India’s Media and Entertainment (M&E) sector crossed a milestone in 2024, touching a valuation of INR 2.5 trillion (USD 29.4 billion), up 3.3% from the previous year. Though this keeps the industry on a growth path, it marks a sharp slowdown from the 8.3% jump recorded in 2023, signalling structural shifts and changing consumer habits across the ecosystem.
Digital media overtakes TV, becomes top segment
For the first time, digital media has emerged as the largest segment of India’s M&E pie, contributing 32% of total revenues. The segment clocked a 17% year‑on‑year growth, reaching INR 802 billion, thanks to rising ad spends, OTT platforms, social video, and short‑form content.
The surge has been driven by two key forces:
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Growing digital advertising budgets shifting from traditional TV and print to apps, social media, and programmatic platforms.
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The rise of premium out‑of‑home (OOH) branding in malls, airports, and transit networks, which now sits alongside digital as a key growth driver.
Ads up, subscriptions down—what changed?
Advertising revenues across the M&E sector grew 8.1%, riding largely on digital platforms and premium OOH. However, subscription revenues fell by 2% across TV pay channels, print, film, and online gaming, underlining the strain on traditional monetisation models.
Television, once the backbone of Indian entertainment, continues to post declines in both ad and subscription income, as consumers migrate to OTT and free‑to‑broadcast options. Print has held its ground on ads but struggles with falling circulation and weak subscription growth.
Films and music underperformed in 2024, proving that even big budgets cannot guarantee success without captivating content. Meanwhile, the animation & VFX cluster faced a downturn, partly due to reduced outsourcing from international buyers amid global cost pressures.
Gaming hit by GST, short‑form content wins
Gaming, which had boomed in earlier years, saw regulatory headwinds in 2024, including the imposition of a 28% Goods and Services Tax (GST) on many online games, which squeezed net revenues and discouraged smaller operators.
At the same time, consumer behaviour is pivoting decisively toward short‑form, mobile‑first content. Platforms like YouTube, Instagram Reels, and home‑grown apps are capitalising on passive, scroll‑based viewing, blurring the old split between “lean‑back” TV and “lean‑forward” digital engagement.
Traditional infrastructure still matters
Despite the digital rush, traditional media infrastructure remains deeply embedded in India’s media economy. There are roughly 60 million cable TV connections, about 50 million DTH and HITS subscribers, and nearly 48 million free‑to‑air TV households, showing that TV is far from dead, especially in non‑urban markets.
Meanwhile, wired broadband serves around 46 million users, underpinning the hybrid reality of Indian consumers who still watch TV but increasingly stream on phones, paying for both OTT subscriptions and data packs.
How the M&E sector can revive
Experts suggest that the industry’s revival hinges on five strategic moves:
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Invest in quality content that cuts through clutter across genres and formats.
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Diversify revenue models using hybrid mixes of ads, subscriptions, pay‑per‑view, and in‑app purchases.
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Leverage technology to personalise feeds, improve discovery, and deepen user engagement.
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Engage regulators on issues like GST, content rules, and licensing, to build a policy environment that supports innovation.
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Adopt an audience‑centric approach, using data to understand tastes, devices, and viewing windows in real time.
The Indian M&E sector now stands at a pivotal juncture, where digital transformation and evolving consumer choices are rewriting the rules. By aligning with these trends, the industry can not only stabilise current pressures but unlock a new cycle of sustainable growth in the years ahead.
