WorldSpace subscribers from India are shocked that the music offered by the satellite radio service will go out of their lives. A number of music buffs want the services to be revived – they are not clamouring for refunds.
Most Indian subscribers are not agitated, but rather aggrieved that WorldSpace India will be off the air from the New Year. This speaks volumes about the quality of service that WorldSpace has been providing.
“WorldSpace was my companion when I used to be alone at home. We will really miss ‘Jhankaar’, ‘Farishta’, ‘System’, ‘Maestro’ and ‘Falak’,” said Parimal Raj, commenting on the previous Moneylife story stating that the satellite radio will terminate its services from 31 December 2009.
Interestingly, Mr Raj had renewed his subscription as recently as 16 December 2009. However, more than the refund, what he really wants is the service. “I only hope that it gets revived and this turns out to be good news for WorldSpace subscribers in India in 2010. I am hopeful and hence will keep the receiver safe,” he added.
“Please do not terminate the services. I will be shattered. I am really not worried about my subscription being refunded. I just want the service to continue,” commented another subscriber, Usha Sunderasan.
“It is a pity to lose this good service. Indian FM channels are nothing compared to the quality WorldSpace offered. We sold our TV as we found WorldSpace more enlightening. Don’t we have a single entrepreneur who can spot opportunity in this venture and ensure that the satellite radio makes a great comeback into our lives?” commented another WorldSpace fan, Ravi Krishnamurthy.
With subscribers themselves suggesting a way out, the question remains if any corporate entities in India will spot the potential. To get such a faithful clientele without any advertising, would be dream come true for any radio services provider, especially the Indian FM channel. Some of the channels—like Red FM, Radio Mirchi and Big FM—spend considerable amount on advertising.
WorldSpace, on the other hand, has managed to tap into the local market very efficiently—Indians make up more than 90% of its total subscriber base. This base is believed to have trebled recently, thanks to Airtel which offers WorldSpace radio services through its direct to home (DTH) platform.
WorldSpace initiated its advertisements—endorsed by music composer AR Rahman—a few years back, only to mark its Indian launch. It has managed to improve its subscriber base purely on the quality of its service, with a number of subscribers renewing their subscriptions automatically.
Surely, a takeover of WorldSpace operations in India would translate into a huge business opportunity for any entrepreneur. On offer is a huge, loyal customer base with a pan-India presence.
An investment banker, who is also an ardent WorldSpace listener, believes that an operational takeover is most likely to happen. However, any possible business deal will have to ensure that the quality for which WorldSpace was famous does not get diluted.
For example, the service was entirely free of any commercials and was driven purely on revenues from subscriptions. Any entity planning to take over WorldSpace will have to operate on a similar—if not the same—revenue model to retain subscribers.
A few subscribers are trying to keep the service alive. “Join hands to keep the service alive. Can some enterprising subscriber initiate action to keep the service afloat?” asked subscriber Ashok Dullu. “I have started to surf the Internet to see if somebody in India will buy the assets and continue the operation,” added another subscriber, S Devarshi.
So will WorldSpace—or at least, its Indian operations—make a comeback? Subscribers can only wish that their hopes strike the right chord with some corporate entity.
It is amazing to know and witness the kind of goodwill and customer base Worldspace enjoys amongst its Indian customer base. Around 90% of the total Worldspace subscribers are from India. The kind of goodwill and customer base that Worldspace India, a prodigy of a US based company could enjoy across various parts of India, could be any Indian FM channels envy.
However, now on offer is the time to change this envy into the best ever opportunity that FM radio channels in India could cash on for quite some time. With subscribers also willing to pay multiple times, of the tariff that they are currently paying for the service, is the icing of the cake.
Ideally, what would an FM channel in a competitive market like India, can ask for. Currently, most of the FM channels in India are predominant in particular geographic region, but failed to achieve a pan-India presence.
As of now, one can only speculate on the future of the Indian operations of WorldSpace.
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1. First one good news for all lovers of old music. Now 9x TV Satellite channel telecasts every evening from 0900PM to 1200 PM (00-00 midnight) every day on all weekdays Hindi music with visuals. Although it is available as Yoodlee ( meaning ads in between every song) but somewhat solace. As this has been sponsored by ex HMV now Saregama TV but for a continuous three hors of music. Although it does not have so sense of music compiling but if we people write regularly some day they can fall to our lines. As of now they dont have so vast library of songs with visuals they are not in a position to take as much vast as we would like at par to Worldspace. But some day they too can start a new or at least transform their 9xM channel into an audio only channel. That way they would get every Hindi WS Farishta listeners to their fold. Timings from present three hours could be increased as soon as they realise and present before their sponsors about our vast majority. Later on they can also think about other music channels as Worldspace had. More others can add.
