Indian Media and Entertainment Industry Grows 8% to Reach $28 Billion, Annual FICCI-EY Report Reveals

The Indian media and entertainment industry grew 8% in 2023 to reach a value of $27.9 billion, according to the annual EY report released during the ongoing Frames conference in Mumbai, organized by the Federation of Indian Chambers of Commerce and Industry (FICCI). The growth was 21% above its pre-pandemic levels in 2019.

The report collates data from television, digital media, film, animation and VFX, out of home media, live events, music, radio, online gaming and print.

While television remained the single largest component of the M&E sector in 2023, with a valuation of $8.3 billion, it shrank 2% from 2022 levels, due to advertising declining by 6.5% thanks to a slowdown in spending by gaming and direct-to-consumer brands. The sector is forecast to rebound to $8.6 billion this year.

Digital media was the second largest component of the sector, valued at $7.8 billion in 2023 and growing to $9 billion in 2024.

Filmed entertainment is projected to grow from $2.3 billion in 2023 to $2.5 billion in 2024.

New media, comprising digital and online gaming, emerged as the growth leader increasing its contribution to the M&E sector from 20% in 2019 to 38% in 2023. Online gaming is currently valued at $2.6 billion and set to grow to $3.2 billion this year.

Animation and VFX are currently at $1.3 billion and poised to reach $1.5 billion in 2024. Music is valued at $289 million and will grow to $338 million in 2025.

The report notes that India is expected to have almost a billion active screens by 2030. Of these, around 240 million will be large (TV, laptop, PCs), while the remaining will be small (mobile phones, phablets). Pay TV, free TV, and connected/smart TV are expected to emerge as significant markets, each comprising between 60 to 80 million homes. The 3:1 ratio in favor of mobile phones will sustain the demand for short videos and social commerce, the report states.

Kevin Vaz, chair, FICCI media and entertainment committee and CEO, broadcast entertainment, Viacom18, said, “India is a unique market where the M&E sector distinguishes itself through a harmonious fusion of tradition and innovation. Here, technology-enhanced entertainment channels, OTT [streaming] platforms, AI-powered newsreaders, traditional print media, flagship films and short-form content not only coexist but thrive together, showcasing the vibrant diversity and dynamic growth of our industry. The government of India’s thrust on improving digital infrastructure in the country combined with our ambition to be at the forefront of the next big technological thrust in media and entertainment, our sector is primed for a massive transformation.”

Ashish Pherwani, partner and media and entertainment leader, EY India, added: “I believe the M&E sector is at the inflection point we foresaw in 2018, with the dominance of digital channels over traditional media. In 2023, new media comprised 52% of total advertising revenues, yet, unlike in many other countries, Indian traditional media also grew. This underscores the unique Indian market where while we are witnessing a seismic shift towards digital consumption, there is still adequate headroom for traditional media to grow.”