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1、March 2025Shape the futureIndian media and entertainment is scripting a new storyThe better the question.The better the answer.The better the world works.Media and entertainmentFOREKamal HaasanChairman,FICCI Media and Entertainment,SouthFOREIn the Media and Entertainment sector,two forces reign supr

2、eme:Content and the Audience.As we move into a digital first era,its our responsibility to serve them both with bold,creative storytelling that reflects the rich diversity of our nation.By harnessing this power,we can ensure the industry thrives and stays relevant in an ever evolving landscape.I env

3、ision an Indian Media and Entertainment sector that unites our 1.4 billion viewers,breaking down the linguistic and geographic divides that have long segmented our industry.A screen and language agnostic audience will allow us to produce bigger,bolder content with grander budgets,reflecting the vast

4、 potential of our cultural narratives.The creator economy we are nurturing has the power to shape society and influence the world.To realize this potential,government support is essentialwhether its through regulatory reforms,ease of business,access to credit,or training for emerging creators,techni

5、cians,and performers.Creative storytelling with emotional depth,and powerful performances will be in greater demand than ever.Indias technological strengths animation,VFX are positioning us to become a global hub for content production.By investing in intellectual property and nurturing talent,we ca

6、n lead the way in global content creation.Collaboration across regions,languages and cultures will be key to building an inclusive and representative industry.Initiatives like this report from FICCI and EY help bridge information gaps and set the foundation for progress.As we celebrate the 25th year

7、 edition of this report,I urge all stakeholders to aim for a bold future,taking Indias M&E sector from a$28 billion to a$100 billion industry,with content that not only resonates with a billion Indians but captivates audiences across the globe.Aim for a bold future.3WORDKevin Vaz Chairman,FICCI Medi

8、a andEntertainment CommitteeWORDThe industry made global impact with wins and nominations at Cannes and the Oscars and was once again recognised as a production hub,boasting of VFX masterpieces like the Oscar-nominated Emilia Prez and Mufasa:The Lion King.The year saw a resurgence of cinema,greater

9、adoption of regional content,and use of technology to enhance production and distribution.India is a market where traditional and new mediums co-exist as seamlessly;where TV remains a force to contend with,even as the growth path for digital is without parallel.The number of TV screens is projected

10、to increase from 190 million in 2024 to 214 million in 2026.In 2024,nine in ten people continued to watch live TV,with 40%people watching more than six hours,indicating our combinatorial preference.We want the best of all worlds!The 2024 Indian Premier League reached 525 million viewers on TV,and to

11、uched 550-600 million viewers on streaming.Aside from breaking viewership records,2024 also revolutionised sports consumption,making it more immersive.Fans can now access high-quality coverage on the go,in multiple languages,with real-time statistics,live chat options,multiple feeds from various cam

12、era angles.Constant innovation also helped create new revenue streams,via digital ad insertion like live commerce integrating real-time shopping into live events such as sports matches and streaming of concerts like Coldplays performance in Ahmedabad.Rapid consumer-tech adoption has allowed streamin

13、g to blossom alongside TV.Streamers have taken bold business model risks and offer hybrid and competitive service formats,democratising consumption.This has deepened investments in niche content,granted independent filmmakers and performers an avenue to showcase their talent and fostered the adoptio

14、n of emerging tech like AI.India is poised to become the third-largest M&E market globally by 2028,on the back of this frenetic activity.Effective implementation of self-regulation in both the TV and streaming markets has simultaneously enabled us to pause when needed and demonstrate accountability

15、to our society and culture.We hope to continue this balanced momentum into the new financial year.2024 was a pivotal year for media and entertainment in India.Media and entertainmentJyoti VijDirector GeneralFICCI FOREDriven by digital acceleration,evolving consumer preferences,and cutting-edge techn

16、ologies.The rapid shift from linear to digital entertainment is reshaping content creation,distribution,and consumption,unlocking new opportunities for growth and global influence.As we enter 2025,Indias M&E sector is poised to expand its footprint as a content powerhouse,fuelled by innovation,strat

17、egic investments and a resilient creative ecosystem.A key milestone in 2024 was digital media surpassing television as the largest M&E segment,contributing 32%of total revenues.With deeper internet penetration,the rise of Free Ad-Supported Television(FAST)channels,and a thriving creator-led economy,

18、India is on course to become a global content hub.Strategic investments and private equity funding will further accelerate this transformation.The gaming industry is also gaining momentum,with Indian publishers and developers expanding globally.Artificial intelligence is revolutionizing the M&E valu

19、e chain optimizing costs,enhancing content creation and attracting major investments.Meanwhile the resurgence of out-of-home entertainment is driving consolidation as companies integrate services to capture market share.India is also emerging as a preferred media outsourcing hub much like its domina

20、nce in IT services.Cloud-driven applications and digital advertising shifts are prompting traditional players to reinvent business models leading to increased mergers and strategic partnerships.As Indias leading industry association,FICCI has played a pivotal role in bringing together key stakeholde

21、rs at a single platform called FICCI FRAMES from policymakers and media conglomerates to emerging creators and technology innovators.Our M&E Division continues to serve as a catalyst for policy advocacy,industry collaboration and thought leadership fostering an environment that enables sustainable g

22、rowth,global expansion and regulatory clarity for all players in the ecosystem.Over the years,FICCI has been instrumental in shaping discussions on content regulation,digital taxation,intellectual property rights,and talent development ensuring that the Indian M&E sector remains future-ready and glo

23、bally competitive.As we enter the 25th glorious year of FICCI FRAMES,this report provides a comprehensive analysis of the trends,challenges,and opportunities shaping the M&E landscape.We hope it will continue to serve as a valuable resource for industry leaders and policymakers,equipping them to nav

24、igate and lead in this dynamic era.The Indian M&E sector is undergoing a profound transformation.5Ashish Pherwani M&E Sector Leader EY IndiaWORDDigital media became the largest segment of the M&E sector in 2024,breaking TVs 25-year hold on the pole position.Digital media has not only changed how con

25、tent is created,distributed and monetized,it has also redefined the fundamentals of the M&E sector.From being a provider of knowledge and escapism,M&E now provides consumers with value across four tenets:Information to live life better,through news and communities Escapism to forget troubles by gett

26、ing immersed in fiction and reality content Materialism to enable commerce through funded content and e-commerce Self-actualization via social media,professional portals and the creator economyEvery media and content company is now evaluated by consumers against the utility it provides across the ab

27、ove tenets,which in turn is driving how traditional and new media companies are redefining their product,processes,customer acquisition and purpose.As digital media keeps growing relentlessly,we can expect to see an ocean of innovation,consolidation,new business models and partnerships.Interactivity

28、 and gamification have proliferated all segments of the M&E sector.Every M&E segment is now conducting events.The Star India and Viacom18 merger is defining the path to scale and reinventing sports broadcasting,while digital integrations across music,radio,news and OOH are helping grow traditional s

29、egments.WhatsApp is reshaping communication.All of this makes the future extremely exciting!This report aims to provide our point of view on the shape of the future.We have included over 50 future trends for media businesses to consider as they take advantage of the opportunities that will surely em

30、erge.We hope you enjoy reading this report as much as we enjoyed putting it together for you.We are certain you would find this report to be insightful.Finally,the digital inflection point.And it changes everything.Media and entertainmentCONTM&E sector overview102630384878102116128144160168178190198

31、208220Key trends of 2024MediaTech for the NowPutting the AI in medIALights,camera,revolution!Celebrating 25 years of the FICCI M&E reportSegmental trendsDigital mediaTelevisionPrintOnline gamingFilmed entertainmentAnimation and VFXLive eventsOut-of-home mediaMusicRadioSportsIndian content landscapeA

32、dvertising in India7ENTS238244248256270A growing Indian economyM&A activityTax environmentRegulatory updatesPersonal data protectionEnabling environment27627828028296124174184209211224GlossaryAcknowledgmentsEY M&E leadership teamMethodology and disclaimersLCO surveyEsports in IndiaDOOH trendsMusic s

33、treaming trendsContent production trendsProduction house surveyMarketer surveyAbout this reportOriginal researchMedia and entertainmentM&E sector overview19M&E sector overviewMedia and entertainmentKey trends of 2024Indian M&E sector grew 3.3%in 2024 to reach INR2.5 trillionAdvertising fueled the 20

34、24 growth The Indian M&E sector continued to grow in 2024,albeit at a relatively modest 3.3%;it grew by INR81 billion to reach INR2.5 trillion(US$29.4 billion)The M&E sector contributes 0.73%to Indias GDP While the sector was 30%above its pre-pandemic 2019 levels,television,print and radio still lag

35、ged their 2019 revenues Advertising revenues grew 8.1%,led by:?performance advertising on digital media,including spends on e-commerce platforms?growth in demand for premium and digital OOH media?resilience of print and radio retail revenues However,there was a fall in both subscription and animatio

36、n and VFX revenues Subscription revenues were impacted by:?a reduction in Pay TV homes of six million?falling theatrical admissions and a relatively poor performance by films at the box office,with revenues falling 5.6%?fall in transaction gaming revenues post the implementation of a higher GST on r

37、eal money games Content and content services volumes were also impacted by the drop in subscription revenues:?animation and VFX revenues fell 9.4%due to global and domestic demand issues and a focus on fewer,higher quality productions?there was a 12%reduction in premium OTT content volumesAll figure

38、s are gross of taxes(INR in billion)for calendar years|EY estimatesEY estimates20192022202320242025E2027ECAGR 2024-2027Digital media308571686 8029031,10411.2%Television788726711679676667(-)0.6%Print296250259 2602622670.9%Online gaming64222236 23226031610.8%Filmed entertainment191172197 1871962134.3%

39、Animation and VFX95107114 10311314712.5%Live events8373 88 10111916718.2%Out-of-home media5148 54 59667910.2%Music1546 54 53607813.4%Radio3121 23 2527306.6%Total 1,9222,2372,422 2,5022,6823,0677.0%Growth23.3%8.3%3.3%7.2%Digital media overtook television for the first time to become the largest segme

40、nt,contributing 32%of M&E sector revenues We expect the M&E sector to grow 7.2%in 2025 to reach INR2.68 trillion(US$31.6 billion),then grow at a CAGR of 7%to reach INR3.07 trillion(US$36.1 billion)by 20278.1%3.3%-1.6%-9.4%Advertising M&E sectorSubscriptionAnimation and VFXGrowth in 202411Digital med

41、ia and live events mainly contributed to the INR81 billion growth Growth slowed down significantly in 2024,to just INR81 billion which was less than half the INR185 billion growth of 2023 Digital media,live events and OOH media led the growth in 2024 New media(comprising digital media and online gam