2. One very surprising thing has been observed by me that neither organised propaganda or media efforts have been done by ex WS India Operation employees. Nothing important has been heard from them as they are expecting comepensation and retrenchment payments at par with their US collegues. They seem to are afraid of loosing any thing substantial or have been silenced by paying some thing more or less. As we all know, had they started strong opposition of lossing their jobs or their bread certainly media, which is very strong now a days, has taken the matter very seriously. Alas, we see, only hue and cry is through only blogs and limited to internet only.
Now what I suggest to those ex-employees of WS Bangalore to contact TV Channel 9x for their recruitment there. They certainly will be an asset to them providing their expertise by compiling songs in such a manner that even commercial ads do not pinch much. to viewers Hope others too comment.
But we require few technical friends and experienced MBAs to give us an idea of how much the business venture would cost.
From the news item (extract given below) a business person can estimate how much finances India operations might require and how many promoters have to contribute, how much can be funded from public issue and banks.
News on cost of buying running the World
• WorldSpace, Inc. Voluntarily Files For Bankruptcy Protection
WorldSpace, Inc. announced it, along with its U.S. subsidiaries WorldSpace Systems Corporation and AfriSpace, Inc. have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in Delaware. The WorldSpace Board of Directors unanimously determined that Chapter 11 reorganization was necessary for the Company to engage in an orderly process to raise sufficient funds to repay its senior secured and convertible notes by means of either a sale of the Company or its assets, or a recapitalization of the Company. WorldSpace will continue to operate its business and manage its assets as a "debtor-in-possession" under the jurisdiction of the court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the court. The holders of the Company's existing senior secured and convertible notes have agreed to provide a "debtor-in-possession" financing facility of up to $13 million for a period of 90 days in order to facilitate a sale transaction.
Disturbing news below :
WorldSpace is seeking to sell its assets to Samara’s Yazmi USA LLC for $5.5 million, according to papers filed Wednesday with the U.S. Bankruptcy Court in Wilmington, Del.
Under the deal struck with Yazmi, if the buyer fails to acquire the assets, it will pay $100,000 to deactivate the satellites, a process that likely includes them crashing back toward earth.
WorldSpace was founded in 1990 with plans to provide satellite radio services to the emerging markets of Asia and Africa, but it has fallen on hard times in recent years.
The company filed for Chapter 11 protection in October 2008 and has twice had deals to sell itself fall through.
First, another one of Samara’s companies, Yenura Pte. Ltd., defaulted on a deal to buy the assets for $28 million in 2009. And in March, an affiliate of Liberty Satellite Radio Inc. broke off talks to purchase the assets. Liberty had previously acquired a majority of WorldSpace’s secured debt.
•
I appeal to all lovers of World Space music and especially employees of World Space to come forward to start the process of making a company like World Space if we can not revive.
In the meantime we should be able to find somebody in US to monitor the judicial process officially as India subscribers, form big chunk and our interest need to be protected. What I mean by protect is to see all the wealth of music records remain in India. Whoever buys the company should be able to get them. I think this is the most important and a new company can buy or hire other equipments etc. but not the old records.
I am giving a link to some good news about the Worldspace music.
http://www.business-standard.com/india/search_news.php?search=radio channel&select=keyword
http://www.business-standard.com/india/news/worldspace-rip/382836/
What exactly it means that Bharti Airtel is providing 10 Worldspace channels with their DTH subscription. Is there anyone with Airtel DTH give the feed back. So that we can immediately subscribe to the same.
Quote:
The DTH service from Bharti Airtel announced recently that it would be replacing the10 WorldSpace Satellite Radio channels on its DTH platform with 10 All India Radio channels, including FM Gold, FM Rainbow, AIR Punjabi, FM Rainbow-Bangalore, AIR Tamil, AIR Ragam, AIR Telugu, AIR Bengali, AIR Gujarati and AIR Urdu. The offer, however, is open only to Airtel DTH TV customers. Entry-level Airtel digital TV packs cost Rs 2,499 for one-time installation charge and six-month free subscription. Extras like selective channels start from Rs 99, and all channels are available for a maximum of Rs 424 per month. There is no extra cost for the radio channels offered by Airtel DTH.
Unquote.
This just clicked me, will it be possible for us to re subscribe the Radio from US as the Indian Operations are closed now? Does someone conform that the Hindi Channels Farishta etc are working in US, if so we have hope to re subscribe our radio our of India.
Regards.