Sahara One Media and Entertainment Ltd Management Discussions

Sahara One Media and Entertainment Limited (BSE Code: 503691) is engaged in sale of television programmes and motion pictures production and distribution. The Television business operates in three television channels namely: SAHARA ONE which is a General Entertainment Channel (GEC), FILMY which is a Hindi movie channel and FIRANGI which offers dubbed international shows and movies.

2024 was a pivotal year for media and entertainment in India.

The industry made global impact with wins and nominations at Cannes and the Oscars and was once again recognised as a production hub, boasting of VFX masterpieces like the Oscar-nominated Emilia Perez and Mufasa: The Lion King. The year saw a resurgence of cinema, greater adoption of regional content, and use of technology to enhance production and distribution.

India is a market where traditional and new mediums co-exist as seamlessly; where TV remains a force to contend with, even as the growth path for digital is without parallel. The number of TV screens is projected to increase from 190 million in 2024 to 214 million in 2026. In 2024, nine in ten people continued to watch live TV, with 40% people watching more than six hours, indicating our combinatorial preference. We want the best of all worlds!

The 2024 Indian Premier League reached 525 million viewers on TV, and touched 550-600 million viewers on streaming. Aside from breaking viewership records, 2024 also revolutionised sports consumption, making it more immersive. Fans can now access high-quality coverage on the go, in multiple languages, with real-time statistics, live chat options, multiple feeds from various camera angles. Constant innovation also helped create new revenue streams, via digital ad insertion like live commerce - integrating real-time shopping into live events such as sports matches and streaming of concerts like Coldplays performance in Ahmedabad.

Rapid consumer-tech adoption has allowed streaming to blossom alongside TV. Streamers have taken bold business model risks and offer hybrid and competitive service formats, democratising consumption. This has deepened investments in niche content, granted independent filmmakers and performers an avenue to showcase their talent and fostered the adoption of emerging tech like AI.

India is poised to become the third-largest M&E market globally by 2028, on the back of this frenetic activity. Effective implementation of self-regulation in both the TV and streaming markets has simultaneously enabled us to pause when needed and demonstrate accountability to our society and culture. We hope to continue this balanced momentum into the new financial year.

INDUSTRY STRUCTURE. DEVELOPMENT AND FUTURE OUTLOOK:

Twenty-five years ago, entertainment meant tuning in to scheduled TV shows, flipping through newspapers for the latest updates, and catching a film at a single-screen theater. The internet was a luxury, digital advertising was unheard of, and print ruled the media landscape, commanding over half of total ad revenues. It was around this time that FICCI and Arthur Andersen (now EY) released the first M&E report in 2000, capturing an industry on the cusp of change.

Driven by digital acceleration, evolving consumer preferences, and cutting-edge technologies. The rapid shift from linear to digital entertainment is reshaping content creation, distribution, and consumption, unlocking new opportunities for growth and global influence. As we enter 2025, Indias M&E sector is poised to expand its footprint as a content powerhouse, fuelled by innovation, strategic investments and a resilient creative ecosystem.

A key milestone in 2024 was digital media surpassing television as the largest M&E segment, contributing 32% of total revenues. With deeper internet penetration, the rise of Free Ad-Supported Television (FAST) channels, and a thriving creator-led economy, India is on course to become a global content hub. Strategic investments and private equity funding will further accelerate this transformation.

Key trends of 2024

O Indian M&E sector grew 3.3% in 2024 to reach INR2.5 trillion

	2019	2022	2023	2024	2025E	2027E	CAGR 2024-2027
Digital media	308	571	686	802	903	1,104	11.2%
Television	788	726	711	679	676	667	(-)0.6%
Print	296	250	259	260	262	267	0.9%
Online gaming	64	222	236	232	260	316	10.8%
Filmed entertainment	191	172	197	187	196	213	4.3%
Animation and VFX	95	107	114	103	113	147	12.5%
Live events	83	73	88	101	119	167	18.2%
Out-of-home media	51	48	54	59	66	79	10.2%
Music	15	46	54	53	60	78	13.4%
Radio	31	21	23	25	27	30	6.6%
Total	1,922	2,237	2,422	2,502	2,682	3,067	7.0%
Growth		23.3%	8.3%	3.3%	7.2%

