Budget 2005-06: Media
India is currently in the throes of an entertainment revolution spawned by economic liberalisation and the subsequent advent of cable television.

The players in the entertainment industry can be classified into three-link chain. First are the studios (including the animation studios), which comprise the hardware part of the industry, the second are the content providers and the third link comprises the distribution trolley's, which include the cable and satellite channels as well as the multiplex theatres.

Key Positives
	Corporatisation moves: With the entertainment industry receiving industry status in 2001, one has seen an increasing number of players getting access to institutional finance. Further, with technology playing an important role in the upgradation of networks, both content providers and viewers are becoming sophisticated. Also, there is a significant transformation happening within the sector with content creators venturing into broadcasting and post-production, the broadcasters opting to grow via the subscription route.
	Government support: Support from the government has also aided the growth of the industry. The government has liberalized the uplinking policy and reduced the rate of basic customs duties on import of certain specified equipments for setting up an earth station to aid broadcasting from India. Further, abolishing of excise duties to fight music piracy is also another positive gesture from the government.
	Resolving addressability issues: With Direct-to-Home (DTH) already having tasted some success since its launch, going forward, with a wider acceptance of this platform, the menace of under-declaration of subscribers by cable operators can be kept under check.
	Increasing source of ad revenues: FMCG companies, which have been a key contributor to the total ad-spend of the industry, are increasingly concentrating towards rural markets. Broadcasters are launching regional channels to cater to a vast semi-urban/ rural population. In the long term, media companies can safely look to tap the FMCG industry to perk up revenues. Moreover, with new sectors having opened up like telecom, healthcare and insurance, advertisements by these segments would also aid the adspend growth.