CBS chief says network could go all-Internet if Aereo wins

CBS Chief Executive Leslie Moonves said Tuesday that his company's namesake broadcast network could go "over the top," or be delivered via the Internet, if Aereo's model of streaming over-the-air programming is ruled legal.

"If there are systems out there that try to hurt us, then we could go to OTT," he said, using the abbreviation for over-the-top Internet television delivery. "If Aereo should work, if they should win, which we don't think is going to happen, we could go OTT with CBS."

"If the government wants to give them permission to steal our signal, then we will come up with some other way to get them our content and so get paid for it," he said.

His comments come as the prospect of a digital pay-TV service appears closer than ever -- and yet still far away. It also ratchets up the rhetoric of executives like Moonves, who have said before that moving programming off the airwaves and onto a subscription service is an option should Aereo win.

CBS is the parent company of CNET.CBS and other broadcasters are suing Aereo over its service using antenna and remote DVR technology to let subscribers watch live, local over-the-air television broadcasts, without making any payments to the creators of the programming. Though Aereo argues that its set-up with one antenna per user is legal, the broadcasters claim the service violates copyright. The two sides are set to argue the case to the Supreme Court next month.

Moonves and other network executives have raised the concept of moving programming off the air and onto subscription-based systems like cable as a response to Aereo possibly getting the legal go-ahead to keep operating long term.

However, such a move would be complicated by implications of its own. The government, for example, granted broadcasters valuable segments of radio-frequency spectrum to carry their signals decades ago, provided that they also offer programming that serves the common good. Moving programming off the airwaves could call into question their hold on spectrum they're using less and less.

 Read: Aereo's Supreme Court battle may change how you watch TV

The pursuit of digital pay-TV, long an aspiration for some of the biggest technology companies, advanced significantly last week as satellite television provider Dish Network unveiled a deal with the Walt Disney Co., owner of such networks as ABC and ESPN, that gave Dish the right to stream video, live and on demand, as part of an Internet-delivered television service. It represented the first content deal for an Internet pay-TV service to be made public so far, even as Sony plans to introduce a cloud-based TV service in 2014 and Verizon purchased Intel's project that developed technology for such an offering.

Still, the deal giving Dish the right to have Disney channels on a digital television service is a far cry from Dish actually offering one.

In the meantime, Aereo's Supreme Court case remains a question mark. Last month, a US district court granted the first preliminary injunction against Aereo out of the patchwork of lawsuits against the company, handing broadcasters their first clear legal win ahead of their Supreme Court appearance. The court's decision will affect Utah, Colorado, Kansas, New Mexico, Oklahoma, and Wyoming. Of the 11 cities where Aereo currently operates, Salt Lake City and Denver fall under the decision's scope.

Similar preliminary injunctions have been denied in the New York-based Second Circuit court of appeals and in Boston, something Aereo has touted as support for its legal status as it heads to the country's highest court.

CII :India cannot afford period of political instability

India cannot afford a period of political instability and must strategise to reprise a high growth, said Confederation of Indian Industry (CII) President S. Gopalakrishnan here on Tuesday.

Addressing the CII-SR Annual Regional-public session and conference on ‘Conscious competitiveness’, he said “This is crucial period for the nation and the economy and we have to be cognizant of our role as citizens and as industry in the large picture of ensuring empowerment and growth for the country.”

While pointing out that CII had offered a comprehensive agenda for growth to the government, including areas of fiscal consolidation, investment promotion, manufacturing services and infrastructure, he said that to revert to 8 per cent rate of growth and maintain it for three decades or more, one would require dedicated and committed efforts from the government, industry and citizens.

“As we head into general elections, we are confident the next government would take up economic revival as a priority,” he said.

He also said since 2000, India had witnessed unprecedented high rate of growth that had positively impacted poverty and incomes. However, in the last two years, there has been a marked slowdown in the gross domestic product growth rate to below 5 per cent. “CII expects this to improve in the coming years based on demographics, rural prosperity and the energy of entrepreneurs,” he said.

