Premium content on Over-the-Top (OTT) platforms saw a 12% decline in 2024, as streaming services scaled back on high-budget productions in pursuit of profitability, according to the latest EY-FICCI report on India’s media and entertainment sector, as reported by ANI.
Premium Content Shrinks, Cost Efficiency Takes Priority
The report indicates that cost pressures are set to grow further in 2025, driven by a continued decline in Pay TV households and rising demands for sustainable business models. While the volume of OTT content is expected to increase next year, production budgets will likely be reduced, reflecting a shift toward cost-effective content strategies.
“2024 saw a 12% fall in premium OTT content, and 2025 is expected to bring further cost pressures,” the report stated. “OTT platforms are expected to increase content volumes, but at a lower average cost of production.”
Filmmakers Still Favor Theatrical Releases
Only 60 films in 2024 were released directly on OTT platforms, despite around 500 titles eventually making it to digital streaming. This trend underscores the industry’s continued preference for theatrical releases as the primary distribution channel, followed by digital platforms.
Regional Content on the Rise
OTT platforms are now emphasizing efficiency over scale, resulting in leaner content budgets. Regional language content saw significant growth in 2024, accounting for 48% of all OTT releases—either as original productions or dubbed/subtitled versions aimed at broader audiences.
Film Industry Recovery Gains Momentum
India’s film industry showed signs of a slow recovery post-pandemic, with over 1,600 films released in 2024—excluding 200 dubbed versions—marking a net increase of 64 films compared to 2023.
Television Still Dominates Content Consumption
Despite the digital surge, television remained the leading content consumption medium. General Entertainment Channels (GECs) contributed 65% of total TV viewing hours in 2024 (excluding news content), highlighting their continued relevance in Indian households.
Outlook: Rapid Growth in Video Consumption Ahead
The report also forecasts strong growth in video consumption, powered by expanding digital infrastructure. By 2030, the number of large screens (smart TVs) is expected to exceed 200 million, while smaller screens, including smartphones, may reach close to 700 million. Rising per capita income, growing smart TV adoption, and affordable broadband are expected to drive OTT subscription households from 47 million in 2024 to over 65 million by 2027.
