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Digital media overtook television to become the largest segment, contributing 32 per cent of media industry revenues in 2024, according to a report by FICCI & EY.
The report stated that for the first time, digital media has overtaken television to become the largest segment in India's Media and Entertainment (M&E) sector. The rapid growth of digital media continues, with projections indicating an 11.2 per cent compound annual growth rate (CAGR) between 2024 and 2027. The report said "Digital media overtook television for the first time to become the largest segment". In contrast, television, which once dominated the sector, is facing a decline. It registered negative growth of -0.6 per cent during the same period, highlighting the shifting preferences of audiences toward online platforms. New media (comprising digital media and online gaming) grew to Rs 113 billion (12%) and now comprise 41 per cent of the M&E sector's revenues. Core traditional media (television, print, radio and music) together saw their revenues drop by (-)3% or Rs 30 billion, and their share of the total M&E sector fall to 41 per cent. Outside the home media (comprising filmed entertainment, live events and OOH media) grew at a combined 3 per cent, and now contribute 14 per cent of the total M&E sector Animation and VFX segment fell 9.4 per cent due to global supply chain issues, mainly in the US due to the writers' strike. The report added that print media, while still relevant, is expected to see only a modest growth of 0.9 per cent in the coming years. Overall, the Indian M&E sector grew by 3.3 per cent in 2024, adding Rs 81 billion to reach a total value of Rs 2.5 trillion (USD29.4 billion). The industry now contributes 0.73 per cent to India's GDP and has grown 30 per cent above its pre-pandemic 2019 levels. However, traditional segments such as television, print, and radio continue to lag behind their pre-2020 level revenues. The advertising sector played a key role in driving growth, expanding by 8.1 per cent in 2024. A significant portion of this growth came from digital media, particularly performance advertising and e-commerce platform spending. Looking ahead, the report stated that the Indian M&E sector is expected to expand at a faster pace in 2025. The industry is projected to grow by 7.2 per cent, reaching Rs 2.68 trillion (USD 31.6 billion). By 2027, it is estimated to grow at a CAGR of 7 per cent, reaching Rs 3.07 trillion (USD 36.1 billion). As digital media continues to dominate the market, the Indian entertainment landscape is undergoing a major transformation. With more consumers shifting to online platforms, the industry is adapting to new trends, shaping the future of media consumption in the country. (ANI)
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