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The Franchise Squabbles between the Government and Media: Its Financial Consequences towards the Stakeholders

Volume: 68  ,  Issue: 1 , January    Published Date: 24 January 2021
Publisher Name: IJRP
Views: 671  ,  Download: 461 , Pages: 32 - 39    
DOI: 10.47119/IJRP100681120211640


# Author Name
1 Hilario V. Manongtong


The franchise squabbles between the government and media broadcasting networks do not only pose a serious problem to the access of news and information of the people, which is critical in functioning society but also carry grave financial consequences to the stakeholders of the network. Such was the case of XYZ Network after it failed in its bid to get a fresh government franchise to continue its free-to-air television and radio broadcasts in country X airwaves. The franchise of XYZ Network was not renewed by the legislature after it found some actions of the network allegedly violating the franchise provisions. The apparent displeasure of the country?s head of state towards the network purportedly due to its biased reporting and unlawful practices was also seen as a factor in its non-renewal. The stakeholders are the ones who are the underdogs in this squabble, financially, due to the non-renewal of the franchise. Before its shutdown, XYZ Broadcasting Company is the leading company with billions of assets. It has thousands of employees and several partners in the industry. It is also a key driver in the advertising industry due to its wide range of audiences. On the other hand, the government is collecting a huge amount of taxes which are essential in national development. Considering the far-reaching impact of the franchise non-renewal of XYZ Network in terms of providing access to news and information to the public, the financial gains to the shareholders, and contributions to the economy, the government must have taken a conservative stance in its verdict on its renewal. The government may have explored all possibilities of extracting accountability from the company without necessarily shutting down its broadcast permit.


  • Franchise squabbles
  • , Franchise non-renewal
  • Network shutdown