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Budget 2009-10: Media


The Indian entertainment industry is one of the fastest growing in India. Changing lifestyles and increasing disposable income levels have led to increased penetration levels of the media, although there is still ample scope for growth. Access to global entertainment avenues, outsourcing of animation business to India and increasing migration of Indian population will help this industry to grow at a faster pace. Further, companies have diversified to provide a complete package across various segments of the entertainment value chain. The future of the entertainment industry will be decided on the interplay of a number of reasons like consumerism, advertising spend, content, pricing, technology and regulation. It is estimated that this industry is set to grow at a CAGR of 18% to reach an estimated size of Rs 1.1 trillion in 2011.

 Budget Measures
  		• Stimulus package for print media in the form of a waiver of 15% agency commission on DAVP (The Directorate of Advertising and Visual Publicity) advertisements and 10 % increase in DAVP rates to be paid as a special relief subject to documentary proof of loss of revenue on governmental advertisements, extended till the end of the year.
  		• Customs duty on LCD panels for manufacture of LCD televisions reduced from 10% to 5%.
  		•  Customs duty of 5% imposed on set top boxes.
  		•  Fringe benefit tax (FBT) abolished.
  		•  Rate of minimum alternate tax (MAT) on book profits has been increased from 10% to 15%, but with a provision of carrying forward the tax credit on MAT to ten years from the current seven years.

     Budget Impact
  		• The government had earlier come to the rescue of print media companies, who were reeling under high newsprint costs and had exempted the custom duty of 3% applicable on newsprint and 5% on lightweight coated paper. It had also hiked the DAVP (The Directorate of Advertising and Visual Publicity) rates. The current stimulus package will provide further help to the print media industry in coping with lower advertising revenues in the face of an economic slowdown.
  		•  The changes in customs duty on LCD panels and set top boxes will only have marginally positive and negative impact respectively as a 5% price change will not substantially influence the end user of these products.
  		•  The electronic media industry did not receive much attention in the budget although it will indirectly benefit from the social sector schemes.
  		•  The abolition of FBT will help reduce the employee cost in electronic media companies who had witnessed escalating costs of late.

     Company Impact
  		• With the print media companies depending on advertisements for a large portion of their revenues, they will find the going difficult as long as the economy remains subdued. As such, Jagran Prakashan and HT Media will benefit from the waiver of commission on DAVP advertisements. Moreover, the 10% increase in DAVP rates will also help.

    Budget Impact: Media Sector Analysis for 2008 | Media Sector Analysis for 2010
    Latest: Performance Of Media Stocks | Media Sector Report



