Online gaming surpassed filmed entertainment in India, touched Rs 220 billion in 2023

India's online gaming industry has surged past filmed entertainment to become the fourth largest media and entertainment segment, according to a FICCI-EY report. The market grew 22 percent in 2023 to touch Rs 220 billion, compared to Rs 197 billion for filmed entertainment.

Gaming grew from Rs181 billion in 2022 and is expected to touch Rs269 billion by end of 2024. Filmed entertainment on the other hand grew from Rs172 billion in 2022 and is expected to touch Rs207 billion by the end of 2024.

The report highlights the growing popularity of online gaming, with over 450 million gamers in India and 100 million playing daily.

“We estimate over 90 million gamers paid to play; real money gaming comprised 83 percent of segment revenues. Impact of a higher GST levy was largely absorbed by larger players, impacting margins, but protecting growth,” said the report.

Films on the other hand grew 14 percent to reach Rs197 billion. Over 1,796 films were released in 2023, and theatrical revenues reached an all-time high of Rs120 billion. Number of screens grew 4 percent and fewer films were released directly on digital platforms. 339 Indian films were released overseas.

Moving on to advertising, it grew up 7 percent in 2023. Traditional media advertising was flat, while new media drove the growth in advertising in 2023. New media advertising contributed 52 percent of the total advertising, and 105 percent of the absolute advertising growth in 2023.

Digital media comprised 51 percent of total ad spends, up from 31 percent pre-pandemic, and contributed the highest share of advertising in India.

TV comprised 26 percent of ad revenues, down from 36percent in 2019.

Together, national media [television + new media] contributed 78percent of all advertising spends, while local media [print + OOH + radio + cinema] comprised the balance 22 percent