42、ing)grew INR113 billion(12%)and now comprise 41%of the M&E sectors revenuesINR in billion(gross of taxes)|EY estimates Core traditional media(television,print,radio and music)together saw their revenues drop by(-)3%or INR30 billion,and their share of the total M&E sector fall to 41%Outside the home

43、media(comprising filmed entertainment,live events and OOH media)grew at a combined 3%,and now contribute 14%of the total M&E sector Animation and VFX segment fell 9.4%due to global supply chain issues,mainly in the US due to the writers strikeIncreaseDigital media11613520-1-4-9-11-328101601401201008

44、0604020Online gamingLive eventsAnimation andVFXFilmed entertainmentMusicOut-of-home mediaPrintRadioTelevisionTotalDecreaseTotalAbsolute growth by segment in 2024Media and entertainmentSegmental performance in 2024EY estimates Digital advertising:Digital advertising grew 17%to reach INR700 billion,wh

45、ich is 55%of total advertising revenues.Growth was led by search and social media(11%)and e-commerce advertising(50%),which reached INR147 billion.Included in digital advertising are spends by SME and long-tail advertisers of over INR258 billion Digital subscription:Digital subscription revenues gre

46、w 15%to reach INR102 billion.Paid video subscriptions grew by 11 million in 2024 to 111 million,across 47 million households in India.Paid music subscriptions grew from 7 million to 10.5 million as music streaming platforms disincentivized free usage,while news remained sub-scale at just 3.1 million

47、 paid subscriptions Live events:The organized segment grew 15%driven by increased spends across government and election related events,personal events and weddings,and ticketed events,including several international acts and concert formats that played to packed venues in India OOH:OOH media grew 10

48、%in 2024 across both traditional and transit media.Premium properties and locations led the growth.Digital OOH grew 78%and contributed 12%of total segment revenues,up from 7%in 2023 Radio:Radio segment revenues grew 9%in 2024 to INR25 billion on the back of a growth in ad volumes,and alternate reven

49、ue streams.On an average,20%of radio revenues are related to events,content production and other revenue streams Print:Bucking the global trend,print continued to survive in India.Advertising revenues grew 1%in 2024,with a notable growth in premium ad formats,as print remained a“go-to”medium for mor

50、e affluent and non-metro audiences.Event led revenues also increased for several newspaper brands.Subscription revenues fell 1%on the back of rising cover prices and falling circulation,particularly the second newspaper in the home.Digital revenues were not significant for most print companies,usual

51、ly being under 5%of their total revenues Online gaming:The transaction gaming segments growth slowed to single digits in 2024,due to the imposition of 28%GST on players deposits,and the consequent proliferation of illegal offshore betting and gaming sites.Most gaming companies absorbed the impact of

52、 the GST and consequently,net of the GST impact,the segment saw revenues fall by 6%after years of over 20%growth.Casual gaming,however,continued to grow fast at 16%,resulting in an overall degrowth of 2%for the online gaming segment-9.4%-4.6%-4.5%-2.0%-1.6%0.1%3.3%9.1%9.6%14.9%17.0%-10%-5%0%5%10%15%

53、20%Animation and VFXFilmed entertainmentTelevisionMusicOnline gamingPrintOverall M&E sectorRadioOut-of-home mediaLive eventsDigital mediaSegment growth 2024 vs.202313Video continued to command the lions share of revenuesEY 2024 revenue estimates|Does not include data pack values and e-commerce adver

54、tising Music:The Indian music segment saw revenues fall by 2%due to a push by digital streamers to disincentivize free music consumption,and a fall in streaming royalty rates.While this led to paid subscriptions growing from 8 million to 10.5 million,it reduced the overall audience from 185 million

55、to 175 million.Given the availability of free and ad-supported alternatives like YouTube and radio,and the absence of exclusive content,the growth in the pay subscriber base will remain muted Television:Linear television revenues fell for the second year in a row,despite viewership remaining largely

56、 flat.Advertising revenue fell 6%on the back of a corresponding fall in ad volumes and a 10%+fall in advertisers on the medium.Subscription revenues fell 3%due to a reduction in six million Pay TV homes as both Free TV and Connected TV homes grew.Connected TVs(whose revenues are included under digit

57、al media)grew to around 30 million,up from 23 million in December 2023 Filmed entertainment:The segment saw revenues fall by 5%to reach INR187 billion.Over 1,600 films were released in 2024,but domestic theatrical revenues fell 5%as admissions reduced,and just 11 Hindi films grossed INR1 billion,dow

58、n from 17 films in 2023.Both digital and satellite rights values fell 10%in 2024 as broadcast and OTT buyers focussed on profitability Animation and VFX:The Hollywood writers strike impacted global supply chains,and international studios,struggling with profitability in 2024,focused on fewer films a

59、nd series.Consequently,the segment saw demand and revenues fall 9%in 2024.Potential mergers and falling broadcast ad revenues also reduced the slate of animated content produced for broadcast in India Every segment of the M&E sector now provides content and services across video,audio,text and exper

60、iential When revenues of 2024 are broken up into these four content types,video commands 60%share of sector revenues,on the back of digital media,television,short video,social media,among others;one reason why print,radio,events and music segments are increasingly focusing on video creation Experien

61、tial media,including online gaming,theatrical revenues,live events and OOH,comes second with a 23%contribution to revenues Text(print,online news)and audio(radio,music,digital streaming)comprise the balance 17%and will remain small,given the plethora of free options available VideoAudioTextExperient

62、ial60%4%13%23%Revenue compositionMedia and entertainmentAdvertisingNominal GDP is for financial years|GDP data for 2024 is as per advance estimates released by MoSPI in January 2025 for FY25|Advertising growth is as per this reportINR in billion(gross of taxes)|EY estimatesI.Advertising growth tagge

63、d Indian nominal GDP growth Segment2021202220232024Television329334312294Print151170178179OOH26485459Radio16212325Cinema1589Total traditional522578575566Digital383499597700Online gaming8111314Total new media391510609714Total9141,0881,1841,279-30%-20%-10%0%10%20%30%20202021202220232024Advertising vs.

64、per capita nominal GDP growth Per capita nominal GDPAdvertising growth Advertising growth is keeping pace with Indias nominal GDP growth across 2023 and 2024 In 2024,advertising grew 8.1%compared to the nominal GDP growth of 8.7%The ad to GDP ratio is currently at 0.38%,which remains much lower than

65、 most other developed countriesII.Advertising grew by 8.1%in 2024 Advertising reached its highest ever level in 2024,of INR1.28 trillion New media accounted for 56%of total advertising,overtaking traditional media advertising(44%)for the second year in a row New media generated 109%of total ad growt

66、h,while traditional media(excluding television)added another 10%Television advertising dragged growth down by 20%,driven by a decline in ad volumes and a shift in viewership to connected TVs,whose revenues are counted under digital media15EY estimates|Excludes event segment revenuesSubscription redu

67、ced 1.6%in 2024INR in billion(gross of taxes)|EY estimatesSegment2021202220232024Television407392398385Online gaming116211223218Filmed entertainment92167189178Digital567289102Print76808281Total7489229819658%16%31%46%20228%15%26%50%20238%14%23%55%2024Share of TV+print+digital advertisingOthersPrintTe

68、levisionDigitalIII.TV+digital+print=92%of ad spends TV,print and digital advertising have together contributed 92%of total ad spends since 2022;however,their shares have changed significantly?Digital media comprised 55%of total ad spends,up from 31%pre pandemic?TV comprised 23%of ad revenues,down fr

69、om 36%in 2019?Print comprised 14%of ad revenues,down from 23%in 2019?Together,national media television+new media contributed 79%of all advertising spends(up from 67%in 2019),while local media print+OOH+radio+cinema comprised the balance 21%Overall,subscription revenue fell INR16 billion?only digita

70、l media grew INR13 billion?while all other media fell by an aggregate of INR29 billion Across segments,subscription was focused on the top-end of the consumer pyramid,which resulted in a heavily concentrated subscription base.We estimate that the top 40 to 50 million households are powering most dig

71、ital and film subscriptions,while online gaming and print have a wider audience of between 70 and 100 million homes,and linear TV has the largest paid reach at 111 million homes Share of subscription reduced from 43%of total M&E sector revenues in 2019 to 39%in 2024Media and entertainmentIndia creat

72、ed almost 200,000 hours of contentM&A activity recovered in 2024EY estimates based on publicly available informationEY estimates|Includes content that was broadcast on TV,released in theaters or on OTT platforms.Excludes unorganized creator economy,news bulletins,social and short form contentHours o

73、f content released in 2024TV(excl.news bulletins)190,903 OTT2,620Film4,04897%2%1%6725019287611812688101CY2021CY2022CY2023CY2024Deal value(INR billion)Deal count GEC contributed 65%of total hours on TV(excluding news bulletins)in 2024 64 more films were released in 2024 as compared to 2023,taking tot

74、al film releases to over 1,600(excluding around 200 dubbed versions),of which 500 films released on OTT platforms.However,only 60 films released directly on digital platforms High-cost OTT content volumes fell 12%in 2024 as platforms aimed for profitability;48%of content released on OTT platforms wa

75、s in regional languages,with an increase in dubbed and sub-titled content In 2025,we expect OTT content volumes to increase,but at a lower average cost of productionI.M&A activity recovered in 2024 Deal count crossed 100 in 2025,with a total value of INR876 billion Traditional media deals comprised

76、91%of deal value led by the merger of Star India and Viacom18 Media,and 16%of deal count,while new media aggregated 84%of deal volumes,but just 9%of deal value Strategic investors led the percentage of M&E deals in 2024,contributing to 52%of the total count and 94%of funding17The M&E sector will gro

77、w INR564 billion to reach INR3.1 trillion in 2027 The Indian M&E sector will grow at a CAGR of 7%and add INR564 billion in three years New media will provide 68%of this growth,followed by live events(12%)and animation and VFX(8%)Barring unforeseen situations,we expect all segments to grow or remain

78、flat,except linear television,so long as Indias real GDP grows 5%or more By 2027,new media(digital+online gaming)will comprise 46%of M&E sector revenue,while traditional media(TV+print+film+radio+OOH)will contribute 41%of total M&E sector revenues Advertising will comprise 52%of total sector revenue

79、s in 2027,while share of subscription will reduce to 35%by 2027All figures are INR billion(gross of taxes)|EY estimatesEY estimatesShape of the futureIncreaseDigital media060050040030030283664425242075-12564200100Online gamingLive eventsAnimation and VFXFilmed entertainmentMusicOut-of-home mediaPrin

80、tRadioTelevisionTotalDecreaseTotalAbsolute growth till 2027E51%52%39%35%10%13%20242027EM&E sector revenuesAdvertisingSubscriptionContent and servicesMedia and entertainmentVideo trendsI.A billion screens of opportunityEY estimates|Screens in millionsEY estimates|Millions of connections 20242027E2030

