India's media and entertainment industry is being transformed through the rise of new media. The extensive coverage of the internet, affordability and aspiration of people are driving its expansion.
A special report by FICCI and EY puts the total revenue of India's media and entertainment industry in the year 2027 as follows: While 46 percent of the total revenue would be generated through new media (digital media and online games), 41 percent would be generated through traditional media like television, print, film, radio and outdoor (OOH) advertising.
The growth of digital media
Historically for the first time in 2024, digital media overtook television to be India's biggest portion of media and entertainment business. This year, digital media had contributed 32 percent of the revenue. The report forecast the compound annual growth rate (CAGR) of digital media will be 11.2 percent from 2024 to 2027.
As opposed to the situation in video game software development, the TV market, which had already monopolized market power, is now facing a downward growth rate. In 2024, the market for TVs fell by -0.6 percent in response to audience shifting their affinities to digital media.
The ad segment will comprise 52 percent of the combined revenue of the media and entertainment sector in 2027, up from 51 percent in 2024, states the report. Subscription share will decline from 39 percent in 2024 to 35 percent in 2027.
New horizons with a hint of technology
The report claimed that the Indian media and entertainment sector will develop at a 7% CAGR from the current date till 2027, and will have an extra Rs 564 billion added to it in 3 years. 68% will be contributed by new media, 12% by live events, and 8% by animation and VFX. The FICCI-EY report further stated that so long as India's real GDP continues on an 5% or higher growth trajectory, all other segments will grow or be stagnant except for the linear television segment. It further stated that there needs to be a revolution in the presentation and delivery mechanisms of the news considering the youth's media consumption patterns. The next generation is taking more and more time on social media and other internet platforms, which will call for a redefinition of content creation, revenue generation, and audience measurement for media.
Challenges and television future
Even with the boom in digital media, the report further stated that broadcasters will pump more money to make linear TV competitive.
The Indian media and entertainment industry will grow 3.3 percent in 2024 to a combined value of 2.5 trillion rupees (US$ 29.4 billion). The industry currently contributes 0.73 percent of India's GDP and has grown 30 percent above what it was during pandemic-hit 2019.
It's clear in the sense of planning digital media to be the driving force of the future.
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