India’s media and entertainment (M&E) industry is undergoing a profound transformation, one that positions the country not just as a consumer market, but increasingly as a global content powerhouse. According to EY’s 2025 report titled “Shape the Future: Indian Media and Entertainment is Scripting a New Story”, the industry crossed a critical threshold in 2024, achieving total revenues of ₹2.5 trillion (US$29.4 billion). This marked a 3.3% growth over the previous year, despite lingering challenges in traditional segments like television, print, and radio. The report paints a comprehensive picture of a sector in flux—where digital media leads the charge, content becomes hyper-personalized, and technology, especially artificial intelligence (AI), redefines how stories are told, distributed, and monetized.

For the first time in 25 years, digital media overtook television as the largest segment in India’s M&E sector, accounting for 32% of total revenues. This digital tipping point signifies not just a shift in consumer behavior but a redefinition of what entertainment and information mean in the Indian context. With an estimated 750 million active screens across the country—driven by smartphones, connected TVs, and expanding broadband access—India’s appetite for content is insatiable. What sets this digital boom apart is its inclusivity; content consumption in local languages and regional storytelling is soaring, breaking down linguistic and geographic silos.

In 2024, advertising revenues led the sector’s growth, rising by 8.1%. Digital advertising contributed a staggering ₹700 billion—over 55% of total ad revenues—underscoring the migration of ad dollars to online platforms. E-commerce advertising and social media platforms played a pivotal role, with small and medium enterprises (SMEs) increasingly leveraging these channels to reach niche markets. Interestingly, performance marketing and real-time advertising innovations, like live commerce during sporting events and concerts, helped create entirely new revenue streams. Television advertising, in contrast, saw a dip of over 6% as both ad volumes and advertisers declined.

Subscription revenues, however, faced a 1.6% contraction. This was largely due to a fall in pay TV households, reduced theatrical admissions, and challenges in the online gaming space post the implementation of higher GST on real money games. Even the high-flying animation and VFX segment saw a 9.4% dip due to global supply chain disruptions, including the Hollywood writers’ strike.

Despite these setbacks, the future looks promising. EY projects the M&E industry to reach ₹3.07 trillion (US$36.1 billion) by 2027, growing at a compound annual growth rate (CAGR) of 7%. The lion’s share of this growth—68%—is expected to come from new media, including digital platforms and online gaming. By 2027, new media will comprise nearly 46% of the total M&E revenue mix, while traditional formats like television, radio, and print will see their share fall to 41%.

Live events and experiential content also made a strong comeback in 2024, growing 15% year-on-year. India hosted international acts, saw increased spending on weddings and political events, and embraced innovative concert formats. The resurgence of out-of-home (OOH) media, driven by transit advertising and premium digital displays, added further dynamism. Digital OOH alone grew 78%, now accounting for 12% of all OOH revenues. The integration of OOH with digital ad networks is emerging as a game-changer, enabling advertisers to target consumers across screens and public spaces with synchronized campaigns.

Content production remains at the heart of this transformation. India created nearly 200,000 hours of content in 2024, with TV contributing the majority. Although over 1,600 films were released, the performance of theatrical cinema was lackluster, with only 11 Hindi films grossing over ₹1 billion, down from 17 in 2023. OTT platforms, while facing profitability pressures, continued to invest in regional and dubbed content. High-cost OTT content volumes fell by 12%, but regional language content grew to account for nearly half of all OTT offerings. Looking ahead, EY anticipates an increase in content volumes, albeit at lower average production costs.

The merger of Star India and Viacom18 was the standout deal of the year, signifying a trend toward consolidation. The industry witnessed over 100 M&A transactions, valued at ₹876 billion. Traditional media dominated deal value, while new media, particularly startups and digital platforms, accounted for the majority of deal volumes. Private equity and strategic investors are expected to continue fueling this M&A wave, especially as India cements its position as a global outsourcing hub for media services, much like its dominance in IT.