81、EPay TV1119581Free TV495357Connected TV304876Total TV190196214Smartphones562625696Total screens751821910HH2024%Cable60.329%DTH+HITS50.925%Free TV48.524%Wired broadband46.122%Total TV205.8100%The opportunity for video to grow is large,given the expected growth in the number of screens By 2030,large s

82、creens will cross 200 million,and small(phone)screens will reach almost 700 million,creating a large base of consumers hungry for content and information The 3:1 ratio in favor of small screens underlines the need for short video content,short-form content,social media and real-time news products,ar

83、ound which we expect to see significant innovation in the next few yearsII.Four equitable modes of TV distribution Today,content is delivered across four largely equal distribution mechanisms With the continuous erosion of cable and growth in wired broadband,the next few years will underline the nee

84、d to be active across all four platforms for studios and IP owners Consequently,we can expect to see innovations around pricing and windowing for media companies to take advantage of all segments,and we expect that broadcasters will reinvest in making linear television more competitive In addition,w

85、e expect to see more combined deals being done,selling audiences across linear and connected TV together The potential introduction of direct-to-mobile(D2M)television services will increase the relevance of television outside the home and during transit Free TV will remain a“temporary”medium viz.,it

86、 will gain audiences as more families come out of poverty and into the lower middle class,and it will lose audiences as the middle-class families move up the value chainIII.Towards 150 million OTT subscriptions Subscribing households will grow from 47 million to over 65 million by 2027 as per capita

87、 income increases and smart TV penetration continues to grow,subject to low-cost broadband availability Bundling will play a significant role in growing subscriptions,with both telco packs and multi-package/platform bundles being important;we expect to see more business or library combinations to en

88、sure platforms are in the top two to three subscription preferences of households IV.SME advertising facilitated Given that SME advertising on digital media is estimated at INR258 billion in 2024,there is a latent demand for such advertisers to use the TV medium,something that they could not afford

89、in the erstwhile linear environment We expect to see innovations to bring SME advertisers with a national presence on to television,through creation of SME ad platforms,partnership with social and e-commerce platforms,etc.V.A new News TV business model As news consumption shifts to online video and

90、text,and as the youth consume news on social and other platforms,news media will need to rethink their content,monetization,and measurement strategies Content will need to be created multi-format and multi-media,and separately for younger audiences and for different segments Alternate revenue stream

91、s like IP,branded content,and exclusive products will be introduced News will also move to a“News+”content model,covering a wider variety of themes to reach wider audiences19Experiential trendsINR billion(gross of taxes)|EY estimatesVI.Time for customer first innovation As customer experience become

92、s more critical to differentiate product and retain consumers,we can expect more innovation around initiatives that put the customer first Such initiatives could include a unified search across platforms,single sign-ons to multiple apps,subscription managers and optimizers and TVOD recommendations a

93、cross content storesI.Events growth will be led by the“next 10”large cities While metros will remain important to tap the large number of affluent families,our survey of events company CEOs indicated that the highest growth potential lay with the next 10 markets after the metros They also felt that

94、the potential for growth was high across Indias top 40 cities(each with a population of over one million)as consumption growth was faster in those markets,and brands needed to increase their share of voice to gain traction thereII.Platform and publishing strategies will redefine gaming With GST now

95、being applied to deposits,single-game operators face significant challenges,as frequent withdrawals and deposits amplify the tax burden and erode profitability A platform strategy,which integrates multiple games under a single ecosystem,offers a compelling solution.It drives higher spin rates,somewh

96、at reducing the GST impact by circulating deposits within different games on the platform.Moreover,it ensures sustained player engagement Further,the development of a structured publishing ecosystem is expected,which will propel the growth of Indias online gaming segment by:?Attracting increased fun

97、ding for developers,enabling them to focus on creativity and innovation?Enabling access to global markets?Facilitating strategic partnerships with global studios to enhance game development qualityIII.Digital and premium OOH assets will drive growth Driven by premiumization of inventory,the share of

98、 digital OOH will increase to 17%of total OOH segment revenues by 2027,at a CAGR of 24%Transit OOH,on the back of growth in airports,premium trains,metros and premium buses,will grow at 16%till 2027 Comparatively,traditional OOH will grow at 8%,primarily driven by geographic diversification to keep

99、pace with increased urbanization and rising consumption outside metros and the top 10 citiesIV.DOOH inventory will integrate with digital ad networks In many cases,advertisers are using digital ad budgets to invest in DOOH,rather than OOH budgets Inevitably,digital OOH buying processes will need to

100、mimic digital advertising,and we expect to see digital OOH inventories being made available to digital advertisers on search,social and e-commerce platforms as wellV.Fewer,quality films will be greenlit Given the environment of caution in 2025,we expect that fewer films will be produced on account o

101、f rising production costs,less digital and broadcast pre-funding/pre-sales of rights,and higher dependence on theatrical revenues,especially for certain categories of small-or mid-budget films We expect to see longer production times,larger writers pools and more consumer research being used to sele

102、ct films for production42.6 46.5 53.5 16.6 19.5 25.6 12%14%17%02040608010020242025E2027EOOH segment revenue projectionsTraditional OOHTransit OOHOf which,digital OOHMedia and entertainmentI.Newspaper reach and readership will start to stagnate Print will reach a steady state with a loyal reader base

103、 within the next year or two,most of which will probably come from the growing base of educated people entering the workforce who need news and information to build their careers,as against faithful but ageing audiences Cover price increases needed to offset falling circulation numbers will lead to

104、a winner-takes-all situation,with a reduction in second newspaper copies in the homeII.Core print revenues will grow marginally Despite the above,we expect the print segment to grow at 1%CAGR till 2027 Advertising will grow at a 2%CAGR,driven by access to increasingly elusive and ad avoiding NCCS A

105、audiences,and premium inventory formats Subscription may see a decline at(-)2%CAGR as the medium keeps losing audiences to digital and social media III.Print companies will diversify Most print companies now conduct hundreds of events each year,which contribute(for most)around 4%to 5%of total revenu

106、es We see this trend gaining momentum,and by 2027 we expect events and community revenues contributing 7%to 8%of total revenues earned by print companies Print companies will also diversify into non-print businesses to monetize their brands which have built trust for so many yearsIV.Online subscript

107、ion will grow slowly Paid online subscriptions will stagnate at 5 million to 6 million by 2027,unless industry action is taken to consolidate curated,credible news on owned platforms,or an industry-led common platform Utility products which help subscribers to earn more,perform better in their exams

108、,get access to exclusive content,or interact with their heroes/celebrities will be key to drive subscription revenue growthV.Community service at the forefront The core utility of the newspaper will evolve into its digital avatars such as discount coupons,facilitated purchase/trials,opinion exchange

109、,polls and most importantly community action Print companies will launch or aggregate many focused interest-based communities which meet the news and non-news needs of their membersText trendsVI.Theatrical infrastructure/windows will evolve At just over 9,000 screens,Indias screen density is amongst

110、 the lowest of any developed country,but are more screens the answer?While the largest multiplex distributor has planned to add 100 new screens in FY25,we believe that another opportunity exists in filmed entertainment Low priced theaters in tier-III and IV markets,aided by the growth in mass-themed

111、 films,will come into being in the medium term,and this will expand the number of families which can enjoy the theatrical experience from less than 100 million to around 175 million people In addition,we could also see innovation around new premium digital windows being provided at the time of(or wi

112、thin a few days of)theatrical releaseVII.Film TVOD will scale With less than 500 of over 1,600 films getting a digital release,large volumes of films are lying unmonetized The growth of wired broadband,smartphones and connected TVs is providing a fillip to TVOD revenues,and we can expect this trend

113、to gain importance,including for Indias high volume of films which do not find digital buyers21I.Segmentation will re-define monetizationWe expect the market to be driven by three major segments:The premium segment(top 5%to 7%or so of music streamers)will pay for music streaming and music experience

114、s like concerts,themed dining options and merchandise The aspirational segment(the next 10%to 15%)will consume music on ad-supported streaming platforms and television,so long as it comes bundled with data,e-commerce,or cable television bundles The mass segment(the rest)will consume only free and ad

115、-supported options like FTA channels,YouTube,radio,and direct-to-mobile digital signals,on their smart phones and/or feature phonesII.Paid subscribers will double by 2027Audio trendsEY estimatesEY estimates The continued focus by platforms to push subscription products,disincentivizing free consumpt

116、ion by limiting its features,and bundling and discounting packages will double the current paid music subscription base to over 20 million by 2027 The growth will require support in terms of high-quality music creation,innovation around non-music content,bundling with telecom and video OTT packs,and

117、 pricing innovation,to sustain the growth witnessed in 2024 The importance of non-FCT revenues will continue to grow we expect them to contribute around 29%of total revenues by 2027,growing at a CAGR of 20%,from the 20%of revenues they contributed in 2024 More and more radio stations will utilize th

118、eir on-ground sales assets to drive multi-media sales for other media like TV,print and OOH2.0 3.0 4.6 7.0 10.521.0 202020212022202320242027EPaying subscriptions(million)83%80%71%17%20%29%202320242027ERevenue mix of radio segmentFCT revenuesNon-FCT revenuesIII.Artist-led music and other income strea

119、ms Artist-driven engagement will be the next big monetization opportunity,across concerts,merchandise,fan clubs,artist management,branded content,physical and digital events From 37%today,we estimate that artist-led music can reach 40%+within three years,as more films collaborate with artists on the

120、ir soundtracks and the concert business continues to growIV.International monetization will grow Labels generate over 62%of their audio revenues from digital licensing Countries where Indian films are popular such as Nepal,Bangladesh,Pakistan and Sri Lanka are now witnessing a surge in digital adopt

121、ion This has led to increased uptake of music on popular international platforms like TikTok,YouTube and Instagram,in these countries and this will be increasingly monetized through industry-level partnerships and collaborationsV.Radios non-FCT revenues will growMedia and entertainmentAdvertising tr

122、endsI.Indian advertising will grow at 8%till 2027INR billion(gross of taxes)|EY estimates Advertising is expected to grow 8%in 2025 to reach INR1.38 trillion Till 2027,advertising is expected to grow at a healthy 8%CAGR,with digital media growing at 11%and traditional media growing at 3%Growth will

123、be driven by increasing per capita income,a healthy GDP growth rate of 6%to 7%,increased women participation in the workforce and growth in government spending and welfare programs Digital media will comprise 61%of the total advertising by 2027II.SME advertising will reach INR369 billion From INR258

124、 billion in 2024,SMEs will increase their ad spends to INR369 billion by 2027,assisted by government schemes and the increase in the MSME credit guarantee scheme from INR50 million to INR100 million SMEs will focus on performance marketing,and will be a key component driving the growth in e-commerce

