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Future of Indian media & entertainment

Shape the future: The revolution in Indian Media and Entertainment sector

Photographic portrait of Ashish Pherwani
Ashish Pherwani

EY India Media & Entertainment Leader

6 minute read 27 Mar 2025
Related topics
Media and entertainment

India's M&E sector hit INR2.5 trillion, with digital media revolutionizing content creation and monetization.

In brief

  • The Indian M&E sector grew 3.3% in 2024, reaching INR2.5 trillion (US$29.4 billion). 
  • Digital media in India became the largest segment, contributing 32% of M&E sector revenues. 
  • The M&E sector is expected to grow 7.2% in 2025 to reach INR2.7 trillion (US$31.6 billion) and continue growing at a CAGR of 7% to reach INR3.1 trillion (US$36.1 billion) by 2027. 
  • New media, including digital media and online gaming, grew 12% and now make up 41% of the M&E sector’s revenues.

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. 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.

In the past, M&E was synonymous with providing knowledge and a means of escapism. Today, it has evolved into a multifaceted provider of value, catering to the diverse needs of consumers through four key tenets: information, escapism, materialism, and self-actualization. This comprehensive approach has become the new benchmark for media and content companies, as consumers increasingly evaluate the utility they receive across these dimensions.

What fueled the media mojo in 2024?

The Indian M&E sector grew by 3.3% in 2024, reaching INR2.5 trillion (US$29.4 billion) and contributing 0.73% to the GDP, 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 INR2.68 trillion (US$31.6 billion).

Segmental performance in 2024

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 behaviors. Here is a snapshot of how each segment fared in 2024:

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How EY can help

  • Digital advertising: Digital advertising grew 17% to reach INR700 billion, which is 55% of total advertising revenues. Growth was led by search and social media (11%) and e-commerce advertising (50%), which reached INR147 billion. Included in digital advertising are spends by SME and long-tail advertisers of over INR258 billion.
  • Digital subscription: Revenues grew 15% to INR102 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 INR25 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 INR187 billion, with over 1,600 films released in 2024. Theatrical admissions declined, and only 11 Hindi films grossed INR1 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.

Shape the future : Indian media and entertainment is scripting a new story

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Summary

The Indian Media and Entertainment (M&E) sector has seen a major shift, with digital media overtaking television as the largest segment. This change has redefined content creation, distribution and monetization, focusing on information, escapism, materialism and self-actualization. In 2024, the M&E sector grew by 3.3% to INR2.5 trillion (US$29.4 billion), with digital media contributing 32% of revenues. The sector is expected to grow by 7.2% in 2025, reaching INR2.68 trillion (US$31.6 billion).

About this article

Photographic portrait of Ashish Pherwani
Ashish Pherwani
EY India Media & Entertainment Leader
EY India M&E sector leader with more than 20 years of experience, serving companies in all the M&E sub-sectors. A mentor and coach to teams.
Related topics
Media and entertainment

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