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STAR back on IN, blacks out 7 STAR

Star TV has resumed its pay channel services to the Hinduja-owned INCablenet after extracting an assurance that arrears of Rs. 2 crore would be cleared within three months. Star TV, however, has blacked out its pay channels from 7 Star, the only Mumbai-based cable network which has introduced the addressable boxes.

The reason: 7 Star wants to pay Star TV on a reduced subscriber base. "We are not getting the signals from Star TV since the last 10 days," admitted a senior official in 7 Star.

As part of the settlement, INCablenet has agreed to the upward, revised pricing of the Star group of channels. Though it was negotiating to pay the new rate of Rs 16.75 per subscriber (Star channels were priced at Rs. 12.75 till March 31, 2000) on a reduced connectivity, it had to finally bow down to Star TV’s terms. The cable network will continue to pay on its declared connectivity.

The Hinduja network will have to pay Rs. 50 lakh by the first week of June while the balance will be cleared in three months, it is reliably learnt. This will be in addition to a monthly billing of Rs. 25 lakh for the Star bouquet of pay channels. "Star TV was asking for a rate increase of its pay channels and we were negotiating. We have reached a workable arrangement which is acceptable to both the sides," said INCablenet president General Anand.

Star TV shut off its package of channels on May 27 and restarted services on May 29. The channels included Star Plus, Star Movies, StarWorld, Star News and National Geographic Channel. Last year, INCablenet had an outstanding of Rs. 1.70 crore. Star switched off the signals for a brief period but arrived at a settlement with the Hinduja-owned network. INCablenet agreed to pay a monthly instalment of Rs. 13 lakh in addition to the monthly billing of Rs. 17 lakh.

But, sources said, the cable network made irregular payments and the outstandings mounted to Rs. two crore before the Star network switched off the signals. Star TV has put off signals from the 7 Star Network after disputes over declared connectivity. Sources said 7 Star wanted a payment on a lower subscriber base. "We have lost connectivity. Star is not taking that into account," an official in 7 Star said.

However, Star claims that it has not increased 7 Star’s subscriber base. "They are stealing the signals from other networks and running a scroll which says the channel is being aired courtesy INCablenet/Win Cable. This is illegal," a cable operator said. Star TV, it is reliably learnt, is contemplating legal action against 7 Star. Star TV is providing four exclusive channels (Sky News, Fox News, Channel V International and UK TV Granada) under the addressable system on the cable network.

S. D.