India’s film entertainment sector hit an all-time high in 2025, reaching 205 billion rupees ($2.18 billion) as “Dhulandhar” broke records and 37 films crossed the 1 billion rupee ($10.7 million) mark at the box office. This is part of a broader surge that took the total value of the country’s media and entertainment sector to 2.78 trillion rupees ($29.63 billion), up 9% year-on-year, it said. The FICCI-EY report ‘Story, Scale and Impact: Unlocking India’s media and entertainment economy’ was launched at the FICCI Frames conference held on Tuesday in Mumbai.
Growth in the sector outpaced India’s 7.7% expansion in GDP per capita, driven primarily by digital media, advertising and live experiences, even as some segments face regulatory and cost pressures.
Digital media emerged as the single largest segment of the industry, exceeding $10.66 billion for the first time. India’s streaming market will exceed $2.9 billion in 2025, with regional language share of consumption rising from 27% in 2020 to 56% in 2025. Currently, regional films account for over 65% of all films produced in India. Total advertising revenue increased by 13.5% to $15.98 billion, equivalent to 0.41% of India’s GDP. The sector is projected to reach $35.17 billion by 2028, growing at an average annual rate of more than 7%, at which point new media is expected to account for 53% of total revenue.
The M&E sector accounts for about 0.8% of India’s GDP and provides direct employment to about 2.75 million people and indirect employment to over 10 million people. India produced around 200,000 hours of content in 2025, mostly in regional languages other than Hindi, with 96% for TV excluding breaking news, 2% for movies, 1% for streaming, and 1% for short videos and microdramas.
Digital advertising grew 26% to $10.09 billion, accounting for 63% of total ad revenue, as brands continue to shift spending to performance-driven, measurable, commerce-linked formats. E-commerce and point-of-sale advertising increased 50% to $2.34 billion, representing 85% of terrestrial TV advertising revenue. Digital advertising also includes $3.87 billion from more than 1 million small and medium-sized businesses and long-tail advertisers. Advertising on connected TV grew from $735.3 million in 2024 to $1.06 billion in 2025, as connected TV subscriptions grew 35% and provided marketers with an affluent audience.
Digital subscription revenue increased 60% to $1.74 billion. Paid video subscriptions reached 216 million across 143 million households, driven by paid sports and paid movies. Paid music subscriptions increased 37% to 14.4 million. News subscriptions are still limited to 4 million, but this is mainly due to the abundance of free alternatives.
FICCI Media and Entertainment Committee Chair Kevin Baz said the digital milestone was a “very encouraging signal of the sector’s strong growth momentum”, explaining that connected TV complements linear TV by enhancing the big screen experience. He added that “regulatory patience, coupled with innovation, will be critical to sustaining long-term growth.”
Sponsored Live Events grew 44% to $1.55 billion, driven by ticketed concerts, private events such as weddings, government events, and religious gatherings such as the Maha Kumbh Mela.
The film category reached a record high of $2.18 billion. More than 1,900 movies were released in 2025, and theatrical revenue increased 14%, primarily due to higher ticket prices. Thirty-seven films grossed more than $10.7 million at the box office, with the report naming “Dhurandal” as the record-setter that year. Digital and satellite rights values fell 8% and 10%, respectively, as buyers rationalized prices and adjusted values based on theatrical performance.
Television remains the dominant medium in India, watched by approximately 745 million people each week. Linear TV advertising revenue decreased 10.3%. This reflects a decline in advertising volumes as sectors shifted spending to digital, and a 3% decline in the number of advertisers using the platform. Although free TV and connected TV subscribers increased, subscription revenue fell 8% as the number of pay TV households decreased by 11 million. The reach of connected TV has increased from 30 million households to approximately 40 million households per week in 2024. Combined linear TV and connected TV advertising revenue held steady at $3.86 billion.
Outdoor media grew 13%, with luxury properties and locations driving the expansion. Digital OOH accounted for 18% of total sector revenue, up from 7% in 2023. The music sector saw a 10% increase in revenue, with digital licensing growth of just 2%, which the report attributed to lower revenue from YouTube, while revenue from other streaming platforms and social media channels showed growth. Music labels’ other revenues rose 26%, supported by expansion into events, talent management and branded content.
