INDORE: At a time when cable operators in the state are working hard to woo their subscribers to shell out more under the new tax regime, another issue has started haunting them.
A recent amendment to the Section 4A of the Cable Regulation Act, 1995 legalizes an ordinance issued in October this year for implementing mandatory addressable digitization (MAD) throughout the country in phased manner beginning from June 30 this year. Simply put, digitization means they will have to make heavy investment in buying equipment to switch to new technology.
By rough estimates, there are nearly 5,000 cable operators, who beam programmes to some 2.5 crore subscribers in the state. With changes in the rules of the game, the cable operators (which also cover multi system operators) will have to pay an entertainment tax at 20% of the turnover against the earlier existing system of Rs 20 per connection, in case it goes beyond Rs 5 lakh per annum effective from April 1 last year. The MSOs are likely to call on chief minister Shivraj Singh Chouhan soon to urge him to help them out on this front.
As per the existing system, most of the cable operators in the rural and semi-urban areas are relying on analog signal which doesn't require any set top box (STB) at the time of providing cable connection to the subscriber. The cities with more than 10 lakh population like Indore and Bhopal will have to mandatorily shift to digitization by March 31 next year 2013, said a source familiar with the development.
Digitization means that there will be no any analog signals as these signals will be switched off after the cut-off date. The local cable operator will not be able to beam any analog signals. The TV would go blank if a viewer stuck to analog cable, added the source.
It is likely to give a boost to DTH players that are likely to witness a good chunk of analog cable subscribers switching to their digitized services. Videocon d2h is one such player, which enjoys one-fourth of the overall DTH subscriber base in the state. Saurabh Dhoot, director- Videocon d2h said, "As all consumers, currently on analog transmission, will have to shift to the digital space, it would essentially lead to a huge growth in the sector."
Finally, digitalization is likely to bring in greater consolidation, reduced dependence on viewership ratings and drop in carriage fees. Shashi Arora, CEO -DTH/Media, Bharti Airtel, said, "We at Airtel digital TV are looking at maximizing the opportunity by offering better channel and non-channel content , stronger distribution and decentralized service capability for our target group.
http://articles.timesofindia.indiatimes.com/2012-03-08/indore/31135680_1_analog-signals-cable-operators-digitization
A recent amendment to the Section 4A of the Cable Regulation Act, 1995 legalizes an ordinance issued in October this year for implementing mandatory addressable digitization (MAD) throughout the country in phased manner beginning from June 30 this year. Simply put, digitization means they will have to make heavy investment in buying equipment to switch to new technology.
By rough estimates, there are nearly 5,000 cable operators, who beam programmes to some 2.5 crore subscribers in the state. With changes in the rules of the game, the cable operators (which also cover multi system operators) will have to pay an entertainment tax at 20% of the turnover against the earlier existing system of Rs 20 per connection, in case it goes beyond Rs 5 lakh per annum effective from April 1 last year. The MSOs are likely to call on chief minister Shivraj Singh Chouhan soon to urge him to help them out on this front.
As per the existing system, most of the cable operators in the rural and semi-urban areas are relying on analog signal which doesn't require any set top box (STB) at the time of providing cable connection to the subscriber. The cities with more than 10 lakh population like Indore and Bhopal will have to mandatorily shift to digitization by March 31 next year 2013, said a source familiar with the development.
Digitization means that there will be no any analog signals as these signals will be switched off after the cut-off date. The local cable operator will not be able to beam any analog signals. The TV would go blank if a viewer stuck to analog cable, added the source.
It is likely to give a boost to DTH players that are likely to witness a good chunk of analog cable subscribers switching to their digitized services. Videocon d2h is one such player, which enjoys one-fourth of the overall DTH subscriber base in the state. Saurabh Dhoot, director- Videocon d2h said, "As all consumers, currently on analog transmission, will have to shift to the digital space, it would essentially lead to a huge growth in the sector."
Finally, digitalization is likely to bring in greater consolidation, reduced dependence on viewership ratings and drop in carriage fees. Shashi Arora, CEO -DTH/Media, Bharti Airtel, said, "We at Airtel digital TV are looking at maximizing the opportunity by offering better channel and non-channel content , stronger distribution and decentralized service capability for our target group.
http://articles.timesofindia.indiatimes.com/2012-03-08/indore/31135680_1_analog-signals-cable-operators-digitization
