The Rise of Streaming Services: Transforming the Indian Entertainment Landscape

The Indian entertainment landscape has undergone a significant transformation with the advent of streaming services. This shift has redefined content consumption patterns, production dynamics and audience engagement across the nation.

Traditionally, Indian entertainment was dominated by cinema and television, with Bollywood at its core. The rise of digital streaming platforms has revolutionised content consumption, offering audiences unprecedented access to diverse content.

The rise in the number of Over-The-Top (OTT) users over the years.

Source: EY report

The projected expansion of OTT indicates an increase from 43 million households in 2023 to 65 million by 2026, with an estimated 138 million subscriptions, reflecting an average of around 2 subscriptions per household.

Top online streaming performers in India (as of 2023)

Source: EY report

Disney+ Hotstar leads the Indian streaming market with a 26% market share, driven by its sports and diverse content. Amazon Prime Video and Netflix follow, focusing on original and varied content, while ZEE5, JioCinema, and Sony LIV attract viewers with regional TV shows and exclusive partnerships.

The growth of streaming services in India

• Several factors have propelled the growth of streaming services:

  

Evolving viewing habits of the Indian audience

• The shift from traditional TV to on-demand streaming is evident:

  The Indian entertainment sector is experiencing a significant shift, characterized by a transition of audiences from traditional television to on-demand streaming services. This evolution is characterised by the following key trends:

  • On-demand viewing

    A significant benefit of streaming services is convenience. In the contemporary landscape, viewers are no longer constrained by fixed TV schedules or the need to visit physical video rental outlets. The advent of streaming services enables users to enjoy their preferred content at their convenience, across various devices connected to the internet. This flexible on-demand approach aligns with the dynamic routines of today's consumers, empowering them to integrate entertainment seamlessly into their lives. Consequently, this transition has led to a notable decrease in traditional TV viewership, illustrated by a significant 20-30% decline in viewership for Hindi general entertainment channels.

  • Binge-watching culture

    The availability of entire seasons on streaming platforms has fostered a binge-watching trend. This behaviour has influenced content production and release strategies, with creators focusing on developing series that encourage prolonged viewing sessions. The rise of original web series on Netflix and Amazon Prime Video exemplifies this trend.

  • Urban vs. Rural consumption

    While urban areas led in streaming adoption, rural regions are rapidly catching up due to improved internet access. In 2022, data reveals that rural India comprised 399 million internet users out of the total 759 million, exceeding the urban user count of 360 million. This growth is driven by affordable smartphones and data plans, enabling rural audiences to readily access streaming content.

    These trends underscore a dynamic shift in content consumption patterns, highlighting the growing dominance of streaming services in the entertainment sector.

   

Impact on Bollywood and traditional media

• Streaming services have significantly impacted traditional media:
  • Box office decline: The convenience of streaming has contributed to reduced cinema footfalls. The pandemic dealt a heavy blow to the Indian movie industry — the world's largest in terms of number of films produced. The biggest change OTT platforms have brought to India is providing viewers with access to worldwide content.
  • Television viewership: Traditional TV has experienced a decline in viewership as audiences migrate to digital platform. The surge in OTT platforms and the incorporation of smart TV functionalities have prompted consumers to gravitate towards televisions equipped with sophisticated features, reflecting a shift in their preferences towards enhanced viewing experiences. Instead of conventional TVs, people prefer models equipped with remote sticks to effortlessly control their applications, resulting in a seamless streaming experience.
  • Content production: Bollywood is adapting by collaborating with streaming platforms for direct-to-digital releases. Today, most producers consider OTT platforms as important as theatre releases.

• Streaming platforms leverage data analytics to enhance user experience:
  • Personalised recommendations: Algorithms analyse user viewing habits to suggest tailored content, boosting engagement. By understanding individual preferences, platforms offer personalised suggestions, keeping users invested in their content.
  • Content strategy: Data-driven insights drive content decisions, guiding creation and acquisition to match audience preferences. By leveraging analytics, platforms ensure their content aligns with what users enjoy, effectively optimising engagement rates.

Turning challenges into opportunities

• Piracy
  • Unauthorised content distribution networks and piracy sites is a pressing issue, leading to revenue loss as viewers opt for free access. Streaming platforms combat this with advanced Digital Rights Management (DRM) technology and real-time content tracking. These measures identify and remove pirated content, safeguarding intellectual property and revenue.
• Regulatory Hurdles
  • India's OTT market lacks unified content regulation, leading to debates about stricter guidelines, as seen with shows like "Tandav" on Amazon Prime Video, which faced legal challenges. In response, platforms have implemented self-regulation, adopting voluntary content codes to ensure responsible content production while retaining creative freedom. This proactive approach maintains viewer trust and aligns with industry standards.
• Market Competition
  • With over 40 OTT players, including giants like Netflix, Amazon Prime, and Disney+ Hotstar, India’s streaming market is intensely competitive. This rivalry drives platforms to innovate constantly, leading to unique offerings such as live streaming events, exclusive regional content and mobile-friendly formats. For instance, Disney+ Hotstar's exclusive IPL broadcasting rights have built a large sports-centric audience. Other platforms leverage local content and niche genres to differentiate themselves, engaging new subscriber bases in an increasingly saturated market.

Outlook

The future of India’s streaming industry is set for rapid growth, driven by technological advancements and market expansion. Emerging technologies like VR, AR, and interactive content promise immersive, engaging experiences, allowing viewers to interact with stories and step into virtual worlds, appealing to tech-forward audiences. According to IMARC Research, the Indian OTT market is projected to grow from US$ 3.7 billion in 2023 to US$ 22.1 billion by 2032, propelled by smartphone adoption, affordable data, and regional content demand. By investing in localised offerings and cutting-edge engagement, streaming platforms are positioned to reach diverse audiences, transforming entertainment across India.