New Delhi, March 24 (NationPress) The media and entertainment (M&E) sector in India has entered a pivotal stage characterized by significant growth, digital leadership, and structural changes in 2025, achieving a total worth of Rs 2.78 trillion with a remarkable 9 percent increase, surpassing the nominal GDP growth rate, as highlighted in a report.

According to a collaborative study by the FICCI and EY, the M&E industry is anticipated to grow by 2.8 percent, reaching Rs 2.86 trillion (approximately $32.9 billion) in 2026, and further climbing to Rs 3.3 trillion (around $37.9 billion) by 2028.

Digital media has become the leading segment, generating more than Rs 1 trillion in revenue. Digital advertising now constitutes 63 percent of all advertising expenditures, with subscriptions witnessing a surge, primarily fueled by OTT platforms, premium sports, and content in regional languages.

Conversely, television is experiencing a slow decline, projected to drop to Rs 617 billion in 2025, with an expected further contraction at a negative 5 percent CAGR, despite a forecast that TV households will exceed 200 million by 2028.

A significant shift is the rise in regional storytelling, with regional languages making up over half of OTT consumption and nearly two-thirds of film production.

The industry produced almost 200,000 hours of content in 2025, dominated by television but also bolstered by OTT and short-form content, even as traditional media faces challenges from changing ad revenue and decreasing subscriptions.

Advertising remains a key growth factor, expanding by 13.5 percent to Rs 1.5 trillion, driven by digital formats, e-commerce, and participation from small and medium enterprises.

In live events, the organized sector saw a remarkable 44 percent increase, propelled by higher expenditures on ticketed events, personal celebrations like weddings, government events, and religious gatherings, including the Maha Kumbh Mela, the report indicated.

However, the report also pointed out significant challenges, such as a decrease in pay-TV households, poor monetization in news, and regulatory hurdles in the gaming sector, which is predicted to decline at a CAGR of (-)22 percent between 2025 and 2028.

Anant Goenka remarked that the industry is at the forefront of India's creative and digital evolution, driven by changing audience preferences and rapid technological advancements.

Labeling 2025 as a “crucial inflection point,” Kevin Vaz stated that the industry has embarked on a new journey of “scale, innovation, and transformation.” He added, “These trends signify an industry that is expanding in scale, innovating across various platforms, and embracing technology.”

The sector is set to surpass Rs 3 trillion by 2027 and reach Rs 3.3 trillion by 2028, with digital media propelling growth and new formats like creator-led platforms, micro-dramas, and immersive experiences defining the future.