In 2025, India's media and entertainment industry experienced unprecedented expansion, reaching an impressive valuation of $29.6 billion, marking a substantial 9% year-over-year increase. This remarkable growth was predominantly fueled by the thriving digital media landscape, robust advertising revenues, and a vibrant live events segment. A significant milestone was the filmed entertainment sector, which hit a record $2.18 billion, largely propelled by the blockbuster success of 'Dhurandhar' and 37 other films surpassing the $10.7 million box office mark. This upward trajectory underscores the sector's increasing strategic importance to the nation's economy and its role as a global creative powerhouse.
The comprehensive FICCI-EY report, titled 'Stories, Scale and Impact: Unlocking India's Media and Entertainment Economy,' unveiled on Tuesday in Mumbai during the FICCI Frames conference, detailed the sector's robust performance. It highlighted that this growth significantly outpaced India's per-capita GDP expansion of 7.7%. Digital media emerged as the primary catalyst, becoming the largest segment of the industry for the first time, with revenues exceeding $10.66 billion. Within digital media, India's streaming market alone generated over $2.9 billion, showcasing a notable shift in consumption patterns as regional languages accounted for 56% of content consumption, up from 27% in 2020. This trend was mirrored in regional cinema, which now produces more than 65% of all films nationwide.
Total advertising revenues also witnessed a substantial boost, climbing 13.5% to $15.98 billion, representing 0.41% of India’s GDP. Digital advertising, in particular, soared by 26% to $10.09 billion, comprising 63% of the total advertising market, as brands increasingly adopted measurable, performance-driven, and commerce-linked spending strategies. E-commerce and point-of-sale advertising experienced a remarkable 50% surge, reaching $2.34 billion, a figure equivalent to 85% of traditional linear television advertising revenues. The report also noted the growing influence of Connected TV, with subscriptions rising by 35%, leading to a 44% increase in advertising revenues on these platforms, from $735.3 million in 2024 to $1.06 billion in 2025.
Digital subscription revenues saw a significant 60% growth, amounting to $1.74 billion. Paid video subscriptions expanded to 216 million across 143 million households, driven primarily by premium sports and film content. Paid music subscriptions also grew by 37% to 14.4 million, though news subscriptions remained limited due to the widespread availability of free alternatives. Kevin Vaz, chair of the FICCI Media and Entertainment Committee, emphasized the encouraging signal of digital expansion, recognizing it as a testament to the sector's strong growth momentum and the complementary role of Connected TV in enhancing large-screen experiences. He underscored the importance of regulatory support and continuous innovation to sustain this long-term growth.
The live events segment demonstrated strong recovery and expansion, escalating by 44% to $1.55 billion. This was attributed to a surge in ticketed concerts, personal events like weddings, government-backed initiatives, and major religious gatherings such as the Maha Kumbh Mela. Concurrently, the film industry's theatrical revenues increased by 14%, largely due to higher ticket prices, even as digital and satellite rights values saw declines of 8% and 10% respectively, as buyers recalibrated their strategies based on theatrical performance. Despite these shifts, the sector collectively released over 1,900 films in 2025.
Conversely, linear television, despite its pervasive reach of 745 million individuals weekly, experienced a 10.3% decline in advertising revenue due to advertisers shifting focus to digital platforms and a 3% reduction in the number of advertisers. Subscription revenues for linear TV also dropped by 8%, influenced by a loss of 11 million Pay TV households. However, the growth in Free TV and Connected TV subscribers helped stabilize combined linear and Connected TV advertising revenues at $3.86 billion, with Connected TV reaching approximately 40 million weekly active homes. Other segments like out-of-home media grew by 13%, with digital OOH contributing 18% of revenues. The music sector increased by 10%, although digital licensing through YouTube showed declining returns, offset by growth in other streaming platforms and social media. Animation and VFX saw modest growth of 2%, constrained by international studio profitability challenges but supported by increasing domestic demand.
Looking ahead, the report forecasts continued robust growth for the media and entertainment sector, projecting a 2.8% increase in 2026 to $30.48 billion. Excluding online gaming, growth is expected to accelerate to a compound annual growth rate (CAGR) of over 7% through 2028, potentially reaching $35.17 billion. Digital media is anticipated to be the fastest-growing segment, with a 14% CAGR, reaching $17.48 billion by 2028. Digital advertising is expected to drive an additional $4.75 billion in revenues, largely fueled by SME advertising and e-commerce. Live events are projected to expand beyond major metropolitan areas, and filmed entertainment is set to grow to $2.7 billion. While linear television is expected to continue its decline in subscriptions, the increasing ad targeting capabilities and SME investments in Connected TV are projected to boost combined linear and Connected TV advertising revenues to $4.02 billion by 2028. The video games segment is set for a 13% growth to $980.4 million, despite regulatory challenges impacting money gaming. Overall, the sector’s evolution is increasingly defined by the interplay of compelling narratives, expansive reach, and significant economic contributions, requiring sustainable monetization models and adaptive strategies from all stakeholders.