The price of each channel under the Star TV network, sources said, would go up by Re 1 per month. The price revision will be with effect from March 1, 2001. The six-channel package 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.

Though Star officials refused to comment on the price hike, sources said the 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, sources said. Star TV's decision to increase the price of its pay channels follows soon after it avoided a centralised deal and signed up with Siticable's joint venture partners in Delhi.

Star to hike pay channel package price by 30 pc Cable operators are not happy with the decision and will be meeting in Pune to mobilise against the hike. They are threatening to boycott carrying Star bouquet of channels in Gujarat and Pune. Though cable operators are grudging, a majority of them said that they would ultimately have to pay up. With the increase in programming costs, channels have no alternative. "We will take time to pass on the cost to the customers. But in the interim, MSOs will bleed," said a senior official of a leading MSO in Mumbai. Though the MSO pays around Rs 80 for the pay channels, it gets Rs 35 per subscriber from its franchisees. But they underdeclare their connectivity.

Zee TV recently increased its pay channel price marginally. While operators with connectivity above 10,000 had to pay for the eight channels Rs 12 per subscriber from Rs 10 earlier, smaller operators will have to shell out Rs 13.50, up from Rs 13. Meanwhile, Mr Arun Batra has recently joined Siticable as executive director, replacing Mr Chari who has gone back to RPG network.