M&E industry to cross Rs 3 lakh crore in 2026: Report

The digital media will potentially overtake television as the leading segment in the media & entertainment sector in 2024 with an estimated size of Rs 75,100 crore, said a joint report from industry body FICCI (Federation of Indian Chambers of Commerce and Industry) and EY on Tuesday.

While the Indian Media & Entertainment (M&E) sector grew by 8.1 per cent in 2023, reaching Rs 2.32 lakh crore and is expected to touch Rs 2.55 lakh crore and cross Rs 3 lakh crore mark by 2026, it added.

“We expect the M&E sector to grow 10.2 per cent to reach Rs 2.55 trillion by 2024, then grow at a CAGR (Compound Annual Growth Rate) of 10 per cent to reach Rs 3.08 trillion by 2026,” the report said.

Though in 2023 television remained the largest segment with Rs 69,600 crore, however, it had a degrowth of 1.83 per cent as against Rs 70,900 crore in 2022, it said. While, the digital media in 2023 crossed Rs 65,400 crore and is expected to be around Rs 75,100 crore in 2024, which is ahead of Rs 71,800 crore figure of the television media.

The report estimates digital media would be around Rs 95,500 crore in 2026, with a CAGR growth of 13.5 per cent between 2023-26.

While TV media would be Rs 76,600 crore, which would be around 20 per cent less than digital media.

“In 2024, digital media is poised for explosive growth, potentially overtaking television to become the leading segment of the M&E sector. This surge in digital media is forecasted to propel the M&E sector’s growth to a 10 per cent annual rate, crossing Rs 3 trillion (USD 37.1 billion) by 2026,” said Kevin Vaz Chairman, FICCI Media and Entertainment Committee.

This growth is buoyed by a robust digital infrastructure, widespread adoption of OTT platforms, significant growth in the gaming segment, and the availability of cost-effective options for consumers.