In 2024, India's media and entertainment industry reached a milestone of INR2.5 trillion ($29.4 billion), according to the FICCI-EY report. Digital media became the largest segment for the first time, surpassing television, with advertising revenues hitting an all-time high. The filmed entertainment sector saw growth in original productions and streaming premieres but faced challenges due to limited screen infrastructure. Traditional segments like TV, print, and radio showed mixed performances while emerging areas such as live events and online gaming experienced fluctuations.
The report projects that by 2027, the industry will grow at a compound annual rate of 7%, reaching $36.1 billion, led by digital media. Traditional sectors are expected to decline further, emphasizing the shift towards digital-first content strategies and audience engagement methods. Industry leaders emphasize the importance of creative storytelling reflecting national diversity to maintain relevance amidst evolving trends.
Digital Dominance Reshapes Advertising Landscape
Digital platforms have revolutionized the advertising sector in India’s media landscape. With digital ad spends accounting for 55% of the total market, e-commerce, short video, and social media significantly contribute to this surge. While traditional mediums like print and radio maintained stable ad revenue, digital out-of-home advertising experienced a remarkable 78% growth, indicating a shift toward innovative advertising techniques.
This transformation is evident as digital media now holds a 32% share of total industry revenue, overshadowing television's two-decade dominance. Advertising revenues across all platforms grew by 8.1%, reaching $14.9 billion. E-commerce platforms and social networks play crucial roles in driving these numbers higher. Despite challenges, traditional forms of advertising remain resilient, though their significance diminishes compared to the dynamic nature of digital solutions. This trend highlights the increasing preference for targeted, interactive campaigns over conventional methods.
Filmed Entertainment Faces Infrastructure Constraints Amid Growth
Despite releasing 1,823 films in 2024, India's filmed entertainment sector grapples with inadequate screen infrastructure limiting theatrical revenue potential. Although there was a 2% expansion in screens nationwide, reaching 9,927, screen density remains among the lowest globally. South Indian films continue to dominate box office collections, leveraging dubbed versions and pan-India casting strategies to broaden their appeal beyond regional markets.
Challenges persist as theatrical admissions declined and only 11 Hindi-language films grossed over INR1 billion ($11.7 million). Satellite and digital rights values also dropped by 10%. However, plans to add 100 new screens by PVR Inox in FY25 aim to address these issues partially. 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. Despite these efforts, the sector anticipates modest recovery to $2.49 billion by 2027, reflecting ongoing struggles within the industry. This situation underscores the need for strategic investments in infrastructure development alongside creative storytelling to sustain growth momentum.