NEW DELHI, March 25 -- India's media and entertainment sector grew 9.1% year-on-year to Rs.2.78 lakh crore in 2025 and is expected to expand at a 7% compound annual growth rate to Rs.3.3 lakh crore by 2028, according to FICCI and EY's annual report released on Tuesday. Growth was driven largely by digital, even as traditional segments showed mixed trends. Excluding online and video games, hit by a four-month ban on money gaming, the sector grew 11.8% in 2025. Advertising was a key driver. Digital advertising rose 26% to Rs.94,700 crore, accounting for 63% of total ad revenues. E-commerce and point-of-sale ads surged 50% to Rs.22,000 crore, equal to 85% of TV ad revenues, the report said. Digital advertising also included Rs.36,300 crore from over a million SMEs and long-tail advertisers. The segment is expected to lead growth, adding Rs.44,600 crore by 2028 as e-commerce, shoppable and point-of-sale advertising grow, and connected TVs grow from 40 million to 67 million connections. Digital subscriptions also expanded. Revenues rose 60% to Rs.16,300 crore, with paid video subscriptions reaching 216 million across 143 million households, driven by premium sports and films moving behind paywalls. Paid music subscriptions grew 37% to 14.4 million after platforms took steps to discourage free usage, while news subscriptions remained limited at 4 million due to the abundance of free alternatives.Digital subscription revenue is projected to grow by Rs.8,500 crore by 2028 as video OTT subscriptions expand from 143 million to approximately 191 million households. Meanwhile, TVoD revenues are expected to rise from Rs.500 crore to Rs.740 crore, and audio OTT subscriptions are set to double to between 28 million and 30 million. The organized live events segment saw the fastest growth, rising 44% on higher spending on ticketed events, personal functions, government events and religious gatherings, the report said....