TV is Dying? How Digital Media Took Over India’s Entertainment Scene!

The way Indians consume entertainment has transformed drastically over the past few years. Once dominated by television screens in living rooms, the media and entertainment (M&E) landscape is now shaped by mobile phones, smart TVs, and streaming platforms. With on-demand content available at the tap of a finger, digital media is not just the future—it is the present.

According to the latest FICCI-EY report titled “Shape the Future: Indian Media and Entertainment is Scripting a New Story,” India’s M&E sector has crossed an impressive milestone, reaching a valuation of ₹2.5 trillion ($29.4 billion) in 2024. Despite global economic uncertainties, the industry has managed to grow by 3.3% year-on-year, adding ₹81 billion to its valuation and contributing 0.73% to India’s GDP.

The projections are even more promising. The sector is expected to expand by 7.2% in 2025 to reach ₹2.7 trillion, and by 2027, it is set to touch ₹3.1 trillion, growing at a steady 7% CAGR.

Digital Media: The New King of Entertainment

The biggest takeaway from the report? Digital media has overtaken television as the largest segment of the Indian M&E industry. It now accounts for 32% of the total sector revenue, with digital advertising witnessing a staggering 17% growth, reaching ₹700 billion. Digital platforms alone contribute 55% of total advertising revenues, a sign that traditional media players need to rethink their strategies.

The advertising sector as a whole grew by 8.1%, with the strongest push coming from digital performance ads, e-commerce advertising, and premium Digital Out-of-Home (DOOH) media.

The landmark growth of digital media has caught the attention of both policymakers and industry leaders. Ashish Shelar, Minister of Information Technology & Cultural Affairs, Government of Maharashtra, acknowledged the report’s findings, saying,

"I compliment FICCI for this comprehensive Media and Entertainment report. My department and government will take the best suggestions from this report and implement them in our 100-day action plan for the Cultural Affairs Ministry."

Kevin Vaz, Chairman, FICCI Media & Entertainment Committee, echoed a similar sentiment, stating,

"The Indian media and entertainment industry is at a defining moment, driven by rapid digital adoption. With India’s M&E market expected to surpass INR 3 trillion by 2027, the future holds immense potential."

Even Ashish Pherwani, Partner & Media & Entertainment Leader, EY India, highlighted how digital has revolutionized content consumption:

"The digital revolution has transformed how content is created and consumed. As digital media overtakes traditional formats, we are witnessing a paradigm shift where engagement, escapism, and interactivity are driving new success metrics."

Breakdown of M&E Sector Performance in 2024

Winning Segments

• Digital Advertising: Grew 17% to touch ₹700 billion, with e-commerce advertising leading with a 50% jump.

• Live Events: Up 15%, fueled by weddings, concerts, and election-related events.

• OOH Media: Increased 10%, with Digital OOH surging 78% to account for 12% of total OOH revenues.

• Radio: Revenues climbed 9% to reach ₹25 billion, with 20% of earnings now from non-traditional sources.

Struggling Segments

• Print Media: Advertising revenue grew by just 1%, while subscriptions declined by 1%.

• Music Industry: Faced a 2% revenue dip due to declining free music consumption and lower streaming royalties.

• Online Gaming: Shrunk by 2% due to the 28% GST on deposits and rising competition from offshore platforms.

• Film Industry: Saw a 5% revenue decline, as only 11 Hindi films crossed the ₹1 billion mark, down from 17 in 2023.

• Television: Advertising revenues dropped by 6%, and pay TV subscriptions declined by 6 million.

• Animation & VFX: Declined by 9%, as international studios reduced outsourcing work.

The Future of Indian M&E: What Lies Ahead?

The report highlights several key trends that will define India’s entertainment industry in the coming years:

• Subscription Models Will Lead Revenue Growth: More digital platforms will shift towards paid models for sustained revenue.

• Content Monetization Will Expand Globally: Indian intellectual properties (IPs) and licensing deals will drive new revenue streams.

• Industry Consolidation & Cross-Platform Digital Expansion: Larger firms will acquire smaller players to strengthen their market dominance.

• AI Will Reshape Content Creation & Distribution: Artificial intelligence will enable more personalized and cost-effective content.

• Online Gaming Will Face Regulatory Challenges: Indian gaming startups may seek expansion overseas to navigate domestic tax hurdles.

India’s M&E Sector: Poised for a $36.1 Billion Future

With digital media firmly at the helm, India’s entertainment industry is expected to evolve into a $36.1 billion sector by 2027. The pace of innovation, combined with the country’s massive digital user base, ensures that India remains one of the fastest-growing entertainment markets globally.

For startups, investors, and content creators, this shift is an open invitation to leverage digital opportunities and create engaging, profitable media ventures. The question is no longer whether digital will dominate—it already has. The real challenge now is who will lead the next phase of India’s entertainment evolution?