India’s Media and Entertainment (M&E) sector has marked a major milestone, crossing INR 2.5 trillion in 2024, as revealed by the FICCI-EY report titled “Shape the future: Indian media and entertainment is scripting a new story.” The industry has experienced significant growth, with a 3.3% increase compared to the previous year, despite challenges like falling subscription revenues and the global slowdown in Animation and VFX work outsourced to India. This impressive growth demonstrates the sector’s contribution to the nation’s economy, now accounting for 0.73% of India’s GDP in 2024.
One of the most noteworthy developments in the M&E sector is the rise of digital media, which has overtaken television to become the largest segment. Digital media has contributed 32% to the total revenues, surpassing traditional TV, which held the top spot for over two decades. The surge in digital media can be attributed to strong performance in digital advertising, with a remarkable growth of 17% to reach INR 802 billion. This shift marks a significant change in the consumption patterns of content, with digital platforms now leading the charge in how audiences interact with media.
Advertising revenues across the M&E sector saw an 8.1% growth in 2024, mainly driven by performance advertising on digital platforms, especially e-commerce websites, and digital out-of-home (OOH) media. Digital advertising now accounts for 55% of the total ad spends, which underscores the growing dominance of digital in the advertising landscape. Additionally, live events saw a strong 15% growth, crossing INR 100 billion for the first time, while OOH media grew 10%, benefiting from premium locations and digital OOH formats.
While digital media and advertising revenues have driven much of the sector’s success, certain segments faced declines. Subscription revenues, particularly in television, print, and online gaming, saw a reduction. The television industry, for instance, experienced a 6% decline in advertising revenue and a 3% fall in subscription revenue. Additionally, the animation and VFX sectors were impacted by global trends, leading to a 9% decrease in revenue.
Looking ahead, the Indian M&E sector is expected to continue its growth trajectory, with a 7.2% increase forecasted for 2025, reaching INR 2.7 trillion. By 2027, the sector is expected to grow at a CAGR of 7% to reach INR 3.1 trillion, fueled by the increasing digital shift, innovations in content delivery, and strategic collaborations within the industry.
Key trends highlighted in the report include the continued rise of digital media, the increasing importance of artificial intelligence in content production and distribution, and the need for regulatory reforms, particularly in the online gaming industry. The future of India's M&E sector is poised for further transformation as it adapts to the ever-changing digital landscape and capitalizes on emerging opportunities.