Media and Entertainment Industry

Indian M&E industry is on an impressive growth path. The industry is expected to grow at a much faster rate than the global average rate.

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. Proving its resilience to the world, Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenue. 

the Indian media and entertainment (M&E) sector stood at Rs. 1.38 trillion (~ US$ 18 billion) in 2020 and is estimated at Rs. 1.79 trillion (~ US$ 24 billion) in 2021. Further, it is projected to grow to Rs. 2.23 trillion (~ US$ 29 billion) by 2023, due to acceleration of digital adoption among users across geographies. The market is projected to increase at a CAGR of 17% between 2020 and 2023. Recently, digital and online added revenue stood at Rs. 26 billion in the M&E sector and their contribution to the sector increased to 23%.

Within the M&E sector, Animation, Visual Effects, Gaming and Comic (AVGC) sector is growing at a rate of ~29%, while the audiovisual sector and services is rising at the rate ~25%; is recognised as of one of the champion sectors by the Government of India.

Advertising revenue in India is projected to reach Rs. 915 billion (US$ 12.98 billion) and India’s subscription revenue is projected to reach Rs. 940 billion (US$ 13.34 billion) in 2023. Also, Indian gaming industry is expected to reach US$ 3.8 billion by 2024.

According to 'India: Online Video Trends and Omdia Consumer Research Highlights' report published by Omdia (published in 2021), the Indian SVOD market, with OTT video subscriptions, reached ~62 million in 2020 from ~32 million in 2019. According to EY-Parthenon, India’s publishing industry is likely to reach Rs. 80,000 crore (US$ 10.74 billion) by 2024.

Growth of the sector is attributable to the trend of platform such as YouTube that continues to offer recent and video content-linked music for free, which is expected to drive the paid OTT music sector reaching ~5 million end-users by 2023, generating revenue of ~Rs. 2 billion (US$ 27 million).

By 2025, the number of connected smart televisions are expected to reach ~40-50 million. 30% of the content viewed on these screens will be gaming, social media, short video and content items produced exclusively for this audience by television, print and radio brands.