In 2024, India’s OTT landscape is both dazzling and dizzying. With 50+ platforms, billions of dollars in content spend, and a viewer base that stretches from the metros to the heartlands, it looks like the golden era of streaming. But look a little closer, and the cracks start to show.
Subscription fatigue is real. Discovery is a mess. And loyalty? Let’s just say users are more likely to cancel a subscription than cancel weekend plans.
The OTT race in India isn’t slowing down—but the rules of the game are changing. Fast.
OTT Growth in India: From Boom to Mega-Boom
India’s OTT market is already worth $4.5 billion in 2024, according to IMARC. And it’s not just growing—it’s set to explode, reaching over $27 billion by 2033. This isn’t just because of urban binge-watchers. The real engine behind the growth? Regional language content.
With over 20 regional languages being catered to by major and mid-sized platforms alike, OTTs are breaking the linguistic and cultural boundaries that TV never could. Shows like Suzhal (Tamil), Kohrra (Punjabi), and The Family Man (with heavy Hindi-English crossover) are proof that India’s multilingual reality is finally finding representation—and racking up viewership.
Another growth lever: smartphone and broadband penetration. Affordable data, led by players like Jio and Airtel, has ensured that small-town India now has big-league access to premium content.
But with growth comes complexity.
What Viewers Want vs What They’re Getting
Despite the massive investment and content variety, user satisfaction isn’t exactly at an all-time high. Here’s what’s dragging the experience down:
1. Subscription Fatigue
Gone are the days when a Netflix-Amazon-Hotstar trio was enough. Now, platforms like SonyLIV, ZEE5, Hoichoi, Sun NXT, and more are pushing exclusive content behind paywalls. For a family looking to keep up with the latest cricket, K-dramas, and regional thrillers, the total monthly cost often exceeds ₹800–1000.
Worse, content keeps shifting homes. IPL was on Hotstar one year, JioCinema the next (now merged as JioHotstar). HBO jumped from Disney+ Hotstar to JioCinema in 2023 (now merged as JioHotstar). This musical chairs approach is exhausting for consumers.
Result? People are subscribing less, churning more, and searching for one platform to rule them all—which doesn’t exist.
2. Content Overload, Not Curation
More content doesn’t mean a better experience. With each OTT producing hundreds of hours of original content annually, discovery becomes a nightmare.
Most platforms lack intuitive recommendation engines. Users often spend more time scrolling than watching. Users now spend close to 70 minutes daily browsing and consuming OTT content.
In a world where time is the new currency, this is a UX failure.
3. Poor Discovery and UI/UX Design
Some platforms still carry legacy issues: clunky interfaces, poor subtitle syncing, limited accessibility features, and an overwhelming home screen that tries to be everything at once.
This UX lag becomes a bigger issue as users—especially in tier 2 and 3 cities—expect simplicity, not just content.
What OTT Platforms Are Struggling With
It’s not just viewers facing fatigue. Platforms themselves are navigating a tough terrain:
1. Rising Licensing & Data Costs
Acquiring international content, licensing sports rights, and producing originals doesn’t come cheap. In 2023, JioCinema’s (now JioHotstar) partnership with HBO reportedly cost upwards of ₹1,000 crore. Add data delivery infrastructure, CDNs, and compression tech costs—OTT is a capital-intensive play.
For newer players, just breaking even is a mountain to climb.
2. Monetization Tug-of-War: SVOD vs AVOD
Should OTTs charge subscriptions (SVOD), run ads (AVOD), or mix both (hybrid)? There’s no one-size-fits-all.
While Netflix and Disney+ continue to push premium subscriptions, there are platforms that have bet big on free-to-watch with ads. AVOD might bring massive reach, but monetization per user is still low compared to SVOD.
A hybrid model seems inevitable—but finding that perfect balance is tricky.
3. Regulatory Headwinds
India’s government is reportedly working on stricter content guidelines for OTTs, especially concerning misinformation, violence, and language. Platforms are under increasing scrutiny, which affects creative decisions and speed to market.
The days of the “wild west” OTT era—where anything could be streamed—are coming to an end.
“At Lytus, we’ve seen that reach gets you visibility, but retention builds value. Our OTT strategy is built around keeping viewers engaged—not just getting them to press play once. Whether it’s hyperlocal content, adaptive streaming tech, or personalized recommendations, our focus is on building habits, not just hype.”
Our collaborations focus not just on reach, but retention, because repeat viewers are where real value lies.
The Road Ahead: From “More” to “Meaningful”
To succeed in India’s crowded OTT jungle, platforms must evolve fast and smart.
Here’s what the new blueprint looks like:
1. Curated Content Libraries
Instead of quantity, focus on niche audiences—Tamil horror fans, Gen Z rom-com lovers, or vintage Bollywood enthusiasts. Deep, not wide.
2. Flexible Pricing Models
Bundle packs, weekend passes, freemium models—users want control over what they pay for. Netflix’s mobile-only plan saw success in India because it understood this nuance.
3. Next-Gen Discovery and Design
AI-powered recommendations, dynamic home screens, voice search in regional languages—platforms need to feel personal, not generic.
4. Smarter Ad Experiences
If AVOD is the future for the masses, ad-tech must follow. Better targeting, shorter ad formats, and native product placements can reduce friction while increasing revenue.
Conclusion
India’s OTT space is still booming—but attention is finite, and expectations are rising. To thrive in this gold rush, platforms must stop chasing “more” and start focusing on what truly matters: meaningful experiences that make users stay.
Because in the end, it’s not the platform with the most content that wins—it’s the one that understands its audience the best.