FICCI-EY Report: Digital revenues to surpass TV in 2024; India's M&E sector to hit $38 billion by 2026
In 2024, digital media is poised for explosive growth, potentially overtaking television to become the leading segment of the M&E sector. This surge in digital media is forecasted to propel the M&E sector’s growth to a 10 percent annual rate, crossing Rs 3 trillion ($37.1 billion) by 2026.
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India’s media and entertainment industry tends to outpace the nation’s GDP growth. After multiple years of double-digit growth, last year, the industry grew over 8 percent, despite global headwinds. While traditional media, such as television and radio, continue to dominate the market reaching 800 and 400 million consumers respectively, digital has truly caught up, recording a reach of 600 million. While print, with a reach of 300 million, and cinema with 100 million, may appear smaller, they continue to remain essential in shaping the future of the industry.
The annual Federation of Indian Chambers of Commerce and Industry (FICCI)-EY report states the reach of online news is higher than that of news television. Digital video is now larger than television in certain areas of the country, with online sports setting global viewership records. And online entertainment platforms cater to audience segments both from an original content perspective as well as for catch-up television.
"Yet, untapped opportunities abound. A third of India does not have a television, and over half do not yet use social media. 90 percent of Indians do not visit cinemas, and only one in 10 Indian households has a wired broadband connection. The potential for growth is immense, and both digital and traditional media have significant headroom to scale in the years ahead," the report states.
In 2024, digital media is poised for explosive growth, potentially overtaking television to become the leading segment of the M&E sector. This surge in digital media is forecasted to propel the M&E sector’s growth to a 10 percent annual rate, crossing Rs 3 trillion ($37.1 billion) by 2026.
Kevin Vaz, Chairman, FICCI Media and Entertainment Committee, said, "This growth is buoyed by a robust digital infrastructure, widespread adoption of OTT platforms, significant growth in the gaming segment, and the availability of cost-effective options for consumers. Despite this digital boom, traditional media is also experiencing steady growth and thus India is a “Linear and Digital Market” rather than “Linear or Digital Market”. This 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," added Vaz.
Accessibility and affordability of the internet is driving the growth of the M&Esector. Ad-supported video on demand platforms have transformed viewership in India by providing easy and affordable access to live sporting events. The democratisation 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, the report stated.
The report spotlighted India’s burgeoning talent pool in content creation which includes post-production, VFX, animation, and gaming, which is transforming it as a hub for creative industry. Vaz said, "As we navigate towards a billion active screens by 2030, with mobile screens comprising over 75 percent of them, the need to innovate content creation, distribution, and monetization strategies becomes paramount."
