The Union Cabinet’s approval of a revised scheme for the Direct-to-Home (DTH) television distribution sector beginning with 100% FDI brings a measure of calm to an industry buffeted by technological change and revenue pressures this year. Under the new norms, the licence period will go up to 20 years from the present 10, and, importantly, the fee has been reduced to 8% of Adjusted Gross Revenue, after setting off service tax, as opposed to 10% on Gross Revenue now. The proposal for a reduction in the licence fee has been on the backburner for six years since the regulator, TRAI, recommended it. The DTH operators have also been facing a challenge from high bandwidth Internet and new generation entertainment providers using Over The Top (OTT) channels that are chipping away at their urban viewer base so valuable to advertisers. Many broadcasters now have a live Internet presence, and newer screen casting technologies pair mobiles to large screen TVs. In such an environment of flux, some
The tariff-free trade accord in goods that the U.K. and the EU signed on Thursday, days before the post-Brexit transition expires, should mitigate somewhat the consequences of Britain’s narrow decision, in 2016, to leave one of the largest trading blocs. The eleventh hour agreement averts a catastrophic ‘no deal’ scenario. This is borne out by the findings from the U.K. Office for Budget Responsibility. The country now faces a potential 4% loss of GDP over 15 years, compared to remaining in the EU. Leaving without any agreement would have led to a potential loss of 6% of GDP, estimates the fiscal watchdog. Moreover, given the U.K.’s reliance on the EU for about 75% of food product imports, the significance of zero duty trade for consumers and the retail economy cannot be exaggerated. Brexit’s biggest trade-off for the ordinary citizen is perhaps the restrictions on the right to free movement and work. The tariff-free access to Europe’s single market has been realised in exchange for
