Shares of Saregama India have soared over 4% in today’s trade on acquisition reports. The company had recently acquired 10% stake in Timbre Media to launch several of genre-based digital radio channels on mobile, internet and DTH platforms. In an interview with CNBC-TV18, Apurv Nagpal, managing director, Saregama India, talks about the salient features of the acquisition and other future plans.

Below is the verbatim transcript of his interview with Ekta Batra and Reema Tendulkar. Also watch the accompanying video.

Q: You very recently acquired 10% stake in Timbre Media –Could you tell us how much have you spent for it and, is there any plan to increase your stake in that?

A: It’s too early to make a comment. The number and the deal are confidential, but the intent is to partner with them and have a rich catalogue. We already have one of the largest catalogues in the country communicated across all new digital platforms, including mobile radio, DTH platforms among others.

Q: If there are synergies which are there between the two, how is it likely to improve your operational performance?

A: It takes our content where it wasn’t there before. It is about packaging. Content is not just the song but being able to find the song, listen to it in the right context and this is where WorldSpace team will be beneficial to us. WorldSpace is very good at doing this since they had a huge connect with the consumers and, with our catalogue they will be able to do wonders.

Q: With regards to WorldSpace satellite radio, how much of an opportunity does it actually exist in the Indian markets because now we even have FM phase III coming out etc?

A: We are not going to do it the way it was done before. Earlier, you needed subscription and a certain box, etc. Now, it’s going to be available through an already existing platform. So, whether it is your mobile phone, internet or Direct to Home (DTH) television set, it’s going to be delivered through that medium. Mobile radio, per se, estimates varies anywhere between Rs 300 and Rs 500 crore today, and all the other segments are untapped.

Q: How much would you be deploying in terms of capex for this opportunity going forward or maybe even advertising and marketing costs?

A: It is not so much about the capex. The plans are still being worked out in details but we are going to be aggressive in all these different platforms. And, we are looking for tie ups with the platform owners because they also are hungry for good content and, hopefully, it would not be too capital intensive.

Source: Moneycontrol.com

For avid listeners of WorldSpace that went off the air in India two years ago, good news is round the corner. It will be back “very soon” with the same content and style. This was confirmed by M. Sebastian, chief executive officer of Timbre Media who will rebroadcast it, and Adarsh Gupta, Business Head of Sa Re Ga Ma India who will be responsible for its distribution and funding. Sa Re Ga Ma has acquired a 10 per cent equity stake in Timbre Media in this regard.

Furthermore, this time around, the subscribers will not have to buy a new instrument and pay a hefty amount to subscribe to WorldSpace. They will be able to access it through any platform of their choice — broadband, Internet, DTH, digital services, and mobile phones, for a nominal price of Rs. 200 per month. Music composer A.R. Rahman may not be its brand ambassador for now though.

After WorldSpace decided to shut off its operations and sold off its rights to a U.S.-based company Yazmi in December 2009, Mr. Sebastian, its former Managing Director, along with other employees, decided to restart the services.

He recalls: “Despite WorldSpace doing exceedingly well here with over 200,000 subscribers, we were told that its parent company in the United Kingdom was going through difficult times and a U.S.-based company wanted to manage its affairs. We were literally on the street. But we kept on getting emotional calls from loyal subscribers about the vacuum they felt. So, 80 former employees who used to manage the entertainment/content joined hands and developed a good infrastructure. Then we requested the current owner of WorldSpace to lend us its brand name as people associate with that brand only. He agreed and now we will serve the same old classic wine in a new bottle.”

Earlier there were the constraints of only a dozen channels, but now the choice will be more as Timbre Media will use the rich library and contents of Sa Re Ga Ma. A few channels will also be developed by the market.

Mr. Gupta says the company will be completely subscription-driven as earlier with no compromise on quality and content. “Viewers’ favourite stations like Farishta, Jhankaar, Gandharv and Shruti will also be back on various platforms,” he adds.

Source: The Hindu

MUMBAI: The Worldspace India has decided to initiate legal action against Worldspace Inc (the parent company) and Liberty Media.

The India team of the satellite radio company that was left in the lurch when Worldspace decided to terminate India operations abruptly on 31 December 2009, has been in talks with local lawyers on ways to secure their dues. It is learnt that the notice will shortly be despatched to the US parent.

The Worldspace India team continues to report daily to work in absence of any clear instructions.

