New Delhi [India], May 6 : The Indian media and entertainment (M&E) industry will grow at a Compound Annual Growth Rate of 7 per cent to reach Rs 3.07 trillion (n (USD 36.1 billion)) by 2027, a report by Ernst & Young (EY) anticipated.
According to the EY, the sector will grow at the rate of 7.2 per cent in 2025, reaching at Rs 2.68 trillion (USD 31.6 billion).
India's Media and Entertainment sector has continued its upward trajectory in 2024, growing by Rs 81 billion to reach a total value of Rs 2.5 trillion (approximately USD 29.4 billion).
The growth was primarily driven by new mediaincluding digital media and online gamingwhich expanded by Rs 113 billion, marking a 12 per cent increase and bringing its contribution to 41 per cent of the sector's overall revenues.
In contrast, traditional media formats such as television, print, radio, and music experienced a collective revenue decline of 3 per cent or Rs 30 billion, reducing their share to 41 per cent of the total sector. Meanwhile, outside-the-home media, comprising filmed entertainment, live events, and out-of-home advertising, grew at a combined rate of 3 per cent, now accounting for 14 per cent of the sector's revenues.
By 2024, the M&E sector stood 30 per cent higher than its pre-pandemic peak in 2019. Overall, the sector contributed 0.73 per cent to India's GDP, while advertising alone accounted for 0.38 per cent of GDP, underscoring the considerable potential for further growth in advertising expenditure, the report added.
Going further, the report suggests that adoption of Artificial Intelligence (AI) can increase revenues by 10 per cent and reduce costs by 15 per cent for media and entertainment companies.
Indian companies are leveraging Genai tools for creative purposes and campaign optimisation, content performance improvement and audience engagement.
The media and entertainment sector in India currently employs 2.8 million people. In addition, around 10 million indirect jobs have been created, primarily in the events, music and content production segments. Online gaming, and Digital and OTT are the fastest-growing segments in terms of direct employment potential, according to EY.
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