
India's media and entertainment sector is experiencing high single-digit growth and is now outpacing nominal GDP per capita growth after a challenging period over the last two years, according to Punit Goenka, CEO of Zee Entertainment Enterprises (ZEE). As reported in the company's FY26 annual report, this recovery represents a significant turnaround for the sector that had previously faced headwinds. The sector's growth trajectory is further validated by PwC India's Global Entertainment & Media Outlook 2026-2030, which projects India's entertainment and media market to grow from $25.7 billion in 2025 to $36.7 billion by 2030, representing a 7.4% compound annual growth rate (CAGR) - nearly twice the global industry growth rate of 4%. According to PwC's analysis, the industry is moving from a phase focused largely on building audience scale to one centred on monetising engagement and creating sustainable revenue streams, with digital ecosystems, regional content and technology expected to play a key role in this transition.
The growth is being driven by new-age segments including digital media, gaming, animation and VFX, as highlighted by Goenka during the shareholder meeting. The company is building a diversified portfolio that reimagines its business breadth and captures a higher share of the attention economy. ZEE is specifically investing in new growth engines across emerging segments such as micro dramas, kids' content and live entertainment to strengthen its market position. According to PwC's analysis, internet advertising revenue is projected to nearly double from $7.5 billion in 2025 to $14.3 billion by 2030, growing at a 13.9% CAGR, with search and video advertising expected to fuel much of this expansion as brands increasingly follow consumers across digital platforms. India's OTT market is projected to grow from $2.2 billion in 2025 to $3.6 billion by 2030, at a 10.2% CAGR, though streaming platforms are increasingly looking beyond subscriber numbers to advertising-supported plans, mobile-only offerings, premium content and regional programming.
In line with its growth strategy, ZEE has partnered with animation and VFX studio PhantomFX to enhance its content creation capabilities across genres including kids, mythology and fantasy. According to Goenka, this partnership will enable the company to create richer intellectual properties in the animated content segment, which is witnessing exponential growth across the nation. The collaboration represents a strategic move to strengthen ZEE's content production capabilities in high-potential segments, with AI becoming an important tool for value-based integration beyond traditional editing and visual effects. AI is expected to influence the wider E&M value chain, from content creation and production to discovery, personalisation and advertising, with applications including virtual production, de-ageing, multilingual voice modelling and recommendation systems.
ZEE has significantly expanded its presence in the sports business by launching four dedicated sports channels under the Unite8 Sports umbrella. The company aims to build a sustainable sports ecosystem across the nation through higher engagement with marquee properties and purposeful on-ground initiatives. As reported by Goenka, ZEE has secured rights to key global sporting events including FIFA, Bundesliga and Serie A, adding to its existing sports offerings and strengthening its sports portfolio. The sports sector is expected to benefit from video games and e-sports revenue projected to rise from $1.5 billion in 2025 to $2.6 billion by 2030, at an 11.3% CAGR, with PwC expecting in-game advertising, sponsorships and recurring revenue models to become increasingly important as gaming companies look to turn high user engagement into sustainable earnings.
Looking ahead, Goenka expressed confidence that these new segments will accelerate growth for the company and complement the overall portfolio to drive stronger cross-synergies. According to the CEO, by seamlessly integrating scale with innovation and combining rich legacy with new growth opportunities, ZEE is positioning itself to fortify its competitive advantage in the evolving media and entertainment ecosystem. The strategic focus on diversification and innovation across multiple high-growth segments represents ZEE's commitment to sustainable long-term growth in India's expanding media sector. Traditional media remains resilient with traditional television revenue projected to increase from $7.2 billion in 2025 to $7.5 billion in 2030, while newspaper revenue is expected to rise from $3 billion to $3.5 billion, supported by regional audiences, advertiser demand and trusted media brands. Data connectivity revenue is forecast to increase from $36.5 billion in 2025 to $58.6 billion by 2030, at a 9.9% CAGR, with consumers showing greater willingness to pay for differentiated experiences across cinema, music and sports, creating additional revenue opportunities through premium ticketing, hospitality and formats such as IMAX and 4DX.