A spokesperson for the pay-TV firm confirmed: "Star is undertaking a business and effectiveness review with the aim of creating optimal structure to support continued growth and seize significant opportunities in the region. The review is expected to take a number of months and will be communicated to colleagues and partners after conclusions have been reached."
According to reports, News Corp aims to eliminate overlap between Star, which operates 60 channels in 13 languages and is distributed in 53 Asian countries, and Fox International Channels, which distributes the cable networks FX, National Geographic and other channels in the region.
Star’s Indian operation, which generates more than 75 per cent of Star’s regional revenue and reports to the Hong Kong office, will become independent and start reporting directly to James Murdoch, who is based in London, where he has been head of News Corp’s Asian and European operations since 2007.
An industry source added: “The move seems sensible. India has its own demands and there are ongoing challenges for Star in China. It makes sense to focus on the two separate markets. Job losses are unfortunate but a reality.”
On the prospect of bringing the operations of Fox International Channels in line with Star, the source added: “This needs to be aligned for the consumers, to offer them better packages, to achieve a better selling point across the region and achieve greater efficiency.”
Star’s India arm accounts for $400 million in sales per year, more than 75 per cent of regional revenue. Profits in June are estimated to have fallen to $35 million, compared with $76 million in June 2008, according to the Media Partners Asia research group.