India’s M&E sector to reach INR 3.10 lakh crores in value by 2027: Study

India’s media and entertainment (M&E) sector is expected to touch INR 3.10 lakh crores in value terms by 2027, growing at 7.2% rate from INR 2.70 lakh crores level in 2025. This was revealed in the latest FICCI-EY report titled, ‘Shape the future: Indian media and entertainment is scripting a new story’. The report states that the sector reached a total value of INR 2.50 lakh crores (US$29.4 billion) in 2024, representing a 3.3% growth (or INR 8,100 crores in value) compared to the previous year. Innovative business models, strategic alliances, and industry consolidation are seen as the key drivers behind the sector’s growth, the report notes.

This growth, however, has slowed down from 8.3% in 2023 (over 2022), due to falling subscription revenues, and a global decline in animation and VFX work outsourced to India. The sector contributed 0.73% to India's GDP in 2024.

Digital media has overtaken television to become the largest segment within India’s M&E sector, contributing 32% to the sector’s overall revenues. The growth in the sector’s advertising revenues is led by performance advertising on digital platforms, including e-commerce websites, and a surge in demand for premium and digital out-of-home (OOH) media. This growth has been further enhanced by the resilience of print and radio retail advertising revenues. Digital media (17%), live events (15%), and OOH media (10%) have been key drivers of growth, the report observes.

Ms Jyoti Vij, director general, FICCI, said, “The FICCI-EY report captures the resilience and dynamism of India’s media and entertainment sector. The 8.1% rise in advertising revenues and the exponential growth of digital media highlight India’s leadership in content creation and consumption.”

Of the total ad spends, digital media controlled 55% share. The mergers and acquisitions (M&A) activity that drastically dropped in 2023, witnessed a strong bounce-back posting 9.5x growth in 2024 with nine deals being of over INR 500 crores each. Digital media is expected to be the first segment within the M&E sector to cross INR 1 lakh crores in ad revenues in 2026.

Kevin Vaz, chairman, media and entertainment committee, FICCI, 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.”

Segment-wise performance in 2024

India’s digital advertising business grew 17% to reach INR 70,000 crores, contributing 55% to the sector’s total advertising revenues. Growth was led by short video and social media (11%) and e-commerce advertising (50%), which reached INR 14,700 crores. Interestingly, digital advertising spending by SMEs and long-tail advertisers stood at over INR 25,800 crores. The digital subscription revenues grew 15% to INR 10,200 crores. This growth was driven by market expansion and the proliferation of connected TVs. Nearly 4.7 crore households paid for an average of 11.1 crore video OTT subscriptions; and about 13 crore subscriptions by the end of 2024—including bundled subscriptions—which works out to around 2.3 subscriptions per household on average.

The growth in online gaming revenues slowed due to the 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.

A small setback was also witnessed in the film segment. Although more than 1,600 films were released in 2024, the overall theatrical admissions declined, and only 11 Hindi films grossed INR 100 crores, down from 17 in 2023. The overall film revenues dropped 5% to INR 18,700 crores. Both digital and satellite rights values fell by 10% as broadcast and OTT buyers focused on profitability.

In television, the linear TV revenues fell for the second consecutive year. The year 2024 saw 6% and 3% drop in linear TV advertising and subscription revenues, respectively. Pay TV homes decreased by 60 lakhs, while free TV and connected TV homes saw an increase. The weekly active connected TVs grew to 3 crores in 2024 from 2.3 crores in 2023.

A range of factors including a strike by Hollywood writers and struggling international studios led to a 9% revenue decline for animation and VFX in 2024. The reduced broadcast ad revenues also impacted the production of animated content in India.

The paid music subscriptions rose from 70 lakhs to 1.05 crores, while news subscriptions remained at 31 lakhs. The revenues of the music segment fell by 2% due to a push to reduce free music consumption and lower streaming royalty rates. Free alternatives like YouTube and radio limit the growth of the paid subscriber base.

The organised segment of live events grew 15% driven by increased spending 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 media grew 10% in 2024 across both traditional and transit media with premium properties and locations leading the growth. Digital OOH grew 78% and contributed 12% of total segment revenues, up from 7% in 2023.

The radio segment revenues grew 9% in 2024 to INR 2,500 crores on the back of a growth in ad volumes, and alternate revenue streams. On average, 20% of radio revenues were related to events, content production, and other revenue streams.

The print ad revenues grew 1% in 2024, with premium ad formats driving growth. Subscription revenues of print publications fell 1%, while their digital revenues remained sub-scale, at under 5% of total print revenues.

Ashish Pherwani, media and entertainment leader, and partner, 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. 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.”

Through the looking glass

As the media and entertainment industry expects to grow by 7% in the next three years, the report expects to see a rising focus on growing subscription revenues, 360-degree monetisation of content, efforts to aggressively protect intellectual property, consolidation within segments, and an increase in exports of content and content services–boosting the ‘Made in India for the world’ trend.

All segments are expected to concentrate on digital extensions or integrations, and measurement will evolve to provide an integrated view of audiences across platforms. Artificial intelligence will play a large role in bringing efficiencies across content production, distribution and personalization, as well as operating efficiencies. The online gaming segment might 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, the report notes.

Commenting on the findings of the report, Ashish Shelar, minister of information technology and cultural affairs, Government of Maharashtra, said, “My department and my government will take the lead to see the best suggestions from this report and implement as a part of the upcoming 100 days programme of the cultural affairs ministry of Government of Maharashtra.”