Media stocks continued their downward slide on Tuesday a day after the arrest of leading Bollywood financier Bharat Shah on Monday for his alleged nexus with Karachi-based underworld don Chhota Shakeel.. While overall the Mumbai‘s Sensex went up by five points to close at 4125, media stocks went down by an average of three per cent.

The Zee Telefilms scrip touched a 52-week low at Rs 250.50 but closed a little higher at Rs 255.50. But the Zee scrip was also pulled down by negative expectations of the company‘s third quarter results which were due to be declared.

The other big losers by an average of between 7.9 per cent and 16 per cent were Balaji Telefilms, Jain Studios, Mukta Arts, Tips and TV 18.

Responding to reported rumblings of discontent over payment terms among the producers of some of its hit serials, Star TV has said it is open to negotiations.

We‘re in touch a number of producers at any given time and obviously terms will vary from one to another depending on various factors, Peter Mukerjea, CEO of News Television India, the Indian arm of Hong Kong-based Star TV, said.

His comment came after attention was drawn to a Business Standard report that some independent production companies were demanding a hefty cut of the profits earned by Star from their programmes.

Balaji Telefilms, promoted by former Bollywood star Jeetendra and producer of two of the top serials on Star Plus (including the superhit family soap opera, "Kyunki Saas Bhi Kabhi Bahu Thi") confirmed that it was renegotiating programme rates with the channel.

When pressed for details about the talks with Balaji, Mukerjea said he couldn‘t say offhand what level the discussions had reached.

Meanwhile, in another development, reversing its earlier decision to drop co-sponsors, Star has decided to have sponsors back on KBC.

"We have struck deals with six sponsors," Sumantra Dutta, executive vice-president (sales and marketing) said on Tuesday. "The new sponsors are Pepsi, Cadbury, Raymond‘s, Kinetic, Everest and Godrej," Dutta added.

The Chinese government has decided to award the English news service, BBC World, a broadcast licence. Seven years ago, it had been thrown off the Star TV network by global media baron Rupert Murdoch to calm down a jittery Chinese regime, alarmed by the BBC?s coverage of the student protest against it.

With this licence, the Beeb will now be able to telecast over China and be received in hotels and foreign residential compounds. Additionally, it will also be received by the thousands of satellite dishes and cable systems in China.

The clearance is being seen as a major coup for BBC boss Greg Dyke and BBC Worldwide CEO Rupert Gavin. Gavin had been part of a trade mission led by culture secretary Chris Smith in 1999 which met up with Chinese authorities.

"This is the first time the Chinese authorities have positively granted us permission to broadcast," says Jeff Hazell, director of sales and distribution at BBC World. "It?s good to be able to regularise our relationship and if the Chinese authorities are happy with how it works out, we hope it could lead to other things."

Now to wait and watch what fare the Beeb dishes out for China. Hopefully it will not be a repeat of the early nineties.