© 2010 Rapid TV News
Chris Forrester ©RapidTVNews | 27-12-2009
As predicted by Rapid TV News some weeks ago, struggling pay-radio operator Worldspace is to close its Indian service.
Worldspace will switch off its India broadcasting channels on Dec 31st. The news, while not unexpected, means that Worldspace will say goodbye to the best part of450,000 local subscribers, mostly part of the local Airtel DTH pay-television service. However, according to one company staffer, Worldspace’s India coffers are “empty”. Worldspace is walking away from its subscription obligations and is refusing to refund payments. Subscribers who are owed cash are being told to file a bankruptcy claim in the US.
Closing Worldspace has generated many inches of negative press in India. The closure decision is said to be because Liberty Media, which is in the process of acquiring Worldspace’s Chapter 11 assets has decided not to include Worldspace india in its purchase.
Staff at Worldspace are furious at the decision, and will not be compensated. One insider told Rapid: “The situation here in WS India is terrible and one would imagine that an American Company would have good business practices when dealing with employees or going about a liquidation process.”
The note continues: “I am an employee at WS India and the last year has been a misery since there has been ZERO funding support from the US or a clear plan for the road ahead. All we know is that they intend to shut us down. When? Where? How? We had no idea. Worldspace Inc did not communicate anything with regard to what they intend to do with the 450,000 subscribers. While it has been widely reported that India is mis-managed (which is surely true in the past, the way bad management burnt millions of dollars), I would say that the current WS India management have ensured that we got paid our salaries every month. Sure, there were delays and we got less some months but we didn’t really feel that bad considering that we know the present Indian management did their best to keep our spirits and hopes up with regard to paying us with whatever subscription revenue the company generated.”
“We have stopped selling subscriptions this month and the Indian coffers are empty. WorldSpace Inc has effectively told us to pack our bags and leave. No severance. No full and final settlement. Not even the pay for the entire month of December which we worked for. We have programmed and run the stations up to the last day of 31st of December with the passion and commitment with which we have programmed all these years for the plethora of awards which WS Inc has proudly stuck on their US website.”
“What the WS Inc guys in the US don't realize is that, there is going to be so much of negative press in India, that the Indian Govt will take notice. Though WS has low subscription in India, it is a well known brand considering the millions they spent on promoting the brand in India. The reason why we don't have enough subscribers is a no brainer. Who would want to listen to a radio which is not mobile and is broadcast out of a totally ugly looking cheap receiver that they dare not keep in their homes!”
“And if Liberty has plans of coming into India as Sirius/Xm in the future, they can kiss those chances goodbye. An American company which engages in unlawful employment practices is going to have a tough time convincing the Indian govt. Remember, WS spent 9 years convincing the govt for terrestrial repeaters and now when the go ahead happened, WS went bankrupt! Liberty is going to have a tough time if they have plans of coming back to India. With or without WorldSpace.”
“Thanks Chris. Your articles have been read by the 100s of WS employees over the last 2 years because honestly, we got to know more about the company from you than anyone ever told us here at WorldSpace.”
© Rapid TV News 2009
