The latest FICCI-EY report, titled “Shape the Future: Indian Media and Entertainment is Scripting a New Story,” highlights a significant milestone for India’s Media and Entertainment (M&E) sector in 2024, which has reached a total value of INR 2.5 trillion (US$29.4 billion). This marks a growth of INR 81 billion, reflecting a 3.3% increase from the previous year. However, the growth rate has slowed from 8.3% in 2023, due to falling subscription revenues and a global decline in Animation and VFX outsourcing to India. The M&E sector contributed 0.73% to India’s GDP in 2024.
A key takeaway from the report is that digital media in India has overtaken television to become the largest segment within the M&E sector, now contributing 32% of total revenues. This marks a pivotal shift in how media consumption patterns are evolving in the country. The advertising revenues of the Indian M&E sector grew by 8.1%, driven primarily by digital platforms, including e-commerce websites and premium Out-of-Home (OOH) media. This growth is also attributed to the resilience of print and radio retail advertising.
Kevin Vaz, Chairman of FICCI’s Media and Entertainment Committee, emphasized the sector’s transformative moment, stating that rapid digital adoption and evolving consumer preferences are unlocking immense opportunities for all players in the ecosystem. He predicts that India’s media market will surpass INR 3 trillion by 2027, underscoring the sector’s vast potential.
Ashish Pherwani, Partner and Media & Entertainment Leader at EY India, noted that the digital revolution has reshaped content creation and consumption, giving rise to immersive storytelling and interactive experiences. The sector is now in a paradigm shift, with digital media leading traditional media in both value and impact.
The report also showcases the resilience of India’s M&E industry amidst global economic challenges. Jyoti Vij, Director General of FICCI, reiterated the dynamic growth of the sector, pointing out the 8.1% rise in advertising revenues and the exponential growth of digital media, cementing India’s position as a global leader in content creation and consumption.
Key Findings from the FICCI-EY Report:
- Advertising Growth: Indian advertising grew by 8.1% in 2024, with digital media accounting for 55% of total ad spends.
- M&A Activity: M&A value saw a significant rise of 9.5x, with 9 deals valued over INR 5 billion each.
- Digital Media Dominance: Digital media is expected to be the first M&E segment to surpass INR 1 trillion in ad revenues by 2026.
- Growth Projections: The Indian M&E sector is expected to grow by 7.2% in 2025, reaching INR 2.7 trillion, and continue expanding at a CAGR of 7% to reach INR 3.1 trillion by 2027.
Segment Performance in 2024:
- Digital Advertising: Digital advertising grew by 17%, reaching INR 700 billion, driven by short video, social media, and e-commerce ads.
- Digital Subscription: Revenues grew by 15%, with paid video subscriptions increasing to 111 million.
- Live Events: Organized events grew by 15%, supported by government, election-related events, and international acts.
- OOH Media: OOH media grew by 10%, with digital OOH increasing by 78%.
- Radio: Radio revenues grew by 9%, with 20% from events and content production.
- Print: Print advertising grew by 1%, but digital revenues remain under 5% of total print revenues.
- Music: Music revenues fell by 2%, impacted by lower streaming royalty rates.
- Online Gaming: Revenue growth slowed due to regulatory changes, but casual gaming grew by 16%.
- Film: Film revenues declined by 5%, with fewer Hindi films grossing over INR 1 billion.
- Television: Television revenues fell for the second consecutive year.
- Animation and VFX: Revenues declined by 9%, impacted by a global slowdown in outsourcing.
Future Projections:
- The M&E sector is expected to grow at over 7% annually, surpassing INR 3 trillion by 2027.
- Key trends include a focus on subscription revenues, content monetization, consolidation, and the global export of content.
- Artificial intelligence will play a significant role in improving efficiencies across content production, distribution, and personalization.