India’s media and entertainment industry is evolving, with Google, Meta, and JioStar now controlling more than half of the Rs 2.3 trillion market. This shift is being driven by digital advertising and the consolidation of traditional media companies.
JioStar was created in 2024 when Viacom18 and Disney-Star India merged. Viacom18 and Disney-Star were already established players in content creation—Viacom18 produced shows and films, while Disney-Star was known for its broadcast network, including channels like Star Plus. When these companies merged, they combined their content with Jio’s distribution strength—Jio, part of the Reliance Group, is one of the largest telecom and broadband service providers in India. This combination created a powerful new company in the media sector. For traditional media companies like Bennett, Coleman & Co., which owns The Times of India, this merger signals the growing challenge of competing with digital-first companies that are investing heavily in content and distribution.
Digital advertising in India has grown rapidly. In 2023, Indian businesses spent Rs 64,500 crore on digital advertising, and Google and Meta took the lion’s share—95% of this total. Google and Meta, which operate platforms like YouTube, Facebook, and Instagram, have capitalised on user-generated content. These platforms are free for users to join and create content, but they attract advertisers by offering access to large, targeted audiences. This allows them to generate significant advertising revenue. Meanwhile, traditional media companies that spend substantial amounts of money on creating films, TV shows, and news find that much of their content is driving viewers to these platforms, with limited financial return.
As digital platforms dominate, traditional media companies are looking for ways to stay relevant. One key strategy is mergers and acquisitions. For example, the proposed Sony-Zee merger—though still under review—aims to combine two large content companies into one. This would allow them to negotiate better advertising rates, reduce operational costs, and increase their market share to better compete with digital platforms. However, mergers in this sector are risky, as they require careful management and still face competition from Google and Meta’s growing dominance.
For advertisers, the message is clear: digital advertising is the future. Google and Meta have proven their ability to reach large, engaged audiences at scale, and the revenue data supports that. For traditional media companies, the question is how long they can survive in a market that is increasingly driven by digital platforms. These platforms have an advantage in terms of targeting, reach, and content variety, making it difficult for traditional media to keep pace. Meanwhile, audiences continue to consume content, but the control over what they see—who creates it, how it’s distributed, and how it’s monetised—is shifting toward the digital giants.