Artificial Intelligence is revolutionizing every link in the M&E value chain. From automated scriptwriting and AI-powered VFX to real-time content localization and personalized recommendations, AI is delivering cost savings, faster production timelines, and enhanced user experiences. For instance, AI tools like Rephrase.ai and VisualDub are streamlining dubbing and lip-syncing, while platforms such as Conviva and Gracenote are optimizing viewer analytics and recommendation engines. According to EY’s GenAI survey, over 89% of M&E firms in India are experimenting with or already implementing AI-driven projects.

AI’s influence extends beyond creativity into monetization. Advertisers are leveraging AI for precise ad targeting and campaign optimization. Synthetic media is transforming marketing campaigns, especially for e-commerce. However, with great power comes significant responsibility. The report warns of potential pitfalls—intellectual property risks, ethical biases, data leaks, and security breaches. It cites cautionary tales like the Samsung and Amazon incidents and emphasizes the need for “Responsible AI” frameworks to protect trust, privacy, and brand integrity.

A striking transformation is also occurring in content monetization models. Platforms are pivoting toward micro-payments, bundling, and transactional video-on-demand (TVOD), with TVOD revenues growing to over ₹13 billion in 2024. Bundled offerings, combining music, gaming, and educational services, are increasingly becoming the norm. In the music segment, paid subscriptions rose from 7 million to 10.5 million, although overall revenues declined slightly due to reduced streaming royalty rates. Artist-led monetization, international licensing, and non-FCT revenue streams like events and merchandise are expected to contribute significantly by 2027.

Gaming, though hit by regulatory changes, remains a sector to watch. While real money gaming slowed due to the 28% GST, casual gaming grew 16%, and platform-based ecosystems are being explored to mitigate tax burdens and sustain user engagement. Strategic partnerships, improved publishing frameworks, and global market access are expected to fuel growth in this space. By 2027, the online gaming sector is projected to reach ₹316 billion.

The news media segment is also facing an inflection point. As youth shift to consuming news via social media and video platforms, traditional outlets are reimagining their content and monetization strategies. Innovations such as News+ models, gamified interaction, branded content, and community building are poised to define the next chapter in journalism. However, paid news subscriptions remain subscale, with just 3.1 million subscribers in 2024, underscoring the challenge of monetizing quality journalism in a cluttered digital space.

Print media, despite global headwinds, continues to hold its ground in India. Advertising revenues grew by 1%, while subscription revenue fell slightly. Print publications are diversifying into events, community engagement, and digital services, with non-print businesses projected to contribute up to 8% of total revenues by 2027. Yet, cover price hikes and falling circulation may force a reduction in the number of daily newspaper editions in the long term.

India’s content landscape is increasingly becoming multi-modal—where every player operates across video, text, audio, and experiential formats. In 2024, video accounted for 60% of the industry’s total revenues, followed by experiential media like gaming and live events at 23%. Text and audio together made up the remaining 17%. This convergence of formats has created a demand for innovative content strategies and cross-platform IP monetization. For example, popular films are being extended into OTT spin-offs, games, merchandise, and even event franchises.

Looking ahead, India’s M&E sector is expected to add ₹564 billion in revenues by 2027. But achieving this bold vision—of growing into a $100 billion industry as envisioned by FICCI Chair Kamal Haasan—will require strategic policy support, regulatory clarity, and continued investment in technology, talent, and infrastructure. Whether it's AI-powered storytelling, localized digital content, immersive event experiences, or monetization through microtransactions and targeted advertising, the M&E sector is rapidly scripting a new narrative—one that is bold, inclusive, and unmistakably Indian.

In the words of Kevin Vaz, Chairman of the FICCI Media and Entertainment Committee, “India is a market where traditional and new mediums co-exist seamlessly. We want the best of all worlds.” If the EY-FICCI report is any indication, the future of Indian media and entertainment is not just about keeping pace with global trends—it’s about setting them.