Now Reading: Star India battles to keep licence for Hindi news channel
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Star India battles to keep licence for Hindi news channel
Star India, the country's leading satellite television company, is struggling to retain government permission to air its new Hindi news channel, Star News, amid an intense ratings battle. The Indian unit of Rupert Murdoch's Hong Kong-based Star TV has blamed corporate rivals for the problems in keeping its satellite uplink licence.
Star India chief executive Peter Mukherjea said the company anticipated a significant impact on competing news channels when it launched on April 1. He attributed the licence difficulties to corporate rivalry manifesting itself through the approval process for the shareholding in its affiliate, Media Content and Communications Services (MCCS), which handles the uplink.
The complications arose after a government policy change in April limited foreign ownership in TV news channels to 26 per cent. News channels were given three months to restructure ownership, after which only those controlled by Indian nationals would be allowed to uplink.
Indian Opinion Analysis
The 2003 foreign ownership cap on news channels was part of a broader push to ensure Indian editorial control over news media. Star News had to quickly restructure its holding company to comply, creating MCCS as an Indian-owned entity. This case set a precedent for how foreign media groups would navigate ownership rules in India. The outcome of the licence battle would determine whether Star could continue broadcasting news, a high-stakes decision given its viewership share. The next step was a government review of MCCS's shareholding structure, with a deadline looming for compliance.
Source: amp.scmp.com
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