India’s M&E Industry: A Billion Screens, Endless Opportunities

By Pickle April 3, 2025

With digital overtaking TV, AI reshaping content, and global ambitions rising, India’s M&E sector is poised for unprecedented growth.

The Indian Media and Entertainment (M&E) sector is undergoing a transformative shift, driven by digital innovation, evolving consumer preferences, and technological advancements. The latest FICCI-EY report, Shape the Future, highlights key trends shaping the industry and outlines its growth trajectory for the coming years.

The Rise of Digital Media and Content Innovation

Digital media has officially surpassed television to become the largest segment of the M&E industry, contributing 32% of total sector revenues in 2024. This marks the end of television’s 25-year dominance, signaling a fundamental shift in content consumption habits.

Digital platforms are redefining engagement through interactivity, gamification, and advanced analytics, providing consumers with content tailored to their preferences.

Prominent industry leaders emphasize the role of technology and globalization in expanding the reach of Indian content. Kamal Haasan, Chairman of FICCI M&E South, envisions a screen-agnostic audience unified by digital-first experiences that transcend linguistic and geographic barriers. Meanwhile, Kevin Vaz, Chairman of FICCI M&E Committee, highlights India’s growing presence on the global stage with recognitions at Cannes and the Oscars.

The Growth of TV and Sports Consumption

Despite digital media’s rise, television continues to hold substantial ground, with TV screens expected to grow from 190 million in 2024 to 214 million in 2026. The resurgence of cinema and regional content consumption is evident, while sports broadcasting has undergone a revolution with real-time statistics, multi-language commentary, and high-quality mobile coverage. The merger of Star India and Viacom18 is set to redefine sports broadcasting, leveraging digital advancements for greater audience engagement.

Emerging Business Models and New Revenue Streams

Subscription models are evolving to keep pace with changing consumption habits. Digital subscriptions grew by 15% in 2024, with paid video subscriptions increasing by 11 million to reach 111 million across 47 million Indian households. The rise of Free Ad-Supported Television (FAST) channels and the creator-led economy is reshaping traditional revenue models.

In advertising, new media now accounts for 56% of total ad revenues, surpassing traditional media’s share. However, television advertising has declined by 20% due to falling ad volumes and the shift to connected TVs. Innovations such as SME advertising platforms and bundled content packages are expected to enhance monetization opportunities across segments.

Live Events, Print, and Gaming: Industry Adaptation

The live events segment grew by 15%, driven by government and election-related events, personal celebrations, and ticketed experiences. Similarly, Out-of-Home (OOH) media saw a 10% rise, with digital OOH growing by 78%, contributing 12% of total revenues. Radio revenues also witnessed a 9% growth.

Meanwhile, the print industry continues to adapt, with advertising revenues growing by 1%, despite a decline in subscriptions. Rising cover prices and falling circulation have led to increased diversification, with print companies now generating up to 8% of revenues from events and community engagements.

Gaming remains a key pillar of the M&E sector, though its transaction-based growth slowed due to regulatory challenges, including a 28% GST on deposits and the proliferation of illegal offshore betting sites.

Animation, VFX, and Theatrical Developments

India’s strengths in animation and VFX are positioning the country as a global content hub, although the Hollywood writers’ strike led to a temporary 9% decline in demand. Meanwhile, the Indian film industry is shifting toward quality over quantity, with fewer films being greenlit due to rising production costs and declining pre-sales opportunities.
The theatrical landscape is poised for expansion, with low-cost theaters expected to emerge in Tier-III and IV cities, increasing audience reach from 100 million to 175 million. Scaling of film TVOD (Transactional Video on Demand) and the growth of connected TVs and wired broadband will further boost monetization avenues.

Future Projections and Industry Evolution

The M&E sector is projected to grow at a CAGR of 7%, reaching INR 2.68 trillion (US$31.6 billion) in 2025 and INR 3.07 trillion (US$36.1 billion) by 2027. By then, digital and online gaming will contribute 46% of total revenues, while traditional media will account for 41%. Advertising is expected to make up 52% of total revenues, while subscription models will shrink to 35%.

Television will continue to evolve, with Direct-to-Mobile (D2M) services increasing accessibility beyond households. The OTT subscription market is set to grow, with households increasing from 47 million in 2024 to over 65 million by 2027. Print and radio will diversify further, with non-traditional revenue streams playing a critical role.

A Billion Screens of Opportunity

India’s M&E industry stands at an inflection point, driven by technological disruptions, digital transformation, and evolving consumer behaviors. With a billion screens of opportunity, the industry is set to reshape itself through strategic investments, policy advocacy, and innovation.

The continued rise of digital platforms, regional content, and AI-driven media technologies will define the future of India’s entertainment landscape, ensuring its place as a global powerhouse in content creation and distribution.