All figures are gross of taxes (INR in billion) for calendar years : EY estimates

The Indian M&E sector continued to grow in 2024, albeit at a relatively modest 3.3%; it grew by INR81 billion to reach INR2.5 trillion (US$29.4 billion)

The M&E sector contributes 0.73% to Indias GDP

While the sector was 30% above its pre-pandemic 2019 levels, television, print and radio still lagged their 2019 revenues

Digital media overtook television for the first time to become the largest segment, contributing 32% of M&E sector revenues

We expect the M&E sector to grow 7.2% in 2025 to reach INR2.68 trillion (US$31.6 billion), then grow at a CAGR of 7% to reach INR3.07 trillion (US$36.1 billion) by 2027

Growth slowed down significantly in 2024, to just INR81 billion which was less than half the INR185 billion growth of 2023

Digital media, live events and OOH media led the growth in 2024

New media (comprising digital media and online gaming) grew INR113 billion (12%) and now comprise 41% of the M&E sectors revenues

Core traditional media (television, print, radio and music) together saw their revenues drop by (-)3% or INR30 billion, and their share of the total M&E sector fall to 41%

Outside the home media (comprising filmed

entertainment, live events and OOH media) grew at a combined 3%, and now contribute 14% of the total M&E sector

Animation and VFX segment fell 9.4% due to global supply chain issues, mainly in the US due to the writers strike

The Indian M&E sector will grow at a CAGR of 7% and add INR564 billion in three years

New media will provide 68% of this growth, followed by live events (12%) and animation and VFX (8%) Barring unforeseen situations, we expect all segments to grow or remain flat, except linear television, so long as Indias real GDP grows 5% or more

By 2027, new media (digital + online gaming) will comprise 46% of M&E sector revenue, while traditional media (TV + print + film + radio + OOH) will contribute 41% of total M&E sector revenues

Advertising will comprise 52% of total sector revenues in 2027, while share of subscription will reduce to 35% by 2027

Video trends

I. A billion screens of opportunity

	2024	2027E	2030E
Pay TV	111	95	81
Free TV	49	53	57
Connected TV	30	48	76
Total TV	190	196	214
Smartphones	562	625	696
Total screens	751	821	910

EY estimates : Screens in millions

The opportunity for video to grow is large, given the expected growth in the number of screens

By 2030, large screens will cross 200 million, and small (phone) screens will reach almost 700 million, creating a large base of consumers hungry for content and information

The 3:1 ratio in favor of small screens underlines the need for short video content, short-form content, social media and real-time news products, around which we expect to see significant innovation in the next few years

II. Four equitable modes of TV distribution

HH	2024	%
Cable	60.3	29%
DTH + HITS	50.9	25%
Free TV	48.5	24%
Wired broadband	46.1	22%
Total TV	205.8	100%

EY estimates : Millions of connections

Today, content is delivered across four largely equal distribution mechanisms

With the continuous erosion of cable and growth in wired broadband, the next few years will underline the need to be active across all four platforms for studios and IP owners

Consequently, we can expect to see innovations around pricing and windowing for media companies to take advantage of all segments, and we expect that broadcasters will reinvest in making linear television more competitive

In addition, we expect to see more combined deals being done, selling audiences across linear and connected TV together

The potential introduction of direct-to-mobile (D2M) television services will increase the relevance of television outside the home and during transit

Free TV will remain a "temporary" medium viz., it will gain audiences as more families come out of poverty and into the lower middle class, and it will lose audiences as the middle-class families move up the value chain

III. Towards 150 million OTT subscriptions

Subscribing households will grow from 47 million to over 65 million by 2027 as per capita income increases and smart TV penetration continues to grow, subject to low-cost broadband availability

Bundling will play a significant role in growing subscriptions, with both telco packs and multi-package/ platform bundles being important; we expect to see more business or library combinations to ensure platforms are in the top two to three subscription preferences of households

IV. SME advertising facilitated

Given that SME advertising on digital media is estimated at INR258 billion in 2024, there is a latent demand for such advertisers to use the TV medium, something that they could not afford in the erstwhile linear environment

We expect to see innovations to bring SME advertisers with a national presence on to television, through creation of SME ad platforms, partnership with social and e-commerce platforms, etc.

