Media, entmt to hit `3.3 trillion by 2028 as digital driving growth

India’s media and entertainment (M&E) sector grew 9.1 per cent to Rs 2.78 trillion (Rs 2.78 lakh crore) in 2025 and is projected to reach Rs 3.3 trillion (Rs 3.3 lakh crore) by 2028, growing 9 per cent and outpacing nominal GDP, driven largely by digital platforms.

As per a joint analysis by FICCI and EY, the M&E sector is expected to grow 2.8 per cent to reach Rs 2.86 lakh crore in 2026, and Rs 3.3 lakh crore by 2028.

Digital media has emerged as the largest segment, accounting for nearly Rs 1 lakh crore in revenues. Digital advertising contributed 63 per cent of total ad spends, while subscriptions surged, driven by OTT platforms, premium sports and regional content.

In contrast, television continued its gradual decline, falling to Rs 61,700 crore in 2025 and expected to shrink further at a negative 5 per cent CAGR, even as total TV households are projected to cross 200 million by 2028.

A key structural shift is the rise of regional storytelling, with regional languages accounting for over half of OTT consumption and nearly two-thirds of film production.

The industry produced nearly 200,000 hours of content in 2025, led by television and supported by OTT and short-form formats, even as traditional media remains under pressure from shifting ad spends and declining subscriptions. Advertising remained a major growth driver, expanding 13.5 per cent to Rs 1.5 lakh crore, led by digital formats, e-commerce and SME participation.

In live events, “The organized segment experienced a 44 per cent increase, fuelled by higher spending on ticketed events, personal functions such as weddings, government events and religious gatherings, including the Maha Kumbh Mela,” the report noted.

However, the report flagged challenges, including declining pay-TV households, weak monetisation in news and regulatory disruptions in gaming, with the segment expected to contract at a CAGR of (-) 22 per cent between 2025 and 2028.

Digital advertising surged 26 per cent to Rs 94,700 crore, accounting for 63 per cent of total ad revenues, with SMEs and e-commerce ads fueling growth. Paid video subscriptions reached 216 million users, while audio and news subscriptions are also expanding.

Film revenues hit a record Rs 20,500 crore, live events grew 44 per cent, and connected TVs rose to 40 million weekly active homes, highlighting India’s shift toward a multi-screen ‘AND’ market combining linear TV, digital, and cinema.

Growth was driven largely by digital, even as traditional segments showed mixed trends. Excluding online and video games, hit by a four-month ban on money gaming, the sector grew 11.8 per cent in 2025.

E-commerce and point-of-sale ads surged 50 per cent to Rs 22,000 crore, equal to 85 per cent of TV ad revenues, the report said.

Digital advertising also included Rs 36,300 crore from over a million SMEs and long-tail advertisers. The segment is expected to lead the growth, adding Rs 44,600 crore by 2028 as large organizations and SMEs continue to invest in high attribution e-commerce, shoppable and point-of-sale advertising, and connected TVs grow from 40 million to 67 million connections.

Digital subscriptions also expanded with revenues rising by 60 per cent to Rs. 16,300 crore, with paid video subscriptions reaching 216 million across 143 million households, driven by premium sports and films moving behind paywalls. Paid music subscriptions grew 37 per cent to 14.4 million after platforms took steps to discourage free usage, while news subscriptions remained limited at 4 million due to the abundance of free alternatives.

Digital subscription revenue is projected to grow by Rs 8,500 crore by 2028 as video OTT subscriptions expand from 143 million to approximately 191 million households. Meanwhile, TVoD revenues are expected to rise from Rs 500 crore to Rs 740 crore, and audio OTT subscriptions are set to double to between 28 million and 30 million.

Film segment revenues reached a record Rs 20,500 crore, driven by hits like Dhurandhar and Chhaava. More than 1,900 films were released in 2025, with theatrical revenues rising 14 per cent, largely due to higher ticket prices. Thirty seven films earned Rs 100 crore or more at the box office. Digital and satellite rights values declined 8 per cent and 10 per cent, respectively, as buyers rationalized slates and adjusted values based on theatrical performance.

Television remained the most widely consumed medium, reaching around 745 million individuals each week, but saw declines in both advertising and subscription revenues. Linear TV advertising fell 10.3 per cent amid lower volumes and a 3 per cent drop in the number of advertisers, as some sectors shifted spending to digital media. Subscription revenues declined 8 per cent due to the loss of 11 million pay TV households, though Free TV and connected TV saw growth. Connected TVs, categorized under digital media, increased to approximately 40 million weekly active homes.