The Indian media and entertainment (M&E) industry continued its upward trajectory in 2024, reaching a total valuation of ₹2.5 trillion (US$ 29.14 billion), according to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and EY. While this marks a 3.3% growth from the previous year, the pace has notably slowed compared to the 8.3% expansion in 2023. The industry’s contribution to India’s Gross Domestic Product (GDP) stood at 0.73%, reflecting its critical role in the country’s economy.
The overall slowdown in growth can be attributed to multiple factors, including a decline in subscription revenues across television and print, a dip in theatrical admissions, and reduced global outsourcing demand for animation and VFX (visual effects) services. The Hollywood writers’ strike of 2023, coupled with financial challenges faced by international studios, further contributed to a 9% decline in India’s animation and VFX revenues. Additionally, higher Goods and Services Tax (GST) on real-money gaming impacted transaction gaming revenues, adding to the sector’s sluggish performance.
One of the most significant shifts in the industry has been the growing dominance of digital media. Indians collectively spent 1.1 trillion hours on their smartphones in 2024, averaging nearly 5 hours per day. Social media, gaming, and video streaming platforms accounted for nearly 70% of this screen time.
As a result, digital media surpassed television for the first time since 2019, establishing itself as the largest segment in the media landscape. Digital advertising grew by 17% to reach ₹70,000 crore (US$ 8.16 billion), making up 55% of the total advertising revenue.
Despite the overall slowdown, advertising revenues provided a bright spot, increasing by 8.1% in 2024. The organised events sector witnessed an even stronger performance, growing by 15% and surpassing the ₹10,000 crore (US$ 1.17 billion) mark for the first time. Major contributors to this surge included government and election-related events, weddings, and large-scale concerts featuring international artists.
The out-of-home (OOH) advertising market expanded by 10%, with digital OOH seeing a remarkable 78% jump, contributing 12% to the total segment revenues. Radio advertising also showed a positive trend, growing by 9% to ₹2,500 crore (US$ 291 million), backed by increased ad volumes and alternative revenue streams.
The traditional subscription-based revenue model faced significant challenges in 2024. Pay TV lost between 6 to 7 million homes as consumers continued their shift toward digital platforms like YouTube and connected TV services. Subscription revenues for print media also declined by 1%, though print advertising revenues managed a modest 1% increase, driven by premium ad formats. Digital revenues remained under 5% of the total print industry revenue, underscoring the slow transition of print businesses into the digital age.
Despite the challenges faced in 2024, the M&E industry is projected to grow at a faster pace in 2025, with an estimated expansion of 7.2%, taking the total industry size to ₹2.68 trillion (US$ 31.24 billion). Industry leaders remain optimistic about the sector’s long-term potential, with ongoing digital adoption, increasing ad revenues, and evolving consumer preferences expected to drive growth.
India’s media and entertainment industry stands at a pivotal juncture, balancing between digital transformation and the challenges of declining traditional revenue streams. While 2024 saw slower growth, the industry’s resilience and adaptability signal a promising future. With digital media continuing to reshape consumer behaviour and new advertising opportunities emerging, the sector is well-positioned for sustained expansion in the coming years.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Mar 28, 2025, 7:23 PM IST
Suraj Uday Singh
Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.
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