V. A new News TV business model

As news consumption shifts to online video and text, and as the youth consume news on social and other platforms, news media will need to rethink their content, monetization, and measurement strategies

Content will need to be created multi-format and multi- media, and separately for younger audiences and for different segments

Alternate revenue streams like IP, branded content, and exclusive products will be introduced

News will also move to a "News+" content model, covering a wider variety of themes to reach wider audiences

VI. Time for ncustomer firstn innovation

As customer experience becomes more critical to differentiate product and retain consumers, we can expect more innovation around initiatives that put the customer first

Such initiatives could include a unified search across platforms, single sign-ons to multiple apps, subscription managers and optimizers and TVOD recommendations across content stores

O Experiential trends

Events growth will be led by the "next 10" large cities

While metros will remain important to tap the large number of affluent families, our survey of events company CEOs indicated that the highest growth potential lay with the next 10 markets after the metros

They also felt that the potential for growth was high across Indias top 40 cities (each with a population of over one million) as consumption growth was faster in those markets, and brands needed to increase their share of voice to gain traction there

Platform and publishing strategies will redefine gaming

With GST now being applied to deposits, singlegame operators face significant challenges, as frequent withdrawals and deposits amplify the tax burden and erode profitability

A platform strategy, which integrates multiple games under a single ecosystem, offers a compelling solution. It drives higher spin rates, somewhat reducing the GST impact by circulating deposits within different games on the platform. Moreover, it ensures sustained player engagement

Further, the development of a structured publishing ecosystem is expected, which will propel the growth of Indias online gaming segment by:

Attracting increased funding for developers, enabling them to focus on creativity and innovation

Enabling access to global markets

Facilitating strategic partnerships with global studios to enhance game development quality

Digital and premium OOH assets will drive growth

OOH segment revenue projections

Driven by premiumization of inventory, the share of digital OOH will increase to 17% of total OOH segment revenues by 2027, at a CAGR of 24%

Transit OOH, on the back of growth in airports, premium trains, metros and premium buses, will grow at 16% till 2027

Comparatively, traditional OOH will grow at 8%, primarily driven by geographic diversification to keep pace with increased urbanization and rising consumption outside metros and the top 10 cities

IV. DOOH inventory will integrate with digital ad networks

In many cases, advertisers are using digital ad budgets to invest in DOOH, rather than OOH budgets

Inevitably, digital OOH buying processes will need to mimic digital advertising, and we expect to see digital OOH inventories being made available to digital advertisers on search, social and e-commerce platforms as well

Fewer, quality films will be greenlit

Given the environment of caution in 2025, we expect that fewer films will be produced on account of rising production costs, less digital and broadcast pre- funding/ pre-sales of rights, and higher dependence on theatrical revenues, especially for certain categories of small- or mid-budget films

We expect to see longer production times, larger writers pools and more consumer research being used to select films for production

VI. Theatrical infrastructure/windows will evolve

At just over 9,000 screens, Indias screen density is amongst the lowest of any developed country, but are more screens the answer?

While the largest multiplex distributor has planned to add 100 new screens in FY25 , we believe that another opportunity exists in filmed entertainment

Low priced theaters in tier-ill and IV markets, aided by the growth in mass-themed films, will come into being in the medium term, and this will expand the number of families which can enjoy the theatrical experience from less than 100 million to around 175 million people

In addition, we could also see innovation around new premium digital windows being provided at the time of (or within a few days of) theatrical release

VII. Film TVOD will scale

With less than 500 of over 1,600 films getting a digital release, large volumes of films are lying unmonetized

The growth of wired broadband, smartphones and connected TVs is providing a fillip to TVOD revenues, and we can expect this trend to gain importance, including for Indias high volume of films which do not find digital buyers

Text trends

Newspaper reach and readership will start to stagnate

Print will reach a steady state with a loyal reader base within the next year or two, most of which will probably come from the growing base of educated people entering the workforce who need news and information to build their careers, as against faithful but ageing audiences Cover price increases needed to offset falling circulation numbers will lead to a winner-takes-all situation, with a reduction in second newspaper copies in the home

