The Indian media and entertainment (M&E) sector is experiencing a profound metamorphosis, propelled primarily by a surging digital economy and evolving consumer behaviors. Valued at ₹2.78 trillion (approximately $33.4 billion USD) in 2025, the industry recorded a robust 9.1% year-on-year growth, defying global economic headwinds. Projections indicate a sustained expansion at a 7% compound annual growth rate (CAGR), pushing its valuation to an impressive ₹3.3 trillion (approximately $39.7 billion USD) by 2028. This upward trajectory underscores India’s unique position as a dynamic, multi-screen market where traditional and digital media not only coexist but increasingly complement each other, forging new pathways for content creation, distribution, and monetization.
The primary catalyst for this remarkable growth is the pervasive influence of digital platforms. While traditional segments presented a mixed performance, the digital realm exhibited an almost uninterrupted surge. Excluding the temporary impact of a four-month ban on money gaming, which affected a specific sub-segment, the broader M&E sector’s growth in 2025 reached an even more impressive 11.8%. This distinction highlights the inherent resilience and expansive potential embedded within India’s digital infrastructure, driven by widespread smartphone penetration, affordable data, and a youthful, digitally native population.
Digital advertising has emerged as a particularly potent engine, demonstrating a remarkable 26% increase to reach ₹94,700 crore (approximately $11.4 billion USD). This figure now constitutes a commanding 63% of total advertising revenues across the M&E landscape, signalling a definitive shift in marketing spend. A significant driver within this category has been the explosive growth in e-commerce and point-of-sale (POS) advertising, which surged by 50% to ₹22,000 crore (approximately $2.6 billion USD). This segment alone now commands 85% of linear television’s advertising revenues, illustrating the immense commercial power of direct-response and performance-based digital marketing. The granular targeting capabilities and measurable return on investment offered by digital platforms have proven irresistible to advertisers, particularly as consumer journeys increasingly integrate online research with purchase decisions.
A substantial portion of this digital advertising boom, specifically ₹36,300 crore (approximately $4.4 billion USD), originates from over a million small and medium enterprises (SMEs) and a growing cohort of "long-tail" advertisers. This democratized access to advertising, previously dominated by large corporations, reflects the expanding digital footprint of India’s diverse business ecosystem. Industry forecasts anticipate this segment to continue leading growth, contributing an additional ₹44,600 crore (approximately $5.4 billion USD) by 2028. This sustained investment is expected as both large enterprises and SMEs increasingly leverage high-attribution e-commerce advertising, shoppable content formats, and the rapidly expanding connected TV (CTV) ecosystem, which is projected to grow from 40 million to 67 million connections. The appeal lies in the ability to precisely measure campaign effectiveness and directly link advertising spend to sales conversions, a significant advantage over traditional broadcast media.
Beyond advertising, digital subscriptions are also charting an impressive growth trajectory. Revenues from digital subscriptions expanded by a robust 60% to ₹16,300 crore (approximately $2 billion USD). Paid video subscriptions, particularly, have witnessed a massive uptake, reaching 216 million subscriptions across 143 million households. This surge is largely attributable to premium sports content and blockbuster films migrating behind paywalls on Over-The-Top (OTT) platforms, alongside aggressive pricing strategies and bundled offerings from telecom providers. The market for paid music subscriptions also saw a healthy 37% growth, reaching 14.4 million users, as platforms actively discouraged free usage and enhanced user experiences. In contrast, news subscriptions remained relatively modest at 4 million, primarily due to the prevailing abundance of free news alternatives, highlighting a specific monetization challenge within that sub-segment.
