Multiplex, OTT players wary of extra burden from Karnataka entertainment cess

The recent passage of the Karnataka Cine and Cultural Activists (Welfare) Bill, 2024, has left theatre owners and OTT players operating in the southern state worried.

The law levies a 2% cess on movie tickets and OTT subscriptions to support film workers and cultural activists. While this additional levy may seem nominal, multiplex and streaming platforms warn that any extra burden on the industry, which is already struggling with declining footfalls at the cinemas and stagnating subscription revenues, will increase prices for viewers, further hurting business.