The Indian Media and Entertainment (M&E) sector is on the rise, reaching a total value of INR 2.5 trillion (approximately US$29.4 billion) in 2024, according to the latest FICCI-EY report. This marks a growth of INR 81 billion from the previous year, translating to a 3.3% increase. However, this growth rate is a decline from the 8.3% achieved in 2023, primarily due to falling subscription revenues and decreased global demand for Animation and VFX outsourcing.
Despite these challenges, the sector contributed 0.73% to India’s GDP in 2024. Advertising revenues witnessed a notable increase of 8.1%, propelled by performance-based digital advertising, a surge in e-commerce ad spending, and a growing demand for premium and digital Out-of-Home (OOH) media. Live events also saw significant growth, surging by 15% in 2024, crossing the INR 10,000 crore mark for the first time. This robust performance in live events is attributed to increased spending on government and election-related activities, personal celebrations, and ticketed concerts featuring international artists.
Kevin Vaz, Chairman of the FICCI Media & Entertainment Committee, emphasized the industry's potential, stating, "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. With India’s media and entertainment market expected to surpass INR 3 trillion by 2027, the future is brimming with untapped potential."
In 2024, the digital media sector experienced remarkable growth, expanding by 17% to reach INR 802 billion, making it the largest segment within the M&E industry. This segment now contributes an unprecedented 32% to the overall revenues, overtaking traditional television. The resilience of print and radio advertising revenues also played a role in the sector's overall performance, with print advertising revenues rising by 1% despite a 1% decline in subscription revenues.
Radio revenues grew by 9%, reaching INR 2,500 crore, bolstered by increased advertising volumes and alternative revenue streams. Interestingly, approximately 20% of radio revenues now come from events, content production, and other non-traditional sources. Meanwhile, the music segment faced a 2% revenue decline, attributed to efforts to curb free music consumption and lower streaming royalty rates. Despite this, paid subscriptions in the music sector increased, reaching 10.5 million.
Online gaming also faced challenges, with revenues falling by 2% due to the imposition of a 28% Goods and Services Tax (GST) on deposits and the rise of illegal offshore platforms. Transaction-based gaming saw a 6% decline in net revenues, while casual and free-to-play gaming grew by 16%. The film sector, despite releasing over 1,600 films in 2024, experienced a 5% drop in revenues. Theatrical admissions declined, and only 11 Hindi films grossed over INR 1,000 crore, down from 17 in 2023.
The Animation and VFX sector also struggled, experiencing a 9% revenue decline, primarily due to the Hollywood writers' strike and financial struggles faced by international studios. Reduced advertising revenues further impacted the production of animated content in India.
Looking ahead, the FICCI-EY report projects that the Indian M&E sector will grow by 7.2% in 2025, reaching INR 2,70,000 crore (US$31.6 billion), and will continue to expand at a compound annual growth rate of 7%, reaching INR 3,10,000 crore (US$36.1 billion) by 2027. The industry is expected to focus on increasing subscription revenues, monetizing content intellectual property, and consolidating within key segments. The export of Indian content and services is also set to grow, reinforcing India’s position as a global content powerhouse.
Artificial intelligence is anticipated to play a crucial role in enhancing efficiencies across content production, distribution, and personalization, while also improving operational efficiencies. However, the online gaming sector may continue to struggle unless regulatory measures are introduced to curb illegal offshore platforms. Indian companies may also seek to expand into foreign markets with more favorable regulatory environments.
At the recent FICCI Frames 2025 event in Mumbai, Kevin Vaz, CEO of Broadcast Entertainment at JioStar, hailed 2024 as a “breakthrough year” for the industry. He pointed out that India is on a firm trajectory to become the third-largest M&E market in the world by 2028, driven by growing global recognition and accolades at prestigious platforms like Cannes and the Oscars. He noted the emergence of India as a formidable VFX powerhouse and highlighted the unique “AND” market model, where traditional and digital media not only coexist but thrive simultaneously.
Vaz remarked, "Television and digital are not competing; they are complementing each other," with TV households expected to grow from 190 million in 2024 to 214 million by 2026. The Indian Premier League (IPL) exemplifies this dual-growth phenomenon, with viewership reaching 525 million on television and 550–600 million on streaming platforms. He emphasized that despite the rise of OTT platforms, television still commands over 30% of the overall M&E market, and OTT is rapidly becoming a major force in digital entertainment.
As the industry prepares for the future, Vaz urged stakeholders to seize the momentum and continue innovating, celebrating the achievements and exciting opportunities that lie ahead. The FICCI-EY M&E Industry Report, now in its 25th year, has become the benchmark for assessing the health and trajectory of the Indian media and entertainment sector, showcasing its resilience and dynamism despite global economic headwinds.
