New Delhi, March 29: The new media landscape in India is expanding rapidly, driven by increased internet penetration, affordability, and the rising aspirations of its citizens. According to a joint report by the industry body FICCI and consultancy firm EY, new media—which includes digital platforms and online gaming—will account for 46% of the media and entertainment sector's revenue by 2027.
Meanwhile, traditional media (TV, print, film, radio, and Out-of-Home advertising) is projected to contribute 41% of the sector's total revenue.
The report also highlights the growing significance of advertising in the sector, forecasting it will represent 52% of total media and entertainment revenues by 2027, up from 51% in 2024. In contrast, subscription-based revenues are expected to decrease to 35% by 2027, down from 39% in 2024. The Indian media and entertainment sector is anticipated to grow at a compound annual growth rate (CAGR) of 7%, adding Rs 564 billion to the sector by 2027.
The report reveals that new media will account for 68% of this growth, with live events contributing 12% and animation and VFX adding 8%. It also suggests that all segments, except linear television, are likely to grow or remain stable, provided India's GDP grows at 5% or more.
As more people turn to online video and text for news consumption, especially younger audiences on social platforms, news media must rethink their content, monetization, and measurement strategies. The report advises that content be created in multiple formats and tailored for different audiences.
In the face of the rapid rise of new media, broadcasters are expected to reinvest in making linear television more competitive. The report states that, for the first time, digital media has overtaken television to become the largest segment in India's media and entertainment sector, contributing 32% of the sector’s total revenues in 2024.
Digital media is projected to continue its growth, with an expected 11.2% CAGR between 2024 and 2027. Conversely, television, which once dominated the sector, is experiencing a decline, with a negative growth rate of -0.6% during the same period. New media, which includes both digital media and online gaming, has seen its revenue grow by 12% to reach Rs 113 billion, now comprising 41% of the sector's total revenues.
Traditional media, including television, print, radio, and music, saw a 3% decline in revenue, losing Rs 30 billion, and its share of the total media and entertainment sector dropped to 41%. Despite these shifts, the Indian media and entertainment sector grew by 3.3% in 2024, adding Rs 81 billion to reach a total value of Rs 2.5 trillion (USD 29.4 billion). The sector now contributes 0.73% to India’s GDP, having grown 30% over pre-pandemic levels in 2019.
