Did you know Indians spent over 1.1 trillion hours on their smartphones in 2024? That’s the pulse of a nation driving a Rs 2.5 trillion media and entertainment (M&E) sector, reveals the latest EY report. According to the report, digital media is overtaking television in 2024 to become the largest segment at Rs 802 billion, which accounts for 32% of the sector’s revenue. With 562 million active smartphones, 945 million broadband connections, and 50 million connected TVs, India is a mobile-first market rewriting content consumption. By 2027, digital media is projected to hit INR 1,104 billion (US$13 billion), driven by 910 million screens and a subscription video on demand (SVOD) base growing from 47 million to 65 million households.
Digital media commands 55% of ad spend, with 69% of ad revenues from search, short video, and social platforms. E-commerce platforms saw a 50% surge in ad revenues in 2024, and small and medium enterprises (SMEs) are set to boost ad spends to INR 369 billion by 2027. With India’s 1.4 billion population and a burgeoning middle class, this is a playground for brands seeking reach and engagement.
When it comes to creativity, India’s creative output lies at almost 2,00,000 hours of original content annually, which includes 1,600 films, 2,600 hours of premium OTT content, 190,000 hours of television, and 20,000 original songs. The report further reveals that the creative sector employs 2.8 million people and supports 400,000 digital creators.
Furthermore, Indian studios are the backbone of global blockbusters, contributing VFX to films like Avengers: Endgame and The Lion King at 40-60% lower costs than Western markets. With 260,000 creators and engineers, India is the go-to hub for animation, VFX, and post-production, attracting giants like Disney, Netflix, and Warner Bros. Discovery.
According to the EY report, India’s gaming industry consists of 488 million online gamers in 2024. The sector is projected to grow at a 10.8% CAGR to INR 316 billion by 2027, with esports and casual gaming leading the charge.
“India’s skilled workforce and competitive production costs make it an ideal location for media tech companies,” Rajiv Memani, Chairman and CEO, EY India, said. Advertisers can leverage the rise of digital out-of-home (DOOH) screens (185,000 in 2024) and a projected 61% digital ad share by 2027 for precision targeting.
Artificial Intelligence is supercharging India’s M&E sector, with GenAI tools enabling rapid creation of professional-grade videos, storyboards, and music. Indian studios adopt virtual production, real-time rendering, and blockchain for immersive experiences, positioning India as a media tech leader. Global players like Google and Meta test AI-powered content and algorithms here, while 1,580 Global Capability Centres (GCCs) and emerging Media Capability Centres (MCCs) drive efficiency in localisation, compliance, and content management.