Digital Surges Ahead as India’s Entertainment Sector Hits $29 Billion

India’s media and entertainment sector hit INR2.5 trillion ($29.4 billion) in 2024, according to the annual Federation of Indian Chambers of Commerce and Industry (FICCI)-EY report.

Titled ‘Shape the Future: Indian Media and Entertainment is Scripting a New Story,’ the report reveals that digital media overtook television for the first time, becoming the industry’s largest segment and accounting for 32% of total revenue, ending a two-decade reign by TV.

Advertising revenues grew 8.1%, reaching an all-time high of $14.9 billion. Digital platforms led the charge, with ad spends on e-commerce, short video, and social media driving digital advertising to $8.18 billion, now comprising 55% of the total ad market. Print and radio held ground with stable ad revenue, while digital Out-of-Home advertising jumped 78%, contributing 12% of the OOH segment.

India’s filmed entertainment sector released 1,823 films in 2024, an increase of 64 over the previous year. Around 500 titles premiered on streaming platforms, though only 60 were direct-to-digital releases. Approximately 200 films were dubbed versions, leaving over 1,600 as original language productions. The country’s screen infrastructure expanded by 2%, reaching 9,927 screens — but India’s screen density remains among the lowest in the world, especially compared to China or the U.S. The lack of infrastructure continues to constrain theatrical revenues, particularly in Tier III and IV markets where potential audiences remain underserved.

Despite these challenges, the year saw South Indian films – led by “Pushpa 2: The Rule” and “Kalki 2898 AD” continue to dominate box office returns. A significant share of the top-grossing films came from the Telugu, Tamil, and Kannada industries, which maintained strong theatrical pull across regional markets and increasingly, the Hindi-speaking belt. The strength of dubbed versions and pan-India casting strategies further bolstered the South’s footprint.

Market leading multiplex chain PVR Inox plans to add 100 new screens in FY25. The report estimates this growth, combined with an uptick in mass-market content and low-cost theaters in smaller towns, could expand India’s theatrical audience base from under 100 million to around 175 million people. Still, revenues from filmed entertainment declined 5% to $2.18 billion, as theatrical admissions dropped and only 11 Hindi-language films grossed over INR1 billion ($11.7 million), down from 17 in 2023. Satellite and digital rights values also fell by 10%.

Television continued its slide, with revenues falling 4.5% to $7.93 billion. Pay TV homes declined by six million, while Connected TV users grew to 30 million. Print stayed mostly flat at $3.04 billion, with a 1% gain in ad revenue but a 1% decline in subscriptions. Radio posted a modest 9% increase to $292 million), driven by events and alternate revenue streams.

Online gaming revenues shrank 2% to $2.71 billion, dragged down by a 28% GST on deposits and a surge in illegal offshore platforms. Transaction gaming dropped 6%, while casual and free-to-play gaming grew 16%. Music fell 2% to $619 million, even though paid subscriptions jumped from 7 million to 10.5 million. Free platforms like YouTube and radio continued to cannibalize premium subscriber growth.

The animation and VFX segment, hit hard by the Hollywood writers’ strike and reduced international orders, declined 9% to $1.2 billion. Meanwhile, live events surged 15% to $1.18 billion, driven by international tours, weddings, and election-related spending. Out-of-home media rose 10% to $0.69 billion, fueled by premium inventory and transit locations.

Looking ahead, the Indian M&E industry is projected to grow at a compound annual rate of 7% and reach $36.1 billion by 2027. Digital media will lead the expansion, climbing to $12.9 billion, while online gaming is expected to grow to $3.69 billion. Animation and VFX are projected to reach $1.72 billion, and live events are forecast to hit $1.95 billion. Filmed entertainment is expected to recover modestly to $2.49 billion, while television will continue its decline, falling to $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%.

“In the media and entertainment sector, two forces reign supreme: content and the audience,” Kamal Haasan, chair of FICCI Media and Entertainment South, wrote in the report’s foreword. “As we move into a digital first era, it’s our responsibility to serve them both with bold, creative storytelling that reflects the rich diversity of our nation. By harnessing this power, we can ensure the industry thrives and stays relevant in an ever evolving landscape.”

Ashish Pherwani, EY India’s media and entertainment leader, added: “Finally, the digital inflection point. And it changes everything.”

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