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Budget 2010-11: Media


The Indian entertainment industry is one of the fastest growing. 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
  		• Custom duty to be charged only on the value of the carrier medium in the case of imports of films, music and games
  		•  Service tax to be levied on the transfer of intellectual property rights incase of imports of films, music and games
  		•  Imports for setting up of Digital Head End equipment by multi-service operators will attract a concessional customs duty of 5% and full exemption from special additional duty
  		•  Exemption from service tax given to news agencies which provide news feed online subject to certain criteria
  		•  Surcharge on domestic companies reduced to 7.5% from 10%
  		•  Increase in the rate of Minimum Alternate Tax from 15% to 18% of book profits

     Budget Impact
  		• Increase in tax slabs for citizens would result in higher disposable income that will likely trigger increased demand for media and entertainment.
  		•  The media industry did not receive much attention in the budget in the form of structural reform such as FDI limits, although it will indirectly benefit from the social sector schemes.se products.

     Company Impact
  		• The rationalization of customs duty structure on carrier medium will help production and post production houses such as Reliance Media Works, Prime Focus and Compact Disc.
  		•

    The concessional customs duty on Digital Head End equipment will incentivise MSOs such as Hathway Cable and Wire & Wireless.

  		•

    Increased demand for media will mean a positive development for players from the print sector such as HT Media and Jagran Prakashan. In the electronic media space, it will be positive for content providers like UTV Software and exhibitors like PVR, INOX Leisure, Cinemax.


    Budget Impact: Media Sector Analysis for 2009  | Media Sector Analysis for 2011
    Latest: Performance Of Media Stocks | Media Sector Report



