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Indian cable operators siphon off Rs 20 billion: Murdoch

Global media mogul James Murdoch on Friday accused India's independent cable operators of siphoning off around Rs 20 billion revenue annually and underdeclaring their ever-increasing subscriber base in the country.

"The retail subscription on the total ground is upto $900 million or Rs 45 billion out of which around Rs 20 billion or $420 million is stuck at the sub-operator level," Murdoch, Star Group Chairman and CEO, said in his keynote address at the inaugural session of FRAMES 2002, a two day seminar on the business of entertainment organised by Federation of Indian Chambers of Commerce and Industry in Mumbai.

"This action is outright copyright theft, obfuscation, stalling and evasion and it needs to be stamped out," Murdoch said.

He said independent cable operators were underdeclaring subscription base by nearly 80 per cent and pocketing round Rs 20 billion, which rightly belonged to the broadcasters.

"The cable operators need to get their act together, legitimise and not underdeclare subsription. They have to learn to adopt with international business practices and work hand in hand with the broadcasters instead of opposing them," Murdoch warned.

"One has to root this system out. The middlemen have to transfer their margin value to the customers. It can be done. Earlier, they said there would be no broadcasting but it has been made possible. Unless a premium is charged, none of the basic services can be introduced," Murdoch added.

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