In my opinion, this is very much an unfortunate aspect in Astro’s business decison. The Indonesian channel is one of the most tuned on in the Astro programme especially for Indonesians working here. I can’t speak for others but I know my kid will miss the nice shows. Me? I don’t get to watch my Astro shows anymore since the kids started growing up. That’s why I’m blogging…
The Malaysian Insider
Wednesday October 22 2008
JAKARTA, Oct 21 — Malaysian satellite TV operator Astro All Asia Networks Plc (Astro) yesterday switched off all broadcasting services to its Indonesian pay-TV arm PT Direct Vision in the latest chapter of a spat between two of Southeast Asia’s wealthiest tycoons, Malaysian T. Ananda Krishnan and Indonesian James Riady.
The pay-TV venture is one of two known to be in trouble with the other one being a feud over managing property and hotel company Overseas Union Enterprise, which both jointly control, that is now under arbitration.
In a notice to the Kuala Lumpur Stock Exchange yesterday, Astro said as no payments had been received from PT DV since 2006, Astro’s board of directors had decided to cease all support and services and to terminate the trademark licence agreement.
“As Astro has never been compensated for any of the approximately 2.5 trillion rupiah (RM750 million) in support and services that it has provided to PT DV and given that there has been no attempt by the Lippo Group to find an acceptable alternative to the previously proposed joint venture, and that Astro is not and has never been a shareholder in PT DV, this is clearly a situation that cannot be allowed to continue indefinitely,” Astro legal counsel Todung Mulya Lubis was quoted as saying by the New Straits Times daily.
He added that Astro has yet to receive a single share in PT DV despite supporting the venture since February 2006 with the understanding that there will be arrangements to invest or being paid for support and services.
Astro had extended the cessation of services twice from Aug 30 to Sept 30. It was extended again to Oct 19, Astro said, adding it agreed to the extension as a gesture of goodwill.