Studios fail to prove satcaster is insolvent
SYDNEY — Embattled satcaster Australis Media’s Galaxy TV has beaten off attempts by Paramount, Sony, TCI, Fox and Universal to have the Supreme Court declare the feevee group insolvent.
Had the studios succeeded, Galaxy would have lost its main asset and income source: exclusive Oz feevee rights to the studios’ product that it sells on to Rupert Murdoch’s Oz cabler Foxtel for a hefty $3.5 billion over 25 years.
Not surprisingly, Foxtel is eager for Galaxy, which is operating under more than $700 million of debt, to die. With that in mind, Foxtel has inked a cheaper movie supply deal with the studios, but it only comes into effect if and when Galaxy dies.
The court said Galaxy’s legal costs should be paid by TCI and the studios, whose proceedings against the satcaster were labeled “an abuse of process and unreasonably oppressive.”