The Union Budget 2009−10 has conflicting signals for the broadcasting sector. The 5 percent customs duty levied on set-top boxes will hurt both cable and DTH segments as cost increases are likely to be passed on to consumers, as per preliminary feedback from cable and DTH operators. At the same time, the massive increase in Government rural spending will result in more rural demand especially for DTH services.

Interestingly, Videocon has televisions with inbuilt set-top boxes as part of its DTH service and there could be some advantage that accrues to Videocon over its competitors who have only the set-top box offering. However, Videocon is still in the soft launch phase of its DTH service and will be launching only in Punjab and adjoining areas this month.

The general increase in Government spending could also find its way into Doordarshan and AIR budgets especially with the thrust on rural areas. The budget for the Commonwealth games 2010 has also been enhanced and some of this could benefit the broadcasting sector.

The earth station market in India has witnessed a sharp decline in 2008-09, from Rs. 62 crore in 2007−08 to Rs. 39 crore in 2008−09. There are issues related to limited availability of bandwidth from existing satellites, rising cost of transponder space due to rupee value depreciation, and regulatory authority direction to switch to C-band. Industry experts expect the scenario to improve in 2010-2011 with the launch of new satellites by ISRO and SES and greater use of MPEG-4 technology by operators.

The professional audio market in India seems to finally be coming out of its slumber. Sales are picking up and products seem to back in demand. The slow period brought about a shift in preference toward high technology, high quality equipment. The Indian market however continues to be dominated by foreign brands, with barely any indigenous products on the shelves. Customers prefer turnkey solutions rather than just buying various products as boxes. This adds to the revenues of the audio equipment suppliers.