In this Industry Spotlight with Creative First, Ashish Pherwani, Partner – Media and Entertainment at EY, joined Lohita Sujith, Sr. Director, Copyright & Digital Economy, Motion Picture Association to discuss key insights from the latest FICCI-EY report and the evolving dynamics of India’s media and entertainment landscape.

Ashish began by highlighting the rapid shift of advertising to digital media as the most significant change in the industry today. According to the report, digital now accounts for 63% of total advertising spends in India, with segments such as e-commerce advertising witnessing sharp growth. He also noted the increasing contribution of small and medium enterprises, whose growing access to credit has enabled higher spending on digital campaigns, further accelerating this shift.

Ashish then spoke about the importance of production incentives in attracting international projects. He emphasized that such incentives not only generate employment and export revenue but also contribute to film-led tourism and the country’s broader economic ecosystem. He explained that international productions bring multiplier effects beyond direct costs, while also enhancing India’s global visibility and soft power.

Discussing India’s ambition to become a global production hub, Ashish underscored the role of government policies, co-production treaties, and competitive incentives in attracting global talent. He noted that exposure to international best practices can significantly strengthen domestic capabilities, while also highlighting the importance of ensuring balanced representation of the country on screen. Further, Ashish highlighted the industry’s current “post-digital inflection” phase, where digital consumption has reached scale and can no longer be treated as supplementary. He pointed out that traditional media players must rethink their strategies to remain relevant, citing examples such as radio adapting to streaming ecosystems as consumer behavior evolves.

On the role of artificial intelligence, Ashish observed that its most immediate impact is on cost efficiencies, particularly in areas like dubbing, subtitling, and post-production, where automation is driving significant gains. While revenue opportunities exist, he noted that cost optimization will remain the primary impact in the near term. At the same time, AI is enabling large-scale content customization, targeted advertising, and new forms of audience engagement. The conversation then touched on broader shifts in consumer behavior, driven by the proliferation of smartphones and the rise of short-form, mobile-first content. Ashish highlighted the growing importance of self-expression, with consumers increasingly becoming content creators themselves, reshaping how media is produced and consumed.

In closing, Ashish commented on the three enduring audience needs – information, escapism, and self-expression—and how digital platforms have democratized access to all three. While legacy media continues to remain relevant in India, he emphasized that its future growth will depend on its ability to adapt to digital distribution, integrate offerings, and innovate around audience engagement and monetization.