Streaming into the Future: Mapping India’s OTT Boom – Part 1

The year 2024 has seen a seismic shift in the OTT landscape, with audiences demanding high-quality, original content more than ever before. This surge in demand has forced content creators to re-evaluate their production pipelines, seeking innovative approaches to deliver captivating narratives that resonate with viewers. As we look ahead to the coming year, several key trends are poised to shape the future of OTT content, promising an even more dynamic and exciting entertainment experience.

The Indian OTT audience witnessed a significant expansion in 2024, growing by 14% to reach 547.3 million users, according to the Ormax OTT Audience Report. This increase, representing a 38.4% penetration, was primarily driven by a 21% surge in the advertising video-on-demand (AVOD) segment. In contrast, subscription video-on-demand (SVOD) experienced a slight decline of 2%, highlighting the growing preference for free content, especially in smaller towns and rural regions. India now boasts 99.6 million active paid OTT subscriptions, although the average number of subscribed platforms per user dropped from 2.8 to 2.5, indicating a more selective approach by paying audiences.

Smartphones dominated the content consumption landscape, with 97% of users relying on them, and 81% exclusively accessing OTT content on their mobile devices. Connected TVs, however, accounted for a notable audience base of 69.7 million. Keerat Grewal of Ormax Media emphasized that the report provides a roadmap for industry stakeholders, offering actionable insights into audience behaviour, content strategy, and device preferences, enabling platforms and agencies to refine their growth and profitability strategies effectively.

The content landscape

As we step into a new era of streaming, it's fascinating to dissect how the content landscape was sculpted in 2024. The insatiable appetite for high-quality, original content has not only driven innovation but also forced a seismic shift in the way stories are conceived, produced, and delivered. This year witnessed a thrilling evolution, with creators grappling with unprecedented challenges while embracing exciting new opportunities.

According to Mrinalini Jain, Group Chief Development Officer, Banijay Asia & EndemolShine India, 2024 has been a transformative year, focused on high-quality original content.

“Our scripted hits like Mohrey, Undekhi, Star Vs Food, and Campus Beats continue to drive engagement, and we have a lot more in the pipeline for the coming year. We have also now ventured into branded entertainment with producing the Skoda Kylaq launch video with Rohit Shetty. With the rise of connected TVs, families are returning to collective viewing. Nostalgia becomes a key trend, and early 2000s classics are making a comeback. We revived CID with beloved characters like ACP Pradyuman and Abhijeet, and the TV ratings reflect this success. In 2025, we’re producing the audience’s favourite, Zee Horror Show. While we adapt international formats like Big Brother (Bigg Boss), Fear Factor (Khatron Ke Khiladi), The Night Manager, The Good Wife (The Trial), we culturally transpose them for our audiences,” says Jain.

According to her, OTT is an ever-evolving dynamic based on the audience's likes. Given the rise in scrolling, bite-sized content consumption on Instagram and YouTube Shorts, she believes OTTs too will be pivoting towards short-form dramas. We will also see a rise in branded and sports-related content.

As audiences grow more discerning and platforms push for unique, premium offerings, the pressure to deliver compelling, innovative content has intensified, says Vikram Malhotra, Founder & CEO, Abundantia Entertainment.

“At Abundantia Entertainment, we’ve always believed in delivering unique and non-conventional stories that resonate with audiences on a deeper, emotional level. The increasing demand for high-quality original content in 2024 has reaffirmed our commitment to clutter-breaking storytelling and engaging narratives. Our focus, going forward, will be on stories with high novelty value, told by younger, more progressive minds,” Malhotra says.

In 2025, he adds, original content proliferation, culturally rooted narratives, and global collaborations will continue to shape the OTT space. Audiences are seeking authenticity and diversity, and he sees this as an exciting opportunity to tell Indian stories with universal appeal.

According to experts, the surge in demand for high-quality original content has led to massive investments in exclusive content, a focus on acquiring popular intellectual property, and a scramble for A-list talent. Platforms are now catering to niche audiences, creating globally appealing content, and leveraging data-driven insights to inform creative decisions. Key trends shaping the future include the rise of “super services” bundling various entertainment offerings, the dominance of direct-to-consumer releases, the importance of building strong brands, and a growing emphasis on sustainability and ethical considerations in content production.

Partha Sengupta, Managing Director, Nielsen India, points out that the growing demand for high-quality original content in 2024 has significantly reshaped the media landscape, particularly in India.

This surge, according to Sengupta, has led to increased competition among OTT platforms like Netflix, Amazon Prime Video, and local players such as Hotstar and Zee5, driving substantial investments in content creation and acquisition.

“With viewers seeking immersive, personalized experiences, content providers have pivoted to invest heavily in original productions that resonate with diverse audiences. Additionally, the rise in active internet users, especially in rural areas, has expanded the potential audience base for OTT platforms. This has resulted in more localized content strategies, as platforms recognize the importance of catering to regional tastes and preferences,” he adds.  

Looking ahead to 2025 and beyond, according to Sengupta, several key trends are expected to shape OTT content consumption and production strategies:

• OTT platforms are expected to increasingly integrate live sports and events, continuing to attract new subscribers and enhance engagement with existing audiences.
• Platforms like YouTube Shorts and Instagram Reels have driven the popularity of short-form content, influencing OTT platforms to adapt their strategies for younger, mobile-first audiences who consume content in shorter, snackable formats.
• The focus on regional languages and culturally relevant stories will remain strong in India, as platforms invest in content that appeals to a broader, more diverse audience base. This includes offering a more tailored experience for users in rural India.

“As a trusted authority on consumer insights, Nielsen continues to help media companies understand evolving audience behaviours. By leveraging advanced analytics and AI, Nielsen supports platforms in refining their production strategies to deliver high-quality, engaging content that meets the demands of the modern viewer.”
(Part 2: A Look Ahead – Tomorrow, we’ll delve into the challenges that lie ahead for the OTT industry and explore how the production landscape is set to evolve in 2025. With the rise of AI-generated content, immersive formats like AR and VR, and the continued shift toward hyper-personalized viewing experiences, the dynamics of content creation and consumption are poised for a transformative phase. Stay tuned as we unpack these trends and their implications for the future of entertainment.)

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