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Double taxation: Karnataka MSOs call off strike following government assurance

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BANGALORE: Cable signals are back in Karnataka as the state’s Multi System Operators (MSO) have called off their indefinite strike. This follows an assurance from the state government that it would consider the MSOs’ demand on the matter of entertainment tax.

The strike had been called to protest what the MSOs had described as the “arbitrary demand of double taxation by the government”.

MSOs across the state, on 1 October evening, stopped signals protesting the government’s decision to impose a “double taxation.” Now the strike is withdrawn after the government has expressed its willingness to continue with the single point taxation system.

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Karnataka finance minister P G R Sindhia told indiantelevision.com that the government might reach an appropriate decision on this regard within a month or two.

“The government is of the opinion that only single point taxation should be there either on the MSOs or on the cable operators. In the absence of any changes in the Act, we are actually entitled to collect this amount. However, we are willing to consider the MSOs’ demand. We have told them that we might come to a decision within a month or two,” said Sindhia.

In response, the MSOs have said they appreciated the government’s promise to remove the “double taxation” and the assurance that no harassment will be initiated by the Commercial Taxation Department (CTD). “All MSOs have agreed to switch on their headends with immediate effect,” said Siti Cable regional director P Kailasam.

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According to government estimates, the MSOs and cable operators in Karnataka owe it anywhere between Rs 90 million to Rs 150 million in entertainment tax.

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Cable TV

Hathway Cable appoints Gurjeev Singh Kapoor as CEO

Leadership change comes as cable TV faces shrinking subscriber base and modest earnings pressure

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MUMBAI: Hathway Cable and Datacom has tapped industry veteran Gurjeev Singh Kapoor as chief executive officer, marking a leadership pivot at a time when India’s cable television business is under mounting strain.

Kapoor will take over from Tavinderjit Singh Panesar, who is set to retire in August after a long innings with the company. Panesar, chief executive since 2023, has held multiple leadership roles at Hathway, including his latest stint beginning in 2022.

Kapoor brings more than three decades of experience in media and entertainment. He most recently led distribution at The Walt Disney Company’s Star India business, now part of JioStar. His career spans television distribution and affiliate partnerships, with stints at Sony Pictures Networks India, Discovery Communications and Zee Entertainment.

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Panesar, with over three decades in the industry, has worked across strategic planning, distribution and business development in media, broadcasting and manufacturing. His past associations include ESPN Star Sports, Star India, Apollo Tyres and JK Industries.

The transition lands as the cable sector grapples with structural disruption. Traditional operators are losing ground to streaming platforms, while telecom and broadband players tighten the squeeze with bundled offerings.

An EY report estimates India’s pay-TV base could shrink by a further 30 to 40 million households by 2030, taking the total down to 71 to 81 million. The slide follows a loss of nearly 40 million homes between 2018 and 2024, a contraction that has already wiped out more than 37,000 jobs in the local cable operator ecosystem.

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Hathway’s numbers reflect the strain. The company reported a consolidated net profit of Rs 93 crore for FY25, down from Rs 99 crore a year earlier. Revenue inched up to Rs 2,040 crore from Rs 1,981 crore. As of December 2025, it had about 4.7 million cable TV subscribers and roughly 1.02 million broadband users.

Kapoor steps in with a familiar brief but a shrinking playbook. In a market where viewers are cutting cords faster than companies can reinvent them, the new chief executive inherits a business fighting to stay plugged in.

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