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New media space in India is growing by leaps and bounds, with an ever-increasing rise in internet penetration supported by the affordability and aspiration of its citizens.
According to a joint report by industry body FICCI consultancy services firm EY, by 2027, new media (digital as well as online gaming) will comprise 46 per cent of media and entertainment sector revenue, while traditional media (TV, print, film, radio, and Out-of-Home (OOH) will contribute 41 per cent of total of the sector's revenues. In another projection, the joint report said that advertising will comprise 52 per cent (from 51 per cent in 2024) of total sector revenues in 2027, while the share of subscription will reduce to 35 per cent by 2027 (from 39 per cent in 2024). The Indian media and entertainment sector is projected to grow at a compound annual growth rate of 7 per cent and add Rs 564 billion in three years through 2027, the FICCI-EY report said. "New media will provide 68 per cent of this growth, followed by live events (12 per cent) and animation and VFX (8 per cent)," it added. "Barring unforeseen situations, we expect all segments to grow or remain flat, except linear television, so long as India's real GDP grows 5 per cent or more," it noted. As news consumption shifts to online video and text, and as the youth consume news on social and other platforms, news media will need to rethink their content, monetization, and measurement strategies, it suggested. "Content will need to be created multi-format and multimedia, and separately for younger audiences and for different segments," it supplemented. Amidst the rapid emergence in new media, the report asserted that broadcasters will reinvest in making linear television more competitive. Digital media overtook television to become the largest segment, contributing 32 per cent of media industry revenues in 2024, according to the report by FICCI and 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 per cent) 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 per cent or Rs 30 billion, and their share of the total M&E sector fell to 41 per cent. 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. (ANI)
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