India’s Media and Entertainment Sector Sees New Heights in 2024
Market Value and Digital Transformation
In 2024, India’s media and entertainment industry achieved a remarkable value of INR 2.5 trillion (approximately $29.4 billion), as reported in the annual FICCI-EY report. The report, titled “Shape the Future: Indian Media and Entertainment is Scripting a New Story,” highlights a pivotal shift in the sector, with digital media surpassing television to emerge as the largest segment, accounting for 32% of total revenue.
Advertising Revenues Surge
Advertising revenues in the industry rose by 8.1%, reaching a historic peak of $14.9 billion. Digital platforms played a crucial role in this growth, driven primarily by advertising expenditures in e-commerce, short videos, and social media. Digital advertising has now reached $8.18 billion, representing 55% of the total advertising market. In contrast, the print and radio segments reported stable ad revenues, while digital Out-of-Home advertising saw a substantial increase of 78%, contributing to 12% of the overall Out-of-Home market.
Filmed Entertainment Landscape
In 2024, the filmed entertainment sector released 1,823 films, marking an increase of 64 compared to the previous year. Notably, about 500 of these films premiered on streaming platforms, with 60 being exclusive direct-to-digital releases. The industry also produced approximately 200 dubbed films, highlighting a thriving market for original productions in local languages. Despite this growth, the overall revenue from filmed entertainment saw a decline of 5%, totaling $2.18 billion, as theatrical admissions fell and the number of Hindi films grossing over INR 1 billion decreased from 17 in 2023 to 11 this year.
Infrastructure and Audience Engagement
India’s screen infrastructure has expanded by 2%, with the total number of screens reaching 9,927, yet it still faces challenges with one of the lowest screen densities globally. This limitation particularly affects Tier III and IV markets, where potential audiences remain underserved. Despite these infrastructural challenges, South Indian cinema has shown resilience, with blockbuster hits like “Pushpa 2: The Rule” and “Kalki 2898 AD” leading box office performance.
Future Projections and Digital Growth
Looking ahead, the FICCI-EY report forecasts a compound annual growth rate of 7% for the Indian media and entertainment industry, projecting it to reach $36.1 billion by 2027. Digital media is expected to be the primary driver of this growth, anticipated to rise to $12.9 billion. Online gaming, alongside animation and live events, is also poised for significant upward movement, while traditional sectors like television are projected to continue their decline.
Insights from Industry Leaders
Prominent figures in the industry shared their perspectives in the report. “In the media and entertainment sector, two forces reign supreme: content and the audience,” stated Kamal Haasan, chair of FICCI Media and Entertainment South. He emphasized the importance of bold storytelling that reflects the nation’s diversity as the industry evolves. Ashish Pherwani, EY India’s media and entertainment leader, mentioned the digital “inflection point” that is reshaping the landscape. “The future is brimming with untapped potential,” added Kevin Vaz, chair of FICCI’s media and entertainment committee.