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Star Sports gets support but
ban continues
The battle
between Mumbai's cable operators and ESPN-Star Sports is
entering another phase. Cable operators are believed to
have met the information & broadcasting minister Arun Jaitley
yesterday presenting to him their grouses against the sports
services and how the contracts drawn up by them are totally
one-sided. Jaitley is believed to have heard them out. One
will have to wait and watch how Jaitley will react.
ESPN-Star Sports meanwhile has received support from the
Indian Broadcasting Foundation, a representative body of
television channels, programmers, producers, advertisers
and marketers, and the Cable Operators Federation of India
(COFI), a representative body of cable operators. The two
have condemned the initiative by cable operators to black
out the two sports services following a hike in subscription
rates by Star Sports.
IBF president and Prasar Bharati CEO Rajiv Ratna Shah says:
"Pay TV is going to be the norm for the future. Television
programming being a very expensive proposition, the channels
need more than one revenue stream besides advertising, subscription
fees too may be necessary. That's how the television industry
has evolved around the world and India is no exception."
He added, "Just as newspapers, the television channels cannot
survive on advertising revenues alone. Newspaper prices
average about 50-120 rupees per month today whereas the
channels charge only about 3 - 8 rupees per month. The pay
TV charges in India are among the lowest in the world. The
subscriber fee set by each channel is a business decision
it has to make, and must take into account the market conditions.
We therefore do not favour pressure tactics adopted by some
persons, including black-out of some channels by a few cable
operators from Mumbai."
COFI has on its part also condemned the mixing of politics
with business. "Often the modus operandi used by politicians
or their relatives is to divide the cable operators on political
ground and present to the government that certain issues
be resolved which may give them personal benefits and avoiding
the main issues that have adversely affecting the industry
since last 10 years." COFI has also frowned upon the practice
of politicians who have been forcibly taking over networks
from small operators using the cover of friends and relatives.
ESPN Software India managing director Manu Sawhney's has
also warned cable operators that they are legally bound
to show ESPN and Star Sports on their networks as they have
signed contracts to that effect. to the cable operators
Says Sawhney, "The television viewers are being deprived
by the cable operators of watching the exciting cricket
series on ESPN and STAR Sports. This is in complete violation
of the agreements that they have signed with us under which
they are contractually and legally bound to provide the
ESPN and STAR Sports services to the consumers of the cable
network for reception by their subscribers".
Meanwhile cable operators do not seem to be affected by
the furore they have created by imposing the ban. There
were no signs of ESPN and Star Sports making a come back
on to TV screens in Mumbai as the ban entered its second
week. Viewers in Mumbai have tuned into Sony Max which has
been airing the youth World Cup tournament from Colombo.
And hence they have not been raising a stink. This apart
the Indian cricket team has been putting up a good enough
show to make viewers believe that they are missing out on
a good thing.
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