India’s media and entertainment industry hit Rs 2.78 lakh crore as digital, live events reshape the sector

India’s media and <a href="https://axiomcore.info/media-entertainment-stocks-led-by-imax-nyseimax/” title=”Media & Entertainment Stocks Led by IMAX (NYSE:IMAX)”>entertainment industry entered a new phase of scale and transformation in last year, growing 9.1% to ₹2.78 lakh crore, according to the FICCI-EY Media & Entertainment Industry Report 2026. Here’s a refresher on all the big shits and hits.

The industry added ₹23,200 crore during the year and outpaced India’s nominal GDP per-capita growth of 7.7%. The sector now contributes around 0.8% of India’s GDP, provides direct employment to approximately 2.75 million people and supports more than 10 million indirect jobs.

The biggest structural change was the continued shift towards digital. Digital media became the first M&E segment to cross ₹1 lakh crore, reaching ₹1.11 lakh crore in 2025 and growing 30.5%.

At the same time, live entertainment emerged as the fastest-growing major segment, while film, music and out-of-home advertising also expanded. Television remained the country’s largest mass-reach medium, but its advertising and subscription businesses continued to face pressure as audiences and advertisers moved towards digital and Connected TV.

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Digital crosses ₹1 lakh crore

Digital media was the standout growth engine in 2025, rising from ₹85,100 crore in 2024 to ₹1.11 lakh crore.

Digital advertising grew 26% to ₹94,700 crore, accounting for 63% of India’s total advertising revenues. E-commerce and point-of-sale advertising grew 50% to ₹22,000 crore, while more than a million SME and long-tail advertisers contributed around ₹36,300 crore to digital advertising.

Digital subscriptions were another major growth driver, increasing 60% to ₹16,300 crore.

Paid video subscriptions reached 216 million, spanning 143 million households, while paid music subscriptions rose 37% to 14.4 million.

Connected TV also expanded rapidly, with weekly active homes increasing from 30 million to around 40 million. CTV advertising revenues grew 42% to ₹9,900 crore.

Digital media is expected to grow at a 14% CAGR to ₹1.64 lakh crore by 2028.

Live events become a major growth engine

Live events recorded the strongest growth among the major M&E segments, expanding 44% in 2025.

Ticketed events, large government events, personal functions including weddings, religious gatherings and exhibitions contributed to the surge.

The report expects live events to continue expanding as audiences seek shared and experiential entertainment. By 2028, the sector could reach ₹19,600 crore, with concert activity expanding beyond India’s largest metros.

The report expects more than 200 concert days across the country by 2028, compared with around 130 in 2025.

India’s filmed entertainment segment reached a record ₹20,500 crore in 2025, growing 9%.

More than 1,900 films were released during the year, with 37 films crossing ₹100 crore at the box office.

Theatrical revenues increased 14%, helped primarily by higher ticket prices. At the same time, digital rights values declined 8% and satellite rights values fell 10%, as buyers rationalised content slates and adjusted valuations based on theatrical performance.

Filmed entertainment is expected to grow to ₹25,300 crore by 2028, supported by screen expansion, high-concept films, adult animation and anime, and a potential recovery in digital rights.

Television faces a changing consumption landscape

Television continued to reach around 745 million people every week, making it the country’s predominant mass medium.

But the economics of linear television came under pressure.

Linear TV advertising revenues declined 10.3%, while subscription revenues fell 8%. Pay TV households declined by 11 million, even as Free TV and Connected TV subscriptions grew.

The shift is increasingly towards a combination of linear television and digital viewing. Connected TV homes reached around 40 million active households in 2025.

The report expects total television subscriptions, including Pay TV, Connected TV and Free TV, to rise from 193 million in 2025 to 204 million by 2028 and 212 million by 2030.

Combined advertising revenues from linear TV and Connected TV are expected to reach ₹37,700 crore by 2028.

Gaming absorbs a major disruption

Online gaming and video games was the only major segment to contract sharply in 2025.

The segment declined 17%, following the ban on money gaming that took effect at the end of August. Money gaming revenues fell 26% compared with 2024.

Video-game in-app purchases, however, increased 15% as the industry focused more heavily on the format.

Video games is set to grow 13% to ₹9,200 crore by 2028, although that growth may not fully compensate for the estimated ₹19,000-crore gap created by the money-gaming ban.

Print and radio show different trajectories

Print remained relatively resilient despite global pressures.

Print advertising revenues increased 2% in 2025, particularly in premium formats targeting affluent metro and non-metro audiences. Event-driven revenues also increased, although subscription revenues declined 1% as circulation among younger audiences fell.

Radio, meanwhile, declined 7% to ₹2,300 crore, primarily because of lower advertising rates and the declining presence of FM receivers in some mobile devices and automobiles.

Radio advertising revenues are expected to continue declining, but sees alternate revenue streams such as content production, agency services, branded content and influencer marketing helping offset some of the pressure.

OOH, music and animation continue to expand

Out-of-home advertising grew 13%, driven by premium properties and locations. Digital OOH accounted for 18% of segment revenues, up from 7% in 2023.

Music revenues increased 10%, with labels increasingly expanding into events, talent management and branded content.

Animation and VFX grew 2%, despite pressure from international studios and fewer global productions. Domestic demand increased, with VFX finding opportunities across mid-budget films, advertising, micro-dramas, adult animation and anime.

Content is becoming a buyer’s market

India produced almost 200,000 hours of content in 2025, the majority in regional languages other than Hindi.

Television accounted for 96% of total content production, excluding news bulletins. Films accounted for 2%, OTT for 1%, and short video and micro-dramas for another 1%.

At the same time, studios rationalised content spending, reducing investments in high-cost premium OTT programming and prime-time television fiction. Budgets for tentpole films and most reality shows remained relatively stable.

The shift was also visible in dealmaking. The sector recorded 105 transactions in 2025, an 8% increase in deal volume. New media accounted for 73% of deals, with digital media and sports emerging as the most popular segments.

A ₹3.3 lakh crore industry by 2028

The FICCI-EY report expects India’s M&E industry to reach ₹3.3 lakh crore by 2028, representing a CAGR of more than 7% after excluding the impact of online gaming.

The overall sector is expected to reach ₹2.86 lakh crore in 2026, although headline growth is moderated by the contraction in online gaming.

Digital advertising is expected to reach ₹1.39 lakh crore, digital media ₹1.64 lakh crore, and e-commerce and point-of-sale advertising ₹40,400 crore.

The transformation of India’s media economy is no longer simply about audiences moving from one screen to another. It is increasingly about the convergence of content, technology, advertising, subscriptions, commerce, live experiences and data—with digital becoming the centre of gravity while traditional media continues to evolve around it.

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First Published on September 30, 2026, 06:20:37 IST