The action, says the team, is being contemplated against improper and unethical handling of the closure and a failure to honour legal obligations. Letters are also being sent direct to Liberty Media, it is learnt. Last week, the team had approached information and broadcasting minister Ambika Soni complaining about the closure and seeking the prime minister’s intervention in the issue.

While the US parent has paid the Worldspace India team’s December 2009 salaries, other dues are still pending. Worldspace India was financially self-sufficient until November last year, despite the Indian office being owed $9.8m for unpaid bills by its Washington-based parent. However, December’s salaries were paid by Worldspace from Washington because local Indian bank accounts had been frozen.

The India team says it is not against Liberty’s decision to shut India operations, but is only against the manner in which it was done, with disregard to paying subscribers and employees.

Source: Radioandmusic.com

MUMBAI: 300 employees of WorldSpace India have, in a letter to prime minister Dr Manmohan Singh sent on Tuesday, urged for immediate government intervention to ensure that the the radio service continues in India; and that the exit of the radio service be allowed only after following the due process applicable to any other media or telecom service in India.

The letter written to the PM also urges the government to ensure that the sale of the satellite assets impacting the India operations is duly publicized in India; and a just and equitable solution to the employees, subscribers, distributors, dealers, vendors, customer service support agencies is provided for. The WorldSpace India team also wants the PM to intervene to issue appropriate orders to restrict the reentry of Liberty Media/WorldSpace from providing the services in the guise of a new entity without proper resolution of the issues as above and protection of the stakeholders.

To recap, WorldSpace Inc which announced that it was closing India operations from 1 January 2010, had entered into a deal with Liberty Media for take over of its operations. While Liberty acquired the WorldSpace India assets, in mid December, it decided not to acquire Indian operations, leaving employees and subscribers in the lurch.

The worried employees state in the letter that they are losing their jobs ‘without proper notice, compensation or settlement of their benefits and dues. Former employee dues have not also been paid.’

The letter also mentions that over 150000 subscribers who have invested in the radio receivers and advanced up to 24 months of subscription charges in advance will neither be provided the service nor will be refunded the subscriptions advanced.

‘The Border Security Force (BSF) has recently placed orders and purchased receivers and subscriptions. Government institutions/departments such as Indian Metrological Department (IMD), Indian National Centre for Ocean Information Services (INCOIS) and even Press Trust of India users are currently using the WorldSpace satellite system to provide timely information. IMD and INCOIS are providing critical data and emergency warning to naval ships, coastal agencies and will now be forced to switch off without notice and any time to look for alternate options’, the letter states.

According to the team, music labels and the copyright societies have not been paid royalties for the broadcasts impacting the music industry, widening the gap between broadcasters and copyright owners. More than 200 vendors who have provided goods and services to WorldSpace may lose over 20 crores of their dues, they say.

‘Several hundreds of distributors and dealers who are currently stocking the products after paying for the same in advance would also be facing huge financial loss as well as customer ire. Several hundreds of channel partners across the country who have invested heavily in the setting up of the infrastructure in supporting the installation, customer care and subscription renewal will not be provided any compensation. Premises have been taken in various cities for offices on lease basis and the landlords will have to approach the local courts to receive back their Premises. All stakeholders involved in the local operations will be forced to involve in multiple litigation in India, which will be rendered ineffective’, the letter mentions.

While WorldSpace and Liberty Media have cleared their liabilities including employee dues and followed the due process in every other country, certain loopholes in our system are being misused to escape from their responsibilities of orderly closure of the business. In the name of legal process and legal advise, they have delayed notifying the stakeholders and relying on the legal advise provided, as alleged by them, they have completely disregarded the due process of law and equitable interest of all stakeholders, while deciding to close the business in India, the team says.

‘We, the employees also have to face the risk of facing all the legal action for improper closure of the India operations. The employees are at a huge risk of facing customer and vendor legal action (civil and criminal action)’, the letter ends.

Liberty Media and Robert Schmitz the current Chief Restructuring Officer of WorldSpace, Inc., USA wants to escape from the liabilities in India while retaining the assets for encashing the India business opportunity in India at a later date. the letter says.

Source: Radioandmusic.com

Two weeks after satellite radio pioneer WorldSpace abruptly tuned out of Indian homes on New Year’s eve, its 300-odd employees (including 150 part-timers on contract) in the country continue to clutch at straws of hope, of getting their final settlement dues.

