What’s Up this Week #3

Shifting to Destiny Cable has been an ambition of mine since 2001 when Home Cable was acquired by SkyCable and, consequently, a majority of my favorite channels started disappearing, such as the Star TV channels.

As of 2009, the Star TV channels are exclusively aired by SkyCable, but my other favorites, such as Fashion TV and the Disney channels, are not, unless one pays a premium price for them, which I’m not willing to do.

Finally, on March 2007, Destiny Cable was offered in our area, and thus, I am enjoying Fashion TV and the Disney channels again, sans the Star TV channels.

Nevertheless, the shift from SkyCable to Destiny Cable was still welcomed out of principle. And, in retrospect, the whole incident sparked my interest in consumer rights as the following series of e-mails were featured by Ms. Marietta Velasco Giron, the columnist of The Consumer at the Philippine Daily Inquirer, on 28 October 2001.

Email to STAR TV

Dear Sir/Madam:

Greetings!

I am presently a subscriber of Home Cable TV Philippines, consequently, a viewer of several of your channels. However, as of Oct. 19, 2001, the Star TV channels have ceased to air with Home Cable.

According to their management, negotiations have broken down for the ff. unreasonable demands by the Star TV group:

1) Home Cable and Sky Cable must carry ALL of the Star TV channels
2) 100% increase in payment, i.e. $8.5M plus $1.5M withholding tax to the Phil. govt.

May I have the official statement of the Star TV group re this matter? I would also like to know the expiration of your service contract with Destiny Cable, another cable provider. Please let me know because I only want to get a provider with the Star TV channels.

Thank you very much for answering my questions!

Sincerely,
Lorna Gay Lopez

Responses from STAR TV

Dear Ms. Lopez,

Warm greetings from STAR Group Limited!

First and foremost, we at STAR are very pleased of your loyalty toward our programs. Unfortunately, fabrications, misinformation and a distortion of truth are now being touted to the general public stating that STAR has unreasonable demands of charging your cable operator very high service rates. Stories of STAR charging exorbitant rates are untrue. As a matter of fact, we have offered your cable operator advantageous packages that are very reasonable considering the value for money subscribers are getting from the wide array of our quality programs.

We have been negotiating with Sky and Home for months to agree to a schedule of repayment of overdue fees that dates back to last year but to no avail. This is on top of continuously giving big discounts, price reductions and foreign exchange relief. At this point, our negotiating tables have remained open and coming to an amicable settlement for the benefit of subscribers like you are now in the hands of Sky and Home Cable.

With regards your query on our contract with Destiny, this does not expire until middle of next year and with the way things are going, we are confident that a contract renewal of another year should be in the works.

For more information, attached is a letter explaining the facts behind STAR’s decision to suspend access to up to 9 channels to Sky and Home Cable and their affiliates.

I hope I have clarified the matter and answered your query. In the meantime, I recommend that you switch to other cable operators that offer the complete lineup of STAR channels such as Destiny Cable (8419333), Las Piñas/Parañaque Cable (8202209), Global Cable (8929001) and Dream Broadcasting (7508195) in Metro Manila, and other premium cable operators nationwide.

Sincerely,

GWEN J. CARIÑO
Public Relations & Marketing Executive
STAR Group Limited

22 October 2001

Dear Subscriber,

We regret to inform paying subscribers of Home Cable, Sky Cable and the Pilipino Cable Corporation that STAR has indefinitely suspended the supply of up to 9 of its channels to these cable operators and their affiliates.

Channels which will no longer be carried include ESPN, STAR Movies, National Geographic, STAR Sports, STAR World, VIVA Cinema, Channel [V] and others.

This action was necessary due to these cable systems’ non-payment of millions of dollars of fees to STAR and ESPN STAR Sports, which date back to last year.

STAR sincerely apologizes for the frustration that the absence of STAR channels will cause our loyal viewers, particularly at a time when these cable companies are planning to raise their subscription fees.

We hope that the matter will be resolved quickly and that normal service be resumed.

Viewers in Metro Manila can still enjoy their favorite STAR channels, and the ESPN and STAR Sports Channels on Destiny Cable; Las Pinas / Parañaque Cable; and Global Cable.

Viewers in the rest of the Philippines can access the full range of channels on the DTH operator Dream Broadcasting, and through their local cable companies.

Sincerely,

Charles Pollard
Regional Director
Cable Technology Asia Corporation

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