Media and Entertainment
India’s television market is expected to grow at CAGR of 15.5 per cent to reach US$ 15.2 billion in 2019.

Media and Entertainment Industry

Latest update: September, 2015

Last Updated: September, 2015



The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of growth, backed by rising consumer demand and improving advertising revenues.

The industry has been largely driven by increasing digitisation and higher internet usage over the last decade. Internet has almost become a mainstream media for entertainment for most of the people.

Market Dynamics

India’s Media and Entertainment industry is expected to grow steadily over the next five years. The industry revenues are likely to exceed US$ 32.7 billion by 2019 from US$ 17.0 billion in 2014, growing at compound annual growth rate (CAGR) of 14.0 per cent between 2015 and 2020.i

In 2014, the overall Media and Entertainment industry was estimated at US$ 17.0 billion and grew by 0.7 per cent over the previous year. The largest segment, India’s television industry, continued its strong growth momentum led by subscription revenues, representing a year-on-year growth of about 13.8 per cent. Digital Advertising has been the fastest growing segment with annual growth rate of 44.5 per cent.

Significantly, with the increased penetration of smartphones and expansion of 3G/4G network in India, the country is likely to see around nine billion mobile application (apps) downloads during 2015, which is five times more than 1.56 billion in 2012. This uptick in app-downloads is also expected to increase the revenue from paid apps to an estimated over US$ 241.16 million as against US$ 144.7 million in 2014.ii

Industry estimates reveal that video games industry grew at a record 22.4 per cent in 2014 over 2013; wherein its net worth rose to US$ 392 million. The Indian animation industry was valued at US$ 748 million in 2014 and is forecasted to grow at 15-20 per cent per annum.

The foreign direct investment (FDI) inflows in the information and broadcasting (I&B) sector (including print media) in the period April 2000 – June 2015 stood at US$ 4,050.58 million, as per data released by Department of Industrial Policy and Promotion (DIPP).

Recent development/Investments

  • Cinepolis India Private Limited, the Indian movie exhibition arm of Mexican chain Cinepolis, has plans to add 60 screens to take its total count to over 250 screens by the end of 2015
  • Turner International India has announced the expansion of its television bouquet for children with the launch of Toonami, a channel dedicated to animated action. This is the American company’s third children’s channel in India after Cartoon Network and POGO. Toonami joins an assortment of over 15 channels in the kids’ genre, which attracts close to Rs 500 crore (US$ 75.32 million) in advertising.
  • San Francisco-based Twitter Inc. plans to set up a research and design (R&D) centre in Bengaluru to grow faster in emerging markets. This will be Twitter’s first such facility outside the US.
  • STAR India, a unit of 21st Century Fox, acquired the entire broadcast business of MAA Television Network Limited for an undisclosed amount.
  • Carnival Films Private Limited acquired Stargaze Entertainment Private Limited, a multiplex company, from a unit of Mukesh Ambani-controlled Network18 Media and Investments Limited.
  • SRS Cinemas, the multiplex chain of the Rs 5,000 crore (US$ 753.16 million) SRS Group, is currently in an expansion mode and has earmarked a huge corpus to add more screens to its current portfolio of 48 screens to take the total number to close to 100 by the end of 2015.
  • Television and film production company, Balaji Telefilms Limited has announced that it is entering the American television market by signing an American television series production deal with Indus Media. The deal will see Balaji secure rights to the TV series ‘Brown Nation’, a satirical comedy based on the lives of Indian Americans.
  • Jagran Prakashan Limited, which publishes 12 newspapers including its flagship brand Dainik Jagran, acquired Music Broadcast Private Limited, which operates the popular Radio City FM stations in India.
  • Viacom, one of the leading American global mass media companies, has acquired 50 per cent stake in Prism TV for Rs 940 crore (US$ 141.59 million). Prism TV owns and operates regional entertainment channels under the ‘Colors’ umbrella.
  • Netflix, one of the leading on-demand internet streaming media companies in the world, has firmed up its plans to enter Indian market by 2016. Netflix is one of the leading on-demand internet streaming media companies in the world
  • Eros International has entered into agreements with three major Chinese state-owned film and entertainment companies to promote, co-produce, distribute and unlock value in respective intellectual properties for Sino-Indian films across all platforms in both the countries.

Government Initiatives

The Government of India has supported Media and Entertainment industry’s growth by taking various initiatives such as digitising the cable distribution sector to attract greater institutional funding, increasing FDI limit from 74 per cent to 100 per cent in cable and DTH satellite platforms, and granting industry status to the film industry for easy access to institutional finance.

Recently, the Indian and Canadian governments have signed an audio-visual co-production deal that would help producers from both countries to explore their technical, creative, artistic, financial and marketing resources for co-productions and, subsequently, lead to exchange of culture and art amongst them.

Furthermore, the Centre has given the go-ahead for licences to 45 new news and entertainment channels in India. Among those who have secured the licenses include established names such as Star, Sony, Viacom and Zee. Presently, there are 350 broadcasters which cater to 780 channels. “We want more competition and we wanted to open it up for the public. So far, we have approved the licences of 45 new channels. It’s a mix of both news and non-news channels,” said Mr Bimal Julka, Secretary, Ministry of I&B, Government of India.

The radio industry is expected to witness growth opportunities after the Phase III auction of 839 radio channels in 294 cities, expected to complete later this year. The Phase III auction, which started in July 2015, is expected to bring in an estimated US$ 390 million in revenue to the government. With over 800 frequencies up for auction in third- and fourth-tier towns, radio is likely to match the reach of print.i

The Union Cabinet chaired by the Prime Minister, Mr Narendra Modi, has given its approval for entering into an Audio-Visual Co-Production Agreement between India and the Republic of Korea (RoK) and to complete internal ratification procedure, to enable the agreement to come into force. Cooperation between the film industries of the two countries will not only promote export of Indian films but would also act as a catalyst towards creating awareness about India and its culture.

Road Ahead

The Indian Media and Entertainment industry is on an impressive growth path. The revenue from advertising is expected to grow at a CAGR of 13 per cent and will exceed Rs 81,600 crore (US$ 12.29 billion) in 2019 from Rs 41,400 crore (US$ 6.24 billion) in 2014. Internet access has surpassed the print segment as the second-largest segment contributing to the overall pie of M&E industry revenues.

Television and print are expected to remain the largest contributors to the advertising pie in 2018 as well. Internet advertising will emerge as the third-largest segment, with a share of about 16 per cent in the total M&E advertising pie. The film segment which contributed Rs 12,640 crore (US$ 1.90 billion) in 2014 is projected to grow steadily at a CAGR of 10 per cent on the back of higher domestic and overseas box-office collections as well as cable and satellite rights.

Digital advertising is expected to lead the CAGR with 30.2 per cent, followed by radio with 18.1 per cent. Animation and VFX, and television are expected to register a CAGR of 16.3 per cent and 15.5 per cent respectively, followed by growth rates of gaming (14.3 per cent), music (14.0 per cent), films (10 per cent) and OOH with 9.8 per cent expected CAGR. Within TV, subscription revenues are expected to be three times more than advertising revenues, by 2018. Growth in the regional reach of print and radio shall provide opportunities to further improve the advertisement revenue.

Exchange Rate Used: INR 1 = US$ 0.01506 as on September 11, 2015

References: Media Reports, Press Releases

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Media and Entertainment India

Viewership in regional channels in 2014
Media and Entertainment Market Size in India


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