125、 advertising,which we expect will grow at a CAGR of 15%to reach INR223 billion by 2027III.Data and measurement will be crucial As digital advertising grows from 55%to 60%of total advertising by 2027,with large platforms using massive customer data points to increase efficiency,media OTT platforms wi

126、ll necessarily build or partner for first-party data(1PD)in order to compete effectively Measurement of advertising and content performance will necessarily move towards a digital+linear model,with an aggregation of views across both platforms and the implementation of a common measurement metric,or

127、 models to combine different metrics1,279 1,382 1,589 20242025E2027EIndian advertising23Content trendsI.2025 could see monetization challenges for content creatorsEY and The Producers Guild of India survey of production houses 2024 saw a 12%fall in premium OTT content,and 2025 is expected to see sig

128、nificant pressure on costs as well,as Pay TV homes continue to decline,and OTT platforms struggle for profitability The expectation is that a TV+cost model will evolve for longer-run episodic content for OTT platforms Production houses expect satellite rights and digital rights to remain subdued in

129、2025 Talent models could also see change with performance linkages for key talent becoming more popular The era of blanket rights being given to buyers will come under challenge.Production houses will,eventually,only give a specific restricted set of rights to buyers in lieu of reduced revenuesQHow

130、do you expect content monetization to change in 2025?43%30%30%22%26%39%17%17%22%17%26%13%22%26%17%9%35%17%30%17%4%17%Satellite rightsDigital rightsMusic rightsInternational rightsTheatrical revenueWill reduceNo changeIncrease upto 5%Increase 5-10%Increase 10%Media and entertainmentINR billion(gross

131、of taxes)|EY estimates29 30 37 47 51 67 27 32 43 05010015020020242025E2027ERevenue projectionsAnimationVFXPost-productionII.Animation and VFX will recover at a CAGR of 13%till 2027 Global content announcements are expected to rebound in 2025 and given Indias talent pool and cost advantage,we expect

132、the animation and VFX segment to recover sharply in 2025 and 2026 Indias anime potential has been seeing a steady uptick,and we expect this will unlock further growth potential for the segment National and state initiatives will further incentivize foreign production in India and drive growth and ta

133、lent development,positioning India better in the international markets Private and government investments in AI will lead to innovation in Animation and VFX capabilities and help position Indias capabilities more strongly OTT platforms focus on profitability will lead to higher-quality paid content,

134、and this will grow the domestic VFX and post-production businessIII.IP 360 the monetization norm Companies will move to 360-degree monetization of content viz.,IP(particularly franchise content)will be monetized more widely across not just film,TV and OTT,but also across Free TV,gaming,music and mer

135、chandising Content created for the cinema screens with a large fan base will generate derivative content such as OTT series extensions,prequels and sequels,side stories,interactive games and even related events,with the original film helping to market the derivative contentIV.AI-delivered production

136、 efficiencies Almost all large Indian M&E companies have been using AI to drive efficiencies Common use cases we have observed,and expect to see more of,include:?Automated scriptwriting and storyboarding?VFX automation?AI-assisted localization and dubbing?Personalized content recommendations?Dynamic

137、 content editing and enhancement,including for news across different formats and audiences?AI-driven music composition,particularly for games and background scores?Advertisement targeting and use of synthetic media for marketing campaigns Creative talent reskilling to enable them to use AI for conte

138、nt creation and manipulation will be key to enabling cost efficiencies25 As more and more content creators get access to organized funding and a wider distribution reach,the stage is set for the sector to position itself as a global content hub.Going forward,creators across the video,audio and writt

139、en genres will attract increased interest from both strategic investors and PE funds We expect Indian game publishers and developers to go global and we will see a few medium to large ticket outbound deals.The real money gaming segment has also settled into a new normal.As retrospective liabilities

140、continue to be discussed,this segment could witness increased M&A and public listings,especially for scaled-up players AI is transforming the M&E value chain,driving cost efficiency and revenue growth.With unrealized potential still ahead,we expect AI driven companies to attract funding and valuatio

141、ns in the coming year as well The outside of the home entertainment space is witnessing an uptick in growth and demand.The sector is ripe for M&A activity as companies seek to consolidate and create one-stop solutions,leveraging synergies to capture market share India is poised to drive an outsourci

142、ng trend in the media industry,as cloud-based and internet-driven media applications gain prominence globally,the way India has established itself in the IT outsourcing market As media and advertising budgets increasingly shift toward new media avenues,traditional players will need to adopt innovati

143、ve business models to stay competitive,which is likely to drive opportunistic tuck-in acquisitions.The possibility of mergers within traditional media segments is also highDeal activity will accelerateMedia and entertainmentMediaTech for the Now272024:A transformational year for Indias M&E sector202

144、5:M&E trends and tech imperativesThe Indian M&E sector saw a transformative growth in 2024,fueled by cutting-edge technology adoption,a surge in regional content demand,and the convergence of traditional and digital platforms.As rural internet penetration deepens and consumer expectations for hyper-

145、personalized,immersive experiences grow,the competitive landscape will be more dynamic than ever.Media platforms are expanding into regional-first strategies,FAST(Free Ad-Supported Television)channels are scaling rapidly,and creator-led ecosystems are redefining cost-efficient content production.At

146、the same time,economic pressures are sharpening the focus on profitability and ROI across the value chain.Businesses are exploring innovative solutions to localize content,optimize distribution,and maximize monetization while engaging consumers in an increasingly crowded digital space.For CIOs and b

147、usiness leaders,2024 offered a critical window to leverage technologies like AI,blockchain,and real-time analytics to create agile,scalable ecosystems that can sustain growth in the“attention economy”while managing profitability.The table below delves into the defining M&E trends,corresponding busin

148、ess imperatives,and the technology solutions that are shaping the Indian M&E landscape across the content value chain.Content creation:Boundary-less story tellingM&E sector trendsBusiness imperativesTech imperativesNo more language barriers25%to 50%of video consumption on OTT platforms is in“subs an

149、d dubs”1 Relevant content needs to be available across languages,including library content Build scalable production pipelines for hyperlocal content to capture emerging regional markets Use AI-driven localization engines that use NLP for dubbing and subtitling at scale Evaluate virtual production s

150、tudios for cost-effective multilingual shootsUnlimited creative assistantsSlowdown of procurement of mid-budget films and high-budget originals by several large Indian OTT platforms,to manage margins,and downward pressures on procurement budgets as the TV+cost model comes into play for OTT contentEn

151、hance efficiency of content production Use GenAI and coding tools that can assist across the creation of storyboards,background music,virtual backgrounds,VFX and animation automation,and game development Consider real-time rendering solutions like Unreal Engine to create virtual sets Use cloud-based

152、 pre-visualization to reduce iterative costsDemocratized content creation,curatedOver 40%of the time spent on phones is on social media platforms2,and influencer marketing is now an INR22 billion industry3Leverage partnerships with cost-effective creators to reduce creative overheads and grow grassr

153、oots audience reach Use influencer management platforms that use AI and other tools to identify ROI-driven creators and monitor their performance Automate short-format content editing,post-production and S&P checks1Industry interviews,Prime Video,Netflix2Data.ai,Hootsuite3EY influencer marketing rep

154、ort 2024The pivot to digital media increases the importance of technologyMedia and entertainmentContent distribution:Smarter reach,deeper impactM&E sector trendsBusiness imperativesTech imperativesAdd comfort to consumptionIndias tele-density in rural markets increases to 48%,broadband consumers cro

155、ss 900 million and over 50%of content consumed on streaming platforms is in local languages apart from Hindi4Build presence in untapped markets to grow user base and increase time spent per user Build hyperlocal recommendation engines to drive regional content adoption Optimize for bandwidth variabi

156、lity with adaptive streaming techBuild trusted reachIndia has over 70 OTT platforms across entertainment,news,audio and gaming5 which serve ads,sell subscription and engage with viewersEnsure revenue shares for content syndicated/licensed are accurately determinedUse blockchain technologies to monit

157、or consumption,payments and use of copyright materialContent monetization:Every pixel,every eyeballM&E sector trendsBusiness imperativesTech imperativesTap the lucrative long tailSmall and medium advertisers now account for 37%of total digital ad spends in India6Provide access to smaller advertisers

158、 with location-centric needs to boost overall ad revenues across traditional TV,print,cinema,OOH and radio SME self-serve ad platforms to onboard and optimize campaigns for SMEs and assist with creative generation Dynamic pricing models to accommodate diverse advertiser budgetsMulti-media monetizati

159、on:The new MMMDigital overtook TV as the largest segment of Indias M&E sector;its reach across almost 600 million screens7Advertisers increasingly struggle with media planning and reach measurement across TV+OTT campaignsEnable integrated selling of ad spots across TV and digital platforms to provid

160、e seamless ad placement and better ROI tracking Implement unified ad inventory planning models and tools for unified TV and digital ad sales Use programmatic advertising platforms for integrated campaigns for own and third-party inventoryGo from hope to proofAdvertisers demand transparency in ad cam

161、paigns amid increasing scrutiny of ROASImprove ad delivery transparency to ensure advertisers remain engaged with platforms Leverage blockchain-powered ad platforms to provide fraud-proof ad metrics Use audience targeting tools for optimizing campaign efficiency Use ad fraud monitoring systems,frequ

162、ency cap systems,etc.,to increase quality of ad placementAggregate fragmented audiencesWith over 750 million active screens in India today8 and an increase in personal consumption,audiences are more fragmented than ever before360-degree monetization strategies for IP businesses are focusing on IP as

163、 a core asset,exploring licensing,FAST/CTV platforms,global expansion,brand extensions,etc.Implement IP lifecycle management systems to track monetization streams Use blockchain-based smart contracts for licensing transparency Implement rights management platforms to track IP availability for use or

164、 sale4Various TRAI and EY estimates used in other sections of this report5,6EY estimates7EY estimate of active smartphones+active weekly CTV screens8TRAI,Comscore,EY estimates29Content monetization:Every pixel,every eyeballM&E sector trendsBusiness imperativesTech imperativesHappy cross-sellingBundl

165、ing content with adjacent services like music,gaming,news,education and common interest platforms is driving the next wave of growthDevelop cross-product offerings that engage users and reduce churn by delivering additional value Build cross-vertical analytics platforms for unified user insights Use

166、 bundling engines for flexible offerings,dynamic pricing and up-selling Implement linkages with e-commerce platforms like ONDC to enable audiences to fulfil transactionsCare for a cup of T?Indian audiences are increasingly paying for one-time content,with TVOD revenues growing to over INR13 billion

167、in 20249Create segmented content offerings which tap into the willingness of users to pay for premium or exclusive content sachets Develop TVOD platforms with seamless payment gateways and linkages to loyalty programs Use AI to predict and promote TVOD content likely to convert viewers into paying c

