India’s M&E Playbook Rewrites Itself with Digital at the Core

By Pickle March 28, 2026

As digital reshapes consumption and regional voices gain national power, India’s M&E industry is evolving into a global-scale creative economy with a clear path toward a $50 billion future, says recently released FICCI-EY report.

India’s Media and Entertainment (M&E) sector is entering a pivotal phase of expansion and reinvention. In 2025, the industry grew 9% to reach Rs 2.78 trillion ($32 billion), outpacing nominal GDP per capita and reinforcing its role as one of the country’s most dynamic growth engines. More significantly, the year marked a structural shift in the sector’s evolution, with digital media overtaking television to become the largest segment—signalling a decisive move toward a digital-first, consumer-driven ecosystem, according to the latest FICCI-EY report.

Digital Dominance and Regional Resurgence

2025 marked a pivotal inflection point for Indian M&E, as digital outstripped television to become the industry’s largest segment. Digital media revenues soared past INR 1 trillion for the first time, with OTT platforms, online gaming, music, and social media driving the transformation. Notably, the share of regional language content on OTT platforms skyrocketed from 27% in 2020 to 56% in 2025, while regional cinema accounted for over 65% of all films produced in India.

“The South is no longer a regional footnote. It is the chapter everyone is reading,” said Allu Aravind, Chairman of Geetha Arts, highlighting the growing national appeal of regionally-rooted stories.

Advertising Shifts & Experiential Consumption

Advertising grew 13.5% in 2025, reaching INR 1.5 trillion, with digital accounting for 63% of total ad revenues—double its share just three years ago. E-commerce and point-of-sale advertising grew 50%, reflecting the rise of India’s connected and shopping-savvy digital consumer.

Live events emerged as one of the fastest-growing segments, surging 44% with the help of high-profile concerts and religious gatherings like the Kumbh Mela. India hosted over 130 concert days with more than 10,000 attendees per day, as both international and Indian artists drew record crowds.

Sectoral Highs and Challenges

Film: Over 1,900 films were released, with 37 movies crossing INR 1 billion at the box office. Despite rising theatrical revenues, the sector faces challenges from digital rights rationalization and price caps on cinema tickets.

Music: The music industry grew 10%, buoyed by streaming and live events. Paid audio subscriptions jumped 37% to 14 million, while Hindi, Punjabi, Tamil, and Telugu music dominated consumption.

Television: While TV still reaches over 745 million people weekly, linear pay TV is declining as viewers migrate to free and connected TV options. Advertising on connected TVs leaped 42% in 2025.

Gaming: The sector was hit by a ban on money gaming, leading to a 17% drop in revenues, but video gaming and e-sports are projected to rebound with a focus on new monetization models.

Innovation, AI, and the Road Ahead

Artificial intelligence became central to content creation and audience engagement. Platforms and creators increasingly use AI for personalization, dubbing, and immersive experiences, with 37% of surveyed companies accelerating future AI investments.

Looking ahead, the report forecasts the M&E industry will surpass INR 3 trillion by 2027, driven by digital expansion, regional content, live events, and new monetization models. “India’s M&E sector stands poised to scale toward a US$50 billion opportunity by the end of the decade,” said Raghav Anand, EY-Parthenon.

Key Takeaways

Employment: The industry supports direct employment for 2.75 million and over 10 million indirectly.

Growth Drivers: Digital advertising, SME participation, premium live experiences, and AI-led innovation.

Challenges: Talent scarcity, evolving regulations, and the need for infrastructure investment to stay globally competitive.

India’s creative economy is at its most consequential moment, blending storytelling with technology and entrepreneurship. As regional voices rise and digital innovation accelerates, the world is not just watching Indian media—it’s listening, learning, and increasingly, participating.