India’s Media and Entertainment industry is expected to grow at a CAGR of 7%, reaching ₹3.07 trillion by 2027. This anticipation was made as part of the Ernst & Young (EY) report. The EY report on the media sector 2027 further revealed that the sector will see a significant rise in growth at the rate of 7.2%, reaching a ₹2.68 trillion figure in 2025.
The Indian media and entertainment industry has undergone a huge transformation with digital media becoming the most powerful player, making up for 41% of the revenues of the sector, overtaking the stronghold that the television network had enjoyed for over two decades. Digital media growth in India has taken the industry beyond just informing and entertaining the public.
India’s M&E Sector: The Current Landscape
The Indian media and entertainment industry stands at a dynamic inflection point, driven by digital disruption, a young consumer base, and increasing content consumption across diverse platforms. As of 2024, the sector is valued at approximately ₹2.5 trillion. Television continues to command the largest share, but digital media, especially OTT platforms and short-form video, is rapidly gaining ground, fueled by affordable smartphones and data.
The sector is witnessing strong momentum in regional content, gaming, animation, and VFX, making India a preferred hub for content creation and outsourcing. Advertising revenue in India rose by 8.1%, particularly from digital performance advertising and premium media demand, reflecting a shift in consumer attention. Meanwhile, traditional segments like print and cinema are adapting to hybrid and digital-first models.
M&E Sector Growth in India: Sector-Wise Analysis
The Indian media and entertainment industry is in its transformative phase, with digital media leading the game. The sector-wise analysis provides an in-depth understanding of how digital transformation, changing audience preferences, and investment in content and infrastructure are reshaping India’s entertainment landscape, making it a global powerhouse in the future.
1. Digital Media
Digital media surpassed television in 2024, contributing 32% to overall M&E revenues. A 17% increase in digital advertising was reported, totaling ₹802 billion, with short video and e-commerce advertising leading the surge. This segment of the industry is set to be the first M&E segment to cross ₹1 trillion in ad revenues by 2026.
2. Television
This remained the most sought-after and maximum revenue-generating segment for more than 20 years, but faced a 6% decline in advertising and a 3% drop in subscription revenues in 2024. The cause of this decline, as cited, was the lowering of core advertising and the adversely affected subscription revenue model, as connected TV adoption increased, with 30 million active households in 2024.
3. Online Gaming & Esports
The revenue for this segment surged to ₹220 billion in 2023, with projections reaching ₹388 billion by 2026. Over 450 million gamers, with 90 million paying users, primarily in real-money gaming.
4. OTT (Over-the-Top) Content
India produced nearly 200,000 hours of content on the OTT platform in 2023. While OTT content volume growth slowed in 2023 due to profitability pressures, it generated revenue worth ₹129 billion in 2024. The OTT platform market in India is expected to reach ₹185 billion by 2027.
5. Live Events & Out-of-Home (OOH) Media
Live events grew by 15%, surpassing ₹100 billion for the first time, driven by increased spending across government, election-related events, and international concerts. The segment experienced a 10% growth, with digital OOH media expanding by 78%, contributing 12% to total segment revenues.
6. Print & Radio
These oldest segments of the media continued to face challenges, with declining revenues in both advertising and subscriptions. The radio division, however, showed resilience with a 9% growth in revenues, supported by increased ad volumes and alternative revenue streams.
M&E Sector Growth in India: The Driving Factors
The forces that are reshaping how content is produced, distributed, and consumed propel the industry toward its projected valuation by 2027.
1. Increasing Digital Consumption and Internet Penetration
India’s digital footprint continues to expand and is expected to cross 900 million users in 2025. Affordable data plans and widespread access have democratised content consumption across urban and rural areas. This surge in connectivity is enabling 24/7 access to news, entertainment, and user-generated content across platforms, making digital the most dominant and fastest-growing segment of the M&E sector.
2. Rise of OTT Platforms and Regional Content
OTT platforms such as Netflix, Amazon Prime Video, and Disney+ Hotstar have revolutionised entertainment delivery in India. With over 111 million paid video subscriptions, the demand for regional and vernacular content has surged, aligning with diverse linguistic and cultural preferences. This shift is helping platforms expand reach beyond metros into tier-2 and tier-3 cities.
3. Government Initiatives
Proactive policy support, like increasing FDI limits in the broadcasting sector and incentives for animation, gaming, and VFX, has enhanced investor confidence. The government’s push for digital infrastructure and creative economy funding is also fostering innovation and skill development within the industry.
4. Expanding Mobile and Smartphone User Base
India is the world’s second-largest smartphone market. Mobile devices have become the primary screen for entertainment, particularly among younger audiences. This mobile-first consumption trend is boosting formats like short-form video, live streaming, and mobile gaming.
5. Growth in Advertising and Subscription Models
Digital advertising grew by 17% in 2024 alone, while subscription revenues continue to climb across OTT and music platforms. As brands shift ad budgets online and consumers increasingly pay for premium content, revenue models are becoming more diversified and sustainable.
M&E Sector Growth in India & Investment Opportunities
The market’s scale, diversity, and digital readiness make it a magnet for both domestic and foreign investment. Recent government policies, such as increased FDI limits in broadcasting and production incentives for animation, gaming, and VFX, are further catalysing capital inflow. The Information and Broadcasting sector received ₹4,786 crore in FDI during the first nine months of FY25, reflecting investor confidence bolstered by favourable policies.
The changing consumer preferences might have affected the traditional media, but the transformative phase of the sector has marked how adaptive the conventional players of the industry have been. With rising subscriptions, ad revenues, inclination of audience towards more tech-savvy entertainment networks, increasing demand for regional content, and graphics-driven visuals, are some of the features of the transforming media industry in India, which attracts investors, boosting their confidence in it.
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Conclusion
India’s media and entertainment (M&E) industry has been growing at 3.3% year-over-year, with digital media overtaking television as the largest segment. The continuous growth marked in the M&E industry also influences the stock prices, especially the stocks of Zee Entertainment [NSE: ZEEL], which reported an 85% increase in pre-tax profit due to subscription growth and increased movie releases. The Disney-Reliance merger has also come as a pleasant surprise for the sector, revitalising the television market with a significant presence in sports and entertainment.
However, geopolitical tensions have impacted the sector; the suspension of the Indian Premier League (IPL) amid escalating India-Pakistan relations is expected to reduce broadcasting revenue by 30-40%. Despite a few temporary setbacks, strong digital growth and increasing expenditure on ads signal resilience in the sector, which is enough to attract investors looking for stable returns in the market.
