After nearly two decades of operating its entire Asian broadcasting infrastructure from Hong Kong, STAR TV will soon shift a part of its uplinking operations to India. This includes those of all India feeds, from here instead of Hong Kong.
This move will make STAR India responsible for uplink and downlink of all Indian channels instead of STAR’s Hong Kong office. So, STAR India will have to apply for an uplink licence for its channels to the ministry of information and broadcasting (I&B). More, experts say the move may lead to STAR India becoming the hub for a lot of back-office work for STAR’s Asian operations, which so far were being done from Hong Kong. These include research work for content and technical support, among others.
So far, STAR India has only got the landing rights (downlink permission) for its channels in India, as the uplinking happens from Hong Kong. For getting an uplink licence, STAR India will have to apply afresh for both uplinking and downlinking to the I&B ministry, a first for it since its inception in the early 90s.
This comes after the recent announcement made by Rupert Murdoch’s News Corporation of dividing its Asian broadcast business into three distinct entities – STAR India, STAR Greater China and Fox International Channels. News Corp has already initiated the process of scaling down its operations in Hong Kong and the restructuring exercise may be complete by December.
For STAR India, it means channels like STAR Plus, and the India feed of English channels like STAR Movies, STAR World and the various regional channels will be uplinked from within the country instead of Hong Kong. This may also result in an increase in local content on the English channels, thereby helping STAR India expand its revenue stream, sources say. Currently, STAR India is the most profitable arm among News Corp’s Asian operations, generating revenues of over $440 million (over Rs 2,200 crore).
So far, only India-centric channels will be shifted from Hong Kong to India for uplink, company sources say. However, once STAR India establishes an uplink hub in the country, it may be used for uplinking other channels too, sources say.
Uplink of television channels involves beaming these from an earth station to a satellite for distribution over a particular geographical area. Uplink involves seeking several permissions from the country of origin. In India, the various clauses laid down in the uplinking licensing conditions include maintaining the foreign investments in the local company under 49 per cent for non-news channels, home ministry clearances for key executives on the board and maintaining minimum net worth criteria, among others.
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For STAR, this move may lead to savings of 20-25 per cent of the operational costs. STAR is estimated to spend over $20 million annually on uplink of over 35 channels from Hong Kong, including channels for China, India, Malaysia, Taiwan and Hong Kong, among other countries. “India will become a complete independent business entity, post the restructuring exercise. Subject to regulatory and government approvals, we will relocate uplinking of our channels to India from Hong Kong. This may lead to creation of some jobs, too,” Uday Shankar, chief executive of STAR India told Business Standard.
Industry sources say STAR TV India may form a separate division to undertake the uplinking of channels, a move that could lead to additional creation of up to 200 jobs for STAR India, that currently employs around 800 people.