168、ustomers,and price according to previous purchasesConsumer engagement:Captivating audiences,earning loyaltyM&E sector trendsBusiness imperativesTech imperativesAce the attention wars in a saturated marketAverage screen time per user has risen to 6+hours/day10,but fragmentation across apps and screen

169、s hurts retentionBuild deep consumer loyalty through interactions that keep users hooked and churn rates low Integrate gamification frameworks(leaderboards,challenges,rewards)Enhance AR and VR experiences to stand out from competitors Implement predictive churn models and next-best offersPersonalize

170、 in real-timeMore and more,of digital consumers expect content and ad recommendations tailored to their preferencesDeliver personalized content journeys to increase user satisfaction and increase platform stickiness Use real-time recommendation engines for personalized curation Deploy customer data

171、platforms(CDPs)to segment and target users more effectively Custom create titles,images and trailers based on past consumption trends9EY estimates10EY estimatesTurning challenges into opportunitiesThe Indian M&E sector in 2024 was at a critical juncture where the interplay of content,technology,and

172、consumer demand defined success,and digital media became the largest segment.Companies that integrate scalable tech solutions,foster hyperlocal engagement,and implement innovative reach and monetization strategies will not only navigate this complex landscape but also set benchmarks for future growt

173、h.The key to thriving lies in being proactive,tech-savvy,and consumer-first.Media and entertainmentPutting the AI in medIA31Top 10 M&E AI use cases for 2025 AI tools streamline storytelling by generating scripts,identifying plot gaps,and creating storyboards Tools like Soros introduced advanced natu

174、ral language processing(NLP)capabilities to create scripts tailored to audience demographics By 2026,automated scriptwriting will be a cornerstone for Indian cinema,enabling smaller production houses to scale quickly and craft stories that resonate with diverse cultural nuances.This can be adapted b

175、y regional film production,ad agencies,OTT series,and has the potential to reduce pre-production costs by 20%to 30%,significantly enhance productivity,and streamline content workflowsIn 2024,generative AI(GenAI)tools created an impact in the Indian M&E sector,driving innovation across content creati

176、on,post-production,and distribution.But the best is yet to come,as these tools increase their adoption in 2025 and 2026.Some of the top AI use cases that we believe will have a significant impact in 2025,are detailed in this section.They are in no particular order,and specific tools mentioned are fo

177、r illustrative purposes only.AI-powered VFX tools significantly reduce production timelines by automating complex tasks like motion tracking and CGI rendering Tools such as Runway Gen-2 improved GenAI for dynamic visual effects and real-time adjustments Such technology,which has applications in film

178、 post-production,gaming,and advertisements,could cut VFX production costs by up to 40%,while increasing efficiency and enabling faster project deliveries VFX automation will drive Indias animation and gaming industries,allowing creators to deliver world-class quality on tighter budgets,making India

179、a global hub for outsourced VFXWhat has been your experience with GenAI POC engagements?89%of the respondents have initiated POCs;with 22%running in productionNo response for POCs completed-successful POCs lined up for production45%22%22%11%EY India M&E C-suite GenAI Survey 2024GenAI running,in prod

180、uctionPOCs in progressNo POCs donePOCs completed-successful POCs lined up for productionPOCs completed,but no clear impact realizedAutomated scriptwriting and storyboardingVFX automationAI-assisted localization and dubbing Multilingual content production was enhanced with AI-powered voice cloning an

181、d automatic lip-syncing The Indian OTT sector will heavily rely on AI-assisted localization to penetrate Tier-II and Tier-III cities,unlocking vast untapped audiences through culturally authentic,regionalized content Tools like Rephrase.ai(an Indian start-up now acquired by Adobe)specialize in local

182、ized dubbing with real-time voice adaptation,while tools like VisualDub by Neural Garage assist with lip-synch to increase authenticity of dubbed versions In India this can be adapted by OTT platforms,cinema localization,educational videos,advertisements and short video platforms with the potential

183、to reduce localization costs by 25%to 35%,enabling faster and more accurate localization effortsMedia and entertainment OTT platforms utilize GenAI for hyper-personalized recommendations,increasing viewer retention and satisfaction Tools like Gracenote AI optimize metadata-driven personalized recomm

184、endations for OTT and broadcast platforms,apart from in-house technology used by platforms like Spotify,Prime Video,and Google New aggregator platforms like DorPlay will be creating personalized recommendations using a consumers content choices across different OTT platforms This technology can be f

185、urther harnessed by not just OTT platforms,but also music apps,news platforms,gaming aggregators,short video platforms and other D2C platforms which use content.This could boost subscription revenues by 20%to 30%and improve user engagement metrics significantly AI tools such as Firefly now enable cr

186、eators to edit videos,enhance colors,and replace backgrounds seamlessly We observe that dynamic editing will empower Indian content creators to compete globally by reducing post-production time,ensuring rapid delivery of high-quality digital and cinematic content YouTube channels,independent filmmak

187、ers,digital advertisements,etc.,can readily take advantage of this technology,which has the potential to lower editing costs by up to 40%and significantly improve time-to-market for digital contentWhat is your organizations overall inclination to invest in GenAI?EY India M&E C-suite GenAI Survey 202

188、456%indicate an inclination to invest in GenAI56%44%Exploring,no immediate investmentWait and watch with small experimentsPersonalized content recommendationsDynamic content editing and enhancementAI-driven music compositionLive and real-time personalization Tools such as Aiva focus on composing roy

189、alty-free,personalized music for films and advertisements,as well as audio effects,reducing dependency on traditional composers AI-driven music will democratize audio production in India,enabling independent creators and small businesses to craft professional-grade soundscapes at a fraction of the c

190、ost Film scores,background music across media,ad jingles and gaming soundtracks will experience an immediate benefit by adapting to such capabilities,which has the potential to reduce music production costs and timelines by 40%,enhancing productivity and enabling more frequent and customized output

191、Real-time personalization will be critical for Indias live sports and event streaming sector,ensuring seamless experiences even in regions with inconsistent internet connectivity AI adjusts live streaming content quality dynamically based on viewer devices and internet speeds,and is most useful acro

192、ss for sports streaming,live news events,virtual conferences and online concerts This technology could enhance ad revenue and pay-per-view subscriptions by 15%to 20%,improving monetization opportunities Platforms like Conviva provided real-time data analytics for adaptive streaming33EY India M&E C-s

193、uite GenAI Survey 2024 Enhanced ad-targeting will unlock significant ROI for Indias advertisers,enabling tailored messaging that resonates with specific audience segments across urban and rural markets AI can optimize ad placements by analyzing user preferences and content consumption patterns,and h

194、as the potential to improve campaign ROI by 25%Tools like Kargo AI offer ad-targeting solutions for mobile and OTT platforms Some of the early adapters could be platforms which have large user base(media or otherwise),mobile advertising service providers,e-commerce platforms,etc.Synthetic media will

195、 redefine marketing for Indias burgeoning e-commerce and entertainment sectors,enabling high-quality,scalable campaigns that appeal to tech-savvy consumers GenAI creates lifelike synthetic media,such as e-commerce ads,product demos,and social media campaigns Using GenAI tools(one such is DeepMotion)

196、could lower production costs by 40%to 50%,enhance scalability,and improve campaign deployment timesWhere has AI been impactful?(Mark all that apply)AI has been instrumental in reducing costs and driving customer satisfactionAI-powered advertisement targetingSynthetic media for marketing campaignsEth

197、ical and inclusive content creation AI models were trained to reduce biases and create culturally sensitive content.Ensuring ethical and inclusive content will be imperative for Indias diverse and pluralistic society,helping platforms maintain credibility and avoid controversies This is applicable f

198、or content distributed through OTT,educational materials,public awareness campaigns,advertisements,etc.Building trust with diverse audiences could lead to a 10%to 15%growth in long-term user retention and platform loyalty Tools such as OpenAIs GPT-4 Multimodal supported inclusive script and dialogue

199、 generation with cultural adaptabilityWhile challenges like workforce adaptation and ethical concerns remain,2025 is poised to witness AIs exponential growth in creative industries,with India taking a central role in leveraging this technology for mass appeal and global competitiveness.Media and ent

200、ertainmentI.AI downloads by Indians grew by 135%in 2024 Y-o-YAI also made strong advances in the D2C space in 2024.and AI for process efficiencyApart from the above use cases,AI is also being used to enhance the following operating processes:Contracts and rights management-capturing rights,updating

201、them and identifying opportunities for monetization,as well as tracking usage of IP on streaming platforms Automated scheduling of content to maximise reach and consumption,based on historical trends and future events Cue-sheet automation Advertiser news and share of wallet summaries for sales teams

202、 Contract creation Research optimization,including insights based on big data Media planning,including media mix modeling97751772021202220232024Downloads(in million)0.050.14.112.42021202220232024Consumer spend(INR billion)Sensor Tower,State of Mobile 2025Sensor Tower,State of Mobile 2025II.Consumer

203、spend on AI by Indians grew by almost 200%in 2024 Y-o-Y35Responsible AIIssues in using GenAI are increasingCompanies using GenAI in production report benefits such as higher conversion rates,increased revenue,better lead generation and customer acquisition,and the development of new products and ser

204、vices.According to an EY study,GenAI is set to revolutionize the M&E value chain,from content creation to management and audience engagement,with the most common applications being in content development(92%),product design(69%),and customer interaction(65%)1.However,alongside the innovative potenti

205、al,the deployment of AI has exposed significant security vulnerabilities and potential for misuse.Examining specific cases highlights the risks inherent in these technologies:Samsung data leak via ChatGPT2?In May 2023,several Samsung employees unintentionally exposed confidential information by usin

206、g ChatGPT to review internal documents and code?Samsung implemented a company-wide ban on the use of generative AI tools to prevent further security breaches Amazon data utilized for AI training3?In January 2023,Amazon issued a warning to its employees about sharing sensitive company information wit

207、h ChatGPT after discovering that some of the models responses appeared to resemble confidential data,likely included in its training set?Research by Walter Haydock estimated the financial impact of this incident at over US$1 millionGenAI promises efficiency,but it also brings risks that must be mana

208、ged.Adopting Responsible AI principles is key to navigating these challenges,ensuring ethical use,addressing biases and protecting privacy.M&E companies must work with various stakeholders to leverage GenAIs potential responsibly,ensuring that innovation is balanced with ethical considerations to ma

209、intain brand trust and drive industry growth.1The AIdea of India report by EY2https:/ 3https:/ 5https:/ AI Chatbot sells car for US$14?In December 2023,a Chevrolet dealerships AI chatbot was tricked into offering a US$76,000 Tahoe for only US$1?The user successfully manipulated the chatbot by using

