Court notice to government on content sharing

The Delhi High Court today issued notices to the information and broadcasting ministry, the sports ministry and Prasar Bharati on a petition filed by ESPN-Star Sports challenging the government's notification on mandatory content sharing with Prasar Bharati.

The Rupert Murdhoch-owned Star Group also challenged the order of the Telecom Regulatory Authority of India (Trai) that sought to fix the annual hike in cable TV rates at 4 per cent for 2006.

While refusing to stay the implementation of the Centre's November 11 notification on content sharing, Justice Vikramjit Sen asked the respondents to file their replies by January 18, the next date of hearing.

Sports broadcaster Ten Sports had already challenged the content sharing norm at the Bombay High Court earlier this month.

It is estimated that the policy on content sharing will lead to an annual loss of over Rs 350 crore for the sports broadcasting sector alone. Sports associations are also of the view that the value of bids for sporting events like the BCCI-organised cricket matches may come down as a result.

In addition, the losses due to the 4 per cent increase in cable rates is expected to be much higher. Last year, the cable charge hike was capped at 7 per cent. Broadcasting industry feels that it should be freed from the practice of Trai fixing the rate of increase.

The cable distribution business is expected to be worth Rs 10,000 per annum and is growing at about 25 per cent. But due to under-declaration of subscribers by cable operators, broadcasters manage to get just about 25 per cent of this.

ESPN Star Sports counsel AM Singhvi argued that the Trai rulings were "arbitrary, irrational and contrary to Article 14 (Right to Equality) of the Constitution and violative of the provisions of the Copyright Act, 1957 and the same cannot override its statutory rights".