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And for the avid cricket lover, the timing couldn't have been worse.
The Indian cricket team's magnificent performance in the ongoing
test series with Australia would only have vetted the viewers' appetites
for the one-day spectacle that is to follow.
For the record, ESS shot off a missive to InCableNet yesterday,
asserting that the agreement that was in place had become invalid
as off 31 December. The letter set a deadline of 5 pm today for
InCableNet to revert on the matter. The letter holds out the threat
that if the MSO failed to respond, ESS would be free "to take
all necessary and relevant steps" (read shut-off).
InCableNet on its part sent off a reply asserting that since a
meeting to discuss this very matter had already been scheduled for
the 5th in Mumbai, it did not understand the purpose of the letter
issued by ESS. InCableNet has further stated that as per the understanding
reached between the two parties on 14 December, disconnection requires
seven days prior intimation.
InCableNet also covered old ground in its response regarding the
difficulties it was facing in raising monies from the ground:
*The MSO's declared base to ESS in Mumbai exceeds its paid connectivity.
*Consumer resistance to increasing pay TV rates continues to be
a strong disincentive to increasing rates.
*ESS' "best rates and favourable terms" imply an increase
of monthly pay outs by 36 to 40 per cent and with substantial upfront
payments
Sricharan Iyengar, V-P affiliate sales ESPN Software had this to
say about the looming face-off: "If the Hindujas don't come
back to us within the given deadline, then we would have no option
but to switch them off." He however clarified that at the moment
both the parties were talking about the Mumbai market only, adding,
"If the Hindujas don't want to renegotiate for Mumbai, then
we'd presume they won't like to do for other markets too. The onus
is on them."
According to Iyengar, "The problem here is that the Hindujas
are insisting on paying us according to the old rates that were
signed two years back. Things have changed since 2001 and we would
like to renegotiate, which they are not willing to do."
"We had given them very attractive offers, including a variety
of tariff plans, but they are not willing to negotiate. This stance
is certainly not acceptable to us. They have come back to us on
certain things, but they are actually non-proposals and bizarre."
Iyengar further stated, "It is strange that the Hindujas neither
want to accept the increased subscription rates (Rs 39.70), nor
do they want to go in for an increase in the declared subscriber
base. Their plea is that the company cannot pay anything more as
they themselves get paid a certain amount. If the Hindujas want
to give the ESS feed free to their distributors, it's their problem,
not ours. Why should we sacrifice our revenues for such subsidisation?"
Looks like the first major face-off of the year between the cable
fraternity and the pay broadcasters will be played out between "regular
antagonists" ESS and InCableNet. And with the other pay broadcasters
expected to make their own announcements of subscription rate hikes,
expect more such face-offs to surface in the near future.
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