Digital Takes the Lead as India’s Media and Entertainment Industry Soars to $29 Billion, FICCI-EY Report Shows

According to the annual Federation of Indian Chambers of Commerce and Industry (FICCI)-EY report, India's media and entertainment industry reached ₹2.5 trillion ($29.4 billion) in 2024.

Entitled 'Shaping the Future: Indian Media and Entertainment Is Writing a New Chapter,' the report indicates that digital media has surpassed television as the leading sector for the first time, making up 32% of overall earnings and concluding TV’s twenty-year dominance.

Advertising revenues increased by 8.1%, hitting a record level of $14.9 billion. The growth was primarily spearheaded by digital platforms, where expenditures on e-commerce, short videos, and social media propelled digital advertising up to $8.18 billion, representing 55% of the overall advertising market. Meanwhile, print and radio maintained steady ad income levels. Notably, digital out-of-home advertising surged dramatically by 78%, accounting for 12% within this sector.

In 2024, India’s film industry unveiled 1,823 movies, marking a rise of 64 from the prior year. About 500 new titles debuted online; however, just 60 were exclusively digital releases. Roughly 200 films were dubbed versions, which means more than 1,600 originals remained in their native languages. Additionally, the nation saw growth in cinema screens with a 2% expansion, totaling 9,927 screens. Despite this progress, India still has one of the lowest numbers of screens per capita globally—lagging behind countries like China and the U.S. This limited infrastructure hinders box office earnings, especially within less developed regions such as Tier III and IV markets, where untapped audience potential persists due to inadequate facilities.

Even with these obstacles, the year witnessed South Indian movies—headed by "Pushpa 2: The Law" and "Kalki 2898 AD"—continuing their dominance at the box office. A considerable portion of high-earning films originated from the Telugu, Tamil, and Kannada film sectors, sustaining robust appeal both regionally and progressively within Hindi-speaking areas as well. Factors such as successful dubbing editions along with nationwide actor lineups significantly reinforced Southern cinema’s presence.

The top multiplex operator PVR Inox aims to introduce 100 additional screens in fiscal year 2025. According to the report, this expansion, along with an increase in mainstream content and affordable cinemas in lesser-developed areas, might boost India’s movie-going population from less than 100 million to approximately 175 million individuals. However, revenue from filmed entertainment decreased by 5%, totaling $2.18 billion, due to a decline in theater visits. Only 11 Hindi movies managed to earn more than INR1 billion ($11.7 million) each, compared to 17 such films in the previous year. Additionally, both satellite and digital rights valuations saw a reduction of 10%.

Television saw further declines as revenues dropped 4.5%, totaling $7.93 billion. The number of pay TV subscribers decreased by six million, whereas connected TV users increased to 30 million. In print media, which remained relatively stable at $3.04 billion, advertising income rose slightly by 1%, yet subscriptions fell by the same percentage. Meanwhile, radio experienced a moderate uptick of 9%, reaching $292 million, largely due to event-driven opportunities and diversified revenue sources.

Online gaming revenue decreased by 2% to reach $2.71 billion, largely due to a 28% Goods and Services Tax (GST) on deposits as well as an increase in unauthorized international websites. The segment for transactional games declined by 6%, whereas casual and free-to-play categories expanded by 16%. Despite the rise of paid subscriptions from 7 million to 10.5 million, music revenues still dipped by 2% to stand at $619 million. This decline was partly because free alternatives such as YouTube and traditional radio stations kept eroding the expansion of premium subscribers.

The animation and visual effects sector experienced a significant downturn due to the impact of the Hollywood writers' strike and decreased global demand, resulting in an 9% decline to $1.2 billion. Conversely, live events saw a substantial increase of 15%, reaching $1.18 billion, thanks largely to growth from international tours, wedding expenditures, and spending related to elections. Additionally, out-of-home media witnessed a rise of 10% up to $0.69 billion, spurred mainly by high-demand inventories and strategic placements at transportation hubs.

In the future, the Indian Media & Entertainment sector is anticipated to expand with an annual compounded growth rate of 7%, reaching a total valuation of $36.1 billion by 2027. The digital media segment will spearhead this growth, amassing up to $12.9 billion. Online gaming is also set for significant development, potentially increasing to $3.69 billion. Additionally, animation and visual effects sectors together could surge to approximately $1.72 billion, whereas live events may climb to around $1.95 billion. Although filmed entertainment might see only moderate recovery, hitting about $2.49 billion, traditional television broadcasting continues its downward trajectory, likely declining down to roughly $7.79 billion.

By 2027, digital and gaming combined are expected to make up 46% of the total industry revenue, with traditional segments like TV, print, and film reduced to a 41% share. Advertising will contribute 52% of total revenues, while subscription revenue will shrink to 35%.

As stated by Kamal Haasan, chairman of FICCI Media and Entertainment South, in the report’s preface, 'In the realm of media and entertainment, two dominant elements stand out: content and the audience.' He further elaborates, ‘Entering a new phase where digital takes precedence, it falls upon us to cater to these factors through daring, innovative narratives that encapsulate the profound variety within our country. Utilizing this capability will help maintain the vitality and significance of the industry amidst continuous transformation.’

Ashish Pherwani, the media and entertainment leader at EY India, commented: "Ultimately, this digital turning point. It alters everything."

"The future is brimming with untapped potential," said Kevin Vaz, chair, FICCI, media and entertainment committee.