Mumbai: India’s digital video industry is undergoing rapid transformation, fueled by an increase in OTT platform subscriptions, the rise of ad-supported models, and a growing investment in localized content. According to the Asia Video Industry Report 2025, India’s premium online video market, valued at $1.7 billion in 2023, is expected to nearly double by 2028. This growth positions India as one of the fastest-growing OTT markets globally.
As subscription-based OTT services, ad-supported models, and evolving consumer behaviours gain traction, India’s digital content ecosystem is becoming a lucrative space for brands, advertisers, and content providers.
OTT Market Expansion: Subscription and Ad-Supported Models on the Rise
India’s OTT market is witnessing strong growth, with major players in the subscription video-on-demand (SVOD) space, including Disney+ Hotstar, JioCinema, Netflix, and Prime Video, leading the charge. Subscriptions surged from 110 million in Q4 2023 to 120 million by mid-2024, driven by high-demand live sports events such as the IPL and the ICC T20 World Cup. These events were key contributors, accounting for nearly 70% of premium video ad revenues.
Alongside the growth of SVOD services, the ad-supported video-on-demand (AVOD) model is also gaining significant ground. Platforms like Amazon MiniTV, with 23% viewer penetration, highlight a shift towards free content in exchange for ads, demonstrating the growing appeal of AVOD among Indian audiences.
Interactive Advertising: A Key Growth Driver
Interactive advertising has emerged as a crucial tool for advertisers seeking better engagement. The report highlights that 70% of IPL viewers multitask during matches, making them more receptive to interactive ads. A notable case is Dunzo’s QR code campaign during the IPL, which saw a 10x increase in traffic. Additionally, 22% of viewers using their phones as a second screen have scanned branded QR codes, underlining the effectiveness of interactive content strategies in engaging consumers.
Localized Content Investments Driving Growth
India’s growing demand for regional and localized content is shaping the future of digital video consumption. In 2023, over 50% of streaming investments were allocated to original and regional content, with total investment reaching $5.8 billion. Leading platforms like Disney+ Hotstar and Netflix are increasingly focusing on genres like regional dramas, local films, and live sports to cater to India’s diverse audience preferences.
Piracy and Regulatory Landscape: Key Challenges
Despite the promising growth of India’s digital video sector, piracy remains a significant challenge. However, recent anti-piracy initiatives, such as site-blocking measures, have led to an 8% increase in lawful streaming. The Coalition Against Piracy (CAP) continues to collaborate with authorities to tackle illegal streaming.
The regulatory landscape is also evolving, with India’s Digital Personal Data Protection Act, 2023, set to overhaul data collection and processing practices. These regulatory changes, along with a proposed National Broadcast Policy, will have major implications for digital content providers and advertisers, aiming to ensure consumer privacy, fair competition, and content integrity.
Future Outlook: What Lies Ahead for India’s Digital Video Industry
Looking forward, ad-supported models will continue to play a crucial role in monetizing the OTT market. As India’s OTT landscape evolves, the combination of subscription growth, AVOD services, localized content, and interactive advertising will remain pivotal to industry growth. Platforms are expected to double down on regional content production, sports broadcasting, and interactive ad formats to capture the evolving consumer demand.
With improved regulatory clarity and anti-piracy efforts, India is positioned to become a global leader in OTT content consumption, setting new benchmarks for digital video industry standards worldwide.
Key Takeaways for Businesses and Advertisers:
- Subscription services are experiencing substantial growth, driven by sports and regional content.
- AVOD services are gaining momentum, offering new opportunities for advertisers.
- Interactive ads and second-screen engagement are crucial for driving consumer engagement.
- Localized content investments are vital for platforms to resonate with India’s diverse audience.
- Regulatory developments and anti-piracy measures will continue to shape the digital video ecosystem.
India’s digital video market is at a pivotal stage, and businesses must adapt to the rapidly changing landscape to capitalize on its growth potential.
