WAVES looks to further unlock the potential of Rs 2.5 lakh crore media and entertainment industry

World Audio Visual Entertainment Summit aka WAVES that aims to boost the potential of the media and entertainment industry. (Image courtesy: X | @WAVESummitIndia)

It's a wave of hues of blue in Mumbai and no it is not because of the Arabian sea. It's due to the World Audio Visual Entertainment Summit aka WAVES that aims to boost the potential of the media and entertainment industry that reached revenue of Rs 2.5 lakh crore in 2024.

The summit aims to unlock a $50 billion market by 2029, expanding India's footprint in the global entertainment economy.

The maximum city is decorated with the summit’s big posters all across, making it hard to miss. And why would anyone miss it when not only Prime Minister Narendra Modi will inaugurate the event but the entertainment industry’s biggest names from Shah Rukh Khan, Karan Johar, Deepika Padukone to Allu Arjun will make a blockbuster appearance.

While it will be a starry affair, technology innovation will be at its peak too thanks to the many challenges and competitions that began months ahead of the event.

For instance, the anti-piracy challenge aimed at protecting content saw 1,600 registrations and 132 idea submissions from startups, technology providers, research institutions, and students across the country. After a multi-stage screening and evaluation process, 15 ideas were shortlisted out of which seven finalists will present their solutions before the final jury and a live audience during the WAVES 2025, scheduled from May 1–4 at Jio Centre, Mumbai.

Through the competition, the Summit aims to address the issue of piracy which is causing a potential loss of USD 1.2 billion due to 90 million users engaging in online video piracy in India in 2024, according to a Media Partners Asia report.

Overall, as part of WAVES for 32 challenges over 750 finalists have been selected.

Across the four days, the discussions will be around the major themes of the creative economy including broadcast, content creation, delivery platforms, advertising & marketing, animation, visual effects, eSports, digital media, app economy, influencers  and films.

Despite the growth the media and entertainment industry has witnessed in the last few years, the change in pandemic led consumption patterns has affected many industries, resulting in growth slowdown.

Last year, the media and entertainment industry’s growth fell to 3.3 percent from 8.3 percent in 2023, according to an EY-FICCI report launched in March this year.

The slowdown was mainly attributed to falling subscription revenues, and a global decline in animation and VFX work outsourced to India.

In 2024, linear TV revenues fell for the second consecutive year with a 6 percent drop in advertising revenue and a 3 percent decline in subscription revenue. Pay TV homes decreased by six million, while free TV and connected TV homes increased. Weekly active Connected TVs grew to 30 million in 2024 from 23 million in 2023.

On the other hand, the Hollywood writers' strike and struggling international studios led to a 9 percent revenue decline in 2024 for the animation and VFX segment. Reduced broadcast ad revenues also impacted the production of animated content in India.

Post pandemic, the segment which has seen a sea change is the film industry which hasn't seen footfalls going back to pre-Covid level. Though over 1,600 films released in 2024, theatrical admissions declined, and only 11 Hindi films grossed Rs 100 crore, down from 17 in 2023. Revenues dropped 5 percent to Rs 18700 crore. Both digital and satellite rights values fell by 10 percent as broadcast and OTT (over the top platforms) buyers focused on profitability.

Music segment saw its revenues falling by 2 percent due to a push to reduce free music consumption and lower streaming royalty rates. Paid subscriptions grew from 7 million to 10.5 million. Free alternatives like YouTube and radio limited the growth of the paid subscriber base

Online gaming’s growth slowed significantly due to the imposition of 28 percent GST (goods and services tax) on deposits and the rise of illegal offshore sites. Accordingly, net revenues for transaction-based gaming fell by 6 percent.

While some segments were under pressure, many others in the media and entertainment space reported significant growth.

Digital advertising grew 17 percent to reach Rs 70,000 crore, 55 percent of total advertising revenues. Growth was led by short video and social media and e-commerce advertising , which reached  Rs 14,700 crore.

Digital subscription revenues grew 15 percent to Rs 10,200 crore. Paid video subscriptions increased to 111 million, across 47 million households. Paid music subscriptions rose from 7 million to 10.5 million, while news subscriptions remained at 3.1 million.

Digital media is expected to be the first M&E segment to cross Rs 100,000 crore in ad revenues in 2026.

The Indian M&E sector is expected to grow by 7.2 percent in 2025, reaching Rs 270,000 crore (US$31.6 billion), and then expand at a Compound Annual Growth Rate (CAGR) of 7 percent to reach Rs 310,000 crore (US$36.1 billion) by 2027.