By 2027, the numbers contribute about half of Indian media – Entertainment sector revenue: FICCI-EY report

New Delhi [India]March 29 (ANI): India’s new media sector is growing with rapid growth, with growing internet penetration, and its citizens’ affordability and aspirations support.

According to a joint report by industry agency FICCI consulting services EY, new media (digital and online gaming) will account for 46% of media and entertainment revenue by 2027, while traditional media (TV, printing, movies, broadcasting, outdoor, outdoor and outdoor (OOH) will account for 41% of the industry’s total.

The joint report said in another forecast that advertising will account for 52% of total headquarters department revenue in 2027 (from 51% in 2024), while subscription share will be reduced to 35% (39% in 2024).

Indian media and entertainment sector is expected to grow at a CAGR of 7% and increase ₹FICCI-EY reports that by 2027, there will be 564 billion in three years.

It added: “New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%).”

It noted: “Unless unforeseen circumstances occur, we hope that as long as India’s true GDP grows by 5% or more, we all hope that all segments will grow or remain flat, except for linear TV.”

As news consumption shifts to online videos and text, news media will need to rethink their content, monetization and measurement strategies as youth consume news about social and other platforms.

It added: “It is necessary to create content multi-format and multimedia, and create content separately for younger audiences and different segments.”

In the rapid emergence of new media, the report asserted that broadcasters will reinvest in making linear TV more competitive.

According to reports from FICCI and EY, digital media surpasses television to become the largest segment, contributing 32% of media industry revenue in 2024.

The report notes that digital media surpassed television for the first time and became the largest segment in the media and entertainment (M&E) sector in India. The rapid growth of digital media continues, with forecasts indicating a compound annual growth rate (CAGR) of 11.2% between 2024 and 2027.

“Digital media surpassed television to become the largest segment for the first time,” the report said.

By contrast, TV that once dominated the industry is facing a decline. Its negative growth rate during the same period was -0.6%, highlighting audience shift preferences for online platforms.

New media (including digital media and online games) grow into ₹113 billion (12%), now accounting for 41% of M&E sector revenue.

Core traditional media (TV, printing, radio and music) together, their revenues fell by (-) 3% or ₹30 billion, the share in the M&E sector fell to 41%.

Overall, the Indian M&E sector grew by 3.3% in 2024, an increase ₹Total value of 81 billion ₹$2.5 trillion ($29.4 billion). The industry now contributes 0.73% to India’s GDP and is up 30% from pre-pandemic levels in 2019. (ANI)