Star, Zee Agree On Siticable Expansion

The bone of contention between Star and Zee TV is the revenue sharing and the percentage of the share which percolates down to Star's kitty which has been termed "paltry considering the investments being made Rupert Murdoch."

Zee sources admitted that differences persisted between the two partners and claimed that Star representatives had threatened to walk out of the board meeting on Siti Cable at one stage. However, Star sources sai: "The ATL board yesterday approved approximately Rs 80 crore for Siti Cable's expansion plans letting bygones be bygones."

Star TV had expressed doubts over the fairness of investments made in Siti Cable during earlier meetings between the executives of the two companies, and had suggested that the finances be properly scrutinised by an independent multinational consultancy firm's Indian arm. Star has said it will go ahead with its Hindi programming on Star Plus and increase the Hindi content as long as it is within the stipulated one-sixth of the primary programming.

 

According to sources from both Star and Zee TV, tension still prevails between the two over the content of programming being now aired on Star Plus which has 180 minutes of Hindi and news and current affairs programmes.

When contacted by Business Standard late Wednesday evening, Zee Networks chief executive, V. Jindal, described the talks as "fruitful and good." News TV (India) Pvt Ltd, which manages the affairs of Star TV in India, chief executive, R. Basu, refused to issue any statement.

Zee TV sources said Chandra was still looking for an alternative satellite in case Star TV refused to give it one on Asiasat-2 after the existing Star family of channels shift to it from Asiasat-1 within two years' time. Zee TV's contract with Asiasat-1 ends in April 1997. We at least have a transponder on a Russian satellite through which Music Asia is beamed, sources said.