Star
to hike cable rates from 1 March; cable operators oppose move
(Posted on 19 February 8:35 pm)
The
waiting is over as far as Star's subscription package is concerned.
The talk has been doing the rounds for a while that Star is going
in for a further hike in its subscription rates and come 1 March,
that will be the case.
The
Star bouquet (Star Plus, Star News, Star Movies, Star Gold, Star
World, Channel V and National Geographic) will now cost between
Rs 28-RS 30 per subscriber, depending on the connectivity of the
cable operators. Big multi-system operators who were paying RS
22 will have to cough out RS 28 per subscriber. Smaller operators
will have to pay more.
If the mood among operators is anything to go by though, they
are unlikely to easily accept the the new rates without a fight.
Shamim
Shaikh of Mumbai-based independent MSO Seven Star Satellite Network
says there was no question of their accepting the new package.
"None of the operators will accept these new rates and except
for Hathway (where Star has a 26 per cent stake) it will probably
lead to a situation that Star will switch off our feeds," Shaikh
says.
"We
have not hiked our subscription rate after the annual revision
in April 2000," Star's head of corporate communications Yash Khanna
said, adding that a revision was due.
"Star
is fudging figures if it claims that," Shaikh says, when this
was pointed out to him. "Last year the rates were RS 16.75. Except
for the addition of Star Gold which no one wants to watch anyway
what's new in what Star is offering?" Shaikh asks. "The actual
rate hike works out to 70 per cent. The Zee bouquet costs us RS
13 so how does Star justify its pricing?"
(Will
he and several other cable operators sing the same tune when Zee
Telefilms revises its package to RS 20 and above in the next two
months after encrypting Zee TV?)
It
appears that Star is banking on the popularity of shows like "Kaun
Banega Crorepati" and certain other serials like "Saas Bhi Kabhi
Bahu Thi" and "Saans", on Star Plus to get operators to toe the
line.
Though
Star officials refused to comment on the price hike, Financial
Express, quoting sources, said cable operators have been issued
letters, informing them of the increase. Star distribution officials,
it is reliably learnt, are meeting in Goa to discuss about the
price hike.
Another
issue being debated is how to increase the declared connectivity.
The exact price hike would depend on the related issue of paid
subscribers.
Star's
decision to increase the price of its pay channels follows soon
after a major spat with Siticable in Delhi which was only recently
settled. Cable operators are expected to meet in Pune to mobilise
opposition against the hike. They are threatening to boycott carrying
Star bouquet of channels in Gujarat and Pune, Financial Express
reported.
An
industry source said there was opposition to the hike in South
and Central India also.
How
the issue will pan out should become clearer in the coming days.
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