In 2001, film was accorded ‘industry’ status by the Indian
Government this making it eligible for film financing from
banks and financial institutions while the Industrial
Development Bank of India (IDBI) set up the country’s first
film fund worth 100 crores. Cable television is the largest
revenue earner with television broadcasting in second place
and film third, followed closely by television production.
The future primary
drivers for the entertainment industry will be growth in
GDP, changes in demographic and the adoption of digital
technology by the industry.
Fallout: No excise duty on CD
ROMs, but excise duty is levied on the audio CDs and video
CDs although the manufacturing process, requirement of raw
material and plant requirement for three types is the same.
On top of it, a 4% excise duty as been imposed on MRP with
regard to audiocassettes. No abatement has been offered
with respect to this service tax on broadcast services.
In the entertainment
segment, the films sector has been given the Industry status
by the government. Estimates show that the entertainment
industry is currently generating revenue of Rs. 100 billion
and this will be able to increase by Rs. 315 billion by the
year 2005. These measures include allowing listing to a
company with 10% public ownership skin to the information
technology industry. The FM radio broadcasting has been
privatized. The current size of film segment, according to
the latest estimate, is worth Rs. 22 billion. The average
growth budget for the films has been increasing by 15% per
Another high growth
segment of the entertainment industry is the television
broadcasting. The present size of this segment is estimated
to be Rs. 35 billion.
revenues of the television channels are estimated to be
around Rs. 25 billion currently. There are thirty five
million households having access to about seventy channels
the cable networks. The penetration of cable TV,
particularly in the rural segment is expected to grow by 12%
in the coming years.
The music industry is
dominated by MC sales rather than CDs. The music industry
in India is expected grow rate of 18-20% in the coming