II. Core print revenues will grow marginally

Despite the above, we expect the print segment to grow at 1%CAGR till 2027

Advertising will grow at a 2% CAGR, driven by access to increasingly elusive and ad avoiding NCOS A audiences, and premium inventory formats Subscription may see a decline at (-)2% CAGR as the medium keeps losing audiences to digital and social media

III. Print companies will diversify

Most print companies now conduct hundreds of events each year, which contribute (for most) around 4% to 5% of total revenues

We see this trend gaining momentum, and by 2027 we expect events and community revenues contributing 7% to 8% of total revenues earned by print companies

Print companies will also diversify into non-print businesses to monetize their brands which have built trust for so many years

IV. Online subscription will grow slowly

Paid online subscriptions will stagnate at 5 million to 6 million by 2027, unless industry action is taken to consolidate curated, credible news on owned platforms, or an industry-led common platform

Utility products which help subscribers to earn more, perform better in their exams, get access to exclusive content, or interact with their heroes/ celebrities will be key to drive subscription revenue growth

V. Community service at the forefront

The core utility of the newspaper will evolve into its digital avatars such as discount coupons, facilitated purchase/ trials, opinion exchange, polls and - most importantly - community action

Print companies will launch or aggregate many focused interest-based communities which meet the news and non-news needs of their members

The pivot to digital media increases the importance of technology

2024: A transformational year for Indias M&E sector

The Indian M&E sector saw a transformative growth in 2024, fueled by cutting-edge technology adoption, a surge in regional content demand, and the convergence of traditional and digital platforms. As rural internet penetration deepens and consumer expectations for hyper-personalized, immersive experiences grow, the competitive landscape will be more dynamic than ever. Media platforms are expanding into regional-first strategies, FAST (Free Ad-Supported Television) channels are scaling rapidly, and creator-led ecosystems are redefining cost-efficient content production.

At the same time, economic pressures are sharpening the focus on profitability and ROI across the value chain. Businesses are exploring innovative solutions to localize content, optimize distribution, and maximize monetization while engaging consumers in an increasingly crowded digital space.

For CIOs and business leaders, 2024 offered a critical window to leverage technologies like Al, blockchain, and real-time analytics to create agile, scalable ecosystems that can sustain growth in the "attention economy" while managing profitability.

The table below delves into the defining M&E trends, corresponding business imperatives, and the technology solutions that are shaping the Indian M&E landscape across the content value chain.

2025: M&E trends and tech imperatives

Content creation: Boundary-less story telling

M&E sector trends	Business imperatives	Tech imperatives
No more language barriers 25% to 50% of video consumption on OTT platforms is in "subs and dubs"i	Relevant content needs to be available across languages, including library content	Use Al-driven localization engines that use NLP for dubbing and subtitling at scale
	Build scalable production pipelines for hyperlocal content to capture emerging regional markets	Evaluate virtual production studios for cost-effective multilingual shoots
Unlimited creative assistants	Enhance efficiency of content production	Use GenAI and coding tools that can assist across the creation of storyboards, background music, virtual backgrounds, VFX and animation automation, and game development
Slowdown of procurement of mid-budget films and high-budget originals by several large Indian OTT platforms, to manage margins, and downward pressures on procurement budgets as the TV++ cost model comes into play for OTT content
		Consider real-time rendering solutions like Unreal Engine to create virtual sets
		Use cloud-based pre-visualization to reduce iterative costs
Democratized content creation, curated	Leverage partnerships with cost-effective creators to reduce creative overheads and grow grassroots audience reach	Use influencer management platforms that use Al and other tools to identify ROI-driven creators and monitor their performance
Over 40% of the time spent on phones is on social media platforms2, and influencer marketing is now an INR22 billion industry3
		Automate short-format content editing, post-production and S&P checks

Content distribution: Smarter reach, deeper impact

M&E sector trends	Business Imperatives	Tech Imperatives
Add comfort to consumption Indias tele-densily in rural markets increases to 48%, broadband consumers cross 900 million and over 50% of content consumed on streaming platforms is in local languages apart from Hindi4	Build presence in untapped markets to grow user base and increase time spent per user	Build hyperlocal recommendation engines to drive regional content adoption Optimize for bandwidth variability with adaptive streaming tech
Build trusted reach India has over 70 OTT platforms across entertainment, news, audio and gamings which serve ads, sell subscription and engage with viewers	Ensure revenue shares for content syndicated/ licensed are accurately determined	Use blockchain technologies to monitor consumption, payments and use of copyright material

