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Falling subscriptions, slowdown in animation, VFX taper entertainment sector's growth in 2024

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In 2024, digital media overtook television to become the largest segment within the media and entertainment sector.
The entertainment sector in India is facing a challenging year in 2024, with a projected growth slowdown to 8-10% from the previous year's 12-14%, according to a report by FICCI and EY. This deceleration is attributed to several factors including a decline in subscription revenues for streaming services, which are now focusing on profitability over expansion. The animation and VFX industry, although growing, is not expanding as rapidly as before due to a lack of skilled talent and the high costs associated with quality production. Additionally, the sector is grappling with issues like the impact of new regulations on digital media, a potential reduction in advertising revenue due to economic conditions, and the ongoing shift in consumer behavior towards more selective content consumption. Despite these challenges, there are opportunities for growth through innovative content, strategic partnerships, and tapping into regional markets.

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