The outlook for digital subscription revenue remains exceedingly positive, with projections of an additional ₹8,500 crore (approximately $1 billion USD) by 2028. This growth will be fueled by the expansion of video OTT subscriptions to approximately 191 million households. Transactional Video on Demand (TVoD) revenues are also expected to climb from ₹500 crore (approximately $60 million USD) to ₹740 crore (approximately $89 million USD), indicating a growing consumer willingness to pay for individual premium content offerings. Furthermore, audio OTT subscriptions are anticipated to double, reaching between 28 million and 30 million, driven by an expanding library of podcasts, regional music, and exclusive audio content. These trends collectively underscore a significant shift in consumer willingness to pay for digital content, a testament to improved content quality, user experience, and the convenience offered by subscription models.
Amidst this digital surge, certain traditional segments are also carving out niches of impressive performance. The organized live events sector, for instance, recorded the fastest growth across the entire M&E landscape, expanding by 44%. This resurgence is attributed to increased consumer spending on ticketed events such as concerts and festivals, alongside a robust recovery in personal functions like weddings, and large-scale government and religious gatherings, including major cultural events like the Maha Kumbh Mela. This segment’s growth reflects a post-pandemic pent-up demand for experiential entertainment and a return to community events, showcasing the enduring appeal of in-person experiences.
The film segment, a cornerstone of Indian entertainment, also saw a record-breaking year, with revenues reaching ₹20,500 crore (approximately $2.5 billion USD). This was largely propelled by the commercial success of major theatrical releases, with over 1,900 films hitting screens in 2025. Theatrical revenues specifically climbed by 14%, primarily due to higher average ticket prices and a strong slate of content. Notably, 37 films crossed the prestigious ₹100 crore (approximately $12 million USD) mark at the box office, indicating a healthy appetite for cinematic experiences. However, the dynamics of film monetization are evolving; digital and satellite rights values experienced declines of 8% and 10% respectively. This adjustment reflects a rationalization by buyers, who are increasingly basing acquisition values on theatrical performance and audience engagement metrics, rather than pre-release hype.
In contrast, linear television, despite remaining the most widely consumed medium, reaching around 745 million individuals weekly, faced headwinds. Both advertising and subscription revenues for linear TV experienced declines. Advertising revenues fell by 10.3%, attributed to lower volumes and a 3% reduction in the number of advertisers, as brands increasingly reallocated budgets to digital media. Subscription revenues also decreased by 8%, primarily due to the loss of 11 million pay TV households, a phenomenon commonly referred to as "cord-cutting." Nevertheless, Free-to-Air (FTA) TV and connected TV (CTV) segments showed resilience. CTV, categorized under digital media, significantly expanded its reach to approximately 40 million weekly active homes, underscoring a pivotal shift in how audiences consume television content – away from traditional cable/satellite and towards internet-enabled smart TVs.
Looking ahead, the television landscape is poised for further evolution. Total TV subscriptions are projected to reach 212 million by 2030, representing 22% of all screens. Ad revenues across linear TV and connected TV are expected to grow to ₹37,700 crore (approximately $4.5 billion USD) by 2028. This growth will likely be driven by improving ad targeting capabilities on CTV platforms, which will attract greater spending from SMEs seeking more efficient and measurable advertising solutions. The synergy between linear and digital, particularly through CTV, is creating an "AND" market, where diverse screens and consumption habits converge.
Industry leaders emphasize that this digital transformation is not a story of replacement but rather one of addition. As Kevin Vaz, Chairman of the Ficci Media and Entertainment Committee and CEO, Entertainment, JioStar, observed, India is rapidly emerging as a "multi-screen nation." This signifies a market where consumers engage with content across a multitude of devices – mobile, connected TV, linear TV, and cinema – often simultaneously. The resurgence of large screens, particularly connected TV, is a compelling narrative, yet traditional mediums like linear television, mobile, films, and print continue to expand their reach and influence. This unique characteristic positions India as a vibrant and complex M&E ecosystem, offering immense opportunities for innovation, investment, and content diversification as it strides towards its ambitious ₹3.3 trillion valuation. The blend of digital dynamism and traditional resilience defines India’s M&E sector as a global outlier, navigating a unique path of growth and evolution.
