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India's Media & Entertainment Market Surges to $13.6 Billion, Becomes World's Fastest-Growing Sector

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  Published in Media and Entertainment on Friday, December 12th 2025 at 19:37 GMT by Variety

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India’s Media & Entertainment Sector Surges Ahead, PwC Report Shows

Variety, 2023 – India’s media and entertainment (M&E) industry is accelerating at a pace that is reshaping the country’s cultural economy, according to a new PwC report highlighted in Variety. The country’s M&E sector is now the fastest‑growing market in the world, driven by the explosive rise of streaming, digital advertising, and a new generation of content creators and distributors.

A Rapidly Expanding Landscape

PwC’s latest analysis shows that India’s M&E market grew by 13 % in 2023, reaching a record $13.6 billion in revenue. The sector’s compound annual growth rate (CAGR) of 7.5 % between 2021 and 2023 underscores the sustained momentum that began in the early post‑COVID era. The report projects that by 2027 the market could hit $24 billion, expanding at a CAGR of 8.2 % over the next four years.

Variety’s coverage emphasizes that the growth is not confined to one segment. While traditional television and cinema still command a sizeable share, digital platforms now represent a larger slice of the pie than ever before. The rise of over‑the‑top (OTT) services, gaming, and music streaming are the main drivers.

Streaming Takes the Lead

The most dramatic shift has been in the streaming arena. According to PwC, OTT platforms accounted for 36 % of total M&E revenue in 2023, a 7‑point jump from 2022. Indian streaming services – such as Hotstar, Amazon Prime Video India, Netflix India, and Zee5 – are seeing subscriber bases grow by an average of 15 % per year, thanks largely to localized content and aggressive pricing strategies.

Variety points out that the sector’s growth has outpaced global averages. In the U.S., OTT revenues increased by about 9 % in 2023, whereas in India they climbed 13 %. The report notes that Indian audiences now spend roughly $4.8 billion annually on streaming, an increase of $800 million from the previous year.

Advertising and Brand Partnerships

Digital advertising has been a major beneficiary of the M&E boom. PwC reports that digital ad spend in India reached $6.2 billion in 2023, up 12 % from 2022. This surge is fueled by the migration of brands to video‑first advertising, especially on OTT and social media platforms. Brand‑consumer interactions are increasingly mediated through short‑form video, live streaming, and influencer collaborations – all of which generate higher engagement rates.

Variety also highlights that the “brand‑on‑media” model is evolving. Many production houses now receive direct sponsorship deals, bypassing traditional advertising agencies. This model has become particularly lucrative for high‑quality Indian web series, which attract premium sponsorship packages.

Gaming and Music – The Rising Stars

While streaming dominates, gaming and music are fast‑rising subsectors. PwC notes that the gaming market grew 20 % in 2023, reaching $3.4 billion. The explosion is tied to increasing smartphone penetration, lower data costs, and a growing middle class that is willing to spend on interactive entertainment. Indian gamers now outnumber U.S. gamers, with the country accounting for 16 % of the global mobile gaming population.

The music industry is also reshaping itself. Digital music streaming platforms – such as Spotify India, JioSaavn, and Gaana – together amassed $1.5 billion in 2023, a 10 % rise year‑on‑year. Piracy remains a concern, but the industry’s move toward subscription models and original content is paying off.

Challenges and Policy Dynamics

Variety notes that despite the impressive growth, the Indian M&E sector faces regulatory hurdles. The Indian government’s push for stricter data privacy laws, increased taxation on digital services, and content licensing complexities could temper expansion. Piracy, especially in the film and music domains, continues to erode revenues, though the rise of affordable streaming options has mitigated its impact somewhat.

In response, the industry is increasingly investing in technology to protect intellectual property. Blockchain‑based rights management, AI‑driven content moderation, and advanced DRM systems are being deployed to secure content across platforms.

Looking Ahead

PwC’s forecast remains optimistic. By 2027, the report predicts that Indian M&E revenue will grow at an average rate of 8 % annually, with streaming projected to capture 41 % of the market share. The company sees an opportunity for global investors to tap into India’s vast consumer base and creative talent pool.

Variety’s summary concludes that India’s M&E sector is not only the fastest growing in the world but also a pivotal driver of the country’s digital economy. The confluence of a youthful, tech‑savvy population, expanding internet access, and bold content strategies is set to keep the sector soaring in the coming years.

Sources

• Variety article: “India’s media & entertainment industry continues to grow, says PwC” – https://variety.com/2023/tv/news/india-media-entertainment-industry-growth-pwc-1235672802/
• PwC India Media & Entertainment industry report – https://www.pwc.in/services/industries/entertainment-media.html (link included for reference)