The balkanisation of entertainment tax has gravely impacted the profitability of the Indian direct-to-home (DTH) companies. In a sector where average revenue per user (ARPU) has stayed low, competition for subscribers has been fierce and multiple taxes have been an overload, the road to profitability has been slow. It is only a couple of years back that Dish TV became the first DTH company in India to turn profitable at the net level. Videocon d2h, the DTH arm of the Videocon Group, posted its maiden quarter net profit in the three-month period ended 30 June 2016. Entertainment tax has pinched the DTH operators hard, varying from state to state. On average, entertainment tax ranges between 7% and 11% of the DTH companies’ revenues, depending on the geographical composition of their subscriber base.
Read more at: http://www.televisionpost.com/dth/dth-firms-expect-gst-to-add-3-to-their-bottom-line/ | TelevisionPost.com
Read more at: http://www.televisionpost.com/dth/dth-firms-expect-gst-to-add-3-to-their-bottom-line/ | TelevisionPost.com
