India has cemented its position as one of the fastest-growing media and entertainment (M&E) markets globally, clocking a compound annual growth rate (CAGR) of over 7.5%, according to PwC’s latest Global Entertainment & Media Outlook report. This surge contributes significantly to the global M&E industry’s projected expansion to $3.5 trillion by 2029.
Internet Advertising Fuels Growth
A key driver behind India’s M&E boom is internet advertising, which is growing at a robust 15.9% CAGR. Factors such as rising internet penetration, rapid 5G adoption, and the popularity of social media and short-form videos are reshaping digital engagement across the country.
Globally, the M&E industry approached $3 trillion in revenue in 2024 and is projected to grow at 3.7% CAGR through 2029-surpassing global economic growth despite headwinds like inflation and cautious consumer spending.
Advertising Takes the Lead
The report underscores advertising as the primary engine of growth in the global M&E landscape. While subscription services face saturation, advertising revenue is surging at a 6.1% CAGR, compared to just 2% in the consumer spending category.
Top-performing segments include:
- Retail media advertising – 15% growth
- Social and mobile on-stream video advertising – 15%
- Connected TV (CTV) in-stream advertising – 14%
Digital advertising continues to dominate, accounting for 72% of global ad revenue in 2024, projected to rise to 80% by 2029. AI-driven hyper-personalisation and performance marketing are further accelerating this transition.
Connected TV, in particular, has seen explosive growth. From just 5.9% of broadcast TV ad revenue in 2020, it rose to 22% in 2024, and is projected to hit $51 billion by 2029-nearly 45% of traditional TV ad spend.
Gaming Outpaces Traditional Entertainment
The global video gaming industry is set to grow from $224 billion in 2024 to nearly $300 billion by 2029, now outpacing the combined revenues of the film and music industries.
Meanwhile, the global cinema sector is also witnessing a rebound, with box office revenue expected to rise from $33 billion in 2024 to $41.5 billion by 2029. Notably, consumer tastes are shifting toward locally produced films, as U.S. studio dominance drops from over 60% pre-pandemic to 51%.
Offline Experiences Still Dominate Revenue
Despite increasing time spent online, consumers continue to invest heavily in offline experiences. In 2024, 61% of consumer M&E spending remained in non-digital formats-a trend expected to hold steady through 2029.
The report concludes that while digital transformation is reshaping the global media ecosystem, hybrid consumption patterns and diversified revenue models will define the next wave of growth.