Morgan Stanley
India | Friday, 21 November 2008
Companies
All IBTimes

ESPN-STAR Sports threatens legal action against Tata Sky over new package policy

By Gokul Subramaniam
Font Scale:
Posted 06 June 2008 @ 09:08 pm GMT

The new packaging policy adopted by Tata Group's Direct-To-Home (DTH) arm, Tata Sky from June 2008 is set to make the lives of its subscribers less "jingalala" as tens of thousands of sports fans will miss out seeing important sporting events unless they agree to pay Rs.40 per month.

Corporate homepages of Tata Sky (top) and ESPN-STAR (bottom) seen in a composite image
Corporate homepages of Tata Sky (top) and ESPN-STAR (bottom) seen in a composite image. Sports broadcasters ESPN and STAR Sports have threatened to take legal action against Tata Sky, accusing the latter of using arm-twisting tactics to extract money...

Tata Sky has packaged popular sports channels ESPN, STAR Sports and STAR Cricket under a separate bouquet (add-on package) called Sports Platinum and unless subscribers agree to pay a separate premium for this add-on pack they will miss out watching the French Open, UEFA EURO 2008, Asia Cup, Wimbledon, ICC Champions Trophy and Formula 1 on their television.

However, the sports broadcasters are crying themselves hoarse, saying Tata Sky is using arm-twisting tactics to extract money from its subscribers.

Under the guise of announcing that it has reduced the prices of its packages from June, Tata Sky is actually charging more from its subscribers.

Through several public notices published in leading newspapers, ESPN, STAR Sports and STAR Cricket have tried to bring to the notice of Tata Sky subscribers that Tata Sky has not reduced its price but has actually increased its price.

The sports broadcasters have pointed out that prior to 1st June, the base pack that includes ESPN, STAR Sports, STAR Cricket, BBC (news channel) and Ten Sports was priced at Rs.300. However, under the new pricing policy, Tata Sky is charging Rs.260 for the base pack which excludes these channels and if these channels are subscribed as add-on packages, the subscriber will actually be paying more overall: Rs.345.

"By discontinuing the broadcast of your favourite sports channels ESPN, STAR Sports and STAR Cricket, Tata Sky has deprived you of all the exciting live sporting action happening around the world," the sports broadcasters' notice issued in the interest of "sports-loving public" ran in the newspapers.

"Tata Sky has unilaterally and arbitrarily discontinued the broadcast of ESPN, STAR Sports and STAR Cricket to all its existing subscribers and is forcing them to subscribe to these three channels in a separate add-on pack," the broadcasters said.

"This has happened despite the fact that there has been NO INCREASE in the rates of ESPN, STAR Sports and STAR Cricket channels," it added.

The broadcasters, annoyed by the fact that Tata Sky is misleading the people, said that the signals to the sports channels are available on Cable TV networks and on Dish TV DTH platforms.

IBTimes RSS
E-Newsletters : Enter your Email for Fast News & Opinions
advertisement
Top Stories on Industries
advertisement