India's Media and Entertainment (M&E) industry is a rapidly growing sector, valued at over ₹2.3 trillion in 2023, with an expected annual growth rate of 8%. The industry encompasses television, digital media, film, music, live events, and OTT platforms, with television remaining the dominant segment. The rise of digital platforms like JioHotstar, Netflix, and Amazon Prime Video has reshaped content consumption. Live events are booming, with thousands of concerts and shows annually, driven by a young and affluent population. The M&E industry is projected to grow at a CAGR of 8.3% from 2024 to 2028, reaching ₹3.7 trillion by 2028, driven by digital advertising, OTT platforms, and technological advancements. Projections indicate that the sector's revenue will reach INR 3,65,000 crores by 2028, surpassing the global average growth rate of 4.6%, highlighting the industry's dynamic transformation fueled by technological advancements and evolving consumer preferences.
A substantial portion of this growth is attributed to the surge in digital advertising and over-the-top (OTT) platforms. Internet advertising in India is expected to expand at a CAGR of 15.6% by 2028, the highest growth rate among the top 15 global markets. This surge is driven by increased internet penetration, affordable data plans, and a burgeoning young population.
OTT platforms have revolutionized content consumption, offering viewers a plethora of choices beyond traditional media. The Indian OTT market witnessed a 20.9% growth in 2023 and is projected to double by 2028, with subscription-based services accounting for 65% of the market. This shift indicates a growing consumer willingness to pay for diverse and quality content.
Despite the digital surge, cinema remains a vital component of India's entertainment landscape. The cinema market is anticipated to grow at a 14.1% CAGR, reflecting the enduring appeal of theatrical experiences. However, the industry faces significant challenges, notably content piracy. Addressing this issue necessitates robust anti-piracy regulations, technological interventions, and increased consumer awareness about the repercussions of consuming pirated content.
Content diversification is another critical area. The rise of regional cinema, particularly from South India, has reshaped the industry's dynamics. In 2022, the revenue of South India movies overtook that of Bollywood. This trend highlights the importance of catering to varied linguistic and cultural audiences, offering content that resonates on a regional level while maintaining universal appeal.
Technological integration, especially the adoption of Artificial Intelligence (AI) and Machine Learning (ML), is poised to redefine content creation and distribution. These technologies enable personalized content recommendations, efficient production workflows, and enhanced audience engagement. As the industry evolves, stakeholders are investing in future-oriented strategies to remain competitive and relevant in a rapidly changing landscape.
The Indian entertainment industry stands at a pivotal juncture, characterized by robust growth prospects and transformative changes. By embracing digital advancements, diversifying content offerings, and addressing challenges like piracy, the industry is well-positioned to captivate a diverse and expanding audience, both domestically and globally.