Content monetization: Every pixel, every eyeball

M&E sector trends	Business imperatives	Tech imperatives
Tap the lucrative long tall Small and medium advertisers now account for 37% of total digital ad spends in Indiae	Provide access to smaller advertisers with location-centric needs to boost overall ad revenues across traditional TV, print, cinema, OOH and radio	SME self-serve ad platforms to onboard and optimize campaigns for SMEs and assist with creative generation
		Dynamic pricing models to accommodate diverse advertiser budgets
Multi-media monetization: The new ? MMMD Digital overtook TV as the largest segment of Indias M&E sector; its reach across almost 600 million screens? Advertisers increasingly struggle with media planning and reach measurement across TV+OTT campaigns	Enable integrated selling of ad spots across TV and digital platforms to provide seamless ad placement and better ROI tracking	Implement unified ad inventory planning models and tools for unified TV and digital ad sales
		Use programmatic advertising platforms for integrated campaigns for own and third-party inventory
Go from DhopeD to nproofn Advertisers demand transparency in ad campaigns amid increasing scrutiny of ROAS	Improve ad delivery transparency to ensure advertisers remain engaged with platforms	Leverage blockchain-powered ad platforms to provide fraud-proof ad metrics
		Use audience targeting tools for optimizing campaign efficiency
		Use ad fraud monitoring systems, frequency cap systems, etc., to increase quality of ad placement
Aggregate fragmented audiences With over 750 million active screens in India todays and an increase in personal consumption, audiences are more fragmented than ever before	360-degree monetization strategies for IP businesses are focusing on IP as a core asset, exploring licensing, FAST/ CTV platforms, global expansion, brand extensions, etc.	Implement IP lifecycle management systems to track monetization streams
		Use blockchain-based smart contracts for licensing transparency
		Implement rights management platforms to track IP availability for use or sale

Content monetization: Every pixel, every eyeball

M&E sector trends	Business imperatives	Tech imperatives
Happy cross-selling	Develop cross-product offerings that engage users and reduce churn by delivering additional value	Build cross-vertical analytics platforms for unified user insights
Bundling content with adjacent services like music, gaming, news, education and common interest platforms is driving the next wave of growth
		Use bundling engines for flexible offerings, dynamic pricing and upselling
		Implement linkages with e-commerce platforms like ONDC to enable audiences to fulfil transactions
Care for a cup of T?	Create segmented content offerings which tap into the willingness of users to pay for premium or exclusive content sachets	Develop TVOD platforms with seamless payment gateways and linkages to loyalty programs
Indian audiences are increasingly paying for one-time content, with TVOD revenues growing to over INR13 billion in 2024s
		Use Al to predict and promote TVOD content likely to convert viewers into paying customers, and price according to previous purchases
Consumer engagement: Captivating audiences, earning loyalty i
M&E sector trends	Business imperatives	Tech imperatives
Ace the attention wars in a saturated market	Build deep consumer loyalty through interactions that keep users hooked and churn rates low	Integrate gamification frameworks (leaderboards, challenges, rewards)
Average screen time per user has risen to 6+ hours/ dayio, but fragmentation across apps and screens hurts retention		Enhance AR and VR experiences to stand out from competitors
		Implement predictive chum models and next-best offers
Personalize in real-time	Deliver personalized content journeys to increase user satisfaction and increase platform stickiness	Use real-time recommendation engines for personalized curation
More and more, of digital consumers expect content and ad recommendations tailored to their preferences
		Deploy customer data platforms (CDPs) to segment and target users more effectively
		Custom create titles, images and trailers based on past consumption trends

Turning challenges into opportunities

The Indian M&E sector in 2024 was at a critical juncture where the interplay of content, technology, and consumer demand defined success, and digital media became the largest segment. Companies that integrate scalable tech solutions, foster hyperlocal engagement, and implement innovative reach and monetization strategies will not only navigate this complex landscape but also set benchmarks for future growth. The key to thriving lies in being proactive, tech-sawy, and consumer-first.

Source - FICCI-EY M&E Report 2025