Digital and Events Drive Media Sector Growth

The Indian media and entertainment sector showed strong growth in 2025, reaching an estimated ₹2.78 trillion and expanding 9% year-on-year. This growth outpaced the wider economy, highlighting the sector's key role in India's digital future. The industry is increasingly focused on audience engagement and integrating different platforms, aiming to offer more than just information. While the market is projected to reach ₹3.3 lakh crore by 2028 with a 7% annual growth rate, this overall expansion hides significant differences in how individual segments performed.

Digital Media Dominates with Ad and Subscription Growth

Digital media solidified its lead in 2025, becoming the sector's biggest segment and exceeding ₹1 trillion for the first time. Digital advertising led the charge, growing 26% to ₹947 billion and accounting for nearly two-thirds of all ad revenue. This growth is fueled by India's vast digital reach, with over 958 million active internet users and 70% overall penetration. Advertisers are increasingly favoring formats that show measurable results and link directly to sales. Digital subscriptions also climbed significantly, rising 60% to ₹163 billion. This boost came from popular sports and film content, resulting in 216 million paid video subscriptions across 143 million homes. Music streaming subscriptions were up 37%. The total advertising market grew 13.5% to ₹1.5 lakh crore, making up 0.41% of India's GDP.

Live Events Stage a Strong Comeback; Print Holds Steady

Live events saw a remarkable 44% growth in 2025, standing out against digital's dominance. This boom was largely due to higher spending on concerts, weddings, government functions, and religious events. The return of in-person entertainment and a desire for shared experiences are powering this segment's revival. While international artists performing in India boosted local economies, challenges remain with infrastructure and regulations. Print media, defying global trends, showed resilience. Ad revenues grew 2% in 2025, particularly from premium publications aimed at wealthy readers, indicating a continued, though specialized, demand for traditional formats.

Gaming Sector Plummets After New Money Gaming Bans

In sharp contrast, the video games industry contracted by 17% in 2025. This decline followed the August 2025 enactment of the 'Promotion and Regulation of Online Gaming Act,' which banned Real Money Games nationwide. This legislation dismantled a segment previously generating an estimated ₹31,000-₹35,000 crore annually and drawing significant investment. The ban caused many operators to halt operations or leave the market, leading to startups closing and job losses. Despite the immediate economic disruption, the new Act offers clearer rules. This is prompting a shift towards esports, social gaming, and developing original content, setting the stage for more regulated future growth.

Valuation, Risks, and What's Next for India's Media

The media and entertainment sector's projected 7% annual growth rate to ₹3.3 trillion by 2028 seems modest compared to the 9% achieved in 2025. This could signal challenges or slower growth in established digital areas. The Nifty Media index currently trades at a Price-to-Earnings ratio of about 26.3x, with stock valuations ranging widely, from Sun TV Network at 14.96x to PVR Inox at 432.23x. This variation reflects diverse investor expectations. Key risks include the fluctuating nature of advertising income, possible new regulations affecting other digital services, and the constant need to keep audiences engaged amid changing tastes and content overload. The sharp decline in gaming underscores the impact of regulatory changes. Despite this, analysts expect continued investment in game development and related platforms. The wider digital gaming and esports industry is forecast to grow 18% annually by FY30, reaching $4.3 billion. The sector's future path will depend on adapting to new rules, innovating business strategies, and meeting ongoing demand for both digital and physical entertainment experiences.