As the Union Budget approaches, the broadcast industry once again finds itself calibrating expectations amid a prolonged phase of pressure on advertising revenues.
While the sector has traditionally looked to fiscal policy for direct relief, there is a broader recognition that its fortunes are closely intertwined with the overall health of the economy and, more specifically, with consumer spending. Industry stakeholders broadly agree that meaningful improvement in advertising revenues will only come if the Budget succeeds in reviving consumption, increasing disposable incomes and creating a more supportive policy environment for media and entertainment as a whole.
According to sources, a broadcasters’ body has urged the government to reduce GST on subscriptions across cable television and OTT platforms from the current 18 % to 5%, arguing that the prevailing GST rate is misaligned with the role television and online curated content platforms play in modern India.
For a vast majority of the population, linear television and OTT services remain the primary, and often the only means of accessing entertainment, sports, news and educational programming. Beyond leisure, these platforms are key conduits for information on government schemes, public policy, current affairs and social issues, making them integral to civic engagement and awareness rather than optional indulgences, it said.
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Broadcasting experts emphasised that a reduction in GST to 5% would have a significant socio-economic impact. Lower subscription costs would directly increase disposable income for millions of households, particularly in price-sensitive markets, while making quality content more affordable and accessible.
According to industry sources, the broadcasters’ body has further strengthened its argument by drawing parallels with the GST framework applied to film exhibition.
It said that the current structure for cinema tickets recognises the importance of affordability, with a lower 12 % GST rate for tickets priced up to Rs 100 and 18 % for higher-priced tickets, adding that this differential treatment is designed to ensure that cinema, one of the most common out-of-home entertainment options, does not become the preserve of higher-income consumers alone. Several industry stakeholders have already pointed out that the Rs 100 threshold has become outdated due to inflation and rising operational costs, with some proposing a 5 % GST rate on tickets priced up to Rs 300 to preserve affordability.
In contrast, the broadcasters’ body has highlighted an inconsistency in applying a higher GST rate to television and OTT subscriptions, which offer significantly greater value in terms of access and duration.
“A single movie ticket typically provides two to two-and-a-half hours of entertainment for one individual, whereas a TV channel or OTT subscription delivers an entire month of diverse content to an entire household. This fundamental distinction, household access over an extended period versus individual access for a few hours, makes television and OTT platforms the true vehicles of mass entertainment. Applying a higher tax rate to these services than to cinema, runs counter to the policy logic of promoting affordable entertainment for the masses,” it said.
From an economic standpoint, broadcasters have also linked GST reduction to broader growth objectives. Lower taxes would lead to reduced prices, higher adoption and greater participation in the digital ecosystem. This, in turn, could stimulate the creator economy, increase digital literacy, boost data consumption and create positive spillover effects across allied sectors.
By encouraging more households to formally subscribe to content services, the government could also expand the tax base in the long run through volume growth, while aligning the tax regime with India’s long-term digital ambitions.
Offering a pragmatic perspective on how the budget typically affects broadcasters, Kailash Adhikari, Business Head of Sri Adhikari Brothers (SAB Network), said, “the impact of the Budget on broadcasting is largely indirect, flowing through its influence on consumption rather than through sector-specific incentives.”
Advertising expenditure, he notes, rises only when consumer spending increases, and that in turn depends on higher disposable incomes in the hands of consumers. Adhikari points to recent examples to underline this relationship. Measures such as last year’s personal tax relief and recent GST cuts put more money into consumers’ pockets, which helped revive consumption and encouraged advertisers to loosen their purse strings.
From a broadcaster’s standpoint, any policy intervention that enhances disposable income or improves financial freedom for households eventually strengthens demand for goods and services, prompting brands to spend more on advertising.
In that sense, broadcasters stand to benefit from a consumption-led Budget even if there are no direct announcements for the media sector.
Beyond these perspectives, other industry experts remain cautious about expecting dramatic shifts driven by the Budget alone.
A senior broadcast expert, speaking on condition of anonymity, said that the era when Union Budgets triggered sweeping changes in media spending patterns is largely over.
“Two decades ago, Budget announcements could significantly alter advertiser sentiment and allocation decisions. Today, however, media planning has become far more structured, data-driven and deliberate. Clients now operate with well-defined annual plans, allocating spends across media based on long-term business strategies rather than short-term policy signals, the expert said.
According to this expert, while there may be marginal shifts in specific categories, a deep or immediate impact on television advertising is unlikely.
From the agency side, Anil Solanki, Senior Director at Dentsu X, echoes the view that demand revival is the single most important expectation broadcasters have from the Budget.
“For broadcasters, the biggest Budget expectation is revival of demand. Any push toward higher consumption—especially in rural markets—will directly translate into healthier TV ad spends. Policy clarity on TV measurement, GST rationalisation, and parity between digital and broadcast platforms would be meaningful positives for the TV industry.
“Ultimately, a growth-led Budget is the strongest catalyst for advertising recovery in the broadcast sector rather than headline-grabbing incentives,” he said.
At the same time, there is a growing acknowledgement within the industry that even if overall advertising spends rise, traditional broadcasting may not capture a proportionate share of that growth.
Experts believe that a significant portion of incremental ad budgets is increasingly flowing toward digital platforms, social media and influencers, where targeting, measurement and perceived ROI are often seen as more attractive.
This structural shift continues to put pressure on television ad revenues, reinforcing the argument that broadcasters need both macroeconomic support and regulatory parity to remain competitive.
Taken together, these perspectives underline a common theme: the broadcast sector’s expectations from the Union Budget are less about direct fiscal sops and more about structural and consumption-led reforms. Whether through GST rationalisation, increased disposable incomes or clearer policy frameworks, the industry is looking for conditions that can revive demand and restore advertiser confidence.