Broadcast giant GMA Network Inc. is putting up a joint venture with Viva Records Corp. (VRC) that would engage in music production, marketing and distribution, slated to operate next year.
In a disclosure to the Philippine Stock Exchange, GMA said it is establishing a joint venture with VRC for registration with the Securities and Exchange Commission (SEC).
The company will be owned equally by GMA and VRC, and will mostly work on music production, recording, marketing, promotion and distribution.
Likewise, the joint venture will engage in artist management and music publishing. If things go as planned, the company will go on business in 2026.
GMA said the initial paid-in capital needed to create the joint venture is P2 million. The network decided to team up with VRC to consolidate their resources and tune up their capabilities in the music industry, both within and outside of the Philippines.
Given the 50:50 split, the company will elect a boardroom composed of three directors each from GMA and VRC.
The chairmanship will be shared by both GMA and VRC, while VRC chooses the president and the assistant corporate secretary and GMA appoints the treasurer and the corporate secretary.
‘The joint venture shall be subject to the board approvals of both GMA and VRC, and approval of the terms of incorporation papers to be filed with the SEC,’ GMA said.
GMA said the joint venture would bring a positive impact on the network because of the extent of the expertise, resources and talents of VRC. Further, GMA said the joint venture would contribute to its medium- to long-term performance.
In May, GMA president and CEO Gilberto Duavit Jr. said the network is on the lookout for fresh ways to raise revenue. He noted that last year’s revenue decline was partly due to weak reception for its former shows.
This time, Duavit promised to explore not just innovative takes on primetime content, but to look into other revenue sources outside of TV and online as well.
As of June, GMA has booked a profit of P2 billion, triple than a year ago’s P604.62 million, as it gained from the advertising influx during the election season.