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.
