Mumbai: The Indian Media and Entertainment (M&E) industry reached a total value of Rs 2.5 trillion (US$29.4 billion) in 2024, reflecting a growth of Rs 81 billion from the previous year, which marks a 3.3% increase, according to the latest FICCI-EY report. However, the growth rate slowed down to 3.3% in 2024 from 8.3% in 2023, primarily due to falling subscription revenues and a global decline in outsourced animation and VFX work to India.
The report forecasts that the M&E sector will grow by 7.2% in 2025, reaching Rs 2.7 trillion, with a compound annual growth rate (CAGR) of 7%, pushing the industry’s value to Rs 3.1 trillion by 2027.
One of the major shifts identified in the report is the rise of digital media, which grew by 17% in 2024, reaching Rs 802 billion, overtaking television to become the largest segment in the M&E industry. Television, which had been the largest segment for 20 years, saw a decline in revenues, with both advertising and subscription revenues falling by 6% and 3%, respectively. The number of Pay TV homes dropped by six million, while Free TV and Connected TV homes increased, with weekly active Connected TVs growing from 23 million in 2023 to 30 million in 2024.
Despite these declines in traditional media, the Indian M&E sector’s advertising revenues grew by 8.1%, driven largely by performance advertising on digital platforms, including e-commerce websites, and a surge in demand for premium and digital Out-of-Home (OOH) media. Digital media, live events, and OOH media have been key drivers of this growth, alongside the resilience of print and radio retail advertising revenues.
Key findings of the FICCI-EY report:
- Indian advertising grew 8.1% in 2024. Digital media comprised 55% of total ad spends
- M&A value grew ~9.5x in 2024 with 9 deals over Rs 5 billion each
- Digital media is expected to be the first M&E segment to cross Rs 1 trillion in ad revenues in 2026
- Looking ahead, the Indian M&E sector is expected to grow by 7.2% in 2025, reaching Rs 2.7 trillion (US$31.6 billion), and then expand at a Compound Annual Growth Rate (CAGR) of 7% to reach Rs 3.1 trillion (US$36.1 billion) by 2027. This growth trajectory is poised to be shaped by innovative business models, strategic alliances, and industry consolidation.
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 short video 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 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 organized 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: Ad revenues grew 1% in 2024, with premium ad formats driving growth. Subscription revenues fell 1%, while digital revenues remained sub scale, at under 5% of total print revenues
- Music: Revenues fell by 2% due to a push to reduce free music consumption and lower streaming royalty rates. Paid subscriptions grew from 7 million to 10.5 million. Free alternatives like YouTube and radio limit the growth of the paid subscriber base
- Online gaming: Growth slowed significantly due to imposition of 28% GST on deposits and the rise of illegal offshore sites. Accordingly, net revenues for transaction-based gaming fell by 6%. However, casual and free-to-play gaming grew by 16%, resulting in an overall 2% decline in the segment
- Film: Though over 1,600 films released in 2024, theatrical admissions declined, and only 11 Hindi films grossed Rs 1 billion, down from 17 in 2023. Revenues dropped 5% to Rs 187 billion. Both digital and satellite rights values fell by 10% as broadcast and OTT buyers focused on profitability.
- 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. Weekly active Connected TVs grew to 30 million in 2024 from 23 million in 2023.
- 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.
Future projections stated in the FICCI-EY report:
- Key trends will include a focus on growing subscription revenues, 360-degree monetisation of content intellectual property, consolidation within segments and increased exports of content and content services – making in India for the world
- All segments will focus on digital extensions or integrations, and measurement will evolve to provide an integrated view of audiences across platforms
- The online gaming segment could struggle unless illegal offshore platforms are not curbed, and Indian companies could look to build out business in foreign countries with a more conducive regulatory environment
- Artificial intelligence will play a large role in bringing efficiencies across content production, distribution and personalization, as well as operating efficiencies
Kevin Vaz, Chairman, FICCI, Media and Entertainment Committee, said, “The Indian media and entertainment industry is at a defining moment, driven by rapid digital adoption and evolving consumer preferences. This transformation is unlocking immense opportunities for content creators, advertisers, and technology innovators across all segments of the M&E ecosystem. With India’s media and entertainment market expected to surpass Rs 3 trillion by 2027, the future is brimming with untapped potential. FICCI remains committed to fostering collaboration and innovation to ensure that India’s M&E sector continues to thrive as a global powerhouse.”
Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, said, “The digital revolution has not only transformed how content is created and consumed but has also redefined the very essence of the M&E industry. From immersive storytelling and interactive experiences to innovative business models and strategic alliances, the landscape is continually reshaping itself. As digital media overtakes traditional mediums, we are witnessing a paradigm shift, where the value delivered across information, escapism, materialism, and self-actualization becomes the new benchmark for success.”
Jyoti Vij, Director General, FICCI “The FICCI-EY report reaffirms the resilience and dynamism of India’s Media & Entertainment sector, which continues to thrive despite global economic headwinds. The impressive 8.1% rise in advertising revenues and the exponential growth of digital media underscore India’s leadership in content creation and consumption. As the industry undergoes rapid transformation, FICCI remains steadfast in driving policy reforms, fostering strategic collaborations, and shaping a future-ready ecosystem that not only fuels sustainable growth but also strengthens India’s global influence in the M&E landscape.”