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    Sector Performance
    COMPANY PRICE (Rs)
    7SEAS ENTERTAINMENT 49.9
    (3.3%)
    ADDICTIVE LEARNING TECHNOLOGY LTD. 270.0
    (8.5%)
    ARIHANT ACADEMY LTD. 138.0
    (-2.2%)
    BABA ARTS 15.5
    (4.0%)
    BAG FILMS 8.7
    (-1.2%)
    BALAJI TELEFILMS 77.7
    (0.3%)
    BODHI TREE MULTIMEDIA 17.3
    (6.2%)
    BRANDBUCKET MEDIA & TECHNOLOGY LTD. 10.0
    (-4.1%)
    BRIGHT OUTDOOR MEDIA 481.0
    (-2.2%)
    CINELINE INDIA 123.0
    (3.4%)
    CINEVISTA. 20.3
    (-1.1%)
    CITIZEN INFOLINE 43.5
    (3.5%)
    COLORCHIPS NEW MEDIA 4.1
    (0.5%)
    CORDS CABLE 172.5
    (-0.2%)
    CRAYONS ADVERTISING 168.9
    (5.3%)
    CREATIVE EYE 4.5
    (-2.2%)
    CYBER MEDIA RESEARCH & SERVICES LTD. 122.0
    (-2.2%)
    D B CORP 279.0
    (-1.3%)
    DAPS ADVERTISING 29.7
    (-0.2%)
    DEN NETWORKS 49.6
    (-2.7%)
    DIGICONTENT 22.5
    (4.3%)
    DIKSAT TRANSWORLD 126.4
    (-5.0%)
    DILIGENT MEDIA CORPORATION 4.2
    (-1.9%)
    DISH TV 17.4
    (-1.5%)
    DOCMODE HEALTH TECHNOLOGIES LTD. 249.0
    (-5.2%)
    E FACTOR EXPERIENCES LTD. 150.5
    (-1.6%)
    ENCASH ENTERT. 29.0
    (-3.3%)
    ENTERTAINMENT NETWORK 260.2
    (-0.7%)
    EROS INTERNATIONAL 20.1
    (0.2%)
    ESHA MEDIA 7.3
    (4.9%)
    G.V.FILMS 0.8
    (-1.2%)
    GANESH FILMS INDIA 21.0
    (-9.5%)
    GOLDMINE MEDIA 2.0
    (0.0%)
    HATHWAY CABLE 22.1
    (0.4%)
    HINDUSTAN MEDIA VENTURES 112.5
    (-1.3%)
    HT MEDIA 26.5
    (-0.6%)
    INOX LEISURE 507.9
    (0.7%)
    INSPIRE FILMS LTD. 31.5
    (1.1%)
    JAGRAN PRAKASHAN 98.8
    (-2.1%)
    JMD TELEFILMS 13.1
    (1.9%)
    JUMP NETWORKS 2.6
    (4.0%)
    KOME-ON COMMUNICATION 1.8
    (4.6%)
    MAAGH ADVERTISING 14.6
    (-5.0%)
    MADHYA PRADESH TODAY MEDIA 30.1
    (0.0%)
    MAXPOSURE LTD. 83.9
    (1.1%)
    MEDIAONE GLOBAL 43.1
    (5.0%)
    MOXSH OVERSEAS EDUCON LTD. 120.6
    (0.0%)
    MT EDUCARE 3.4
    (-0.3%)
    MUKTA ARTS 72.4
    (0.0%)
    MUSIC BROADCAST 17.0
    (1.7%)
    MUSIC BROADCAST PS 2026 99.5
    (0.0%)
    NAVNEET EDUCATION 148.8
    (1.7%)
    NDTV 218.8
    (0.7%)
    NET PIX SHORTS 31.5
    (0.0%)
    NETWORK18 MEDIA 87.0
    (-2.4%)
    NEXT MEDIAWORKS 6.9
    (-0.3%)
    NOVA PUBLICATIONS 14.2
    (4.9%)
    ORIENT TRADELINK 8.6
    (1.3%)
    PADMALAYA TELEFILMS 3.0
    (2.0%)
    PHANTOM DIGITAL EFFECTS 473.0
    (1.2%)
    POOJA ENTERTAINMENT 158.8
    (2.0%)
    PRAVEG COMM 967.8
    (0.8%)
    PRIME FOCUS 102.5
    (1.4%)
    PRITISH NANDY COMM. 58.1
    (0.2%)
    PVR INOX 1,423.1
    (-0.3%)
    QUINT DIGITAL MEDIA 111.0
    (1.0%)
    RADAAN MEDIA 1.6
    (1.2%)
    RAJ TELEVISION 72.7
    (3.0%)
    RAP MEDIA 21.8
    (5.0%)
    RELIANCE MEDIA WORKS 59.8
    (0.0%)
    SAB EVENTS & GOVERNANCE NOW MEDIA 7.5
    (0.7%)
    SADHNA BROADCAST 4.2
    (0.5%)
    SAREGAMA 429.0
    (0.7%)
    SEA TV NETWORK 8.7
    (0.5%)
    SHARPLINE BROADCAST 7.7
    (4.2%)
    SHEMAROO ENT. 157.5
    (-1.9%)
    SILLY MONKS ENT 16.4
    (3.8%)
    SITI NETWORKS 0.7
    (-1.5%)
    SRI ADHIKARI BROS. 81.9
    (10.0%)
    SUN TV 597.8
    (-2.0%)
    SUNGOLD MEDIA & ENTERTAINMENT 20.0
    (0.3%)
    THINKINK PICTUREZ 42.2
    (0.8%)
    TIPS FILMS 696.8
    (-3.1%)
    TIPS IND. 468.4
    (1.9%)
    TV TODAY NETWORK 223.7
    (-0.2%)
    TV VISION 5.2
    (-1.9%)
    TV18 BROADCAST 46.3
    (-1.7%)
    UFO MOVIEZ 144.0
    (6.5%)
    UNICK FIX-A-FORM AND PRINTERS 57.5
    (4.0%)
    V R FILMS & STUDIOS 28.8
    (-3.0%)
    VISION CINEMAS 1.5
    (-4.5%)
    ZEE ENTERTAINMENT 143.1
    (-1.3%)
    ZEE MEDIA CORP 10.9
    (-1.5%)