Fri, 11 Dec 1998

Star TV ends ties with Indovision

JAKARTA (JP): Hong Kong-based Star TV has decided to stop its cooperation with Indovision, which is managed by PT Matahari Lintas Cakrawala, in the marketing, distribution and technical operation of a satellite subscription TV platform in Indonesia.

"We decided to terminate the cooperation because we could not come to an agreement with PT Datakom Asia, which owns PT Matahari Lintas Cakrawala, on a satisfactory way to move forward with our alliance," Bruce Churchill, deputy chief executive officer of Star TV, said in a statement made available to The Jakarta Post on Thursday.

With the termination of the cooperation, Star TV, whose network offers both subscription and free-to-air television services in Asia and the Middle East, will also stop 11 channels of programming to the platform as of Friday, he said.

Star TV's programs are served from AsiaSat 1, AsiaSat 2 and Palapa C2 satellites.

"Star TV has made every effort to make the alliance with Datakom work. We have been working with Datakom for the past three years to help build an important segment of the Indonesian broadcasting industry. Enormous investment has been made by Star TV both in terms of funds, time and professional and technical expertise," he said.

Eddi Elison, public affairs manager of Datakom, said, however, that the termination of the cooperation with Star TV would not affect Indovision's services to its customers whatsoever.

The programs taken out of the services by Star TV included Star World, Star Movies, Star Sports, Fox News and Phoenix Movies, Eddi told the Post.

"Indovision will replace them with new programs, including AXN, Animal Planet (documentary/science), I Music, Jet TV (Mandarin), CCTV-4, RAI, TV5 MCM, Sony Entertainment and ART," he said.

Eddi added that other channels, including HBO, ESPN, Cinemax, Hall Mark, TNT Cartoons Network and Discovery, will remain accessible.

The withdrawal by Star TV, he said, was caused mainly by a dispute over Datakom's plan to move its transmission from Palapa C2 to its own Cakrawarta I satellite, which was launched into orbit on Nov. 11, 1997.

"But basically Star TV's withdrawal is closely related to the present uncertain economic and political conditions in Indonesia," he said.

Churchill said, "Even though we finally decided to split with Datakom, Star TV and its parent company, News Corporation, remain committed to the Indonesian market. We are prepared to continue investment in the Indonesian broadcasting industry." (hhr)