Ms. Imelda Argel
SEC Opinion • Securities and Exchange Commission • Opinions • May 27, 1996
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May 27, 1996 Ms. Imelda Argel Interlink Asia 2 Union Street, North Sydney, NSW 2060, Australia M a d a m : This refers to your letter dated April 10, 1996 requesting opinion on whether or not the operation and maintenance of " moviehouses " is considered as " mass media " activity within the contemplation of Article XVI Section 11(1) of the Philippine Constitution which seeks to insure that firms engaged in said line of business are free from foreign influence. LibLex The Department of Justice previously defined the term " mass media " as follows: "The term " mass media " in the Constitution refers to any medium of communication, a newspaper, radio, motion pictures , television, designed to reach the masses and tends to set the standards, ideals and aims of the masses ." (DOJ Opinion No. 24, s. 1986, citing Op. 163, s. 1973, emphasis supplied) The above definition explicitly covers " motion pictures ". They are considered as mass media inasmuch as they are designed to reach the public and tend to set the standard, ideals and aims of the mass and thus play an important role in the nation and tend to affect or influence the peoples way of thinking and lifestyle. Accordingly, the production of motion pictures by an entity with a foreign equity/participation is prohibited. However, the operation and management of " moviehouses ", is not pictures are exhibited , after they have passed the Board of Censors. In other words, it is the " motion picture " being shown which is considered the medium of communication or source of messages which would tend to affect or influence people's way of thinking and lifestyles and not the " moviehouse ". Thus, it is opined that the business operation of " moviehouses " does not fall under mass media activities contemplated by the above-mentioned Constitutional limitation. However, it has to be emphasized that in the event entity engaged in moviehouses operation goes into movie or film production, it shall be subject to said Constitutional restriction. Very truly yours, (SGD.) FE ELOISA C. GLORIA Associate Commissioner
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