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    Sector Performance
    COMPANY PRICE (Rs)
    7SEAS ENTERTAINMENT 75.9
    (-0.1%)
    ADCOUNTY MEDIA INDIA LTD. 105.5
    (-6.1%)
    ADDICTIVE LEARNING TECHNOLOGY LTD. 71.9
    (-3.8%)
    ADDICTIVE LEARNING TECHNOLOGY LTD. 71.9
    (-3.8%)
    ARIHANT ACADEMY LTD. 470.0
    (-6.0%)
    BABA ARTS 14.1
    (-1.9%)
    BAG FILMS 4.2
    (-1.9%)
    BALAJI TELEFILMS 77.7
    (-7.4%)
    BODHI TREE MULTIMEDIA 5.8
    (-9.9%)
    BRANDBUCKET MEDIA & TECHNOLOGY LTD. 4.9
    (4.9%)
    BRIGHT OUTDOOR MEDIA 390.0
    (2.1%)
    CAREER POINT EDUTECH LTD. 158.0
    (-4.4%)
    CASH UR DRIVE MARKETING LTD. 91.1
    (-5.2%)
    CHETANA EDUCATION LTD. 33.2
    (-3.8%)
    CINELINE INDIA 83.8
    (-4.2%)
    CINEVISTA. 14.5
    (-7.6%)
    CITIZEN INFOLINE 254.1
    (-1.0%)
    COLORCHIPS NEW MEDIA 13.0
    (-3.3%)
    CORDS CABLE 139.3
    (-6.1%)
    CRAYONS ADVERTISING 28.3
    (-8.0%)
    CREATIVE EYE 6.1
    (-3.9%)
    CRIZAC LTD. 186.8
    (-7.6%)
    CYBER MEDIA RESEARCH & SERVICES LTD. 61.0
    (-0.8%)
    D B CORP 200.0
    (-3.2%)
    DACHEPALLI PUBLISHERS LTD. 51.6
    (-7.9%)
    DAPS ADVERTISING 20.3
    (15.0%)
    DEN NETWORKS 25.1
    (-3.0%)
    DIGICONTENT 22.6
    (-4.0%)
    DIKSAT TRANSWORLD 114.0
    (-5.0%)
    DILIGENT MEDIA CORPORATION 3.0
    (-8.3%)
    DISH TV 2.1
    (-5.4%)
    DOCMODE HEALTH TECHNOLOGIES LTD. 40.9
    (0.0%)
    E FACTOR EXPERIENCES LTD. 169.0
    (-7.0%)
    ENCASH ENTERT. 26.2
    (-5.0%)
    ENTERTAINMENT NETWORK 105.0
    (-0.6%)
    EROS INTERNATIONAL 7.9
    (4.9%)
    ESHA MEDIA 25.0
    (0.0%)
    FLYWINGS SIMULATOR TRAINING CENTRE LTD. 158.0
    (-3.6%)
    G.V.FILMS 0.4
    (-2.8%)
    GANESH FILMS INDIA 14.0
    (0.0%)
    GOLDMINE MEDIA 4.9
    (0.0%)
    HATHWAY CABLE 9.3
    (-5.4%)
    HINDUSTAN MEDIA VENTURES 63.5
    (-0.9%)
    HT MEDIA 19.6
    (-3.5%)
    INOX LEISURE 507.9
    (0.7%)
    INSPIRE FILMS LTD. 9.5
    (-14.4%)
    JAGRAN PRAKASHAN 60.1
    (-1.8%)
    JARO INSTITUTE OF TECHNOLOGY MANAGEMENT AND RESEAR 455.4
    (-6.1%)
    JMD TELEFILMS 6.1
    (1.8%)
    JUMP NETWORKS 0.7
    (-99.4%)
    KOME-ON COMMUNICATION 1.6
    (-4.8%)
    MAAGH ADVERTISING 25.4
    (-5.0%)
    MADHYA PRADESH TODAY MEDIA 47.0
    (0.0%)
    MAXPOSURE LTD. 35.9
    (5.4%)
    MEDIAONE GLOBAL 16.0
    (3.7%)
    MOXSH OVERSEAS EDUCON LTD. 127.4
    (0.0%)
    MT EDUCARE 1.3
    (4.8%)
    MUKTA ARTS 37.6
    (-10.8%)
    MUSIC BROADCAST 4.9
    (-6.3%)
    MUSIC BROADCAST PS 2026 118.9
    (-0.1%)
    NAVNEET EDUCATION 123.2
    (-2.9%)
    NDTV 65.1
    (-6.7%)
    NET PIX SHORTS 32.0
    (0.0%)
    NETWORK18 MEDIA 29.3
    (-5.1%)
    NEXT MEDIAWORKS 3.9
    (-3.2%)
    NOVA PUBLICATIONS 13.1
    (1.1%)
    ORIENT TRADELINK 18.6
    (-1.4%)
    PADMALAYA TELEFILMS 4.2
    (-2.6%)
    PHANTOM DIGITAL EFFECTS 176.6
    (-3.5%)
    PHYSICSWALLAH LTD. 86.9
    (-3.3%)
    PICTUREPOST STUDIOS LTD. 7.5
    (10.3%)
    POOJA ENTERTAINMENT 49.0
    (-5.5%)
    PRAVEG COMM 216.9
    (-3.4%)
    PRIME FOCUS 282.1
    (2.7%)
    PRITISH NANDY COMM. 19.0
    (-9.9%)
    PVR INOX 935.3
    (-5.1%)
    QUINT DIGITAL MEDIA 38.0
    (-2.3%)
    RADAAN MEDIA 2.9
    (2.1%)
    RAJ TELEVISION 36.0
    (-3.3%)
    RAP MEDIA 32.9
    (-5.0%)
    RELIANCE MEDIA WORKS 59.8
    (0.0%)
    SAB EVENTS & GOVERNANCE NOW MEDIA 10.5
    (-5.0%)
    SADHNA BROADCAST 1.6
    (-1.9%)
    SAREGAMA 330.0
    (-4.3%)
    SEA TV NETWORK 3.8
    (-8.9%)
    SHARPLINE BROADCAST 11.3
    (4.4%)
    SHEMAROO ENT. 98.1
    (2.0%)
    SILLY MONKS ENT 15.5
    (-4.9%)
    SITI NETWORKS 0.5
    (0.0%)
    SODHANI ACADEMY OF FINTECH ENABLERS LTD. 165.8
    (0.8%)
    SRI ADHIKARI BROS. 61.9
    (-5.0%)
    SUN TV 596.0
    (0.6%)
    SUNGOLD MEDIA & ENTERTAINMENT 12.1
    (5.0%)
    THINKINK PICTUREZ 0.2
    (0.0%)
    TIPS FILMS 285.0
    (-9.1%)
    TIPS IND. 491.6
    (-5.1%)
    TV TODAY NETWORK 94.5
    (-6.8%)
    TV VISION 4.9
    (-10.0%)
    TV18 BROADCAST 45.3
    (6.5%)
    UFO MOVIEZ 59.1
    (-6.6%)
    UNICK FIX-A-FORM AND PRINTERS 47.3
    (5.0%)
    V R FILMS & STUDIOS 12.0
    (3.4%)
    VERITAAS ADVERTISING LTD. 41.6
    (-4.9%)
    VISION CINEMAS 1.2
    (-4.7%)
    WESTERN OVERSEAS STUDY ABROAD LTD. 17.1
    (-4.9%)
    WOL 3D INDIA LTD. 119.1
    (-3.2%)
    YAAP DIGITAL LTD. 142.0
    (-3.1%)
    ZEE ENTERTAINMENT 68.3
    (-6.2%)
    ZEE MEDIA CORP 7.0
    (-4.5%)