Finance minister Nirmala Sitharaman is expected to start her Union Budget 2024 speech at 11 am today. What is the industry going to watch out for? Will the FM meet the expectations of the media and entertainment industry?
While the advertising sector seeks more spending power for consumers, broadcasters and OTT players are hoping for relaxed regulations and government support in content production.
According to industry observers, India’s media and entertainment (M&E) industry is thriving, propelled by the increasing popularity of OTT platforms, government backing for digital infrastructure, and a sustained passion for cinema. While various tax reforms have been implemented over time, there are still several pressing issues that require attention in the upcoming Union Budget.
The M&E sector encompasses film, television, digital streaming and many more. exchange4media spoke to industry experts to take stock of their expectations from the budget.
MIB
As announced in the interim budget session, the budget allocation for the ministry in 2024-2025 was Rs 4342.55 crore. This was a 7.4% decline from the budget estimates of the previous fiscal.
While the current interim budget has allocated Rs 409.90 crore specifically for information and publicity, Rs 500 crore has been dedicated to broadcasting infrastructure network development, Rs 350 crore for developing communication and dissemination of filmic content, Rs 160 crore for development communication and information dissemination and a total of Rs 2 crore has been given to support the Community Radio Movement in India. This will sum up to Rs 1,015 crore, which will be kept aside for Central Sector Schemes and Projects under MIB.
For supporting autonomous bodies Rs 2738 crore was kept aside in the interim budget, of which Rs 15.64 crore was only for the Press Council of India and Rs 2509.94 crore was dedicated towards Prasar Bharati.
Advertising, Marketing and Startups
Industry leaders are anticipating budget measures that will foster innovation, strengthen digital infrastructure, and address advertising challenges in the dynamic market. Key expectations include tax reforms for advertising, increased funding for digital marketing, and support for small and medium-sized marketing businesses. They also call for advertising to be seen as an investment and not as an expenditure.
Another hope from marketers’ end is to see how sustainability picks pace in the budget, considering ‘sustainability marketing’ is a growing discussion across boardrooms.
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Gaming
With advancements in technology and a growing user base, the gaming industry is looking towards the government for supportive policies and incentives that could further bolster its expansion. A particularly bright spot within this sector has been e-sports, which has experienced a meteoric rise amongst millions of enthusiasts and players across the country. Stakeholders are eager to see if the upcoming budget will address key issues such as taxation, infrastructure development, and support for homegrown talent, specifically within the e-sports arena.
They feel that the potential for India to become a global e-sports hub is immense, and industry leaders are calling for measures that will enhance training facilities, provide better internet infrastructure, and offer financial incentives for developers and players alike.
They also expect that the government can further fuel the gaming hardware industry by introducing subsidies for research and development in gaming technology and establishing special economic zones dedicated to the production of PC gaming equipment.
Print sectorplayers are eagerly waiting for the removal of the 5% custom duty on newsprint. As per the players, it is necessary that the duty be very reasonable to ensure that the print sector can survive and sustain for a long time. Some players have also called for the duty to be completely withdrawn.
Newsprint prices have been volatile due to geopolitical factors like the Ukraine-Russia war, which has been creating problems of availability.
INS had also asked the Finance Minister for a hike in budget allocation for the print industry. According to the newspaper body, even if the rates of newspapers are increased it will hardly help the revenue numbers of the publishing houses. The industry also wants a relaxation on the 5% GST on advertising in newspapers. This is also applicable on commercials that can be found as booklets or fliers inside newspapers or magazines.
The industry has also demanded a reduction of the current 18% GST on e-paper to 5%. This, they say, will also help readers and subscribers reduce carbon footprint.
Radio
The radio industry is in dire need of relief from heavy licence fees. This would be an enabler for radio players to include much-needed technological upgrades in response to the digital transformation.
Industry experts shared that radio is the only industry that pays a huge licence fee and unless that changes profitability of this industry will never be close to other sectors.
The sector has also been battling heightened competition from digital media. It has been a long-standing problem for stations because unlike digital platforms analog radio has limited audience measurement tools.
The radio players expect support from the government to relieve tax slabs to inject direct money into the market, providing a much-needed boost.
OTT
The OTT industry expects subsidies to filmmakers and web series creators due to the widespread shooting locations across India.
Broadcasters
Broadcasters believe that more consumer spending power means advertisers will earn better, and if advertising does well it automatically impacts the growth of stakeholder mediums positively. If the government incentivises good content, it will boost the growth of the broadcast sector.
Marketers
Marketers seek improved and incentivized policies towards digital infrastructure, especially in areas of artificial intelligence (AI) and machine learning (ML), which could lead to better adoption of these technologies.
Movie business
Meanwhile, the film industry has highlighted concerns about the GST (Goods and Services Tax) burden, and are hoping for a reduction in GST rates to alleviate financial strain on filmmakers.
