| Top
DTH operators face tax pressure (Uttar Pradesh imposes 30 percent entertainment tax)
August 12
The Government of Uttar Pradesh recently imposed an entertainment tax of 30 percent on direct-to-home services and set-top boxes, forcing Dish TV to halt further sales in the state. Other states such as Madhya Pradesh and Uttarakhand are expected to follow suit and this would leave DTH operators with no option but to pass on the additional burden to consumers. Analysts say that the tax element per user for DTH service providers goes up to nearly 56 percent. The DTH industry is reported to have lost close to Rs 50 billion.
Source: Business Line.
 Dish TV gets Govt nod for FDA worth Rs. 7.5 million(on 19 August 2009)
August 20
The Direct-To-Home (DTH) service provider Dish TV on 19 August 2009 received the Government of India's approval for its proposal to issue convertible bonds, which would bring in foreign direct investment (FDI) worth Rs. 7.5 million. The DTH major with over five million customers will utilise the funds for its expansion.
Source: Financial Chronicle. Top
UTV to take DTH route fro Kaminey (release) 
August 15
UTV Motion Pictures (UTVMP) is planning to talk with all the five direct-to-home (DTH) service providers in India for launching its new Hindi feature film, Kaminey, on their DTH platform. UTVMP has released the movie across the scountry on 14 Aug 2009 except in Pune and Mumbai. India's total DTH subscriber base was 13 million as on 31 Mar 2009.
Source: Financial Express.
DTH , bright on growth but unclear on profitability(DTH operators are expected to add over six million new subscribers by the end of Dec 2009)
August 12
The DTH operators are expected to add over six million new subscribers by the end of Dec 2009, to take the overall subscriber base to over 17 million. Airtel Digital TV and Reliance BIG TV would account for about half of the new subscribers. However, investors are concerned over the increasing economic challenges faced by the DTH industry. Subscriber acquisition costs and other major operating expenses, including content, are likely to continue to be more than the revenues for another five years for most DTH companies. The five service providers are expected to have only about 30 percent market share by 2013, against 70 percent by cable operators.
Source: Business Standard. |
