Digital revenues overtake TV for first time, Ficci-EY report says

Digital media has overtaken television for the first time to become the largest segment of India’s media and entertainment (M&E) sector, contributing 32% of total revenues last year, a report released by Ficci and EY showed.

The Indian media and entertainment sector grew by 3.3% last year, and added Rs8,100 crore to reach a valuation of Rs2.5 trillion ($29.4 billion) according to the report, titled Shape the Future: Indian Media and Entertainment is Scripting a New Story. This is a 30% growth above pre-covid levels from 2019 and a contribution of 0.73% to the country’s gross domestic product (GDP).

Digital media and online gaming, together referred to as new media, grew to Rs11,300 crore, or 12%, making up 41% of the media and entertainment sector’s revenues.

In contrast, traditional media, which includes television, print, radio, and music, saw a 3%, or Rs3,000 crore, decline in revenue. Their share of the total media and entertainment sector has also reduced to 41%. Television, which was once the dominant segment, recorded negative growth of -0.6% last year. This shows changing consumer preferences towards digital platforms.

Outside the home media, which comprises filmed entertainment, live events, and out-of-home (OOH) media, grew only 3%, contributing 14% to the overall sector.

Importantly, the advertising sector played a crucial role in the growth, expanding by 8.1% in 2024. This growth was led by performance advertising on digital platforms and increased spending on e-commerce platforms. Premium digital OOH media and live events also led to the positive growth trend.

“The Indian media and entertainment industry is at a defining moment, driven by rapid digital adoption and evolving consumer preferences. This transformation is unlocking immense opportunities for content creators, advertisers, and technology innovators across all segments of the ecosystem,” said Kevin Vaz, chairman of Ficci’s media and entertainment committee.

Traditional segments such as television, print, and radio continue to lag behind their pre-2020 revenue levels. Print media is expected to see only a growth of a mere 0.9% in the coming years.

Meanwhile, the animation and VFX segment declined by 9.4% due to global supply chain issues, which was mainly triggered from the writers’ strike in the US.

However, the sector is estimated to grow by 7.2% this year in India and touch Rs2.68 trillion ($31.6 billion). The report said that the industry will grow at a compound rate of of 7% between 2024 and 2027, reaching Rs3.07 trillion ($36.1 billion).

Digital media is expected to be the first M&E segment to surpass Rs1 trillion in advertising revenues by next year, the report added.