WorldSpace to pull out of India

Is it all over for Worldspace?


Troubled satellite radio broadcaster Worldspace is seemingly out of cash. Sources within the company say senior staff have already forfeited at least two salary payments, and this coming Tuesday’s payroll will again evidently have problems.


Another source says that CEO Noah Samara last week held an all-staff meeting, telling them: "We just need funding and execution." One source stated that he has been repeating much the same mantra for more than eight years.


Worldspace, for what seems the umpteenth time, is again talking to its bridging debt-holders about rolling over its repayment obligations to them, this time until July 31. The original binding "Mandatory Redemption Date" for the debt was May 31, then June 30, then July 9, all of which were missed. But it is now paying a crippling rate of interest for missing its repayment obligations.


Bit by bit Worldspace’s debt-holders are winning large chunks of Worldspace because of its default in repaying the assorted loan-notes. However, Nasdaq rules limit the amount of debt and warrants that Worldspace can convert into shares to a total of 19.9% of the firm’s issued Class A shares unless approval is given by the company’s shareholders. Hence Worldspace has to call a special meeting to be held no later than August 15 to approve the move.


Is it all over for Worldspace? | Indian Televisionpoint News

o my god what a sad news is it!

It is all because of poor marketing by world space. Marketing team has never targeted outside Mumbai and Bangalore where as really there is a huge potential across India. They dont know whom to target and sell. Further many small city local salesman are not able to explain anything about it.

I used Worldspace for a year and then stopped when the renewal charges were so high, sad to know this, but any interruptions for folks who use this service?:huh:

Till date world space is working fine. No interruptions. But in my opinion paying for good music (without ADs) is really worth compared to TV FM etc.

they should reduce the rates and advertise more.anyone will buy if the rates are cheap.

Worldspace

worldspace internationally is struggling to survive.

I think a little more advertising (especially outside major metros) would do a world of good for Worldspace, and help them garner more customers.

I feel Worldspace is really boring. I NEVER listen to it even in my Airtel Digital TV! I find normal FM to be LOT LOT better than Worldspace and FM is free too!

Seeing your location, i might say its only for people in your city. Because i know many people in bangalore who love FM, but i hate it to the core. The songs played arent that great if you dont listen to Kannada songs, and the RJ's suck bigtime. Worldspace on the other hand has music for any person around the world. But i agree the charges are somewhat on the higher side.

Bye bye worldspace

Worldspace is broadcasting even upto today. Many specialist channels are being played only by this method. We will miss it if this goes bust. Worldspace India is excluded from the present bankrupcy proceedings of the parent company in USA. It is not clear how they will survive alone. It is a long shot. Last week, TRAI has come out with DAB (Digital Audio Broadcast) license and spectrum policy in India. This is good news for worldspace, but I am not sure how long this will take to really materialize on the ground. This policy means that worldspace can have ground repeaters and therefore can be used from moving vehicles, rather than fixed line of sight. Car audio is a big big potential. Worldspace is all about pure music. There is classical (hindustani, carnatic separate channels), all regional languages, devotional, news (BBC, CNN etc). There is even one exclusive channel for comedy. The charge is high, but they do not have alternate business model. The transponder cost of satellite is so high and they have hardly 60K customers (not sure how many are really active).

MUMBAI: WorldSpace, in the process of being bailed out, will not include India in its rescue operators. Faced with financial woes, WorldSpace has decided to cease the broadcast of its satellite radio service in India from 31 December.

"The potential buyer of much of WorldSpace's global assets has decided not to buy the assets relating to and supporting the subscription business in India," the company said.
Worldspace, which had filed for bankruptcy protection in the US in October last year, has more than 90 per cent customers located in India. Its broadcast footprint covers over 130 countries including India and China, all of Africa and the Middle East and most of Western Europe.

As the Indian subscriber's contract is with WorldSpace Inc, the US company, it wont be able to offer a refund for any unused portion that a subscriber may have paid for services to be rendered beyond the termination date.
However, as per the potential remedy under the US bankruptcy law, subscribers may file a claim under the claims procedure that is intended to protect creditors of the bankrupt company.
Sometime early next year, a claim servicing company will send notice to all creditors listed by the company.

yey. does that mean worldspace is going to die in india? good news.

What happens to the subscribers of Airtel DTH now 😀