Driven by digital media, the Indian media and entertainment (M&E) sector grew 3.3% in 2024, reaching Rs 2.5 trillion (US$ 29.4 billion) in 2024, says the FICCI-EY report 2024. Digital media contributed 32% of the M&E sector’s revenue, becoming the largest segment, while traditional media such as television, print, and radio saw declines in core advertising and subscription revenues. OOH media, however, registered a decent jump, in good news for the signage industry.
Print revenue grew 1% in 2024, with premium ad formats driving growth. Subscription revenues fell 1%, says the report, ‘Shape the future: Indian media and entertainment is scripting a new story.’
The M&E sector is expected to grow at 7.2% in 2025 to reach Rs2.7 trillion (US$31.6 billion) and continue growing at a CAGR of 7% to reach Rs3.1 trillion (US$36.1 billion) by 2027, it said. New media, including digital media and online gaming, grew 12% and now make up 41% of the M&E sector’s 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 Rs2.68 trillion (US$31.6 billion).
The landscape of the Indian Media and Entertainment (M&E) has undergone a significant transformation, with digital media finally breaking television’s 20-year stronghold to become the largest segment in the industry, writes Ashish Pherwani, EY India Media & Entertainment Leader, said. “This historic milestone marks the dawn of a new era, one where digital platforms redefine not only the creation, distribution, and monetization of content but also the very core of what the M&E sector represents.”
A snapshot of how each segment fared in 2024:
Digital advertising: Digital advertising grew 17% to reach Rs700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e-commerce advertising (50%), which reached Rs147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over Rs258 billion.
Digital subscription: Revenues grew 15% to Rs102 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 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 Rs25 billion on the back of a growth in ad volumes and alternative revenue streams. On 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 such as 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 Rs187 billion, with over 1,600 films released in 2024. Theatrical admissions declined, and only 11 Hindi films grossed Rs1 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.
