Streaming's next blockbuster AI regional content and interactive boom

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Streaming's next blockbuster AI regional content and interactive boom

Regional content dominates as AI and live streaming reshape India’s OTT future.

AVOD

MUMBAI: India’s digital entertainment landscape is witnessing a blockbuster transformation, with over 500 million viewers tuning into over-the-top (OTT) platforms, making it one of the largest streaming audiences in the world. At Content India 2025 Allied Global Marketing MD, APAC Jamie Crick presented a deep dive into India’s surging OTT market, revealing a sector in overdrive. As data prices drop and internet speeds surge, India’s appetite for on-demand content is growing faster than a viral meme.

The numbers tell a compelling story. In 2023, India recorded 96 million paid OTT subscriptions, driving a 10 per cent rise in revenue to Rs 9,900 crore (1.2 billion dollars). Meanwhile, advertising-based video-on-demand (AVOD) proved to be a major money-spinner, contributing Rs 6,800 crore (850 million dollars), a staggering 40 per cent increase from the previous year. Clearly, whether audiences are paying for subscriptions or watching ads in exchange for free content, the demand for digital entertainment is skyrocketing.

With over 80 streaming platforms vying for attention, the content buffet is expanding rapidly. While Hindi continues to dominate, regional content is emerging as the true scene-stealer, now accounting for 50 per cent of total OTT consumption. As more platforms invest in Tamil, Telugu, Bengali, Marathi, and Malayalam productions, the industry is witnessing a significant democratisation of content, bringing hyper-local stories to the national mainstream. Projections indicate that over 60 per cent of future content investments will go towards non-Hindi programming, underlining the massive shift in viewer preferences.

Technology is playing a lead role in shaping the industry’s future. With AI-driven hyper-personalisation, viewers now spend less time searching and more time watching, thanks to smart recommendations tailored to their interests. Interactive content and live streaming, from gaming to sports to reality-based formats are becoming mainstream, turning passive viewing into an immersive experience. The rise of short-form content is further redefining audience engagement, especially among younger viewers who prefer snackable entertainment over traditional long-form storytelling.

Interestingly, affordability isn’t deterring audiences. With 62 per cent of Indian households now paying for digital entertainment, the willingness to invest in quality content is evident. The emergence of new monetisation models, including microtransactions, premium ad tiers, and brand collaborations, signals a shift in how platforms generate revenue while keeping content accessible.

As international giants battle homegrown platforms, the race for eyeballs is heating up. With 5G rollout accelerating, smartphone penetration soaring, and AI making content discovery seamless, the OTT revolution in India is far from reaching its season finale, it’s just getting started.