FICCI 2024 : The media & Entertainment (M&E) Sector Grew Over 8% in 2023; Indian M&E sector Crossed Rs. 2.3 Trillion In a Year

FICCI 2024: The latest FICCI-EY report titled ‘#Reinvent: India’s media & entertainment sector is innovating for the future’, launched at the FICCI FRAMES 2024 in Mumbai, revealed that the Indian M&E sector grew by 8% in 2023, reaching INR2.3 trillion (US$27.9 billion), 21% above its pre-pandemic levels in 2019.

New media, comprising digital and online gaming, emerged as the frontrunner in growth, contributing Rs. 122 billion of the overall increase of Rs. 173 billion, and consequently, increasing its contribution to the M&E sector from 20% in 2019 to 38% in 2023.Experiential (outside the home and interactive) segments continued their strong growth in 2023, and consequently, online gaming, filmed entertainment, live events, and OOH media segments grew at a combined 18%, contributing 48% of the total growth. With the exception of television, which experienced a marginal decline of 2%, all other segments experienced positive growth in 2023.

Mr. Kevin Vaz, Chairman, FICCI Media and Entertainment Committee, said, “India is a unique market where the M&E sector distinguishes itself through a harmonious fusion of tradition and innovation. Here, technology-enhanced entertainment channels, OTT platforms, AI-powered newsreaders, traditional print media, flagship films, and short-form content not only coexist but thrive together, showcasing the vibrant diversity and dynamic growth of our industry. The Government of India’s thrust on improving digital infrastructure in the country combined with our ambition to be at the forefront of the next big technological thrust in media and entertainment, our sector is primed for a massive transformation.”

Mr. Ashish Pherwani, Partner and Media & Entertainment Leader, EY India, said, "I believe the M&E sector is at the “inflection point” we foresaw in 2018, with the dominance of digital channels over traditional media. In 2023, new media comprised 52% of total advertising revenues, yet, unlike in many other countries, Indian traditional media also grew. This underscores the unique Indian market where, while we are witnessing a seismic shift towards digital consumption, there is still adequate headroom for traditional media to grow."

Read Key highlights below:

Indian advertising reached Rs. 1.1 trillion:

Digital advertising grew by 15% in 2023 and surpassed traditional advertising for the first time. Social, sports, e-commerce, and SME advertisers will continue to drive growth in the sector moving forward.

A billion screens by 2030:

India is expected to have almost a billion active screens by 2030. Of these, around 240 million will be large (TV, laptop, PC), while the remaining will be small (mobile phones, phablets). Pay TV, free TV, and connected TV are expected to emerge as significant markets, each comprising between 60 and 80 million homes. The 3:1 ratio in favour of mobile phones will sustain the demand for short videos and social commerce.

Online gaming is expected to reach Rs. 388 billion by 2026:

The segment will see growth across all its verticals, including esports, fantasy sports, casual gaming, and other games of skill, to reach an estimated 150 million daily users. Revenue growth will be led by mobile-based real-money gaming and casual gaming.