“Growing Concern: Multiplexes and OTT Platforms Grapple with Emerging Threat”
The recent introduction of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, is generating significant unease among theatre owners and streaming services. The legislation imposes a 2% surcharge on movie tickets and OTT subscriptions to support film industry workers and cultural activists.
While the additional fee seems minor, there are apprehensions that it may lead to increased costs for consumers, potentially harming cinemas and streaming platforms already grappling with financial difficulties.Industry experts are concerned that this new fee could exacerbate the financial strain on the entertainment sector, which is already facing numerous challenges.
They argue that the focus should be on policies that foster industry growth and job creation, rather than imposing additional financial burdens.Analysts project that this surcharge could cost the industry approximately ₹55 crore annually. Although similar fees have been implemented in the past, this is among the first instances where OTT platforms are directly affected.
The possibility of other states adopting similar measures could further intensify the pressure on the industry.There are also concerns about the potential for confusion and legal disputes arising from this fee, particularly since OTT services are already subject to GST. Broadcast industry insiders have cautioned that this new surcharge might be perceived as double taxation, and could face legal challenges, especially given that many services operate or bill from outside Karnataka.Read more
https://kapusangam.com/WP/growing-concern-multiplexes-and-ott-platforms-grapple-with-emerging-threat/https://kapusangam.com/WP/wp-content/uploads/2024/08/download-1.jpeghttps://kapusangam.com/WP/wp-content/uploads/2024/08/download-1-150x150.jpegLatestThe recent introduction of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, is generating significant unease among theatre owners and streaming services. The legislation imposes a 2% surcharge on movie tickets and OTT subscriptions to support film industry workers and cultural activists. While the additional fee seems minor, there...admin news@kapusangam.comAdministratorK-News
