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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 72.6
    (2.1%)
    ADDICTIVE LEARNING TECHNOLOGY LTD. 383.7
    (6.5%)
    ARIHANT ACADEMY LTD. 210.0
    (-2.3%)
    BABA ARTS 13.3
    (3.2%)
    BAG FILMS 9.5
    (0.9%)
    BALAJI TELEFILMS 64.8
    (8.5%)
    BODHI TREE MULTIMEDIA 11.5
    (2.6%)
    BRANDBUCKET MEDIA & TECHNOLOGY LTD. 16.2
    (-1.9%)
    BRIGHT OUTDOOR MEDIA 471.0
    (4.7%)
    CHETANA EDUCATION LTD. 83.5
    (0.7%)
    CINELINE INDIA 100.0
    (-0.4%)
    CINEVISTA. 17.6
    (1.2%)
    CITIZEN INFOLINE 40.4
    (-5.0%)
    COLORCHIPS NEW MEDIA 19.9
    (5.0%)
    CORDS CABLE 195.4
    (6.2%)
    CRAYONS ADVERTISING 101.1
    (6.0%)
    CREATIVE EYE 8.0
    (3.6%)
    CYBER MEDIA RESEARCH & SERVICES LTD. 106.7
    (-5.0%)
    D B CORP 296.5
    (-0.3%)
    DAPS ADVERTISING 25.5
    (2.0%)
    DEN NETWORKS 43.7
    (1.3%)
    DIGICONTENT 50.3
    (2.0%)
    DIKSAT TRANSWORLD 145.5
    (-0.3%)
    DILIGENT MEDIA CORPORATION 5.2
    (4.8%)
    DISH TV 10.8
    (0.6%)
    DOCMODE HEALTH TECHNOLOGIES LTD. 104.0
    (4.3%)
    E FACTOR EXPERIENCES LTD. 268.3
    (-14.8%)
    ENCASH ENTERT. 29.0
    (-3.3%)
    ENTERTAINMENT NETWORK 184.5
    (0.8%)
    EROS INTERNATIONAL 14.9
    (2.2%)
    ESHA MEDIA 15.4
    (-5.0%)
    G.V.FILMS 0.7
    (2.8%)
    GANESH FILMS INDIA 20.0
    (4.0%)
    GOLDMINE MEDIA 5.4
    (-1.8%)
    HATHWAY CABLE 18.3
    (1.3%)
    HINDUSTAN MEDIA VENTURES 85.2
    (0.2%)
    HT MEDIA 23.2
    (0.3%)
    INOX LEISURE 507.9
    (0.7%)
    INSPIRE FILMS LTD. 25.5
    (3.5%)
    JAGRAN PRAKASHAN 83.3
    (-0.0%)
    JMD TELEFILMS 13.9
    (2.0%)
    JUMP NETWORKS 0.7
    (-99.4%)
    KOME-ON COMMUNICATION 1.6
    (-4.8%)
    MAAGH ADVERTISING 26.6
    (2.0%)
    MADHYA PRADESH TODAY MEDIA 34.7
    (0.0%)
    MAXPOSURE LTD. 90.2
    (0.2%)
    MEDIAONE GLOBAL 32.6
    (0.4%)
    MOXSH OVERSEAS EDUCON LTD. 38.5
    (0.0%)
    MT EDUCARE 3.1
    (-4.9%)
    MUKTA ARTS 80.2
    (-2.9%)
    MUSIC BROADCAST 12.2
    (2.5%)
    MUSIC BROADCAST PS 2026 112.0
    (19.6%)
    NAVNEET EDUCATION 138.9
    (2.1%)
    NDTV 169.4
    (0.9%)
    NET PIX SHORTS 33.0
    (4.8%)
    NETWORK18 MEDIA 84.4
    (-0.4%)
    NEXT MEDIAWORKS 7.4
    (0.3%)
    NOVA PUBLICATIONS 13.7
    (-8.9%)
    ORIENT TRADELINK 15.5
    (-1.1%)
    PADMALAYA TELEFILMS 10.0
    (-2.0%)
    PHANTOM DIGITAL EFFECTS 253.6
    (10.0%)
    PICTUREPOST STUDIOS LTD. 32.2
    (1.6%)
    POOJA ENTERTAINMENT 149.7
    (2.1%)
    PRAVEG COMM 674.7
    (-0.9%)
    PRIME FOCUS 125.6
    (1.0%)
    PRITISH NANDY COMM. 60.7
    (0.5%)
    PVR INOX 1,475.8
    (2.8%)
    QUINT DIGITAL MEDIA 71.3
    (-0.1%)
    RADAAN MEDIA 4.5
    (1.8%)
    RAJ TELEVISION 59.3
    (2.0%)
    RAP MEDIA 38.9
    (-2.0%)
    RELIANCE MEDIA WORKS 59.8
    (0.0%)
    SAB EVENTS & GOVERNANCE NOW MEDIA 14.7
    (1.9%)
    SADHNA BROADCAST 3.2
    (1.3%)
    SAREGAMA 468.6
    (0.5%)
    SEA TV NETWORK 9.3
    (-3.3%)
    SHARPLINE BROADCAST 9.1
    (-1.9%)
    SHEMAROO ENT. 161.0
    (-0.7%)
    SILLY MONKS ENT 21.4
    (3.9%)
    SITI NETWORKS 0.9
    (-1.1%)
    SODHANI ACADEMY OF FINTECH ENABLERS LTD. 155.7
    (-2.0%)
    SRI ADHIKARI BROS. 1,665.9
    (2.0%)
    SUN TV 740.3
    (2.0%)
    SUNGOLD MEDIA & ENTERTAINMENT 19.8
    (5.0%)
    THINKINK PICTUREZ 3.4
    (20.0%)
    TIPS FILMS 464.2
    (-3.5%)
    TIPS IND. 898.6
    (1.1%)
    TV TODAY NETWORK 188.1
    (0.3%)
    TV VISION 22.7
    (2.0%)
    TV18 BROADCAST 45.3
    (6.5%)
    UFO MOVIEZ 99.9
    (0.3%)
    UNICK FIX-A-FORM AND PRINTERS 77.8
    (0.0%)
    V R FILMS & STUDIOS 28.0
    (4.9%)
    VERITAAS ADVERTISING LTD. 127.1
    (0.0%)
    VISION CINEMAS 1.1
    (4.8%)
    WOL 3D INDIA LTD. 136.1
    (1.5%)
    ZEE ENTERTAINMENT 122.7
    (6.2%)
    ZEE MEDIA CORP 19.1
    (4.8%)