The Indian media and entertainment (M&E) sector has undergone a historic transformation, with digital media overtaking television for the first time to become the industry’s largest revenue contributor. In 2024, the sector grew by 3.3% to reach Rs 2.5 trillion (US$29.4 billion), with digital media accounting for 32% of total revenues. The trend signals a fundamental shift in consumer behavior and business strategies across the industry.
According to the FICCI-EY report titled Shape the Future, the sector is expected to expand further in 2025, growing by 7.2% to Rs 2.68 trillion (US$31.6 billion). The momentum will continue, with the market projected to reach Rs 3.1 trillion (US$36.1 billion) by 2027, driven primarily by digital platforms and new media formats.
Digital advertising saw an impressive 17% growth in 2024, reaching INR 70,000 crore (US$8.2 billion) and accounting for 55% of total advertising revenue. The biggest drivers were e-commerce advertising (50% growth) and social media ads (11% growth). Meanwhile, digital subscription revenues grew by 15% to Rs 10,200 crore (US$1.2 billion), with paid video subscriptions increasing to 111 million across 47 million households.
Streaming services like Netflix, Amazon Prime Video, and JioHotstar capitalised on this trend, expanding regional content offerings. However, cost-conscious strategies led to fewer new original productions and reduced post-theatrical acquisitions.
While digital media flourished, television, print, and radio struggled to regain pre-pandemic levels. Linear TV saw its advertising revenue fall by 6% and subscription revenue decline by 3%, as six million Pay TV households cut their subscriptions in favor of Free TV and Connected TV options. Connected TV households grew from 23 million to 30 million in 2024, further reinforcing the digital transition.
Print media, despite its global decline, saw 1% growth in advertising revenue, driven by premium ad formats and a loyal, affluent readership. However, subscription revenues fell slightly, and digital contributions remained under 5% of total revenues.
The film industry faced another tough year, with revenues declining 5% to Rs 18,700 crore (US$2.2 billion). The number of films released exceeded 1,600, yet only 11 Hindi films crossed the Rs 100 crore (US$12 million) mark, down from 17 in 2023. High ticket prices and lackluster content deterred audiences, while digital and satellite rights values dropped by 10%.
Meanwhile, online gaming, which had been on an explosive growth trajectory, slowed due to a 28% GST on player deposits. As a result, revenues fell 6%, with many players turning to offshore gaming platforms. Casual gaming, however, remained a bright spot, growing 16% year-on-year.