Indians Spent 1.1 Trillion Hours On...

... their smartphones!

India's media and entertainment industry generated approximately ₹2.5 trillion in revenue in 2024, expanding at a relatively modest 3.3 per cent year-on-year, even as it underwent a 'rapid transformation'.

Indians collectively spent 1.1 trillion hours on their smartphones last year, according to a report by FICCI and EY.

On average, individuals logged five hours daily on their mobile screens, with nearly 70 per cent of that time dedicated to social media, gaming, and video consumption.

This surge propelled digital channels past television as the largest segment of the country's media and entertainment landscape for the first time since 2019.

Revenue growth slowed as subscription revenues declined and global demand for India's animation and VFX outsourcing weakened, the report said.

The industry contributed 0.73 per cent to the nation's gross domestic product and is projected to grow 7.2 per cent in 2025, reaching an estimated ₹2.68 trillion.

"On the positive side, advertising grew 8.1 per cent, events expanded 15 per cent, crossing the ₹10,000 crore mark for the first time, and non-FCT (free commercial time) radio and digital out-of-home (OOH) advertising saw healthy gains," Ashish Pherwani, media and entertainment sector leader at EY India, told Business Standard.

However, subscription revenues fell across TV and print, mainly due to increasing digital media consumption.

"Pay TV lost six to seven million homes, as audiences shifted to digital platforms like YouTube and connected TV," Pherwani said.

Theatrical admissions slumped, and a lacklustre box office performance triggered a 5.6 per cent revenue drop for the film industry.

The imposition of higher GST on real-money gaming dented transaction gaming revenues, further dragging down overall subscription income.

The 2023 Hollywood writers' strike and financial struggles at international studios contributed to a 9 per cent decline in revenue for India's animation and VFX sector, reducing broadcast ad revenues and stalling content production.

"The Indian media and entertainment industry stands at a defining moment, driven by rapid digital adoption and evolving consumer preferences," said Kevin Vaz, chairman of FICCI's media and entertainment committee.

"With India's M&E market poised to surpass ₹3 trillion by 2027, the future is brimming with untapped potential," Vaz added.

India ranked third globally in smartphone screen time in 2024, with users spending an average of 4.95 hours per day on mobile apps, up 3.1 per cent from the previous year.

Indonesia led with 6.3 hours per day, followed by Brazil at 5.3 hours.

Despite global economic headwinds, India's media and entertainment sector has shown resilience, said Jyoti Vij, director general of FICCI.

"As the industry undergoes rapid transformation, FICCI remains steadfast to driving policy reforms, fostering strategic collaborations, and shaping a future-ready ecosystem that ensures sustainable growth while enhancing India's global influence," she said.

Digital advertising expanded 17 per cent to ₹70,000 crore (Rs 700 billion) in 2024, accounting for 55 per cent of total ad revenues, driven by social media and e-commerce.

Paid music subscriptions climbed to 10.5 million from 7 million, though overall music revenue slipped 2 per cent due to reduced free consumption and lower streaming royalty rates. News subscriptions remained flat at 3.1 million.

The organised events segment thrived, bolstered by increased spending on government and election-related activities, weddings, and large-scale concerts featuring international artists.

Out-of-home advertising grew 10 per cent; digital OOH surged 78 per cent and contributed 12 per cent to total segment revenues, up from 7 per cent in 2023.

Radio revenues climbed 9 per cent to ₹2,500 crore (Rs 25 billion), driven by rising ad volumes and alternative revenue streams.

Print ad revenues inched up 1 per cent, with premium ad formats fuelling growth, while subscription revenues declined 1 per cent.

Digital revenue remained 'sub-scale', at under 5 per cent of total print revenue, said the report. 

Feature Presentation: Rajesh Alva/Rediff.com