210、specific prompts to exploit its responses Air Canada refund incident5?In February 2024,a customer exploited Air Canadas AI chatbot to receive a larger refund than they were entitled to?The chatbot misinterpreted the request,resulting in an erroneous overpaymentMedia and entertainmentWhile these exam

211、ples highlight vulnerabilities across AI systems in various industries,a closer examination reveals distinct risk patterns that are particularly relevant to the M&E sector.Aspects the M&E sector must consider when using GenAIRisk typeUse casesImpactIntellectual property riskGenerative AI,particularl

212、y large language models used in scriptwriting and content creation,are trained on extensive datasets that often include publicly available informationProduction of content that infringes on existing copyrights or trademarksFor example-An AI-generated movie script or song might unintentionally replic

213、ate characters,plot elements or lyrics from protected works,which could result in legal disputes,substantial fines,and harm to the brands reputationBias and ethical concernsGenerative AI models used in industries such as film,television and gamingPerpetuate biases that stem from their training data

214、as these models are often trained on publicly available datasets that may not be representative of all races,cultures and genders,the output they generate could be biasedFor example-AI-assisted casting or scriptwriting might inadvertently reinforce negative stereotypes,leading to public backlash and

215、 raising ethical issuesSecurity riskAI systems are trained on vast datasets that could include sensitive or private information,such as social media content or confidential production materialsContent produced by these AI systems might inadvertently disclose personal or sensitive detailsFor example-

216、Leaks of plot points,scripts,or private information about celebrities.Such breaches could severely tarnish the reputation of production companies or streaming servicesOperational riskIncorporating generative AI into creative workflows,such as video editing,animation or music production,can introduce

217、 unintended modificationsAI systems often operate as black boxes,making it difficult to anticipate their outputsFor example-A film or song might undergo unintended modifications,affecting its tone or pacing and deviating from the original vision of the director or producer.Such discrepancies could l

218、ead to delays,additional expenses,or a final product that does not meet the expected quality standards37To address the risks linked with GenAI systems,it is essential to follow responsible deployment and management practices in line with the guidelines provided by authoritative bodies such as the Na

219、tional Institute of Standards and Technology(NIST),the International Organization for Standardization(ISO),and the Organization for Economic Cooperation and Development(OECD).These principles typically include:Transparency:Ensure that the workings and decision-making processes of AI systems are unde

220、rstandable and explainable to users and stakeholders Accountability:Establish clear responsibilities for AI system outcomes,including mechanisms for auditing and reporting Privacy and security:Protect personal and sensitive data used in AI systems,and implement robust security measures to prevent un

221、authorized access and data breaches Fairness and non-discrimination:Strive to eliminate biases in AI systems by using diverse and representative datasets,and regularly testing for and correcting biased outcomesReferences“The Role of AI in VFX and Filmmaking”The AU Review“Generative AI Transforming O

222、TT Platforms”Tech in Asia Visualskies“Generative AI Applications in Content Creation”Adobe Firefly,VFX Voice“AI-Driven Post-Production Tools Revolutionizing Media”Runway ML“AI-Powered Localization for Multilingual Content”Towards Data Science“Global Innovations in AI for Media&Entertainment”Sancio V

223、FXSoros:https:/ Gen-2:https:/Rephrase.ai:https:/ AI:https:/Tenets of Responsible AI Reliability and safety:Design AI systems to perform reliably under various conditions and have safety measures in place to prevent harm in case of malfunctions Ethical considerations:Align AI system development and d

224、eployment with ethical standards,ensuring respect for human rights and values Innovation and openness:Encourage innovation in AI while promoting an open exchange of knowledge and methodologies to advance the field responsiblyBy adhering to these principles,organizations can mitigate the potential ri

225、sks associated with GenAI and ensure that these systems are used in a manner that is beneficial and ethical.Adobe Firefly:https:/ AI:https:/DeepMotion:https:/GPT-4 Multimodal:https:/ AI in Media&Entertainment:Use Cases”-Miquido Blog“The Rise of AI Scriptwriters:Benefits and Limitations”-NextPedia“AI

226、 in Business:Enhancing Efficiency and Reducing Costs”-InData Labs“The Future of Scriptwriting with Generative AI”-STL Digital“Generative AI in Creative Campaigns”-WPP BlogMedia and entertainmentTwenty-five years ago,entertainment meant tuning in to scheduled TV shows,flipping through newspapers for

227、the latest updates,and catching a film at a single-screen theater.The internet was a luxury,digital advertising was unheard of,and print ruled the media landscape,commanding over half of total ad revenues.It was around this time that FICCI and Arthur Andersen(now EY)released the first M&E report in

228、2000,capturing an industry on the cusp of change.Lights,camera,revolution!Fast forward to today,and the sector has expanded over 16 times,with digital media alone surpassing INR800 billion.Streaming platforms,AI-driven content,and immersive experiences have reshaped how India creates and consumes en

229、tertainment.Online gaming,once non-existent,is now a multi-billion-rupee industry,and events have evolved from small gatherings to large-scale spectacles.From a print-heavy past to a digital-first present,the sectors evolution has been nothing short of extraordinarysetting the stage for an even more

230、 dynamic future.revolution!Lights,camera,25 years of tracking the M&E sector Cover image of the first FICCI M&E sector report created by Arthur Andersen in 2000 39The M&E sector has grown 16 times in 25 years at a CAGR of 12%M&E sector revenues(INR billion):Then and now Advertising was dominated by

231、the print segmentIndia had many more theaters back in 1999-37 62 35-2 4 13 1 802 679 290 259 232 101 59 53 25 DigitalTelevisionFilmed entertainment(including animation)PrintOnline gamingEventsOOHMusicRadio199920242019Internet connections in India2024Total ad revenueINR154 billion1.5 millionINR2,502

232、billionINR60 billionFilms released in India800Films exported412Cinemas in 199912,900Film segment revenuesINR62 billionTV36%Print 55%OutdoorCinemaRadio6%2%1%Composition of ad revenues in 1999Media and entertainment20.416.814.8Zee TVSony Entertainment TVStar TVReach of top private channels (million)Da

233、ta has been sourced from the FICCI-Arthur Andersen M&E sector report 2000,and the FICCI-EY M&E sector report 2025Cable TV householdsTV ad revenue24 millionINR22 billionEstimated radio households in India95 millionEstimated radio receivers in India99 millionRadio segment revenuesINR1.2 billionIndian

234、music events sponsored by Coca Cola in 1998Live event segment revenues70INR2 billion210 million cassettes13 million compact disksINR9 billionINR4 billionTelevision was mainly free and terrestrial Radio had a higher reach than TVMusic was all physicalLive events were nascent and driven by sponsorship

235、TV content productionINR17 billionTerrestrial(DD)households68 millionMusic segment revenuesINR13 billion41The media sector is undergoing rapid transformation aided by technology and evolving consumer behavioral patterns.Content is getting democratized,and the lines will get blurred between professio

236、nal and user-generated content,and the same goes for traditional and new advertising platforms.Media companies are also competing with platforms outside the sector(e.g.,telecom,e-commerce).The industry,therefore,needs to rethink its business approach,move beyond the conventional way(TV and OTT),and

237、engage the consumers through omnichannel experiences,cross platform storytelling and personalization.As technology leverages AI and AR/VR,hybrid models will evolve,blending traditional and digital media.Media also significantly shapes and reflects a countrys culture,acting as an influencer itself,he

238、lps mold social behaviors,amplifies cultural traditions and identity.Therefore,the Indian companies will not only influence other companies but will also experience a profound transformation through innovation,blending creativity with technology,giving rise to new business models like social commerc

239、e,connected services,etc.It has been my dream that India emerges as the worlds foremost Media&Entertainment hub.I have,accordingly,over the last 35 years,pioneered leading“Made in India”media entities from ground up across all platforms new age Newspapers,FM radio,TV broadcasting,digital and audio-v

240、isual products which have almost all been market leaders.These have proudly used Indian resources,including our unparalleled human talent,and have almost never relied on foreign investment or technology.However,in order to survive as an industry,we must recognize that the biggest challenge is not fr

241、om each other,but from global Big Tech.Herein,our government must urgently help improve the very challenging financial situation that the media industry is in.It must also ensure that industry-friendly measures are adopted even as policies that focus on mere government revenue maximization and heavy

242、-handed regulation of content are done away with.This is the only way PM Modis vision of a vibrant and strong Indian media industry can be realized,and our great nations creative and soft power can expand across the globe.Medias role is that of mediator between those whose voices are feeble,and thos

243、e whose actions can change lives.Just as Warren Buffett and Bill Gates as Financial Saints freed financial spirits,Indias M&E industry must rise as an Information Saint,empowering drowned-out voices.And this means not only marginalized humans,but all sentient beings spirits of animals who are doubly

244、 enfeebled:one,through human action;two,by speciesism,the belief that humans are superior to other species.By aligning growth with purpose,the industry will thrive and fulfill its true calling:to enlighten,uplift and inspire.Dr.Subhash ChandraEssel GroupVineet JainThe Times GroupSamir JainBCCL“”Indi

245、as M&E sector stands at the crossroads of transformation,where technology,creativity and consumer behavior are reshaping the landscape at an unprecedented pace.At the heart of this evolution are visionaries who have shaped the industry and continue to steer it towards a future of innovation,inclusiv

246、ity and global influence.As FICCI Frames celebrates 25 years of championing Indias M&E sector,we bring together the voices of some of its most iconic leaderspioneers who have built institutions,revolutionized content,and expanded Indias cultural footprint across the world.25 years.Media and entertai

247、nmentThe next decade will be defined by content that connects deeply with audiences across boundariesstories rooted in local culture yet resonating on a global scale.As the world becomes increasingly interconnected,narratives will bridge cultural gaps,offering diverse perspectives while staying true

248、 to their origins.The evolution of technology,particularly AI,AR and VR,will make storytelling more immersive,enhancing the way we experience stories.However,the essence of storytelling will remain unchanged:strong characters and compelling narratives.These elements will continue to capture the hear

249、ts of viewers,who will crave authenticity and emotional depth.Audiences will be drawn to stories that reflect the complexities of the modern world,exploring themes that challenge societal norms and push boundaries.The demand for diverse voices will be stronger than ever,as people seek narratives tha

250、t mirror the varied experiences of individuals in a rapidly evolving global landscape.At the heart of it all,storytelling will continue to serve as a powerful tool for connection,empathy and understanding,transcending geographic and cultural barriers to bring people closer together.Any observer of t

251、he Indian industry would easily believe that Indias Media&Entertainment sector in the last two to three decades has been the most dynamic and progressive.Indias M&E sector has played a significant role in changing the thinking of Indias masses,making them more progressive and modern in their thinkin

252、g,making them more upwardly mobile and creating in them a desire for a higher standard of living and achieving that through reaching higher education levels,gaining technical skills and working hard.It was a sponsored program that started the movement in the early 80s and has continued till date wit

