Even as the Supreme Court allowed Prasar Bharati to telecast the ongoing India-Pakistan cricket series on its terrestrial network, Cable Distribution Network, a Modi Enterprises company that distributes Ten Sports in India, said it would suffer damages worth Rs 208 crore (Rs 2.08 billion) for sharing its feed with the state broadcaster.
The company said the damages reflected the loss in subscription revenue arising from the live telecast of the series on Prasar Bharati's free-to-air Doordarshan channel.
Cable Distribution Network President Lalit Modi today indicated at a press conference that the final damages could be higher. "This is an interim estimate. The final figure will be made available to the court at the final hearing on April 15," Modi said, though he refused to elaborate on how his company arrived at the Rs 208 crore figure.
The submission came after the apex court passed an interim order asking Prasar Bharati to telecast Ten Sports's feed on its network along with the company's logo and advertisements without any interruption or tampering. Ten Sports has agreed to provide the feed from 30 minutes before start of play to 30 minutes after close.
"The Supreme Court has recognised that money is due to us as our exclusive distribution rights are being compromised in larger public interest," Modi said even as he claimed that today's interim order was a commercial disaster for Ten Sports.
Taj Television Pvt Ltd worldwide CEO Chris McDonald said at a press conference that damages could also arise from Doordarshan's signals being available in other Asian countries. He added that the Supreme Court had assured them that the damages would be paid by Prasar Bharati.
"This assurance of the honourable Supreme Court can be taken together with the voluntary statement of Attorney-General Soli Sorabjee that in the event of a breach of contract, Doordarshan will be liable to pay the consequent damages," he said.
The Supreme Court on Wednesday asked Prasar Bharati to deposit another Rs 40 crore (Rs 400 million) besides the Rs 10 crore (Rs 100 million) it was asked to deposit on Monday for showing the Rawalpindi match.
McDonald did not rule out revising the channel's advertisement rates for the series since the telecast would now be available to a larger audience, though he added that there was not enough time available for that.
"We were working round a business model that has now changed," he said. He refused to comment when asked if advertisers had made claims on Ten Sports for having to buy time on Doordarshan during the Karachi tie.
Prasar Bharati dubs it 'unrealistic'
The Rs 208 crore subscription revenue loss claimed by Cable Distribution Network and Ten Sports was unrealistic, senior Prasar Bharati officials told Business Standard.
"Ten Sports charges Rs 14 per month. Even if all the 45 million cable and satellite homes in the country give up subscription for the month, the loss would amount to Rs 63 crore (Rs 630 mbillion)," an official said.
The officials also said Ten Sports would now be able to negotiate better advertisement rates for the series because its feed would be available in over 80 million households in the country.
Prasar Bharati said it was ready for an out-of-court settlement with the Dubai-based company, and added that this incident would speed up the framing of a new broadcasting law in the country.
Prasar Bharati CEO K S Sarma said at a press meet here today that the broadcaster would abide by the Supreme Court's order asking it to pay Rs 50 crore (Rs 500 million) to Ten Sports.
He, however, said the company had not moved the apex court against Ten Sports and Wednesday's decision was based on a public interest litigation.
"We do not know why we are being accused of playing dirty tricks. It is a public interest litigation. Doordarshan has not gone to court," Sarma said and added that the telecast rights for an event of national importance was public property and could not be monopolised by a single company.
"Ten Sports has the telecast rights but does not want to give it to us at an agreed price. This is only electronic hoarding," he said.
Prasar Bharati, according to Sarma, had not bid for rights of another cricket board for five years as it "cannot take a business risk being a public broadcaster".
He presented documents to state that the terrestrial rights for 16 tournaments outside India were sold to Doordarshan by other broadcasters at an agreed price or through revenue sharing.
Sarma said Prasar Bharati was even willing for an deferred telecast of 10 seconds-30 minutes in public interest.
