In a significant shift for India’s digital entertainment landscape, premium OTT content fell by 12 per cent in 2024 as streaming platforms slashed budgets for expensive productions in their ongoing pursuit of profitability. This trend, according to the latest EY-FICCI report, signals a strategic shift in the content strategies of major OTT players amid evolving consumer patterns and economic realities.

As highlighted in an ANI report, the study warns that 2025 is likely to bring even greater cost pressures as Pay TV homes continue to decline, pushing OTT platforms to rethink their business models and prioritise sustainability over scale. The report stated, “2024 saw a 12 percent fall in premium OTT content, and 2025 is expected to see significant pressure on costs as well, as Pay TV homes continue to decline, and OTT platforms struggle for profitability.”

Content volumes in the premium category declined largely because platforms chose efficiency over sheer scale. Only 60 films were released directly on digital platforms throughout the year, a sharp contrast when compared to the total of around 500 films that eventually landed on streaming services. This indicates that most productions still prefer the traditional theatrical route before transitioning to digital.

Overall, more than 1,600 films were released in 2024, excluding approximately 200 dubbed versions an increase of 64 films from 2023, pointing to a modest rebound in theatrical releases and the broader film industry. Meanwhile, regional language content accounted for 48 percent of all OTT releases, underlining a growing appetite for localised storytelling and dubbed or subtitled formats to cater to wider, linguistically diverse audiences.

General Entertainment Channels (GECs) continued to command a stronghold on TV viewership, contributing 65 percent of total hours watched on television in 2024, excluding news content. However, the OTT sector is still viewed as a critical growth engine for the future of Indian entertainment.

Looking ahead, the report forecasts that while OTT content volumes will likely rise in 2025, they will do so with lower average production costs. Streaming platforms are expected to pivot towards more cost-effective storytelling approaches, aiming to strike a balance between user engagement and financial prudence.

The report also paints a promising picture of the future of video consumption in India. With the number of screens expected to grow sharply, large screen households could exceed 200 million by 2030, while smartphones — the primary medium for digital content — are projected to reach nearly 700 million users. This expanding digital infrastructure is expected to support the growth of content consumption across income and language segments.

Moreover, subscribing OTT households are projected to rise from the current 47 million to over 65 million by 2027. This growth will likely be driven by increasing per capita income, greater penetration of smart TVs, and the availability of affordable broadband services in semi-urban and rural markets.