Cricket World Cup feedon DD cannot be carriedvia cable ops: Delhi HC
MUMBAI: In a shot in the arm for Star India,
the Delhi High Court has ruled that
pubcaster Prasar Bharati cannot share live
broadcasting signal of events of national
importance like the ICC Cricket World Cup
with cable operators.
Star India, which is the official broadcaster
of the event, had filed an application in the
High Court contending that the free supply
of live feed to cable TV operators through
Doordarshan channels was making a dent in
its revenue.
Under Section 3 of the Sports Act, the rights
holder has to mandatorily share the live
feed of sporting events of national
importance with Prasar Bharati.
“The appeal as well as writ petition (civil)
8458/2007 is allowed to the extent that the
live broadcasting signal shared by ESPN/
STAR by virtue of the Sports Act with Prasar
Bharati shall not be carried in the designated
Doordarshan channels under the must-carry
obligation cast by the Cable TV Network Act
on cable operators. This shall operate
prospectively,” the bench stated.
The bench also said that the strict
interpretation of the provisions of Section 3
of the Sports Act makes it clear that the
live broadcasting signal can only be re-
transmitted by Prasar Bharati without the
intervention of a cable operator.
“Strictly speaking, these networks have to
be those of Prasar Bharati and not of private
players, such as the cable network
operators,” the bench said.
“In other words, such a shared live
broadcasting signal cannot be carried
through a cable operator. This limitation is
not by way of a private treaty, but by way
of a statutory provision. It is not as if public
interest is being given a go-by for the sake
of private interest,” it added.
The bench agreed with the content of the
petitioners that the objective of Section 3 of
the Sports Act is essentially directed
towards those citizens who do not have
access to cable television and only have
access to the terrestrial and DTH networks
of Prasar Bharati.
Star had contended that by carrying the
shared signals on channels, which are
compulsorily carried on private cables and
DTH platforms, Prasar Bharati is making
available the shared signals on platforms
where they are already available and is
thereby offering the content to subscribers
in direct competition to the broadcaster,
which is the owner of that content.
The bench also noted that the cable
operators have access to the broadcast of
the sporting events through two different
channels, Star and the other through the
channels of Doordarshan, while the former is
to be paid for, the latter is free.
According to Star, the free transmission of
the signals by Prasar Bharati through cable
operators has hit their ad as well as
subscription revenue. According to Star, the
sharing of live feed with cable operators
through Doordarshan has resulted in a
subscription loss of Rs 970 crore (Rs 9.7
billion) and a loss of advertising revenue to
the extent of Rs 245 crore (Rs 2.45 billion)
since 2007.
Those homes which were connected via
cable networks would have paid for
receiving the live broadcast signals had
Prasar Bharati through Doordarshan not
provided the same free of cost to the cable
operators, the broadcaster contended.
Prasar Bharati, on its part, argued that
Doordarshan has to share ad revenue earned
through the event with the official
broadcaster in the ratio of not less than
75:25.
However, Star contended that this still does
not cater to the loss of subscription
revenue. It pointed out that the ad revenue,
which it would have made on its own, would
not be matched by Prasar Bharati and the
revenue share was no consolation for
providing the feed free to the cable
operators.
The court, however, rejected Star and
BCCI’s additional prayers to set aside
Section 3 of the Sports Act. It also refused
to strike down a 2000 notification issued by
Prasar Bharati which made it mandatory for
cable operators to carry DD National and DD
News channels.
The BCCI, Nimbus Communications and
ESPN Star Sports (Star Sports) had
challenged the High Court’s November 2007
order that rejected their pleas that no
distribution platform could broadcast sports
events without licence from the content
owners.
Disagreeing with the single judge’s
observation that the mandatory sharing of
live feed was a matter of policy, the bench
said that carrying sports in a designated
Doordarshan channel is not a matter of
policy but a matter of administration.
“But, even if we regard it as a matter of
policy, such policy cannot override the
statutory provisions contained in Section 3
of the Sports Act,” the court said.
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