Digital Surges Ahead as India’s Media and Entertainment Sector Hits $29 Billion, Annual FICCI-EY Report Reveals

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In 2024, it’s projected that India’s media and entertainment industry will reach a staggering INR2.5 trillion ($29.4 billion), as per an annual report from the Federation of Indian Chambers of Commerce and Industry (FICCI) in collaboration with EY.

Entitled ‘Shaping Tomorrow: The Indian Media and Entertainment Industry Writes a New Chapter,’ the study finds that digital media surpassed television as the industry’s dominant sector for the first time, making up approximately 32% of the total earnings, marking the end of TV’s 20-year rule.

The income generated from advertising increased by 8.1% to a record $14.9 billion. Digital channels were responsible for this growth, with spending on e-commerce, short videos, and social media pushing digital advertising up to $8.18 billion, accounting for approximately 55% of the entire ad market. Traditional print and radio platforms maintained steady revenue, while digital Out-of-Home advertisements surged by 78%, making up around 12% of the OOH segment.

In 2024, the Indian film industry churned out a total of 1,823 movies, which was 64 more than the previous year. Around half of these films debuted on streaming services, with only about 60 being exclusive digital releases. Roughly 200 films were dubbed versions, making up around 1,600 original language productions. The number of screens in India increased by 2%, reaching a total of 9,927 screens. However, screen density in India is still relatively low compared to countries like China and the U.S., with limited infrastructure continuing to impact theatrical earnings, particularly in less urban areas where potential audiences are under-catered for.

In spite of various obstacles, the year was marked by South Indian films, headlined by “Pushpa 2: The Rule” and “Kalki 2898 AD,” remaining at the forefront of box office earnings. A substantial portion of the highest-earning films originated from the Telugu, Tamil, and Kannada industries, which retained a robust draw in regional markets and, more recently, the Hindi-speaking region. The power of dubbed productions and pan-India casting methods further solidified the South’s influence.

PVR Inox, a top movie theater chain, intends to introduce 100 additional screens by the fiscal year 2024-2025. This expansion, along with an increase in mainstream film content and budget-friendly cinemas in rural areas, may potentially double India’s moviegoer population from approximately 100 million to around 175 million individuals. However, despite this growth, the earnings from the film industry decreased by 5% to $2.18 billion, due to a decrease in theater attendance and only 11 Hindi films earning more than INR1 billion ($11.7 million), compared to 17 in 2023. Furthermore, the value of satellite and digital rights also dropped by 10%.

The earnings of television broadcasting saw a drop of about 4.5%, landing at approximately $7.93 billion. This decline was accompanied by a reduction of six million households subscribing to pay TV, while the number of users for Connected TV increased to 30 million. Print media maintained its position with revenues around $3.04 billion, showing an increment of 1% in advertising income and a decrease of 1% in subscription numbers. Radio experienced a slight growth of 9%, reaching $292 million, primarily due to events and additional revenue sources.

The income from online gaming decreased by 2% to reach approximately $2.71 billion. This decline was primarily due to a high tax (28%) on deposits, as well as an increase in illegal offshore gaming platforms. Transactions-based gaming experienced a drop of 6%, while the categories of casual and free-to-play gaming saw growth of 16%. The music industry also dipped by 2% to $619 million, despite a rise in paid subscriptions from 7 million to 10.5 million. Free platforms like YouTube and radio continue to impact the growth of premium subscribers.

In summary, despite being affected by the Hollywood writers’ strike and fewer international orders, the animation and VFX industry experienced a drop of 9%, ending at approximately $1.2 billion. Conversely, live events saw an increase of 15% to about $1.18 billion. This growth was primarily due to international tours, weddings, and expenditures related to elections. Furthermore, out-of-home media registered a rise of 10%, reaching $0.69 billion. The boost in revenue can be attributed to premium inventory and strategic transit locations.

In the future, it’s predicted that the Media and Entertainment (M&E) sector in India will expand at a yearly rate of 7%, reaching an impressive $36.1 billion by 2027. The main driver of this growth is digital media, which is expected to surge to $12.9 billion. Online gaming is also forecasted to significantly increase, reaching $3.69 billion. In the realm of animation and VFX, we can anticipate a growth up to $1.72 billion. Live events are projected to make a substantial impact, estimated at $1.95 billion. Filmed entertainment is expected to recover slightly, amounting to $2.49 billion, while television may experience a continued downturn, dropping to $7.79 billion.

By the year 2027, it’s projected that digital and gaming sectors will comprise about 46% of the entire industry’s earnings, leaving traditional sectors such as television, print media, and film with a 41% share. Advertising is anticipated to account for around 52% of the total revenues, while subscription income may decrease to approximately 35%.

In the realm of media and entertainment, two powers hold dominion: content and the viewing public, asserts Kamal Haasan, head of FICCI Media and Entertainment South, in his introduction. As we transition into a digital-centric era, it is our duty to cater to both these forces with innovative, imaginative narratives that mirror the multifaceted tapestry of our country. By tapping into this potential, we can maintain the industry’s prosperity and significance amidst constant change.

(Note: I have tried to keep the tone informal yet professional while maintaining the original intent and meaning of the text.)

Ashish Pherwani, head of media and entertainment at EY India, commented: “At last, we’ve reached the turning point for digital technology. And it will transform everything.

Kevin Vaz, who heads the media and entertainment committee at FICCI, stated that there’s a vast, undiscovered opportunity waiting in the future.

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2025-03-27 11:47