Sources say parent WorldSpace, Inc. or the new owner of its assets owe the Indian subsidiary around Rs 45 crore (which also includes around Rs 18 crore as subscription refund) by way of “services performed by it.” This includes sale of the special radio sets, production and programming of channels, royalty to music companies and the money they owe to subscribers. All the receivers were sourced from the BPL Group.

The ground and space assets of WorldSpace have passed on to a new owner, US-based media major Liberty Media. Liberty also has 40 per cent stake in the US satellite radio provider Sirius XM Radio – the merged entity of two players that were in the same business as WorldSpace in the US.

A top BPL executive, however told Business Line that WorldSpace does not owe any money to it as the receivers it manufactured were against orders. “We hardly have any sets (receivers) left with us,” he said.

Those left in the lurch are content creators, radio receiver sales personnel and administration staff. The tenancy of two adjacent rented offices of the company is due to expire any time.

“Until then, some of us keep meeting at the idling studios, where we once ideated,” a source there said. About half of the 300-strong India team included part-time RJs (radio jockeys).

Salaries have been paid until December-end, but as the operations have been closed abruptly, “We should get some compensation in the absence of the mandatory one-month notice as well as leave encashment and gratuity,” the source said.

One affected staffer said, “The employees of WorldSpace India are the worst affected because of this unfortunate decision. It is learnt that while Liberty Media and WorldSpace Inc, the US, have cleared employee dues and followed due processes in every other country, certain loopholes in the Indian legal system are being misused to escape from the responsibilities of orderly closure of the business affecting both subscribers and employees.”

The Indian operations formed 95 per cent of WorldSpace Inc’s business and was promising to grow. When it closed, it had 1.5 lakh direct subscribers – who got their music at Rs 2,000 a year: which meant an approximate annual revenue of around Rs 30 crore from subscriptions alone.

Through a tie-up with Bharti Group, it got into another 3 lakh homes of AirTel DTH users, but at lower subscription rates. Bharti recently announced that it has dropped WorldSpace and replaced it with a bouquet of services from All India Radio.

WRONG SIGNALS

According to a staffer, “The WorldSpace India team was neither a party to the decision to close down the Indian operations nor was aware of this possibility till this decision was communicated to it (at the end).”

All through the uncertainty, the parent directed the management and employees in India to continue “business as usual”.

The Indian team was unaware of what was in store for it and even launched a new Christmas channel, Holly, the source said.

While operations of WorldSpace were being wound down globally, senior officials of Liberty Media were in touch with the India team and gave the impression that Liberty was keen on continuing with this region.

During September-October 2009, it also got due diligence done through at least one reputed Indian firm.

Finally, on December 24, the Chief Restructuring Officer appointed by Liberty said though the new owner was acquiring the satellite assets and technology related to the India operations, it was not keen on continuing the India operations; and gave the final word to shut down the same day.

A senior executive said, “With a little bit of funds infusion, the Indian operations could have been kept going. The team would like to continue operating and servicing its subscribers, but for that, we should get to use the WorldSpace transponder,” which is based on an encrypted system.

According to this person, “The employees in India continued operations in the ordinary course, being led to believe that the operations would be sold along with the assets as a going concern. Against all odds in these difficult circumstances, the India team did its best to meet the aspirations of the subscribers and spearheaded WorldSpace India to its best ever financial and business performance in the last 12 months. All along, no instructions were issued to WorldSpace India to stop the sales of the receivers and subscription packs of WorldSpace Inc., and the service agreement was still in force.”

WorldSpace brought satellite radio broadcast to the country around 2000, at a time FMs were making the radio fashionable once again.

The US-based WorldSpace Inc, (later rebranded 1worldspace, except in this country) was running radio broadcasts on multiple channels through its subsidiary WorldSpace India Pvt Ltd. The parent operated two regional satellites, AfriStar and AsiaStar, but went bankrupt and filed for protection under Chapter 11 of US laws in October 2008.

Source: The Hindu Business Line

MUMBAI: Nearly two weeks after Worldspace Inc pulled the rug from under its India operations team, the Worldspace India office has put forth an official statement.

The statement, that has been issued ‘to clarify doubts relating to the credibility of the operations of Worldspace India and its employees’ says that Liberty Media conducted a detailed Due Diligence of the India operations in September and October 2009, engaging reputed Indian firms.

