Budget 2012: Impact on media is neutral

Industry Expectation

• Removal of customs duty on Set-Top Boxes

• Raise FDI limits in cable operations (currently 49-), DTH (currently 49-), broadcasting (currently 26-), print media (currently 26-) and FM Radio (currently 20-)

• Grant infrastructure status to cable distribution sector

• Reduction on DTH services (multiple tax issues), removal on advertising in broadcasting

Budget Impact

Service tax has been increased to 12- from 10-, which will be easily passed on to customer

Stock to watch

Eros International,  Dish TV, Den Network, Hathway Cable

Outlook

The impact of the Union Budget 2012-13 on the Media & Entertainment sector is neutral. The Budget did not address the issues of digitisation, as the country shift from analog cable TV to digital. The budget has nothing to say for the Industry in general.