Mumbai: Anand Rathi Advisors Limited (ARAL), one of India’s premier investment banking and advisory firms, released a detailed report titled “Media & Entertainment Report – June 2026.”

In this comprehensive report, ARAL analyses the evolving Indian media & entertainment landscape, highlighting the structural shift from broadcast-led volume to digital-first, IP-led value creation. The report examines how rising digital consumption, regional language expansion, AI-led production economics, and the globalisation of Indian content are reshaping the sector’s demand and monetisation patterns.

The report highlights that India’s media & entertainment sector currently stands at ~₹2.8 trillion, with new-age digital media nearing ~50% share of total consumption. The industry is projected to expand meaningfully over the long term, driven by sustained demand across OTT, gaming, animation, music and live experiences.

The report explores key themes shaping the future of India’s media & entertainment sector, including:

  1. Sector Overview & Demand Drivers: Analysis of the sector’s scale, contribution to digital consumption, smartphone and internet penetration, and long-term structural drivers including democratised mobile access, Gen Alpha adoption, and rising vernacular demand.
  2. Content & OTT Dynamics: Detailed coverage of OTT supply, theatrical recovery, regional content expansion, and the shift from volume-led commissioning to franchise-led, IP-driven storytelling.
  3. Music & Monetisation: Evaluation of the music industry’s transition from ad-led consumption to subscription, catalogue licensing and live experiential models, with ARPU benchmarking against global markets.
  4. Animation, VFX & Gaming: Analysis of India’s transition from outsourced content services to original IP creation, including the structural reset in gaming following the Promotion and Regulation of Online Gaming Act, 2025.
  5. Profit Pools & Investment Themes: Assessment of where value is expanding across music catalogues, casual gaming, animation IP, regional films, live events, and the segments facing secular monetisation pressure.
  6. Technology & AI Impact: Examination of how AI is transforming scriptwriting, VFX, localisation, dubbing, advertising and content personalisation across the value chain.
  7. Regulatory & Policy Landscape: Overview of FDI reforms, the AVGC mission, OTT and deepfake regulation, and their implications for sector growth.

The report highlights that India’s media & entertainment sector is witnessing a clear shift from Hindi-led, volume-driven content to multilingual, IP-led franchise economics, with strong growth across regional OTT, animation IP, casual gaming and live experiences. The globalisation of Indian content through diaspora-led monetisation, cross-border co-productions and format exports is further supporting margin expansion and value creation.

According to the report, the sector’s long-term growth will be driven by:

  • Rising digital consumption and democratised mobile and internet access
  • Expansion of regional and vernacular content across OTT and theatrical formats
  • Increasing IP ownership, franchise creation and long-tail monetisation
  • Globalisation of Indian content through exports, co-productions and diaspora demand
  • AI-led disruption across production, localisation and monetisation improving efficiency and scalability

The report also highlights that while the sector remains exposed to regulatory shifts, technology-led disruption and content-cycle volatility, it has consistently demonstrated strong structural resilience supported by deep consumption tailwinds. The report additionally incorporates ARAL’s views on the recent developments surrounding the Promotion and Regulation of Online Gaming Act, 2025, and analyses the near-term implications for India’s digital gaming and esports landscape.