Digital Media Surpasses Television, Clinch 32% Of 2024's Media Revenue

Digital media in India has contributed the most amount of revenue in the media and entertainment sector in 2024, surpassing the traditional television segment.

It made up 32% to the total revenues, according to the latest report compiled by Federation of Indian Chambers of Commerce & Industry and Ernst & Young.

Digital media is also anticipated to be the first segment in media and entertainment to overcome the threshold of Rs 1 lakh crore in advertisement revenue in 2026.

Ashish Pherwani, the media and entertainment sector leader at EY India, said that media and entertainment now provides value to consumers on the basis of four tenets.

He laid out these tenets as : 'information' which is mean to help people live better lives through news and communities, 'escapism', where viewers can forget their troubles and get immersed in fiction and reality content, 'materialism' to facilitate commerce through funded content and e-commerce and 'self-actualisation' via social media, professional portals and the creator economy.

"Every media and content company is now evaluated by consumers against the utility it provides across the above tenets, which in turn is driving how traditional and new media companies are redefining their product, processes, customer acquisition and purpose," Pherwani said.

India's media and entertainment sector reached a valuation of Rs 2.5 lakh crore in 2024, contributing 0.73% to the nation's GDP. The industry experienced a 3.3% increase in value, amounting to Rs 8,100 crore growth from the previous year, a slowdown from the 8.3% growth seen in 2023 due to declining subscription revenues and a global decrease in outsourced Animation and VFX work.

The M&E sector is projected to grow by 7.2% in 2025, reaching Rs 2.7 trillion ($31.6 billion), and then expand at a compound annual growth rate of 7% to Rs 3.1 lakh crore ($36.1 billion) by 2027. This growth is anticipated to be driven by innovative business models, strategic partnerships, and industry consolidation, according to a report titled 'Shape the future: Indian media and entertainment is scripting a new story'.

Advertising revenues within the sector have shown 8.1% growth, primarily fuelled by performance advertising on digital platforms, including e-commerce, and increased demand for premium and digital out-of-home media. The report also noted the resilience of print and radio retail advertising revenues. Digital media (17%), live events (15%), and OOH media (10%) have been key growth drivers.

Kevin Vaz, chairperson of Ficci's Media and Entertainment Committee, commented that the Indian M&E industry is at a pivotal point, driven by rapid digital adoption and changing consumer preferences, which is creating significant opportunities for content creators, advertisers, and technology innovators across all segments.

(With Inputs From PTI)