India’s digital entertainment ecosystem is at a decisive inflection point, with interactive media emerging as the fastest-growing segment, according to a Redseer report.

The study notes that formats such as micro-dramas, social discovery platforms, astro and devotional technology, new-age audio, and AI-enabled content are expanding far quicker than traditional digital media. By FY30, interactive media is projected to grow into a $3.1–3.4 billion industry, nearly seven times its FY25 size, as Indian users increasingly move away from passive viewing towards high-engagement, habit-driven experiences.

The report underlines that this growth is not uniform across audiences or formats. Consumption patterns are being reshaped by who is watching, how frequently they engage, and the depth of monetisation each format can unlock. Users are showing a clear preference for short, high-dopamine content such as micro-dramas, while platforms are diversifying beyond short-form video to retain attention and reduce fatigue. At the same time, monetisation models are being tested by payment friction and dependence on UPI autopay, forcing platforms to rethink pricing and value propositions.

One of the key takeaways from the report is the changing profile of interactive media consumers. New cohorts, including users from non-metro and regional markets, are driving adoption, with consumption forming around distinct time-of-day patterns and habit loops. Micro-dramas, in particular, are increasingly substituting longer-form entertainment, especially during short breaks and late evenings, highlighting a fundamental shift in viewing behaviour.

Growth across interactive media categories is being accelerated by AI-led personalisation, which is improving content discovery and session depth. The report points out that saturation in traditional short-form video is pushing platforms to experiment with differentiated formats, while engagement velocity benchmarks reveal sharp differences across categories, genres and languages.

Micro-dramas stand out as the fastest-growing entertainment format in the country. Redseer’s analysis shows the category following a steep J-curve, similar to China’s hyper-growth phase, supported by strong genre demand and repeat viewing behaviour. Certain genres are demonstrating deeper monetisation potential, driven by loyal user bases and higher willingness to pay for episodic content.

From a consumer perspective, the report highlights key pain points such as churn triggered by payment friction, limited content depth, and inconsistent value perception. Monetisation behaviour varies sharply across income cohorts, suggesting that a one-size-fits-all pricing strategy may limit long-term growth.

Looking ahead, the report maps clear opportunity areas for marketers, platforms and investors. Regional markets, emerging user cohorts, and new creator-infrastructure models are identified as major white spaces. It also flags supply-side gaps and monetisation pressure points, outlining design principles for content, product and revenue models. From an investor lens, scalability, retention economics and profitability drivers over the next 24–36 months will be critical in separating winners from the rest.

Overall, the report positions interactive media not as a passing trend, but as a fundamental shift in how India discovers, consumes and pays for digital entertainment. For senior leaders across marketing, media, platforms and investment, it offers a clear lens into who is driving the next wave of growth and where the most meaningful opportunities lie.