253、h the arrival of CTV.To keep the M&E juggernaut moving forward with the same speed,what is required is a single measurement platform system across all types of videos,which can be put together and funded only by advertiser who,in my view,can gain substantially from ROI by investments in videos.The s

254、ooner,the better.Ektaa R KapoorBalaji TelefilmsSam BalsaraMadison“”43Indian music market has no parallel.India,with its rich diversity of cultures,languages and histories,is a vibrant mosaic of diversity.Music has long been a universal language that brings people together across geographical,linguis

255、tic and cultural boundaries,uniting people across the country.From devotional hymns to patriotic anthems,classical compositions to contemporary hits,music has the power to evoke emotions,spark memories and bring people together.The digital revolution has further amplified musics impact,enabling arti

256、sts to create,curate and share their work with a global audience.As technology continues to evolve,the future of music will be shaped by the intersection of artistry and innovation.With advancements in AI,sound design and content distribution,the possibilities for music creation,collaboration and co

257、nsumption will be limitless.The future will be driven by the relationship between technology and artists and the potential for the growth of Indian music will be unparalleled.As Indias music scene continues to flourish,it is poised to play a significant role on the global stage.With its unique blend

258、 of traditional and contemporary styles,Indian music will resonate with audiences worldwide,solidifying Indias position as a leader in the global music industry.As we celebrate 25 years of FRAMES,it is invigorating to reflect on the remarkable journey of Indias Media&Entertainment sectora dynamic in

259、dustry that mirrors the aspirations,creativity and resilience of our nation.Cinema,for me,is more than a medium;it is a bridge that connects people,transcends boundaries,and brings Indias cultural narratives to life on the global stage.The future of this sector hinges on embracing innovation while p

260、reserving the authenticity of our storytelling.As stakeholders,we must champion investments in cutting-edge technologies like AI and immersive formats,expand opportunities for homegrown talent,and enhance the accessibility of quality content across diverse geographies and demographics.By fostering c

261、ollaboration between creators,technologists and policymakers,we can build an ecosystem that not only entertains but educates and inspires.Together,we have the power to position India as a global leader in creativity,shaping stories that resonate universally and stand the test of time.Bhushan KumarT-

262、seriesAjay BijliPVR INOX“”Media and entertainmentIndias Media&Entertainment industry is positioned for transformative growth over the next 25 years.As a news organization,we must uphold the highest ethics in news journalism,stay true to our values and serve our readers with integrity.Credibility is

263、the North Star of our industry,and safeguarding it is the only way to ensure trust.Indias newspapers have had an impact on readers for decades,and I am confident they will continue to do so for many more while adapting to the changing environment and needs of readers.While the media landscape is cha

264、nging to include digital platforms,print will remain a powerful and credible medium,especially in Bharats Tier 2 and 3 cities,where trust in traditional formats runs deep.A lot of jargon has been used to define the news industry,but from a readers perspective,two elements matter most credibility and

265、 timely reporting.The core principles of journalism must remain uncompromised.As FICCI Frames celebrates its remarkable 25-year journey in 2025,we must also look toward the next 25 years with ambition and purpose.Over the decades,FICCI Frames has been a vital platform,connecting creators,thinkers an

266、d policymakers to build the future of Indian entertainment.The challenges and opportunities ahead demand that we continue fostering innovation,collaboration and inclusivity.The regional and national entertainment markets are evolving at an extraordinary pace.Regional content has proven its global ap

267、peal,with stories that are deeply rooted in local cultures resonating far and wide.At the same time,audiences are consuming content in diverse ways-from big screens to mobile phones,across platforms that did not exist a decade ago.This shift requires us to think beyond boundaries and formats,ensurin

268、g that we meet the audience where they are.We are now celebrated globally for our mass stories.Films like RRR,Baahubali,and the recent success of Pushpa highlight the hunger for stories told in an Indian way.This global recognition is a testament to the power of authentic storytelling rooted in cult

269、ure.The future lies in combining strong storytelling with cutting-edge technology to create immersive experiences that can captivate audiences globally.We have learned that staying ahead of the curve is about understanding our audience and putting their needs at the center of our work.As we expand o

270、ur horizons,our goal is to take these learnings to a pan India and global audience.We are also committed to fostering the next generation of creators by investing in digital platforms and nurturing talent to produce compelling content that reflects the voice of modern India.The next chapter of India

271、n entertainment will be written by those who dare to innovate and collaborate.With the right partnerships and a bold vision,we believe Indian media can set the narrative for the world stage and create a legacy that will endure for generations to come.Girish AgarwalDB CorpMahendra SoniShree Venkatesh

272、 Films“”45The rise of OTT platforms has transformed Indian cinema by changing audience consumption patterns,disrupting traditional revenue models,and impacting theatrical footfalls.While big-budget,star-driven films still dominate theaters,mid-budget films often prefer direct-to-OTT releases.To keep

273、 theaters successful,cinemas need to offer better experiences,set ticket prices wisely,and use a mix of theater and online releases.The future of cinema will focus on better stories,new technology,and reaching global audiences while growing alongside OTT platforms.Daggubati Suresh Babu Ramanaidu Stu

274、dios and Suresh Productions“”Media and entertainment247Segmental trendsMedia and entertainmentDigital media49Key trends of 2024Digital media grew 17%in 2024E-commerce and social media dominated monetization2021202220232024Advertising383499597700Subscription567289102Total439571686802INR billion(gross

275、 of taxes),including SME ad spends|EY estimatesEY estimates|Includes advertising and subscription revenues Digital media grew 17%in 2024 and was the fastest growing segment of the Indian M&E sector For the first time in 2024,the digital media segment became the largest segment of the Indian M&E sect

276、or at INR802 billion,overtaking television Digital media now accounts for 32%of the Indian M&E sector and India has,in effect,reached its digital inflection point Subscription accounted for just 13%of total revenues,due to the large advertising models in play in India,led by Google and Meta,as well

277、as the growing advertising revenues earned by e-commerce platforms Search and social media aggregated INR488 billion,or 61%of total digital media revenues(including YouTube premium subscriptions)Ad revenues earned by e-commerce platforms(which are usually carved out from sales and channel promotion

278、budgets,rather than media budgets)grew significantly to 18%of total digital media segment revenues,overtaking revenues earned by sports and entertainment platforms in 2024 Other entertainment and sports platforms were a distant third,garnering 17%of total revenues,led by brands such Disney+Hotstar,J

279、io Cinema,Prime Video,Sony LiV and Netflix Online news and music remained sub-scale at an aggregate of 4%of total digital media revenues,with online news still searching for a profitable and scalable business modelSearch,short video and social E-commerceEntertainment and sports NewsMusicComposition

280、of digital revenues61%18%17%3%1%Media and entertainmentDigital infrastructureOver a billion telecom subscriptionsI.Telecom subscriptions remained stable at 1.2 billion TRAI|EY estimatesTRAI|EY estimatesEricsson Mobility Report,November 2023 and 2024Internet subscriptions(in million)Dec 2022Dec 2023D

281、ec 2024ENarrowband(a)34 3226Broadband(b)832 905945Urban(a)516 548568Rural(b)350 388403Total(a+b)866 936971663528663529UrbanRuralTelecom subscriptions(in millions)December 2023December 2024E There was a minor 0.2%growth in telecom subscriptions in December 2024 against 1.19 billion telecom subscripti

282、ons in December 2023 Urban subscriptions comprised 56%while rural subscriptions were 44%The tele-density in India is now at 85%and remains heavily skewed to 132%in urban areas and just 58%in rural areas The next wave of content consumption growth can therefore be expected to come from rural Bharat a

283、s against urban IndiaII.5G subscriptions more than doubled in 2024 5G subscriptions are expected to reach 270 million in 2024,fueled by fast-growing network availability,affordable service plans and availability of 5G smartphones across price points 23%of telecom subscriptions had migrated to 5G,whi

284、ch is more than double their 2023 share of 11%4G and 5G subscriptions are estimated to grow to 92%of all mobile subscriptions by 2030,which will grow the base of content consumersIII.40%of internet subscribers are from rural markets11%23%62%54%3%4%24%19%20232024Subscriptions by type of network5G4G3G

285、2G 97%of those accessing the internet used broadband,of which 5%used wired broadband and the rest used wireless services Narrowband subscriptions declined by 18%,while broadband usage increased by 4%between December 2023 and December 2024 Urban internet subscriptions comprised 58%of all internet sub

286、scriptions Rural subscriptions grew by 4%between December 2023 and December 2024;rural subscriptions now being more than two-thirds of urban subscriptions,pointing to a need to create content for both these markets51Smart device growth continued1EY estimates using TRAI data,industry discussions,coll

287、ection reports,etc.2EY estimates3Industry discussion;EY estimates 4E4m Report CardIV.Broadband subscriptions reached 945 millionTRAI|EY estimatesEY estimates using TRAI data,industry discussions,subscriber reports,etc.|Millions of connectionsEY estimatesEY estimatesInternet subscriptions(in million)

288、Dec 2022Dec 2023Dec 2024EWired broadband323846Wireless broadband800866899Total broadband832905945 With over 945 million broadband subscriptions,India has the second largest broadband subscriber base in the world,after China According to data published by Ookla in December 2024,India ranked 23rd in t

289、he world for mobile speeds and 93rd for fixed broadband speeds,with the median mobile internet connection speed via cellular networks at 103.75 Mbps and the median fixed broadband connection speed being 62.62 MbpsV.In effect,there are now four important distribution methods60.3 48.7 48.5 46.1 Cable

290、TVDTHFree TVWired broadbandTV and broadband connections(Dec 2024)At 46 million wired broadband homes,the scope for large-screen viewership using broadband is close to that of DTH,cable and Free TV1 In effect,there now are four large and equally important methods of content distribution to large scre

291、ens in IndiaI.Smartphone users reached 562 million in 202444850353854756220202021202220232024Smartphones in India(in million)At 562 million,39%of Indias population uses smartphones In addition,India still has approximately 230 million feature phones in use2,which provide a large opportunity for grow

292、th in the years aheadII.Connected TVs crossed the 50 million household mark310152330152535502021202220232024Connected TVs(in million)Weekly active setsMonthly active sets CTV reached 50 million monthly active sets by the end of 2024 With over 100 million non-smart TVs in the country4 that will be su

293、bsequently upgraded to internet-connected devices,there remains ample room for growth in CTV reach,given that most TV sets sold in India now can connect to the internet,and are available for under INR10,000 on e-commerce platformsMedia and entertainmentOverall consumption trendsSensor Tower|Top five

