MUMBAI: India's media and entertainment sector has hit a milestone, crossing the Rs 2.5 trillion mark in 2024, but it's digital media that's stealing the show, according to the latest FICCI-EY report. The digital realm, growing by a stonking 17 per cent, has officially overtaken television, which has held the crown for two decades. Think of it as a digital coup, a right royal shake-up.

While the overall sector grew by a respectable 3.3 per cent, reaching Rs  2.5 trillion ($29.4 billion), growth has slowed compared to the previous year, thanks to a 2 per cent dip in subscription revenues and a global slump in animation and VFX outsourcing. Still, it's a hefty contribution to India's GDP, at a solid 0.73 per cent.

Advertising revenues, however, are booming, surging by 8.1 per cent, driven by digital performance advertising and a surge in premium OOH media. "The digital revolution has not only transformed how content is created and consumed but has also redefined the very essence of the M&E industry," said Ashish Pherwani, media & entertainment leader and partner at EY India, rather grandly.

Kevin Vaz, chairman of FICCI's media and entertainment committee, declared the industry is at a "defining moment," predicting it will surpass Rs 3 trillion by 2027. "The future is brimming with untapped potential," he said, sounding positively chuffed.

Key takeaways? Digital advertising is booming, live events are back with a bang (up 15 per cent), and OOH media is getting a digital makeover. However, subscriptions are taking a bit of a hammering, and online gaming is struggling under the weight of a 28 per cent GST and illegal offshore competition. "The online gaming segment could struggle unless illegal offshore platforms are not curbed," the report warns, a rather pointed observation.

Looking ahead, the report predicts a 7.2 per cent growth in 2025, reaching Rs 2.7 trillion, and a 7 per cent CAGR to Rs  3.1 trillion by 2027. AI is tipped to play a major role, bringing efficiencies across content production and distribution. "Artificial intelligence will play a large role in bringing efficiencies," the report states, sounding rather futuristic.

In short, India's M&E sector is in a state of flux, with digital leading the charge and traditional models facing a bit of a squeeze. But with a bit of innovation and a dash of good old-fashioned British grit, the industry is poised for further growth. Quite right, too.