICY REFORMS

To address these trends, Serafica called for reforms that encourage competition and support struggling regional newsrooms.

“Mass media is an industry in itself; it is an important institution that supports markets and good governance,” she said.

She pointed to concentrated media ownership among families with cross-sector business interests and the requirement for congressional broadcasting franchises as key barriers that heighten the risk of market and political foreclosure.

She said the franchise requirement politicizes the right to operate and increases vulnerability to pressure from politicians whom broadcasters are expected to cover.

She also proposed revisiting foreign ownership rules to help ease financial pressures and improve competition in the sector.

She noted that the 1987 Constitution restricts mass media ownership to 100 percent Filipino control, a rule that may be outdated given the global nature of digital media and the urgent need for capital in local newsrooms.

“In other countries, pwede namang iba’t ibang level of ownership restrictions,” she said.

“I hope that when the time comes for us to revisit our constitution, we should also consider this particular provision.”

Serafica emphasized that sustaining local journalism is essential.

“Ensuring the sustainability of local journalism is justifiable since it can be considered a merit good,” she said.

She cited fiscal incentives for local journalism, freedom-of-information reforms and stronger digital literacy programs as potential interventions.

Dr. Orville Tacho of the University of the Philippines Baguio, another discussant, stressed that education must accompany structural reforms.

“Civic education need not be limited to academia,” Tacho said.

“Mainstream and social media are important here, and this is why competition is important in the media industry.”

He said that with more mainstream and legacy media operating in print and broadcast, citizens will have a wider range of information sources.

The playback of the webinar is available at https://bit.ly/pidslive111325, and the full study may be accessed at https://bit.ly/pidsdp2024-29.