Animation and VFX growth was limited to 2%, as the impact of the Hollywood writers’ strike on global supply chains meant profitability-strapped international studios focused on fewer films and series, while an increase in mid-budget films incorporating VFX boosted domestic demand. Print advertising revenue increased 2%, but subscription revenue decreased 1% due to lower circulation among younger readers. Radio segment revenue fell 7% to $245.1 million, primarily due to lower advertising rates, and the report noted that some mobile devices and cars no longer come with FM receivers. Non-advertising revenue currently accounts for 25% of segment revenue.
Due to the ban on money gaming that came into effect at the end of August 2025, the online and video gaming sector decreased by 17%, and money gaming revenue decreased by 26% compared to 2024. Video game in-app purchases increased by 15% as the industry pivoted to the format. Esports revenue was down 8%. This is largely a result of global sponsorship challenges and the division’s reliance on sponsorship money game brands.
Trading activity in this sector remains strong, with 105 deals recorded in 2025, an 8% increase in trading volume compared to 2024. Transaction value, excluding Mega Geostar transactions, increased by 27% compared to the adjusted 2024 baseline. Approximately 73% of deals were in new media, with digital media and sports being the most active segments.
Looking to the future, the report predicts the sector to grow 2.8% to $30.48 billion in 2026. Excluding online games, growth is expected to be 8%, with CAGR expected to accelerate to over 7% through 2028. The sector’s sales are expected to reach $31.97 billion by 2027, adding $5.5 billion in absolute terms between 2025 and 2028.
By segment, digital media is the fastest growing and is expected to reach $17.48 billion by 2028 at a CAGR of 14%. The report predicts that small business advertising will grow 16% to reach $6 billion by 2028, led by e-commerce and point-of-sale advertising that will grow 22% to $4.31 billion, and digital advertising will take the lead with an increase of $4.75 billion. Programmatic advertising is expected to account for more than 75% of total non-premium and impact inventory, with digital ad spend managed through self-service algorithms expected to represent $10.12 billion by 2028.
Digital subscription revenue is expected to increase by $905.8 million, with video streaming subscriptions expanding from 143 million households to approximately 191 million households. Video-on-demand trading revenue is expected to increase from $53.3 million to $78.9 million, and audio streaming subscribers are expected to double, with paid subscribers reaching 30 million from 28 million.
Live events are expected to expand beyond the current top eight metropolitan areas to more than 20 cities with populations over 2 million people, concert dates with audiences of 10,000 or more will increase from 130 in 2025 to more than 200 by 2028, and this segment is expected to reach $2.09 billion. Movie entertainment is projected to grow to $2.7 billion due to more screens, more high-concept films, and a rebound in digital rights values. Animation and VFX is expected to grow at a CAGR of 10% to $1.47 billion due to stabilization of the global content pipeline and increased offshoring to India by major studios.
Television continues to lose viewers to connected TV, with total linear pay TV subscribers expected to decline at a rate of 3.1% to reach 83 million by 2028. However, as ad targeting capabilities improve and small businesses increase their investment in connected TV, combined linear TV and connected TV ad revenue is expected to increase to $4.02 billion by 2028. Video games are projected to grow by 13%, reaching $980.4 million by 2028, but the report notes that the sector may not be able to fully recover the $2.02 billion gap caused by the ban on money games.
Ashish Shelar, Minister of Information Technology and Culture, Government of Maharashtra, speaking at the report’s launch, said the expansion of the sector reflects “not only its size but also the growing strategic importance of the sector to the country’s economy”. He said Mumbai “remains India’s creative capital and the center of the media and entertainment ecosystem,” adding that the government is “committed to building a future-ready ecosystem that seamlessly integrates creativity and cutting-edge technology to ensure sustainable and globally competitive growth.”
Scherer further said that the global opportunity is unprecedented, noting that “the world is increasingly recognizing India not just as a large market, but as a creative powerhouse and a trusted partner in content production.”
Ananth Goenka, president of FICCI and vice chairman of RPG Group, said the evolution of the industry is “increasingly defined by the interplay of story, scale and impact” and “unlocking this potential will depend on how effectively the industry can orchestrate storytelling, distribution and sustainable monetization across the ecosystem.”
Ashish Pherwani, Partner and Leader, Media and Entertainment, EY India, described 2025 as the year in which the sector “crossed a critical inflection point” and said the next phase of growth will be “determined by sustainable monetization models, disciplined investment, and stakeholders’ ability to adapt to changing consumer behavior and regulatory realities.”
