ESPN Star to drag TataSky to court

Sports broadcaster ESPN Star said on Thursday it will take legal action against TataSky alleging the direct-to-home service provider of indulging in arm twisting tactics and eroding brand equity of its channels by 'unilaterally and arbitrarily' discontinuing them.

"After the expiry of our agreement in March, we are still providing them signals as we are involved in another litigation with them. Taking advantage of the situation they are doing whatever they want with our signals," ESPN Software India Managing Director RC Venkateish told PTI.

"We will be moving the Delhi high court against TataSky on two-three specific aspects," Venkateish said, however, declining to share the details.

He also said the company was also contemplating moving to fair trade regulator MRTPC against TataSky.

"All the action they have taken is try and derive commercial advantage by putting our channels into disadvantageous position and eroding our brand equity and in the process they have also inconvenienced their own customers," Venkateish said.

Stating that TataSky was 'indulging in arm twisting tactics', he said the DTH provider was holding ESPN Star to 'ransom' by asking 'crazy and unreasonable discounts'.

"We have been having dialogue with them. We have offered 40 per cent discount up to a certain number of subscribers and a 50 per cent discount above that on the rates we give to cable operators. On top of that they want further discount and this is quite crazy," he said.   

Venkateish alleged that TataSky was 'fleecing consumers and duping' them through its latest subscription offer.

"What they have done is that by taking away 12 channels from the base channels, they are claiming to subscribers that it is coming at a cheaper rate. But they are selling the 12 channels at a separate rate," he said.

Recently, TataSky had announced new rates by reducing monthly subscription charges by up to Rs 50 across all packages.

Venkateish said the removed channels have been separately priced at Rs 40, Rs 30 and Rs 15 respectively for ESPN Star channels, Ten sports and BBC channels.

"In totality, the subscribers have to pay Rs 45 more and this is unfair trade practice," he added.