How Will Indian Media & Entertainment Sector Captivate the World in 2024

According to a credible report, it is expected that the M&E sector is poised to witness a noteworthy growth of 10.2 percent to reach INR 2.55 trillion in 2024. This is again expected to grow at a CAGR of 10 percent to reach INR 3.08 trillion by 2026. With this growth trajectory at hand, it’s a ‘let’s grow’ for the players in the media and entertainment industry. This is further coupled by the recent wave of digitization that we have been witnessing.  It is no wonder that an upgrade has now reshaped the entire landscape. As audiences are pampered with choices and new ways of consuming content, the new ecosystem asks for differentiated and specialized offerings that render curated user experiences.

Today, numerous businesses and individuals are surfing the wave of digitalization in the Media & Entertainment industry leveraging insights, hyper-personalized content, and optimized operations. Furthermore, if we look at the Indian media and entertainment industry, it tends to outpace the nation’s GDP growth. For instance, if we look at last year, the industry witnessed over 8 percent growth. This upsurge was despite the global headwinds.

Reaching 800 and 400 million consumers respectively, traditional media such as television and radio has been dominating the market. However, with changing market dynamics, digital has truly caught up, recording an impressive reach of 600 million. Furthermore, if we speak of print, it has reached 300 million, while cinema scores 100 million. This may appear smaller, but they are continuing to remain essential in shaping the future of the industry. What is clear from 2023 is that digital is not eating away share from the other mediums but is additive to the industry.

Surfing the Wave of Digital-First Approach

Today, it is quite certain that the reach of online news has increased multifold than that of newspapers or news television. Additionally, digital video is now larger than television in certain areas of the country, with online sports setting global viewership records in today’s time.

Having said this, there are still some untapped opportunities which need to be explored. For instance, with respect to credible data, a third of India does not have a television, and over half do not yet use social media. Furthermore, 90 percent of Indians do not visit cinemas, and only one in 10 Indian households is set to have a wired broadband connection. Hence, there is a tremendous potential for growth in India at both digital and traditional media level to scale in the years to come. 

The integration of digital technologies in the Indian M&E sector has caused a massive transformation. This is fuelled by the Government of India’s push pertaining to improving digital infrastructure in the country. Potentially overtaking television to become the leading segment of the M&E sector, digital media is poised for explosive growth in 2024.

This notable upsurge in digital media is forecasted to propel the M&E sector’s growth to a 10 percent annual rate. This will cross INR 3 trillion by the year 2026. This growth is attributed further by the continuously developing robust digital infrastructure, adoption of OTT platforms, significant growth with respect to the gaming segment, and lastly the cost-effective options for consumers to choose from. However, despite this digital boom, traditional media is also experiencing steady growth. Thus India is said to be a “Linear and Digital Market” rather than “Linear or Digital Market”.

Indian M&E Sector is Looking Forward to Captivate the World

As per Kevin Vaz, Chairman, FICCI Media and Entertainment Committee, “The resilience also serves as evidence of the enduring relevance of print, radio, out-of-home advertising, and regional television, illustrating India’s diverse media consumption habits. India produces a staggering 200,000 hours of content annually. This includes over 1,700 films, 3,000 hours of premium OTT content, and 20,000 songs. It is noteworthy to acknowledge that Indian content has crossed international boundaries, captivating audiences in more than 160 countries and topping streaming charts on global platforms. Even within India the traditional boundaries separating regional and national content are increasingly becoming indistinct. This shift indicates a new era where local flavors and stories are showcasing the universal appeal of Indian storytelling."

“Accessibility and affordability of the internet is driving the growth of the M&E sector. Ad-supported video on demand platforms have transformed viewership in India by providing easy and affordable access to live sporting events. The democratization of content consumption will be further strengthened through supportive developments in the all-critical triad of infrastructure readiness, consumer market growth, and enabling public policies. India’s burgeoning talent pool in content creation which includes post-production, VFX, animation, and gaming, is transforming it as a hub for creative industry,” he adds.

Kevin says that as India navigates towards a billion active screens by 2030, with mobile screens comprising over 75% of them. This means that there is a need to innovate content creation, distribution, and monetization strategies as per Kevin.

Acting as the hallmarks of our M&E sector, this credible 2024 report encapsulates the spirit of resilience, innovation, and collaboration. “As we navigate towards a bright and dynamic future, it is crucial to leverage the synergy of creativity and technology with forward-looking policy and regulatory regimes. This can position India as the content hub of the world - bringing its unique stories, rich culture, and diverse perspectives to the global stage,” signifies Kevin 

2024 is the Year of Change and to Reinvent as per Ashish Pherwani, M&E Sector Leader, Ernst & Young LLP M&E sector.

He has stated that the Indian M&E sector has grown positively if we compare it with other developed countries, wherein, consumption trends continue to favor digital media, social media, video and audio streaming and online gaming as per him. Furthermore, if we speak of media (regional television, print, radio, OOH and cinema), it has also grown and has been on the profitable side. So to conclude, M&E sector has a positive future in India going forward, wherein, players are reinventing their approach and devising methodologies which can drive positive outcome for the industry as a whole.