CII Director-General Chandrajit Banerjee announced the creation of Corporate Social Responsibility Exchange that would enable member organisations and industries with appropriate social engagements. Besides, it would encourage and support the industries in identifying a suitable CSR activity.

In the introductory remarks, CII-SR Chairman B. Santhanam said: “When we are positioning ourselves to become the destination for delivering various products, services and solutions, it is necessary for us to adopt business approaches and models which are more proactive and resilient”.

BMW to reset focus in India

BMW India is preparing for a new growth phase in India with a revamped strategy.

As part of this, it is currently evaluating right segments and products. The objective is to achieve sustainable and profitable growth in the coming years.

The proposed move indicated that the German luxury brand is gearing up to move away from its earlier plan of chasing volumes.

“Of course, we were focusing on numbers. But that was mainly to build the market and achieve market share. Also, the economic and market conditions were favourable in the country then unlike the current scenario,” said Robert Frittrang, Managing Director, Plant Chennai, BMW India Pvt Ltd.

The luxury brand was pushed to the third place in total volumes in 2013 in India by its German rivals Audi and Mercedes. It held number 1 spot in 2012.

“We are currently working on where we want to focus, and which cars and segments in future. Our sales and marketing team in New Delhi will revise the strategy, and the new plan will be in place by next month,” he said.

BMW also plans to produce two more models, including high-end SUV (sporty utility vehicle) X5 and another car, at its plant near here in an attempt to be price-competitive. BMW X5 will be positioned in the Mercedes M-Class segment.

The Mahindra World City manufacturing complex, which has a capacity to produce 11,000 units a year, will start making two more models from this year, taking the total number of locally-produced models to nine. About 95 per cent of company’s cars sold in India were produced out of this plant.

To a query on the status of the tax row, Mr.Frittrang said the company was working closely with the authorities in Chennai and Delhi, and hoped to arrive at a conclusion this year. “ It is not in anyway harming our business here,” he added.

Airbus appoints Dwarakanath as India CEO

Aircarft maker Airbus, on Tuesday, said it had appointed Srinivasan Dwarakanath as Airbus India CEO and Charles Champion, who is EVP Airbus Engineering and member of the company’s Executive Committee, as Chairman.

New Chairman

Airbus is bringing all its Indian activities under one roof through the creation of a fully-owned subsidiary called Airbus India to manage the company’s significant footprint spread across several sites in the country, the French company said in a release.

Airbus also has plans to set up a Maintenance Repair and Overhaul (MRO) capability, which will be established at a later date, it said.

“Building on our significant engineering presence in India, the new company structure will add a strong customer facing element making us more agile, bringing us closer to stakeholders, suppliers, and also to new talent.

“The Airbus India organisation will foster innovation, respond quickly to growth and to seek out new cooperation opportunities in India,” Mr. Dwarakanath said.

The new Airbus India organisation will have customer facing centres in Delhi and Mumbai.

Building on the success of the Airbus Engineering Centre India (AECI) in Bangalore, Airbus India will also include strategy, customer services and procurement teams under one organisation.

Etihad rejects open offer obligation for Jet shareholders

The Rs.2,060-crore Jet-Etihad deal seems to have hit a fresh round of regulatory turbulence, with the Abu Dhabi carrier rejecting any obligation to make an open offer for minority shareholders of the Indian carrier.

While Etihad has told Securities and Exchange Board of India (SEBI) that it has not violated any securities law by not making an open offer, the capital market regulator is now seeking further clarity on the issue from other agencies including fair trade watchdog CCI, Finance Ministry and Aviation Ministry, sources said.

A query sent to Etihad and Jet regarding the issue remained unanswered.

While SEBI had earlier contended that an open offer might not be required if Etihad was classified as a ‘public shareholder’ after buying Jet’s 24 per cent stake, it had put a caveat saying this observation could change if some other regulator points out at transfer of control in this deal.

