The Indian media and entertainment (M&E) sector grew 3.3% in 2024, reaching Rs 2.5 trillion, according to the latest FICCI EY report.
The media and entertainment sector is expected to grow 7.2% in 2025 to reach Rs 2.7 trillion (US$31.6 billion) and continue growing at a CAGR of 7% to reach Rs 3.1 trillion (US$36.1 billion) by 2027, as per the report.
As per the FICCI-EY report, “Shape the future: Indian media and entertainment is scripting a new story”, Digital media emerged as the largest segment, accounting for 32% of revenues, while traditional media like television, print, and radio saw declines in core advertising and subscription revenues.
Advertising revenues increased by 8.1%, driven by digital performance advertising and demand for premium media. However, subscription revenues fell due to a decrease in Pay TV homes and poor theatrical performances by films. Overall, the sector is projected to grow by 7.2% in 2025, reaching Rs 2.68 trillion (US$31.6 billion).
In 2024, the Indian Media and Entertainment landscape showed varied performance across key segments. Digital channels drove significant growth, while traditional areas faced more challenges amid shifting consumer behaviours. Here is a snapshot of how each segment fared in 2024:
Advertising revenues grew 8.1%, led by performance advertising on digital media, including spends on e-commerce platforms, growth in demand for premium and digital OOH media and resilience of print and radio retail revenues.
Segmental performance in 2024:
Digital advertising: Digital advertising grew 17% to reach Rs 700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e-commerce advertising (50%), which reached Rs 147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over Rs 258 billion.
Digital subscription: Revenues grew 15% to Rs 102 billion. Paid video subscriptions increased by 11 million to 111 million, across 47 million households. Paid music subscriptions rose from 7 million to 10.5 million, while news subscriptions remained at 3.1 million.
Live events: The organised segment grew 15% driven by increased spends across government and election related events, personal events and weddings, and ticketed events, including several international acts and concert formats that played to packed venues in India.
OOH: OOH media grew 10% in 2024 across both traditional and transit media. Premium properties and locations led the growth. Digital OOH grew 78% and contributed 12% of total segment revenues, up from 7% in 2023.
Radio: Radio segment revenues grew 9% in 2024 to Rs 25 billion on the back of a growth in ad volumes, and alternate revenue streams. On an average, 20% of radio revenues are related to events, content production and other revenue streams.
Print: Revenues grew 1% in 2024, with premium ad formats driving growth. Subscription revenues fell 1%, while digital revenues remained under 5% of total revenues.
Music: Revenues fell by 2% due to a push to reduce free music consumption and lower streaming royalty rates. Paid subscriptions grew from 8 million to 10.5 million, but the overall audience dropped from 185 million to 175 million. Free alternatives like YouTube and radio limit the growth of the paid subscriber base.
Online gaming: Growth slowed to single digits due to the 28% GST on deposits and the rise of illegal offshore sites. Net revenues fell by 6%, while casual gaming grew by 16%, resulting in an overall 2% decline.
Film: Revenues dropped 5% to Rs 187 billion, with over 1,600 films released in 2024. Theatrical admissions declined, and only 11 Hindi films grossed Rs 1 billion, down from 17 in 2023. Both digital and satellite rights values fell by 10% as broadcast and OTT buyers focused on profitability.
Animation and VFX: The Hollywood writers’ strike and struggling international studios led to a 9% revenue decline in 2024. Reduced broadcast ad revenues also impacted the production of animated content in India.
Television: Linear TV revenues fell for the second consecutive year with a 6% drop in advertising revenue and a 3% decline in subscription revenue. Pay TV homes decreased by six million, while Free TV and Connected TV homes increased. Connected TVs grew to 30 million from 23 million in December 2023.
Looking ahead, the Indian Media and Entertainment sector is poised for significant developments. The combination of innovative business models, strategic alliances, and industry consolidation will play a critical role in determining its future direction, the report stated.
Future projections:
New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%).
“Barring unforeseen situations, we expect all segments to grow or remain flat, except linear television, so long as India’s real GDP grows 5% or more,” the report stated.
By 2027, new media (digital + online gaming) will comprise 46% of M&E sector revenue, while traditional media (TV + print + film + radio + OOH) will contribute 41% of total M&E sector revenues. Advertising will comprise 52% of total sector revenues in 2027, while share of subscription will reduce to 35% by 2027.
