The Indian media and entertainment sector witnessed a growth of 3.3% in 2024, reaching a total market size of ₹2,50,000 crore (US$ 29.14 billion), according to a report by the Federation of Indian Chambers of Commerce & Industry (FICCI) and EY. This growth, however, marks a significant slowdown compared to the 8.3% growth recorded in 2023. The industry's contribution to India’s Gross Domestic Product (GDP) stood at 0.73%, reflecting the evolving dynamics of the sector. Looking ahead, the industry is projected to expand by 7.2% in 2025, reaching ₹2,68,000 crore (US$ 31.24 billion).

Advertising and Events Fuel Sector Growth:

The report highlights that advertising revenue increased by 8.1%, driven largely by digital advertising and the events segment. The events sector recorded an impressive 15% growth, crossing the ₹10,000 crore (US$ 1.17 billion) milestone for the first time. This growth was primarily fueled by government and election-related events, weddings, and ticketed events. Out-of-Home (OOH) advertising media also performed well, growing by 10%, with digital OOH witnessing a remarkable 78% growth, contributing 12% of the total segment revenues.

Digital Advertising Leads the Charge:

Digital advertising grew by 17% in 2024, reaching ₹70,000 crore (US$ 8.16 billion) and accounting for 55% of total advertising revenues. This growth was propelled by the increasing dominance of social media and e-commerce advertisements, which continued to attract significant ad spend. Despite the overall growth in digital advertising, traditional media formats struggled to maintain momentum, reflecting the ongoing digital transformation of India’s media landscape.

Decline in Subscription Revenue and Pay TV Losses:

While advertising and events provided a boost to the sector, subscription revenues declined across both TV and print formats. Pay TV lost around 6-7 million homes as consumers increasingly shifted towards digital platforms like YouTube and OTT services. This migration resulted in a decline in subscription income and a 5.6% drop in theatrical admissions and box office performance.

Moreover, the imposition of higher GST on real money gaming led to a decline in transaction gaming revenues, contributing to the overall slowdown. The impact of these factors resulted in a decline in subscription revenues across the sector.

Impact of Hollywood Strikes and Global Slowdown:

The Hollywood scriptwriters' strike in 2023 and the struggles of international studios had a cascading effect on the Indian media and entertainment sector. These factors resulted in a 9% revenue decline in 2024, impacting broadcast ad revenues and the production of animated content in India. As international productions slowed, the Indian industry faced challenges in maintaining its growth trajectory.

Music, Radio, and Print Revenue Trends:

The music sector recorded mixed results in 2024. Paid music subscriptions rose from 7 million to 10.5 million, reflecting growing consumer interest in ad-free music experiences. However, music revenue declined by 2% due to the industry's efforts to reduce free consumption and the implementation of lower streaming royalty rates.

Radio revenues grew by 9% to ₹2,500 crore (US$ 291 million), supported by increased ad volumes and alternative revenue streams. Print advertising revenues grew marginally by 1%, driven by premium ad formats. However, subscription revenues fell by 1%, and digital revenues remained below 5% of total print revenues, indicating continued challenges in monetizing digital content for the print segment.

Projected Growth in 2025:

The Indian media and entertainment sector is expected to grow by 7.2% in 2025, reaching ₹2,68,000 crore (US$ 31.24 billion). This projected growth will likely be driven by continued expansion in digital advertising, increased event-related spending, and a gradual recovery in subscription revenues as traditional and digital formats find a new equilibrium.

Key Takeaways from the Report:

• Digital Dominance: Digital platforms accounted for 55% of total ad revenues, with a 17% growth in 2024.

• Subscription Decline: Pay TV and print subscriptions continued to decline, with 6-7 million households cutting Pay TV subscriptions.

• Event Sector Boom: Government-related events, weddings, and ticketed events boosted the sector, crossing the ₹10,000 crore mark.

Conclusion:

The Indian media and entertainment sector is undergoing a transformative phase, where digital platforms, events, and innovative advertising formats are driving growth while traditional revenue streams face challenges. The sector’s future hinges on continued digital adoption, monetization of premium content, and diversification into emerging revenue models. As the industry heads into 2025, stakeholders will need to balance these dynamic trends to sustain growth and remain competitive in the evolving media landscape.

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