‘Senior officials of Liberty Media were in regular touch with the Worldspace India team and were given to understand that they were keenly interested in the Indian operations. Against all odds in these difficult circumstances, the India team did their best to meet the aspirations of our Indian subscribers and successfully spearheaded Worldspace India to its best ever financial and business performance in the last 12 months. All along, no instructions were issued to Worldspace India to stop the sales of the receivers and subscription packs of Worldspace, Inc., and the service agreement was still in force. The employees in India continued operations in the ordinary course, being led to believe that the operations would be sold alongwith the assets as a going concern,’ the statement says.

India is the most successful market of Worldspace anywhere in the world, accounting for more than 95% of its business worldwide.

Liberty Media has, through the a Chief Restructuring Officer (CRO), in the week of Christmas communicated that they will not be acquiring the India operations though they are acquiring the satellite assets and technology related to the India operations, thus leaving the Indian operations and the employees to deal with the situation on their own. ‘However much theIndia team would like to continue operating and servicing its subscribers, it has become impossible because of the non-availability of the Worldspace satellite for Indian operations, which has been the sole distribution vehicle for its content’, the statement says.

In summary, the Worldspace India team says that it was neither a party to the decision to close down the Indian operations nor was aware of this possibility till this decision was communicated by the US headquarters, in the later part of December 2009. The India team’s commitment to its subscribers and also its unawareness of the situation can be well gauged from the fact that they launched a new specialty Christmas channel, Holly, ahead of Christmas- New Year.

The statement says that the employees of Worldspace India are the worst affected because of this unfortunate decision by Liberty Media/Worldspace Inc.

‘While it is learnt that Liberty Media and Worldspace Inc, USA have cleared employee dues and followed due process in every other country, certain loopholes in the Indian legal system are being misused to escape from the responsibilities of orderly closure of the business, which has led to this situation where both subscribers to the service and employees of the company are badly affected,’ it adds.

The statement also adds that Worldspace, Inc owes Worldspace India a sum in excess of Rs. 45 crore (Rs 450 million) towards services performed by it. The employees of Worldspace India have made representations to the ministry in this matter, the statement says.

To recap the Worldspace issue – In October 2008, Worldspace, Inc., USA in consultation with its secured creditors filed a petition in a US court under chapter 11 of the US Bankruptcy Code for restructuring of its debts. Under Chapter 11, the company gets protected from recovery attempts by its creditors and the company continues its operations in the normal course pending restructuring. Worldspace, Inc. was not into liquidation or winding up as is sought to be made out. Worldspace India was not included while filing for protection under Chapter 11 of the US Bankruptcy code and the management & employees of Worldspace India were directed by its parent company to continue its operations as “business as usual”.

A Chief Restructuring Officer (CRO) appointed in October 2008, initiated proceedings to restructure the debts and the court directed the sale of Worldspace, Inc., and its assets; Worldspace India being a wholly owned subsidiary is one such asset of Worldspace, Inc.

Worldspace India, as was understood, was to be sold as an operating concern to prospective bidder/s in the auction process. In March 2009, Worldspace, Inc., entered into an Asset Purchase Agreement with Yenura Pte Ltd, a Singapore based company. The Agreement included the sale of Worldspace India as an operating concern. Thereafter, Liberty Media, a multi-billion dollar media company in the USA, purchased the liabilities and stepped into the shoes of the secured creditors. Later, the Asset Purchase Agreement with Yenura Pte Ltd. was cancelled.

Liberty Media has substantial stakes in XM Sirius which is the only satellite radio service provider in the world other than Worldspace.

Source: Radioandmusic.com

MUMBAI: The news of Worldspace Radio shutting down has shocked its subscribers in India, a country that housed 95 per cent of its subscription base. Music lovers are aggrieved at the abrupt termination of the music service from 1 January.

It is the loss of music that the users are upset about most, over the monetary damages they will have to bear.

Says a Worldspace regular, “It was the only thing that kept the music alive to the best of quality and diversity. It really feels strange and profoundly sad to refer to Worldspace in the past tense.”

“Different people have different tastes in music. It was only Worldspace that caters to all of them. Shruti, Orbit rock, Farishta, Jhankar, Bob etc. You tell me your liking and I will tell you the channel on Worldspace. If they have such good content, how can they close down? How can there be nobody to buy them out?” questions Shanti Rajesh, who has started a group on social networking site Facebook called Keep World Space India Alive. The advocacy group already has more than 380 members campaigning to keep Worldspace operations alive in India.

