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Fri, July 18, 2025
Indian Media and Entertainment Industry Grows 8% to Reach $28 Billion
//media-entertainment.news-articles.net/content/ .. inment-industry-grows-8-to-reach-28-billion.html
Published in Media and Entertainment on Sunday, July 20th 2025 at 11:27 GMT by Variety🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
The Indian media and entertainment industry grew 8% in 2023 to reach a value of $27.9 billion, according to the annual EY report.
India's Media and Entertainment Sector Surges Ahead: A Deep Dive into the 2024 Industry Report
In a landscape marked by rapid digital transformation and evolving consumer behaviors, India's media and entertainment (M&E) industry is experiencing unprecedented growth. According to the latest comprehensive report from FICCI and EY, released in 2024, the sector has not only rebounded from the disruptions of the pandemic but is charting a path toward becoming a global powerhouse. Valued at a staggering INR 2.3 trillion (approximately $27.5 billion) in 2023, the industry grew by 8% over the previous year, outpacing the national GDP growth rate. This expansion is driven by a confluence of factors, including surging digital consumption, innovative content strategies, and increasing investments in technology. As we delve deeper, it's clear that while traditional segments like television and print continue to hold ground, the digital realm—encompassing OTT platforms, online gaming, and social media—is the true engine of this boom. Projections indicate the industry could reach INR 3.1 trillion by 2026, signaling a compound annual growth rate (CAGR) of 10% over the next three years.
At the heart of this growth story is the television sector, which remains the largest contributor to the M&E pie, accounting for about 40% of total revenues in 2023. Despite facing headwinds from cord-cutting and the shift to streaming, TV revenues climbed to INR 760 billion last year, up 5% from 2022. This resilience can be attributed to several key trends. For one, the proliferation of smart TVs and connected devices has blurred the lines between linear broadcasting and on-demand viewing, with hybrid models gaining traction. Major broadcasters like Star India and Zee Entertainment have invested heavily in content diversification, blending high-octane sports programming—such as the Indian Premier League (IPL)—with regional language dramas that cater to India's diverse linguistic tapestry. Advertising remains the lifeblood of TV, contributing over 60% of its revenues, though subscription models are slowly gaining ground, especially in urban households. The report highlights challenges like regulatory pressures on tariff orders and the need for better audience measurement systems, but optimism prevails. Experts predict that by 2026, TV could still command INR 950 billion, provided it adapts to digital integration, such as through over-the-top (OTT) extensions like Disney+ Hotstar.
Shifting focus to the film industry, India's cinematic output continues to dazzle on both domestic and international stages. In 2023, theatrical revenues bounced back impressively to INR 120 billion, a 15% increase year-on-year, fueled by blockbuster releases like "Pathaan," "Jawan," and "Animal," which shattered box office records. The sector's total value, including ancillary streams like OTT rights and overseas distribution, reached INR 194 billion. Bollywood's global appeal has been amplified by diaspora audiences and strategic partnerships with platforms like Netflix and Amazon Prime Video, which are increasingly acquiring Indian films for worldwide streaming. However, the report underscores persistent issues: piracy remains a thorn, eroding potential earnings by an estimated 20-30%, while production costs have skyrocketed due to talent fees and visual effects demands. Regional cinema, particularly from South India (Tollywood and Kollywood), is emerging as a force multiplier, with films like "RRR" and "Pushpa" crossing linguistic barriers and achieving pan-India success. Looking ahead, the industry is expected to grow at a CAGR of 10%, potentially hitting INR 260 billion by 2026, driven by multiplex expansions in tier-2 and tier-3 cities and a renewed focus on experiential cinema, such as IMAX and 4DX formats.
No discussion of India's M&E evolution would be complete without spotlighting the digital media segment, which has exploded into the spotlight. Valued at INR 570 billion in 2023—a whopping 20% jump from the prior year—digital now rivals television in scale and influence. OTT video services lead the charge, with revenues soaring to INR 210 billion, thanks to affordable data plans and widespread smartphone penetration. Platforms like Netflix, Prime Video, and homegrown players such as JioCinema and Zee5 are locked in a content arms race, commissioning original series in multiple languages to capture India's 800 million-plus internet users. The report notes a fascinating trend: while international content still draws eyeballs, there's a surge in demand for hyper-local stories, from rural dramas to urban thrillers. Advertising on digital platforms, including social media giants like YouTube and Instagram, contributed INR 300 billion, with programmatic ads and influencer marketing reshaping how brands engage audiences. Challenges abound, including content regulation under the IT Rules 2021 and the need for sustainable monetization beyond freemium models. Nevertheless, digital is projected to be the fastest-growing segment, expanding at 15% CAGR to reach INR 950 billion by 2026, potentially overtaking TV as the dominant force.
Gaming and esports represent another high-octane area, with the sector ballooning to INR 220 billion in 2023, up 25% from 2022. India's youthful demographic—over 500 million gamers, many under 25—fuels this momentum, with mobile gaming dominating due to low-cost devices and free-to-play models. Titles like PUBG Mobile (now BGMI) and Free Fire have cultivated massive communities, while esports tournaments, backed by sponsors like Red Bull and Intel, are professionalizing the space. The report emphasizes the role of 5G rollout in enabling immersive experiences, such as augmented reality (AR) and virtual reality (VR) games. Real-money gaming, though controversial amid regulatory scrutiny, contributes significantly, with debates around addiction and taxation ongoing. Investments from global firms like Tencent and Krafton underscore India's potential as a gaming hub. By 2026, the segment could triple to INR 650 billion, driven by skill-based gaming and metaverse integrations.
Animation, visual effects (VFX), and post-production services are quietly revolutionizing the industry, generating INR 110 billion in 2023, a 12% rise. India's cost-effective talent pool has made it a go-to destination for Hollywood projects, with studios like DNEG and Technicolor handling effects for films like "Dune" and "The Mandalorian." Domestically, animated content for kids on platforms like Netflix and Disney+ is booming, while VFX enhances live-action films. The report calls for skill development initiatives to bridge talent gaps and foster innovation in areas like AI-driven animation.
Print media, though facing digital disruption, showed surprising stability at INR 310 billion in 2023, with a modest 2% growth. Newspapers and magazines rely on regional strengths, with vernacular publications thriving in non-metro areas. Advertising dipped slightly, but subscriptions via digital editions are compensating. The sector's future hinges on hybrid models, blending print with online portals.
Live events and out-of-home (OOH) media rounded out the ecosystem, contributing INR 110 billion combined, buoyed by post-pandemic revivals in concerts, sports events, and experiential marketing. The IPL and music festivals like Sunburn exemplify this resurgence.
Overall, the 2024 report paints a picture of an industry at a pivotal juncture. Key enablers include government initiatives like the AVGC (Animation, Visual Effects, Gaming, and Comics) policy, which aims to create jobs and boost exports, and the Digital India program enhancing connectivity. Challenges persist: intellectual property protection, talent retention amid global poaching, and equitable revenue sharing in the creator economy. Yet, with India's M&E sector employing over 2.5 million people and contributing 1% to GDP, its trajectory is upward. As digital natives drive consumption, content creators are urged to prioritize quality, diversity, and sustainability. The fusion of technology—AI for personalization, blockchain for rights management—will define the next phase. In essence, India's media landscape is not just growing; it's reinventing itself for a borderless, on-demand world, positioning the country as a creative exporter on the global stage. With strategic adaptations, the sector could well exceed projections, cementing India's status as an entertainment juggernaut. (Word count: 1,128)
Read the Full Variety Article at:
[ https://variety.com/2024/film/asia/india-media-industry-report-2024-1235930333/ ]