294、 countries by average time spent|iOS and Android combinedSensor Tower I.Indians spent over a trillion hours on their phones in 2024 Growth in wired and 5G wireless broadband connections,tentpole sports events like the ICC Cricket World Cup,IPL and FIFA World Cup,high-quality 4k feeds,and low-cost ho

295、me broadband packages have helped drive sales of connected TVs We estimate that of the monthly CTV base of 50 million sets,around 30 million are actively used on a weekly basis,a 30%growth over 2023III.Android continued to dominate mobile operating systems5 Android was the dominant mobile platform i

296、n India,and its share continued to grow to reach 95.4%Apple also continued to grow its share to reach 4.3%,creating an easily identifiable base of affluent consumers Growth came on the back of a fall in other operating systems users95.2%95.4%0.8%0.3%20232024Share of mobile operating systemsAndroidAp

297、pleOthers4.0%4.3%Content consumption6.3Indonesia5.3Brazil5.0India4.8South Korea4.8SingaporeAverage hours per day spent on phones Indians spent 4.95 hours per day on phone apps in 2024,a 3.1%growth over 2023 In aggregate,India spent more than 1.1 trillion hours on digital platforms,higher than any ot

298、her market worldwide,which shows the immense potential for ad funded products and branded contentII.69%of time spent on phones was on media and entertainmentMedia(incl.social media)Business and communicationOthers69%22%9%Time spent on mobile phones Time spent on media(including social media,films,en

299、tertainment,music and casual games)increased to 779 billion hours(69%of total time spent)in 2024 The mobile phone has thus become the go-to medium for large,national awareness campaigns as well as more targeted regional and local ones5https:/ Feb 2025536Based on data provided by S 7State of Social M

300、edia,Comscore 20248Sensor TowerOnline videoEY estimates Comscore Video Metrix,JanAug 2024,IndiaSensor Tower|Monetization gross of app store commissions but excluding non-app store driven revenuesIII.However,India continued to lag on mobile monetizationI.Online video viewers crossed 550 millionIndiaI

301、ndonesiaUSBrazil MexicoHours spent(in billions)1,127355323230146Monetization(US$billion)0.91.052.41.61.1 Despite leading in both downloads and time spent,India lagged on mobile monetization,not featuring in the top 20 markets by revenue While the above do not include a large component of online gami

302、ng revenues,it demonstrates the relatively small amount of Indias over 330 million households willing to pay for content and services onlineIV.Time spent on connected TVs increased India witnessed a 27%increase in active smart TVs in 2024 with an average of over 40 hours per month of content consump

303、tion6 YouTube consumption on connected TVs increased 132%between August 2022 and August 2024 to cross two billion hours7 The rising viewership on connected TVs is reshaping advertising strategies,offering brands a chance to deliver TV-like promotions with greater precision targeting compared to trad

304、itional TV497 2021527 2022536 2023551 2024Video viewers(millions)Video viewers increased 3%(15 million)in 2024 to reach 551 million,which is around 98%of active smartphones India has been steadily adding smartphone users every year,and we do not expect this to change in the near future as Indias per

305、 capita income continues to grow and feature phones continue to get converted to smart phones We estimate video viewers will reach approximately 625 million by 2027 as smartphone penetration continues to grow across new and used devicesII.Time spent on online video grew 18%in 2024 Total time spent o

306、n social media and video consumption increased by 18%in 20248 YouTube dominated the landscape,capturing 92%of all online video consumption,while premium platformscomprising AVOD,freemium,and SVOD servicesaccounted for the remaining 8%Connected TVMobile89%9%Desktop2%Time spent on YouTube in India 89%

307、of time spent on YouTube was on mobile devices,while 9%was on connected TV,reflecting the growth in its penetration in 2024Media and entertainmentEYs content services team estimates|Excludes imported contentEYs content services team estimates|Excludes imported content202220232024Titles produced by l

308、anguageHindiOther languages50%48%52%50%52%48%60%10%14%5%7%2%2%61%14%12%2%7%1%2%Drama/crime/thriller/actionComedyRomanceRealityHistorical/documentaryOthersHorrorGenre-wise content releases on OTT20242023III.The TVOD opportunity expanded Apart from Google Play and the Apple Store,platforms like Amazon

309、 Prime Video enabled TVOD for their large libraries and catalogues,creating a new source of income for content owners and licensors Prime Video claimed that 60%of its over 8,500 titles got rented each month The TVOD opportunity is expected to grow as CTV penetration increases and SVOD rates growIV.P

310、latforms continued to invest in regional language content The focus on regional content continued in 2024,with 48%of total content produced being created in regional languages Consumption of content in subtitled or dubbed formats increased according to all platforms heads whom we interviewed,in effe

311、ct creating a national market for regional content National platforms had an eight-language strategy around content to ensure that original content was present across key markets As content crosses linguistic boundaries and monetization avenues grow,the investment required to enhance quality of cont

312、ent further can increaseV.The most popular genres were drama and crime Of the OTT titles we analyzed,60%were drama and crime,similar to 2023 Romance and reality content also saw an increase,with the latter employing higher levels of interactivity through polls,quizzes,predictions,etc.VI.Micro-episod

313、es made a beginning Micro dramas are professionally generated content and may have 60 to100 episodes,with a per-episode run-time of 30 to 120 seconds;they do not compete with streamers or TV channels,but provide a crisper,vertical-format oriented storytelling and watching experience The micro episod

314、ic content(MEC)segment in India is still in its infancy,with only a handful of players experimenting with the format;early movers include Reelies and Vahaflix,both of which are bootstrapped and producing content independently Cumulatively,Indian MECs have generated over 5 million downloads on AppSto

315、re and Google Playstore,on the back of around 50 series with 10 to 60 episodes each of 90 to 180 seconds across romance,across fiction,drama and sitcom Nazara Technologies recently invested US$250K for a 3.57%stake in ReelSaga,valuing the pre-revenue app at US$7M,signaling investor interest in the s

316、egment India had around 450 million short-form video(SFV)users in 2024,projected to surpass 600 million by 2027,offering a vast addressable audience for micro episodic content platforms Over the next three years,at least 20 new or existing apps are expected to enter this space,focusing on both domes

317、tic and global audiences,and,given Indias diverse linguistic landscape,platforms offering regional language micro-episodic content will have a strong competitive advantage55Online audioOnline newsI.There were around 175 million audio streaming users Around 175 million people streamed music online in

318、 2024 compared to 185 million in 20239 The fall was due to industry actions,which worked to disincentivize free music consumption by limiting features to free users In addition,Resso and Wynk ceased operations,and Gaana and Hungama went entirely payII.India heard 13.1 billion music streams every day

319、10 There were approximately 4.8 trillion music streams in 2024,of which 4.6 trillion were free/ad-supported while 154 billion were paid streams Approximately 21%of all streams consumed in 2024 pertained to international songs,while 79%were for domestic songs Of the total streams,around 63%were film

320、related and 64%were in HindiIII.Paying consumers increasedI.Online news audience was 463 million in 2024119Comscore;industry discussions10IPRS,based on 9-month data extrapolated from select platforms;language split based on their algorithms and other EY assumptions11Comscore MMX Multi-Platform,Dec 2

321、024,India12EY analysis,Comscore,TRAI13DNPA-EY report“Monetizing online news”,February 202414Over 70%Indians rely on online media for news;majority on social media:Report|India News-Times of India3.0 20214.6 20227.0 202310.52024Paying music OTT subscriptions(in million)EY estimatesComscore Paid subsc

322、riptions increased from 7 million in 2023 to around 10.5 million in 2024,as certain platforms stopped ad-supported music consumption,while others like Spotify worked to incentivize free consumers to subscribe for a better experience On average,there were 12.8 billion paid streams each month in 2024,

323、which equated to over 1,000 streams per paid user per month473 459 463 Dec 2022 2023 monthly average 2024 monthly averageMonthly reach of online news in India(in million)Online news reached 463 million of Indias 1.4 billion population in 2024,which is 32%of Indias population12 The reach has reduced

324、compared to earlier years as younger audiences have started consuming news on alternate platforms,mainly social media and communication platforms,which has a direct impact on the reach of news and information platformsII.News was consumed most on mobile phones13 The mobile was the preferred mode of

325、consuming online news,comprising 90%of total digital reach On an average,consumers used more than two platforms to consume online news,and 38%of them consumed news more than once a day 49%of respondents surveyed by Reuters Institute relied on social media for their news;the survey indicated that 54%

326、of Indian respondents consumed news from YouTube,48%from WhatsApp and 35%from Facebook14 comparedMedia and entertainmentComscore|Average monthly minutes per visitor across a selection of app and web news portalsComscore MMX Multi-Platform,Total Digital Population,Oct 2024,India0 50 100 150 200 250 3

327、00 350 400Hindi newsEnglish newsBusiness newsRegional newsAverage time spent on news 2022 2023 2024(Jan-Oct)Google sites503 Facebook455 Amazon sites357 Flipkart sites298 Telegram.org272 Times Internet Limited271 T231 Microsoft sites229 Network 18221 Reliance Jio Infocomm Limited220 Average monthly a

328、ctive users(in million)III.Hindi and regional language news consumption increased in 2024 While consumption of Hindi and regional news increased,consumption of English and business news fell slightly in 2024 Online news has been increasingly providing hyper-local news updates,which physical print ca

329、n find it difficult to provide,creating a unique product that consumers value and do not always have access toIV.Two traditional news platforms featured in the top 10 sites Times Internets digital platforms had the highest MAU among legacy news companies,followed by Network 18 However,many audiences

330、 consumed news on Google,Facebook and Microsoft sites as well as aggregators like DailyHunt and InShorts Youth consumed news across various social media platforms,including WhatsApp,and not as much on dedicated news sites,as per several industry discussions we had57Maharashtra&GoaUttar PradeshWest B

331、engal,Sikkim&OdishaAndhra Pradesh&TelanganaPunjab&HaryanaBiharMadhya PradeshGujaratRajasthanKarnatakaDelhi(NCR)KeralaChhattisgarh&JharkhandAssam&North East(7 States)Himachal Pradesh&Uttarakhand13%13%10%Tamil Nadu9%8%6%6%5%5%5%5%5%4%4%3%1%Split of online news consumers by state(December 2024)Comscore

332、|December 2024 app+web audiencesWe are Social|Meltwater|As of Feb 2025Social mediaI.Social media penetration was 34%in 202479%UKChinaRussiaUSABrazilWorldwideIndia77%73%73%68%64%34%Social media penetration(%of population)Social media user base of Indians in 2024 reached 34%of the total population;for

333、 users above 18 years of age,the penetration was at 43.5%Though this is lower in percentage terms than many other countries,in absolute terms,India is the second-largest market behind China by the number of users15 15https:/ Pradesh and the east had the highest online news audiences 72%of news consumers were from HSM markets 25%of news consumers were from south Indian states Uttar Pradesh and Maha