New Delhi (India), May 4 (ANI): The adoption of Artificial Intelligence (AI) can increase revenues by 10 percent and reduce costs by 15 percent for media and entertainment companies, as highlighted in a report by Ernst & Young (EY) published during the first edition of the WAVES Summit.
The global media and entertainment (M&E) industry is experiencing a profound transformation, driven by the widespread use of AI. From content creation and curation to monetization and distribution, AI is becoming integral to the way stories are created and consumed.
“Our analysis indicates that in the medium term, AI can increase revenues by 10 percent and reduce costs by 15 percent for media and entertainment companies,” stated the EY report titled ‘A studio called India: Content and media services for the world.’
EY emphasized that India, already a powerhouse in content production and IT services, is uniquely positioned to lead this transformation. “The convergence of its deep talent pool, rapidly maturing AI ecosystem, and proven capabilities in media production positions India as a strategic node in the global AI-M&E value chain,” the report noted.
Indian companies are leveraging Generative AI (GenAI) tools for creative purposes, campaign optimization, content performance improvement, and audience engagement. OTT platforms, for instance, are using AI to provide hyper-targeted content recommendations based on regional preferences, affluence, geo-targeting, and consumption patterns. On the monetization front, AI is driving dynamic ad insertions and optimizing pricing strategies through real-time viewer analytics.
AI is also proving beneficial in localization and accessibility. “Automated dubbing, AI-based subtitling, and voice cloning are enabling faster localization of global intellectual properties (IPs) across markets. Tools like VisualDub5 provide full-stack solutions to adapt, dub, and culturally localize entertainment content, including lip-syncing for high-visibility assets like celebrity ads and trailers,” the report explained.
According to EY, India offers a strong blend of technical and creative skills. With a sizable portion of the global AI talent pool and a rapidly expanding ecosystem, Indian AI startups are focusing on media and entertainment-specific applications, ranging from audio synthesis to content moderation. India’s VFX and post-production units deliver services at lower costs than Western counterparts, further enhanced by AI tools.
India’s media and entertainment sector is uniquely positioned, with a robust talent ecosystem driven by its cultural and linguistic diversity, young population, and rapid digital adoption. “This diversity enables the creation of regionally rooted yet globally appealing content, while a tech-savvy workforce drives growth in high-demand areas like animation, VFX, gaming, and post-production,” EY noted.
The rise of the creator economy, supported by government initiatives such as a USD 1 billion fund for content creators and the proposed Indian Institute of Creative Technologies in Mumbai, is unlocking new employment opportunities. The growing influence of digital platforms like YouTube and Instagram has fueled demand for professionals skilled in influencer marketing, content strategy, and social media management.
India’s media and entertainment sector currently employs 2.8 million people, with an additional 10 million indirect jobs created, primarily in the events, music, and content production segments. Online gaming, along with digital and OTT platforms, is expected to be the fastest-growing segment in terms of direct employment, according to EY.
“India’s M&E sector offers immense opportunities for foreign investors and filmmakers. The diverse range of entity options, coupled with favorable FDI norms and attractive production and co-production incentives, make India a lucrative destination for business and filmmaking,” EY concluded.
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