India’s media and entertainment sector is undergoing a rapid transformation, with streaming services (OTT platforms) playing a central role. Digital advancements, rising smartphone usage, and changing consumer habits have made OTT platforms the primary mode of entertainment in the country.
Let’s explore the rise of streaming services in India, the investment opportunities they offer, and what lies ahead.
What’s Happening?
India’s digital video content market reached $19.3 billion in 2024, and according to IMARC Group, it is expected to touch $46.4 billion by 2033, growing at a CAGR of 9.2%. OTT platforms, short-form video apps, and digital advertising are all seeing rapid expansion.
Key drivers of this growth include widespread smartphone usage, affordable data plans, improved internet access, and increasing demand for regional content. Additionally, the growth of AI-powered recommendation systems, rising digital ad spends, shifting viewer preferences, and significant investments in content creation are all fuelling this expansion.
Impact of AI and Technology
Technologies like AI and machine learning are playing a transformative role in the sector. They help platforms better understand viewer preferences and accelerate content creation and delivery.
According to Hindustan Times, AI could increase revenue by 10% and reduce costs by 15% for the media and entertainment industry.
AI also enables platforms to offer personalised recommendations, keeping viewers engaged for longer periods. In production, tools like virtual assistants, automated scriptwriting, and AI-driven editing are streamlining processes and saving time.
India’s SVOD Market
As of Q1 2025, Jio Hotstar leads India’s Subscription Video on Demand (SVOD) market with a 26% share, following the merger of Disney+ Hotstar and JioCinema.
Amazon Prime Video holds second place with 24%, followed by Netflix at 17%. Apple TV+ (12%) and ZEE5 (11%) are also significant players. Sony LIV holds a 3% share, with smaller platforms making up the rest of the market.
Read More About- India’s Media & Entertainment Industry in the Digital Age
What’s in It for Investors?
The OTT sector offers strong investment potential. According to IBEF, paid subscription revenues from OTT platforms stood at US$ 0.88 billion in 2023, and are projected to grow to US$ 1.2 billion by 2026.
The AVoD model (Advertising-Based Video on Demand) is also thriving, giving brands access to a vast and growing digital audience. In 2023, AVoD revenue was US$ 2.63 billion, compared to US$ 1.19 billion from SVOD.
Media companies increased their investments in online video content by 52% in 2023, with a notable focus on acquiring sports streaming rights, benefiting both production houses and distribution platforms.
What’s Next?
India’s OTT market is poised for continued expansion. As per IBEF, the sector could reach US$ 7 billion by 2027. By 2025, an estimated 600–650 million Indians are expected to consume short-form videos, with each user spending an average of 55–60 minutes per day on such content.
The OTT user base is projected to grow to 634.3 million by 2029, and the share of digital content in the overall media and entertainment industry could rise to 31%.
OTT platforms are now diversifying into new formats — live streaming, short videos, and gaming — while integrating innovations like AI, Virtual Reality (VR), and Augmented Reality (AR) to make content more immersive and interactive.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
