Digital Tightens its Grip on India’s ₹2.78 Trillion Media Market

India’s media and entertainment (M&E) industry crossed a crucial turning point in 2025. It was not just about growth anymore. It was about a structural shift in how the industry works. 

The sector grew 9.1% to reach ₹2.78 trillion, according to the FICCI–EY Media & Entertainment Report 2026. This was higher than India’s per capita GDP growth, signalling strong momentum. But the bigger story was this: digital is no longer just a fast-growing segment. It has become the centre of the entire ecosystem. 

Today, everything in media—from content creation to advertising to distribution—is being reshaped around digital consumption. 

Digital now drives advertising and subscriptions 

The clearest sign of this shift is in advertising. Total ad revenue grew 13.5% to ₹1.5 trillion in 2025. Out of this, digital alone contributed ₹947 billion, making up 63% of total advertising spend. Just two years ago, that share stood at 50%. Most brands are now prioritising digital platforms over television, print or radio because they offer better targeting, clearer measurement and a direct link to sales. 

Much of this growth came from e-commerce and performance-driven advertising. Spending on e-commerce and point-of-sale ads grew 50% to ₹220 billion. Small and medium businesses played a major role in this expansion, with over a million advertisers now active on digital platforms. Advertising, in effect, is shifting from reach to outcomes. 

At the same time, subscriptions are emerging as a second major pillar of growth, especially in digital media. India had 216 million paid video subscriptions in 2025, spread across 143 million households. Digital subscription revenues rose 60% to ₹163 billion. Music subscriptions also grew 37% to 14.4 million users. News, however, continued to lag, with only around 4 million paid subscribers, reflecting the difficulty of monetising news in a market where free alternatives are abundant. 

This divergence highlights a broader pattern. Consumers are willing to pay for entertainment, particularly sports and films, but are less inclined to pay for information. 

Digital media has now become the largest segment within the M&E industry, generating ₹1.11 trillion in revenue in 2025 and expected to reach ₹1.64 trillion by 2028. It will account for the bulk of future growth, pushing new media, including digital and gaming, to 53% of total industry revenues over the next few years. 

The rise of connected television is further blurring the line between traditional and digital consumption. Around 40 million Indian homes now use connected TVs, combining the scale of television with the targeting capabilities of digital platforms. This convergence is gradually redefining how content is distributed and monetised. 

Traditional media declines as consumption shifts 

While digital surges ahead, traditional media is clearly under pressure. Television, which still reaches around 745 million people every week, saw a decline in both advertising and subscription revenues. Advertising fell by over 10%, and subscription revenues dropped 8% as India lost 11 million pay-TV households. Radio revenues declined 7%, largely due to falling ad rates and the disappearance of FM receivers from smartphones and cars. Print remained relatively stable, with advertising growing 2%, particularly in premium formats, but circulation continued to decline among younger audiences. 

These are not short-term fluctuations but structural changes driven by evolving consumer habits. Linear viewing is giving way to on-demand consumption, and audience measurement is shifting from reach to engagement. 

Live events and films power the experience economy 

One of the most striking developments in 2025 was the resurgence of live events. The segment grew 44%, making it the fastest-growing part of the industry. Revenues reached ₹145 billion and are expected to rise to ₹196 billion by 2028. This growth was driven by a combination of weddings, large government and religious events such as the Maha Kumbh, and a revival in concerts and ticketed entertainment. 

The rise of live events signals a deeper shift towards experiential consumption. Even as digital platforms provide unlimited access to content, audiences are increasingly seeking real-world experiences that offer emotional and social engagement. 

The film industry also had a strong year, with total revenues reaching ₹205 billion. More than 1,900 films were released, and 37 crossed the ₹100 crore mark. Theatrical revenues grew 14%, driven largely by higher ticket prices. At the same time, digital and satellite rights declined by 8% to 10%, as platforms became more cautious in their spending and aligned content investments more closely with performance. 

The music industry grew 10%, but its revenue mix is changing. Growth is now being driven by live events, social media and branded content rather than streaming alone. Declining returns from platforms such as YouTube have pushed music labels to diversify into talent management and live performances. 

Content scale remains high, but economics tighten 

India’s content ecosystem continues to operate at massive scale, producing nearly 200,000 hours of content in 2025. Television still dominates production, accounting for 96% of total output. However, content economics are becoming tighter. Platforms and studios are cutting back on expensive shows and focusing on formats that offer clearer returns, such as reality programming, tentpole films and short-form content. 

Regional content has emerged as one of the most powerful growth drivers. Regional languages now account for 56% of OTT consumption, up sharply from 27% in 2020. Regional cinema contributes over 65% of films produced in India. What was once considered a niche segment has become central to the industry’s expansion. 

As Allu Aravind noted in the report, “Stories rooted in our land, our culture and our people continue to travel the furthest. That is not sentiment. It is fact.”  

Not all segments benefited equally. The gaming industry saw a 17% decline in 2025, largely due to a four-month ban on real-money gaming. Revenues from that category fell 26%, pulling down the overall segment. However, in-app purchases grew 15%, indicating that underlying user engagement remains strong. The long-term outlook for gaming remains positive, but more regulated and stable. 

At the core of these changes is a shift in how audiences interact with media. The report identifies three key needs driving consumption: information, escapism and self-expression. Consumers are no longer passive viewers. They are active participants, using media to engage, share and create. 

As Ashish Pherwani explained, media has become a way for people to “interpret the world, find relief from it, and increasingly express who they are within it.”  

This behavioural shift is driving the rise of creators, short-form video and social platforms, fundamentally changing the structure of the industry. 

Looking ahead, the M&E sector is expected to grow to ₹2.86 trillion in 2026 and ₹3.3 trillion by 2028. Digital media will account for the majority of this expansion, contributing over ₹500 billion in incremental value. Live events, films and animation are also expected to grow, while television and radio will continue to decline. 

The industry is also becoming more complex. Revenue models are no longer linear. Companies are combining advertising, subscriptions, live experiences and commerce to maximise returns and reduce risk. 

The report describes this as a “post-inflection phase” marked by convergence, hybrid monetisation and data-driven decision-making.  

India’s media industry is no longer organised around platforms like television or print. It is organised around audiences, data and engagement. Digital is not just another segment anymore. It is the foundation on which the entire industry now operates. 

The sector is still growing. But more importantly, it is being rebuilt.