“Bob, the alternative rock channel, and Riff, the jazz channel, were amongst my favourites. The number of bands I came to love through these channels, I cannot count, but I’m sure there are quite a few. I find all of the usual radio stations here in Bangalore to be nowhere in terms of the quality of music played – it’s the usual Hindi Bollywood soundtracks all the time. I really hope it all gets sorted out and Worldspace is back as soon as possible,” says an anonymous fan whose only source of world music is being snatched away.

Ramya Krishnamurty from Bangalore writes on her blog, telling the world about her grief. “When my Worldspace receiver will crackle no more two days from now, an inanimate but inseparable partner over the last nine years will suddenly vanish from my life. I will become a Worldspace widow. It is a loss difficult to explain, even more difficult for those unaware of the phenomenon to understand what it means,” she says.

With the lack of niche music on private FM radio stations as well as the state owned All India Radio, music afficonados have no other source to tune into international or even regional music any more.

“Worldspace has become such an integral part of my life, that I just don’t know what I shall do without it. I am sure there are several other people, who share the same feelings. Why can’t anyone salvage the company and in turn, save the musical soul of so many Indians who have tasted the magic of Worldspace, and wish that it continues to nourish them,” says a writer.

“Worldspace is the best answer to true radio lovers like me. I was hoping to get Worldspace soon in my car, is there really no way to make it stay?” laments another mourner on the Net.

“I have never come across any Worldspace user who has not got a great opinion for the company. All of us are shocked with the decision of the company pulling out of India. But, why is the company not listening to the plea of its loyalists? Sure, financial hurdles can be overcome. I’m sure addicted subscribers wouldn’t mind paying a little more or even some advertising,” says Neena Dayal, on Facebook.

Apart from individual consumption of music, Worldspace receivers were even installed in offices, restaurants and other commercial places. Says an official at Limelight, a brand and event managment company, “We at limelight have a Worldspace receiver at two of our offices. So we hope people are going to go out and buy Worldspace. Perhaps that is the only way to keep Worldspace India alive.”

Music over money

Interestingly, the proposed refund of subscription fee is not something that is hovering on the minds of subscribers who are more concerned about the revival of India operations. A majority of users want the revival of Worldspace rather than the refunds. In fact, they are even ready to shell out a larger amount of money to keep the operations running.

“We, who subscribe to Worldspace in India, would be lost without it. With such a loyal and growing client base, it should be an opportunity for some entrepreneur. Most of us would be willing to shell out more. Just keep the service going,” said Udaya Bose, another fan, on Facebook.

Says Marathi music composer Ajay Naik, “The monetary loss is negligible compared to the loss that music will suffer.”

“Please don’t shut down the India operations of Worldspace, it’s the only radio station which pays tribute and keeps us reminded of the finest and best music directors, artistes, composers etc. of Indian and world music. I am willing to pay extra, but can’t afford to lose this wonderful source of relaxation and entertainment,” writes in another ardent Worldspace user Varsha.

A few users have however been fuming over the sudden closure of the sattalite radio. “I just renewed my subscription for a year and upgraded the receiver (which is not even installed yet) and they are shutting it off ! Why did they continue to sell their subscriptions and receivers if they were going to turn it off ?,” Bala Sugavanam from Chennai expresses his displeasure.

Says an irritated Dirk W Gastmans, “Worldspace was totally out of touch with its listeners in India! I got my first JVC receiver in May 2001. In those days, there were good channels like Oyeme and WorldZone. They got discontinued and channels like Punchline took their place. Pray please explain to me what improvement was there in stopping a channel that was dedicated to playing music from around the world and inserting one with non-stop US related humour that is of no interest whatsoever to the Indian listener?”

“Why in the eight years I was a subscriber the only time WS India got interested in me was when it was time to renew the yearly subscription. There was never any call or such asking about listener feedback and experience, ” he further questions.

Regional Music- where do we go now??

With nine stations which catered to the regional tastebuds, Worldspace was the only hub where regional music flourished.

Ajay Naik, who was one of the first few who bought Worldspace when the service was launched in Bangalore, says, “The shutting down of Worldspace is a loss to music which is intangible. Surabhi Channel of Worldspace was the only Channel to play non stop Marathi music and most important, it featured all the songs created by young Marathi composers. No radio channel apart from “Vividh bharati” plays Marathi songs. It is a big loss for regional music.”

