Digital media overtakes TV for first time in 2024, contributes 32 pc to overall revenue

Digital media in India has surpassed traditional television in 2024, claiming the largest share in the media and entertainment sector. It now accounts for 32% of the total revenues and is projected to cross Rs 1 trillion in ad revenues by 2026. The industry is set for a robust growth rate, driven by digital adoption and changing consumer behavior.

Digital media in India has overtaken traditional television in 2024, becoming the largest segment in the media & entertainment (M&E) sector, contributing an unprecedented 32 per cent to the overall revenues, according to the latest FICCI-EY report. Moreover, digital media is expected to be the first M&E segment to cross Rs 1 trillion in ad revenues in 2026, it said.

The Indian M&E sector is expected to grow at over 7 per cent in the next three years to cross Rs 3 lakh crore, it added.

The Indian Media and Entertainment (M&E) sector in 2024 reached a total valuation of Rs 2.5 lakh crore (USD 29.4 billion) and contributed 0.73 per cent to India's GDP in 2024.

"Looking ahead, the Indian M&E sector is expected to grow by 7.2 per cent in 2025, reaching Rs 2.7 trillion (USD 31.6 billion), and then expand at a Compound Annual Growth Rate (CAGR) of 7 per cent to reach Rs 3.1 trillion (USD 36.1 billion) by 2027," it said.

This growth trajectory is poised to be shaped by innovative business models, strategic alliances, and industry consolidation, as per the report titled, "Shape the future: Indian media and entertainment is scripting a new story".

In 2024, India M&E sector had a growth of Rs 8,100 crore from the previous year, marking a 3.3 per cent increase.

However, in actual, "Growth slowed down from 8.3 per cent in 2023, due to falling subscription revenues, and a global decline in Animation and VFX work outsourced to India," the report said.

Moreover, advertising revenues have also seen an impressive growth of 8.1 per cent.

This is predominantly led by performance advertising on digital platforms, including e-commerce websites, and a surge in demand for premium and digital out-of-home (OOH) media.

"This growth has been further bolstered by the resilience of print and radio retail advertising revenues. Digital media (17 per cent), live events (15 per cent), and OOH media (10 per cent) have been key drivers of growth," it added.

Commenting on the report, Chairman, FICCI, Media and Entertainment Committee Kevin Vaz, said, "The Indian media and entertainment industry is at a defining moment, driven by rapid digital adoption and evolving consumer preferences. This transformation is unlocking immense opportunities for content creators, advertisers, and technology innovators across all segments of the M&E ecosystem."

(With PTI inputs)