India Movies and Entertainment Market Outlook to 2028

India Movies and Entertainment Market Overview

• The India Movies and Entertainment market is valued at USD 27 billion based on a five-year historical analysis. This size is driven by exponential growth in OTT subscriptions, theatrical recoveries post-pandemic, increasing advertising expenditure, and monetization of music and digital rights. According to the FICCI-EY Media & Entertainment Report and PwC India, the market is supported by aggressive investments in original content, an expanding digital user base, and enhanced monetization through regional content. The sector has also witnessed a revival in theatrical footfalls and growing success of mid-budget films, supported by content diversification.

• Mumbai and Hyderabad dominate the India Movies and Entertainment market due to their entrenched industry ecosystems, large production houses, multilingual content pipelines, and deep talent pools. Mumbai serves as the financial and creative hub of Bollywood, while Hyderabad is the epicenter for Telugu cinema with the largest number of operational film studios and rising pan-India appeal. These cities benefit from strong infrastructure, government support, and established distribution networks, making them natural powerhouses of Indias entertainment output.
• The Government of India introduced the Cinematograph (Amendment) Bill, 2023, empowering the Central Board of Film Certification (CBFC) to classify films into age-specific categories and restrict unauthorized recordings. Under the revised Information Technology Rules, over 1,400 OTT-related complaints were reviewed by the Ministry of I&B in 2023. The bill criminalizes camcording in cinemas, and violators can face imprisonment of up to 3 years. This has streamlined compliance, enhanced transparency, and offers greater protection for producers and creators against digital piracy.

India Movies and Entertainment Market Segmentation

• By Medium: The India Movies and Entertainment market is segmented by medium into theatrical, OTT (over-the-top), television broadcasting, music & audio entertainment, and live entertainment & events. Currently, the OTT segment holds a dominant share in the market under the segmentation by medium. This is primarily due to increased smartphone penetration, affordable data plans, and a surge in consumption of regional and original content. Platforms like Netflix, Amazon Prime Video, and Disney+ Hotstar have invested heavily in Indian originals, contributing to an ecosystem where digital-first content is prioritized. The flexible consumption model and wide genre offerings have further propelled OTTs dominance.

• By Revenue Channel: India Movies and Entertainment market is segmented by revenue channel into box office collections, subscription-based revenue, advertising (AVOD and TV Ads), licensing & syndication, and merchandising & IP revenue. Advertising-based revenue dominates the market under this segmentation due to the dual advantage of scale and low-cost content monetization. TV channels and OTT platforms rely heavily on advertisers for monetization, especially platforms like MX Player and YouTube that are AVOD-led. Additionally, the rising trend of branded integrations in films and shows has further boosted advertising revenues.

India Movies and Entertainment Market Competitive Landscape

The India Movies and Entertainment market is dominated by a few major players, including production giants like Yash Raj Films and OTT platforms such as Netflix and Disney+ Hotstar. This consolidation highlights the significant influence of these key companies, whose large-scale investments, established content libraries, and strategic partnerships shape the trajectory of the market. Their ability to leverage IP, scale regional content, and monetize across formats has helped maintain their leadership positions in an otherwise fragmented market.

India Movies and Entertainment Market Analysis

Growth Drivers

• Surge in Film Production Across Regional Markets: India produced over 2,600 films in various languages in the previous year, as reported by the Ministry of Information and Broadcasting. Regional cinema, especially in languages like Telugu, Tamil, and Kannada, contributed over 65% of the total films produced. Increased digitization of production and state-level subsidies have enabled mid- and low-budget filmmakers to scale output. The Film Facilitation Office reports a rise in shooting permissions by 18% compared to the previous year, indicating increasing production activity across the country.
• Youth Demographics and Content Demand: India has a median age of 28.2 years in 2024, as per the United Nations Population Division. With more than 725 million individuals under the age of 35, the demand for youth-focused, digital-first content continues to rise. The Registrar General of India reported 23 million births in the previous year, reflecting a consistently young and growing consumer base. This demographic, with increasing digital literacy and mobile-first habits, is actively driving content consumption, particularly in regional and vernacular formats.
• Expanding Internet and Smartphone Penetration: India had over 936 million internet users and 1.16 billion mobile connections in early 2024, according to the Telecom Regulatory Authority of India (TRAI). The addition of over 25 million new smartphone users in the last 12 months alone has directly contributed to the proliferation of OTT platforms. Over 79% of total digital consumption now occurs via mobile, reinforcing the mobile-first nature of Indias entertainment economy. These access points are vital for driving digital viewership and content distribution.

Market Challenges

• Rural Penetration of Entertainment Platforms: India's rural population stands at 902 million (Census Data & World Bank), and less than 38% currently access digital entertainment regularly. With 83 million new rural households gaining electricity and 47 million receiving broadband connectivity under BharatNet Phase-II (as reported by the Ministry of Communications), the region presents a large untapped audience. This infrastructure development, along with vernacular content expansion, positions rural India as a key growth driver for regional OTT platforms, broadcasters, and music labels in the coming years.
• Infrastructure Gaps in Tier III and Rural Cinema Halls: As per data from the National Sample Survey Office (NSSO) and FIC data accessed via the Ministry of Information and Broadcasting, India has only 9,50010,000 operational cinema screens, with over 55% concentrated in metro and Tier I cities. In contrast, over 4,000 sub-districts in rural and semi-urban areas remain underserved, many with zero access to multiplexes or single-screen theatres. Poor digital infrastructure, lack of real estate investment, and declining single-screen viability have restricted theatrical expansion, especially in states like Bihar, Jharkhand, and Odisha, limiting distribution outreach and theatrical monetization potential.

India Movies and Entertainment Market Future Outlook
Over the next five years, the India Movies and Entertainment market is expected to witness robust growth driven by the evolution of content consumption habits, deeper regional penetration of OTT platforms, and increasing monetization of digital IPs. Technological advancements like AI-based content personalization, 5G rollout, and immersive storytelling formats are set to redefine content delivery. Furthermore, hybrid theatrical-digital release strategies and an increase in international collaborations will accelerate content globalization.

Market Opportunities

• Expansion in Regional OTT Content: The rapid growth of digital viewership presents a significant future opportunity in regional OTT (over-the-top) platforms. As internet penetration increases across tier-II and tier-III cities, demand for localized, culturally relevant content is expected to surge. Investing in original regional programming, multilingual storytelling, and tailored subscription models can unlock new revenue streams, broaden audience reach, and drive sustainable growth within India's movies and entertainment market.

• Governments Incentives for International Co-Productions and Filming: The Government of India, through the Film Facilitation Office and Ministry of Information and Broadcasting, has approved 40% cash rebate on international film production expenditure in India under its Incentive Scheme for Audio-Visual Co-Production and Filming. This policy has attracted over 38 international projects in the last year alone. Additionally, state governments such as Madhya Pradesh, Gujarat, and Uttar Pradesh are offering location-specific subsidies and tax rebates. These efforts aim to position India as a global filming hub, increasing foreign participation, employment generation, and cross-border content syndication.