Says another user, “My wife cherishes the Worldspace Carnatic music channel which is the the only one of it’s kind . Save Worldspace for us.”

“Is there not a way an industrialist or a philanthropist in Chennai or Bangaluru which are citadels of carnatic music, can take heart and try to take over Worldspace operations in India? Moreover, spiritual leaders like Sri Sri Ravi Shankarji have their own channels in the Worldspace bouquet. It is left to these well meaning individuals, corporates and spiritual leaders to continue the glory of the pristine quality of Worldspace music. We may even concede ground and accept a few ads. But let the music flow,” rues Srinivasan Vaidyanathan.

Around 300 employees in the Worldspace India office, in Bangalore, have lost their jobs due to the closure. Also, the receiver sets with the existing Worldspace subscribers would now go waste. The subscription money paid by the users will also not be returned unless one approaches the bankruptcy court.

Says a Worldspace employee on Facebook, “This entire decision came as a rude Christmas shock to all of us and yet we continued programming the stations to our best abilities to make sure that quality programming was being broadcast for as long as the network will remain on-air.”

One can only hope that the new year will bring better tidings for all Worldspace lovers in the country.

Source: Radioandmusic.com

MUMBAI: That the closure of India operations came as a surprise to much of its staff is apparent from the Christmas special channel ‘Holly’ that was put together in India earlier this month.

Holly, that runs back to back Christmas programming every year from 10 to 31 December, is traditionally produced in the US and distributed to all the countries Worldspace operates in. After the bankruptcy hassles hit the organisation late last year, Holly could not go on air in December2008. Following several subscriber requests, however, the India team put together Holly this year, and the channel – number 700 on the Worldspace dial, has been on air for over two weeks now.

While the beleagured pay radio satellite operator is likely to issue a public statement in a day or two, Holly will essentially help it kiss goodbye to its nearly 4,50,000 subscribers in the country, most of whom are part of the Airtel DTH DTH service.

Liberty Media’s decision not to include India in its Worldspace purchase while acquiring Worldspace’s Chapter 11 assets, has obviously hit the India operations hard. Several of the 300 strong staff that mans the 20 stations of Worldspace, are keen to provide quality programming to its paying subscribers till the last day, even as rumours of late salary payments and no severance payments continue to make the industry rounds.

The marketing staff has not been selling subscriptions in December, it is learnt. With Worldspace backing out of the country, the policy on satellite broadcasting, which was in the works, may not see the light of day. Worldspace, which began operations in India in 2000, was operating without any policy framework in place, and the new policy was expected to cap its foreign direct investment at 74 per cent. The draft cabinet note had indicated that WorldSpace would be given three years to comply with the guidelines.

The Bangalore headquartered WorldSpace India’s revenue in the last fiscal was around $6 million. An estimated 300 employees will take a job hit due to the closure of India operations, sources say.

At the time of filing this report, the company had disabled the Worldspace.in website. And on social networking site Facebook, a group of around 200 Worldspace fans has sprung up over the weekend, advocating that the service not be discontinued.

Source: Indiantelevision.com

NEW DELHI: The first mail Thejaswi Udupa read on Christmas morning brought bad news. It was an announcement from WorldSpace satellite radio service saying it was discontinuing its operations in India at the end of this year.

“WorldSpace has been the background score at my home for almost a decade. It’s really sad to see it go,” said Udupa, a 26-year-old Bangalore-based product manager at Yahoo! India.

The announcement didn’t come as a total surprise. WorldSpace India’s parent company had filed for Chapter 11 bankruptcy in the US in 2008. The filings did not cover Indian operations and executives said at the time the service would continue uninterrupted. That was not to be.

Consumers who have paid up for services beyond December 2009 stand to lose their money or patiently wait for bankruptcy proceedings in the US to untangle claims. The email to subscribers said their contracts are with WorldSpace Inc, the US company. The mail includes contact details for subscribers, if they wish to be listed as creditors of the company.

“It is possible that the Indian entity was an agent that only forwarded the money and the contractual liability to provide the service was with the US company. It all depends on the arrangement. If that is indeed the case, subscribers will have no option but to stand in line with other creditors,” said Zia Mody, managing partner at law firm AZB & Partners.

