Budget 2009-10: 5 pc duty on STBs a dampener for DTH players

The levying of 5 per cent customs duty on the import of set-top boxes (STB) in the Union Budget 2009-10 has come as jolt to the direct-to-home (DTH) players. exchange4media spoke to leading DTH players to find out the Budget implications for the DTH industry and whether the Finance Minister has been able to meet their demands.

e4m by exchange4media Staff
Published: Jul 7, 2009 9:19 AM  | 3 min read
Budget 2009-10: 5 pc duty on STBs a dampener for DTH players

The last few years have seen the unprecedented growth of the direct-to-home (DTH) sector in India. With Government stress on implementation of Conditional Access System (CAS) in the country, the sector got a big boost. However, the levying of 5 per cent customs duty the import of set-top boxes (STB) in the Union Budget 2009-10 has come as rude jolt to the DTH players.

exchange4media spoke to leading DTH players to find out the Budget implications for the DTH industry and whether the Finance Minister has been able to meet their demands.

Vikram Kaushik, MD & CEO, Tata Sky Ltd, pointed out, “The levying of customs duty on set-top boxes (STBs) will add to the cost of digital television services for consumers at large. The DTH industry is one of the most heavily taxed areas in the media and entertainment space. With an unprecedented 10 per cent revenue share payable to Government, the industry pays service tax, VAT, and in many states, entertainment tax as well.”

He further elaborated, “The DTH industry has been pressing for some relief for a long time. The imposition of 5 per cent customs duty will add to this burden. It is widely acknowledged that the DTH industry is playing a pioneering role in the digitalisation of television services in India. This will be a setback for that process by widening the price gap between cheap and under-declared cable services and transparent, addressable DTH services.”

According to Salil Kapoor, COO, DishTV, “The additional burden of 5 per cent tax on STBs will hinder the growth and will discourage the DTH industry from expanding business; this tax hike will be passed on the customers. Although we do welcome the removal of Fringe Benefit Tax (FBT) and introduction of GST (Goods & Services Tax), which will provide some relief to the DTH industry from multiple taxes from the Centre and the States. Focus on building infrastructure, power generation and opportunity for rural employment will increase income and purchasing power, which will add impetus to the television industry and DTH service providers.”

Anjan Mitra, Executive Director-India, Cable and Satellite Broadcasting Association of Asia (CASBAA), explained, “Any additional tax imposed on (import of) set-top boxes is like taking a step back. Imposition of an additional 5 per cent duty on STBs will hit spread and process of digitalisation in India, which had been flagged by TRAI, MIB and the PMO as a priority area. With STBs likely to become costlier, the consumer ultimately will have to shell out more.”

He further said, “At a time when the world is moving towards digitalisation, India’s tax structure is not giving any additional incentives for this. The situation is sad as domestic manufacture of STBs is almost next to nil and cable and DTH operators have no option but to import these STBs.”

Meanwhile, speaking on the scrapping of Fringe Benefit Tax, Barun Das, CEO, Zee News Ltd, said, “FBT waiver is of course welcome. However, certain parities with respect to print media are definitely need of the hour. The electronic media is still in its nascent stage as compared to the much older print media. Customs duty on STBs would not help in the proliferation of digitalisation. Digitalisation is definitely a way forward, which will help the television industry realise its true potential.”

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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