For the direct-to-home (DTH) operators, the Information & Broadcasting (I&B) Minister Prakash Javadekar’s statement couldn’t have been more horrific. The new minister urged DTH operators to reduce subscription fee as a trade-off with the government for implementing cable TV digitisation and reducing licence fee.
In his first major interaction with the top decision-makers at the CII CEOs Roundtable on Media and Entertainment, Javadekar said that subscribers should also benefit from the implementation of digital addressable system (DAS).
Putting all speculation to rest, the minister asserted that the government was committed to implementing Phases III and IV of DAS, but at the same time it wanted to give a fillip to the indigenous set-top box (STB) manufacturers.
“With digitisation, your subscriber base has increased and your revenue has also grown. Currently, only 4 crore (40 million) STBs have been seeded, which is just 25 per cent of the universe, with 75 per cent still remaining. We want to complete digitisation and we will do it. We never said that we don’t want to do digitisation, but what will our consumers get in return?” said Javadekar, much to the bewilderment of the industry captains.
“I am asking for a trade-off and the trade-off is what you will give my viewers. Will you reduce my subscription? It can’t be one way, so will you reduce subscription? Why should I pay and at the same time watch so many ads? How can both the things happen at the same time? You should offer me what you want to give,” the minister added.
Tata Sky MD and CEO Harit Nagpal said, “Our charges are lowest in the world. We are giving a basic package at Rs 220 only and out of that 33 per cent is taken by the government as tax.”
When contacted, Dish TV CEO RC Venkateish said: “Tax burden is crippling the industry. However, if the government is willing to give us tax rebate, we will definitely pass on the benefit to the consumer.”
In a lighter vein, the minister also asked DTH operators to pay at least 50 per cent of the Rs 2,000 crore (Rs 20 billion) licence fee that is due. He also promised to look into the issue of reduction of DTH licence fee while emphasising that multiple taxation was the main issue.
Regarding DAS, he categorically stated that the government will take Phases III and IV of digitisation to its logical conclusion, without, however, clarifying if it will be completed by the 31 December deadline.
He also asked DTH and cable TV operators to sincerely carry Doordarshan channels on their networks.
On the issue of carriage fee, Javadekar said that there are two opinions on the issue and the ministry is seized of the matter.
Javadekar urges DTH ops to drop subscription rates | TelevisionPost.com
In his first major interaction with the top decision-makers at the CII CEOs Roundtable on Media and Entertainment, Javadekar said that subscribers should also benefit from the implementation of digital addressable system (DAS).
Putting all speculation to rest, the minister asserted that the government was committed to implementing Phases III and IV of DAS, but at the same time it wanted to give a fillip to the indigenous set-top box (STB) manufacturers.
“With digitisation, your subscriber base has increased and your revenue has also grown. Currently, only 4 crore (40 million) STBs have been seeded, which is just 25 per cent of the universe, with 75 per cent still remaining. We want to complete digitisation and we will do it. We never said that we don’t want to do digitisation, but what will our consumers get in return?” said Javadekar, much to the bewilderment of the industry captains.
“I am asking for a trade-off and the trade-off is what you will give my viewers. Will you reduce my subscription? It can’t be one way, so will you reduce subscription? Why should I pay and at the same time watch so many ads? How can both the things happen at the same time? You should offer me what you want to give,” the minister added.
Tata Sky MD and CEO Harit Nagpal said, “Our charges are lowest in the world. We are giving a basic package at Rs 220 only and out of that 33 per cent is taken by the government as tax.”
When contacted, Dish TV CEO RC Venkateish said: “Tax burden is crippling the industry. However, if the government is willing to give us tax rebate, we will definitely pass on the benefit to the consumer.”
In a lighter vein, the minister also asked DTH operators to pay at least 50 per cent of the Rs 2,000 crore (Rs 20 billion) licence fee that is due. He also promised to look into the issue of reduction of DTH licence fee while emphasising that multiple taxation was the main issue.
Regarding DAS, he categorically stated that the government will take Phases III and IV of digitisation to its logical conclusion, without, however, clarifying if it will be completed by the 31 December deadline.
He also asked DTH and cable TV operators to sincerely carry Doordarshan channels on their networks.
On the issue of carriage fee, Javadekar said that there are two opinions on the issue and the ministry is seized of the matter.
Javadekar urges DTH ops to drop subscription rates | TelevisionPost.com
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