Saturday, 25 August 2018

[Archive Blog (18/12/2015)] Digitization 2016: Big Boom for Broadcaster, DTH and MSO

New Year is just 1 week from Friday and Digitization will take 1 step forward by covering the Phase III Cities under the new Cable TV Act. Although Phase IV deadline extended till 31st Dec. 2016 but for Cable Operators and DTH that phase will automatically cover up because as of now their attention is in both Phase III and Phase IV. Question arise that whats the impact of this digitization for Viewers, A simple theory Viewers have everything to loose and Operators, Broadcasters Govt. have everything to gain. Atleast 2 - 3 years ago Rs. 150 for TV looks costly to us now base pack price for Digital Platform costing minimum of Rs. 250. Its not that Rs. 150 is gone but that Rs. 150 and now is a huge difference and we need a compulsory digital box for our entertainment too means additional expend. 

Digitization is a new way to collect Tax for the Govt. may be the new Petrol - Diesel for them which won't pollute the environment but surely will become a big dump from China made Set-top Box. Delhi Govt. already imposed 40% Tax just doubled then previous may be the new "Odd-Even" Formula will let them to add few more percentile on it. But this industry is the new hope for Govt. to make revenue as after Vehicle, Entertainment is the 2nd needless but important thing in our life. We can't run from TV whether it runs any useless program to prove it as a "Idiot Box". Govt. knows the more these broadcasters and operators expand the more it will rise the value as Tax. Already we having some 800 Private TV channels in India operating, Approx. 350 MSOs are distributing their service. 6 Private Paid DTH are beaming from different Satellites to serve peoples demand. 

In Last year Service Tax of Central Govt. and State Govt. contributed a huge revenue, States having different Tax, Central imposed 14% Tax on Service then introduction of "Swachh Bharat Cess" impacting not only in our daily life but even in our Entertainment too. Entertainment may be the right of every Civilian but considered as Luxury in a Tax Book hence its a big and bold step to make sure every household contributes. For operators its a challenging industry now as they have to pay for infrastructure to content cost. In last 2 years big broadcasters expanded well atleast by launching 10 - 12 channels on their bouquet and made it distinctive as before.