Stories, scale and impact: Unlocking India’s M&E economy

India’s media and entertainment (M&E) sector returned to growth in 2025, reaching an estimated value of INR2.78 trillion, according to the FICCI‑EY M&E report. After two years of muted performance, the sector exceeded nominal per capita GDP growth, supported by a recovery in advertising, increased digital consumption and a resurgence of live events.

While the overall growth trajectory improved, performance across the India M&E sector remained uneven. Some segments benefited from strong demand and structural tailwinds, while others faced pressure from regulatory changes, cost constraints and evolving consumer behavior. As a result, 2025 marked a year of selective recovery rather than broad‑based acceleration.

Advertising played a central role in this recovery. Total advertising revenues grew at a double‑digit pace, with digital advertising accounting for nearly two‑thirds of overall ad spends. The expansion of e‑commerce, point‑of‑sale advertising and participation from small and medium enterprises reinforced digital’s position as the primary growth driver within India’s media and entertainment industry.

Structural shifts shaping India’s M&E sector

Beyond segmental outcomes, the FICCI‑EY M&E report points to deeper structural changes shaping the sector. Digital has moved beyond being a growth channel to becoming the operating backbone of the India M&E sector—shaping content creation, distribution and monetization models.

Regulatory developments also influenced performance in 2025. The online gaming segment, for instance, experienced a sharp contraction following restrictions on money gaming formats, highlighting the sector’s sensitivity to policy clarity and the importance of adaptable business models.

Segmental growth 2025 vs. 2024 (%)

• Live events: The organized segment saw a 44% rise in 2025, driven by higher spending on ticketed events, weddings, government functions and religious gatherings.

• Digital advertising: Digital ad revenues grew 26% to INR947 billion, accounting for 63% of total ad spend. E-commerce and point-of-sale ads surged 50% to INR220 billion, and small and medium businesses contributed INR363 billion.

• Digital subscriptions: Revenues jumped 60% to INR163 billion. Paid video subscriptions reached 216 million, covering 143 million households, while paid music subscriptions grew 37% to 14.4 million. News subscriptions were approximately four million.

• OOH: Out-of-home media rose by 13%, with premium properties leading the way. Digital OOH made up 18% of segment revenues, up from 7% in 2023.

• Music: The music sector’s revenue grew 10%. Digital licensing increased marginally by 2%, but other OTT and social media channels saw double-digit growth. Music labels’ other income climbed 26% due to events, branded content and talent management.

• Film: Film revenues hit INR205 billion in 2025, powered by 1,900 releases. Theatrical revenues grew 16% to INR130 million, an all-time high, as thirty-seven films grossed INR1 billion or more at the box office. However, digital and satellite rights values declined by 8% and 10% respectively.

• Animation and VFX: The segment grew 2%, affected by the Hollywood writers’ strike and fewer international projects. Domestic demand rose as more mid-budget films used VFX, and post-production expanded into new niches.

• Print: Print remained resilient, with advertising revenue up 2% in premium formats. Event-driven income rose, but subscriptions dropped 1% and digital revenues stayed low at 5% on average.

• Radio: Radio revenues fell 7% to INR23 billion, mainly due to lower ad rates and fewer FM receivers in devices. Alternate revenues now form about 25% of segment earnings.

• Television: TV remains India’s leading medium, reaching 745 million people weekly. Linear TV ad revenue declined 10% and subscription revenue dropped 8% as Pay TV households decreased by 11 million. Connected TV numbers rose to 40 million units. Linear and Connected TV ad revenues aggregated INR362 billion, similar to 2024.

• Online gaming: The segment declined 17% after the ban on money gaming, with money gaming revenues down 26%. Video game in-app purchases increased 15%, while esports revenue dropped 8% due to sponsorship challenges.

Saakshi Kishnani, Director, Risk Consulting, EY India; Sonika Pruthi, Director, Risk Consulting, EY India; Ateesh Khanna, Director, Risk Consulting, EY India; Devanshu Tiwari, Senior Manager, Business Consulting, EY India, have also contributed to this article.