The sports channel, ESPN and Tata Sky, a leading DTH platform have threatened each other with legal consequences, essentially on issues stemming out of the DTH player removing ESPN from the basic group of channels it shows for a base price and asking its subscribers to pay for the channel in addition to the base price. The ESPN managing director RC Venkatesh lashed out at Tata Sky on Thursday. “The entire problem arises out of Tata Sky blacking out our channel. We have been receiving a huge number of calls from aggrieved viewers asking us to not interrupt the signal to Tata Sky, so we came out with the public notice clearing our stance. We are in detailed discussions with legal counsel to slap a case against Tata Sky at the appropriate forum. We are considering both MRTPC and the high court for the purpose.” Venkatesh feels unbundling three sports channels – ESPN, Star Sports, Star Cricket at this juncture, when important international soccer, Formula-1, and tennis events are scheduled, seems like a ploy on Tata Sky’s part to milk an extra revenue stream. Earlier this week, Tata Sky had announced a slash in prices but had removed the sports channels of Star, ESPN, and channels from BBC from its basic offering.
However, Vikram Kaushik, CEO, Tata Sky told FE, “This involves a larger issue of freedom of choice both for the DTH platform to offer flexibility to consumers and the right of consumers to exercise their preferences. Our market research proved that a majority of our customers were not interested in international sports events other than cricket. Why should 95% of customers put up with the taste of another 5%, and pay for soccer and water sports, which they don’t watch? We are evaluating legal options against ESPN for maligning our brand and misleading ”
Venkatesh, citing an apology tendered by Tata Sky about problems in their call centre, told FE, “Even customers who want to subscribe to our channel cannot access Tata Sky’s call centre.” Kaushik defended the problem in the call centre saying, “Our customer satisfaction levels have been among the highest in the market, independent research has proven it. It is just that our move to revise prices has led to unprecedented demand, resulting in 150,000 to 200,000 calls daily, and hence the call centre inconvenience.”
On being asked about the loss of business ESPN could face due to losing 2 million viewers, specially at a time when the Euro cup is due, Venkatesh admitted that there are going to some short-term losses without divulging the estimated amount.
In a separate development, Tata Sky withdrew a petition from the Delhi High court against Dish TV, where the pleading DTH player contended that Dish TV’s advertisement of free set top boxes is misleading as it is not applicable in all schemes.
“The High Court, on hearing the parties, decided that at present there was no relief required to be granted to Tata Sky, ordered Tata Sky to withdraw the petition since it was inclined to dismiss it. The said appeal is withdrawn by Tata Sky,” said the legal counsel of Dish TV. Tata Sky had also approached MRTPC earlier regarding the case, where the next hearing is due in a few days.