WorldSpace is unique in many ways. In a country notorious for its unwillingness to pay for entertainment, the service has some 4.5 lakh paying subscribers. These consumers paid on an average around Rs 1,800 for a year’s subscription for music they could never hope to hear on a local radio station. WorldSpace operated 36 channels with a wide range of genres, including regional language music. Channels such as Maestro (western classical), Riff (jazz) and Orbit (classic rock) were hugely popular. There is no other similar service in India.

FM stations in India are all supported by advertising, which means they gain from having the most listeners. This inevitably results in nearly all the channels playing the same music — the latest tracks from new films.

For those who cared about what they were listening to, WorldSpace was a huge relief from this uniform, sometimes offensive, soundscape.

The service also provided an easy solution to small businesses such as restaurants, cafes and bars that wanted to play ambient music that was free of advertising, would suit the time of the day and the mood of the customers. This is the secret of many of Goa’s beachside shack-owners who effortlessly display an eclectic taste in music. ICICI Bank recently started placing WorldSpace receivers at its ATMs.

Airtel Digital TV, the DTH service from the telecom operator, comes with bundled WorldSpace subscription. A large portion of WorldSpace’s subscriber base comes from this bundling. It’s unclear what will happen to Airtel Digital TV subscribers’ listening options.

“We are yet to receive any communication on this matter from World Space,” a spokesman for Airtel said.

Efforts to survive

India was WorldSpace’s biggest operation, accounting for more than 90% of its subscriber base. The company made efforts to open up other revenue streams and perhaps as a last straw, even stream its music through the internet. But these proposals ran into regulatory hurdles, all of which boiled down to one fact — that despite having an operator in the sector for nearly a decade, India does not have a satellite radio policy.

In 2008, WorldSpace India sought permission from the Foreign Investment Promotion Board (FIPB) to invest in a call centre and a digital recording studio in India. The proposal was rejected since there was no clarity on which agency or what policy governed a satellite radio operator.

In April 2009, the company again sought permissions from the FIPB to stream music through its website. Once again, the proposal did the rounds of various agencies and was deferred.

Executives of WorldSpace could not be reached and phone calls to the company’s Bangalore office went unanswered. Friday was a holiday for Christmas.

With the music drawing to a close, families that have come to habitually switch on the receiver during their time at home are wondering why a service that they love so dearly can’t be kept alive. Mumbai-based Anand Ramachandran, a 36-year-old independent video-game designer and writer, says he will now have to configure internet radio to play in the living room. His 7-year-old son loves WorldSpace and custom playlists or internet radio will have to take the receiver’s place.

“But you know, it’s just not the same. Radio has this element of surprise that you can’t get with a playlist. When it suddenly plays a song that you love and haven’t heard in a while, it’s such a pleasant surprise, and it really makes your day,” Mr Ramachandran said.

The ill-fated company seems to have run out of pleasant surprises after nine years of delighting a loyal fan base.

Source: The Economic Times

MUMBAI: On December 31, 2009, the WorldSpace satellite radio broadcast service will be terminated for all customers serviced from India, according to an announcement posted on the company website.

This action is an outgrowth of the financial difficulties facing WorldSpace India’s parent company, WorldSpace, Inc., which has been under bankruptcy protection since October 2008, the announcement says.

WorldSpace is present in over 130 countries globally, and has already been in the process of closing down its operations in most other countries.

With over 4,50,000 subscribers (more than 50 per cent of this is through AirTel DTH), India accounts for over 95 per cent of the broadcaster’s world-wide subscriber base.

‘The potential buyer of much of WorldSpace’s global assets has decided not to buy the WorldSpace assets relating to and supporting WorldSpace’s subscription business in India. As a consequence, WorldSpace, Inc. must discontinue its subscriber business in India. Your subscription contract is with WorldSpace, Inc., a US company that is in a bankruptcy proceeding in the United States. The company recognizes that you may have paid for services to be rendered beyond the termination date, but is not in a position to offer a refund for any unused portion of your subscription,’ says the announcement posted on the site.

The company has asked India subscribers to mail their subscription information to the company to enable a claim servicing company to procure data that will ensure speedy redressal.

While Worldspace India officials were unavailable for comment, India general manager M Sebastian had told Radioandmusic.com some months ago that while the company battled bankruptcy elsewhere, its India operations would not be affected.

Source: Radioandmusic.com