The deal, which was first announced about a year ago in April 2013, has already gone through several rounds of regulatory hurdles — mostly on differences of opinion about whether Etihad was getting full or joint control of Naresh Goyal-led Indian carrier.

The deal had to be restructured last year to address concerns raised by SEBI and Competition Commission of India (CCI), after which it got consummated late last year.

However, an observation made by the CCI has put the deal back under scanner. While clearing the deal, the CCI observed that Etihad was getting “significant rights” and “joint control” in running Jet Airways. The two carriers later petitioned CCI to remove this observation, but the plea was rejected.

Show-cause notice

On the basis of this observation by CCI, SEBI later used its earlier caveat and issued a show cause notice to Etihad on why action should not be taken against it for not making an open offer, as it was getting into a controlling position at Jet Airways by way of 24 per cent stake purchase.

In its reply to SEBI, submitted earlier this month, Etihad had contended that the deal was closed after all necessary regulatory clearances and it was not obliged to make any open offer.

Sources, however, said that the company should have formally petitioned for getting an exemption from making an open offer. Besides, SEBI was seeking further clarity from the CCI and other agencies on the issue of control.

While giving its earlier observation on the deal, SEBI had informed the Finance Ministry that its concerns were “by and large addressed” after certain changes were made in the deal.

However, SEBI put a caveat with respect to the commercial co-operation agreement between Jet and Etihad and said it “would be guided by the decision taken by the government or other regulatory agencies regarding change in management and control.”

In the event, such regulatory agencies decide that Etihad would be acquiring control over Jet, it would be deemed as a person acting in control along with the current promoter group of Jet, SEBI had informed the Finance Ministry in September 2013.

Further, in the interest of corporate governance and to ensure well dispersed public shareholding, SEBI had said it would be desirable that the disinvestment of 6 per cent of the post-allotment shareholding by the present promoter group of Jet was made prior to the preferential allotment to Etihad.

Indian Hotels provides Rs.500 crore for investment impairment

Indian Hotels Company Ltd. (IHCL), which owns and operates Taj Group of hotels, has made an additional non-cash provision of around Rs.400 crore and Rs.100 crore in its consolidated statement of profit and loss for the year ended March 31, 2014, for its overseas and domestic investments that may have been adversely affected due to a sustained depression in the macro-economic and market environment, the company said.

“The impairment is primarily due to a sustained depression in the micro-economic and market environments internationally, as also in the domestic market and the adverse effect thereof on some of the investments,” the company said in its review of investments impairment for 2013-14.

“With the economic uncertainty expected to continue over the near and medium term, it has had an impact on the downward revision of projected cash flow expectations from some of the underlying affected investments,” the company added.

IHCL said the final figures would be included in the full year results which would be published on May 30, 2014.

It said the financial covenants related to its borrowings were unaffected by the referred impairment of investment.

TAKE PERMISSION organising “chai pe charcha”: EC to BJP

The Election Commission on Tuesday asked the BJP to take prior permission for organising its “chai pe charcha” programme and ensure that the model code of conduct is not violated at any cost.

“The Commission has issued an advisory that the chai pe charcha programme shall be organised only after the prior permission of the district election authorities,” UP Chief Electoral Officer Umesh Sinha said.

On media reports suggesting distribution of tea has been banned, Mr. Sinha said permission will be granted by the concerned authorities on condition that those taking part in the programme should bear the cost of the tea.

“The party has also responded to it with the state unit president Laxmikant Bajpai assuring us that all individuals taking part in the charcha will pay for the tea,” he said.

The CEO said there is no ban on the “chai pe charcha programme.”

On Sunday, an FIR had been lodged against over 24 BJP leaders and activists at Mohammadi Kotwali Police Station in Lakhimpur Kheri district for alleged violation of model code of conduct.

The complaint alleged the BJP workers had put up tea stalls on busy Mohammadi road and offered tea to the people amid blaring of loudspeakers without seeking prior permission from district election authorities.

Over 24 BJP leaders and activists have been named in the FIR, police said.