India’s video streaming platforms may still be grappling with monetization challenges, but 2025 has turned into a breakout year for revenues.
Video streaming revenues surged 55% in 2025 compared to 2024, nearly tripling from 2023 levels, according to a recent Ficci EY report.
The growth reflects a decisive shift in strategy—regional language programming, flexible pricing and hybrid revenue models are helping platforms move beyond the limitations of a subscription-only play in a price-sensitive market like India.
Revenue surge
Digital advertising grew 26% to reach ₹94,700 crore in 2025, as several advertiser categories shifted ad spends from traditional to digital media, led by FMCG, travel and pharma.
Sports and entertainment OTT platforms saw ad revenues rise 34%, backed by higher connected TV rates and volumes, as connected TV grew from 30 million to 40 million weekly active connections, the report said.
Video subscription revenues jumped 61% to ₹14,800 crore, with 143 million households paying for 216 million video OTT subscriptions.
Streaming service executives and content creators attribute much of this growth to regional language content that has deepened penetration across markets. These offerings are often available at lower price points, tailored to specific linguistic audiences.
Hybrid pivot
A major structural shift has been the move away from an overdependence on subscriptions, towards a hybrid blend of advertising, subscription and pay-per-view models.
“..Instead of requiring users to opt for a full-platform subscription, we are enabling them to access high-quality, culturally relevant content in their language of choice alongside a growing mix of non-fiction and shorter-format series that reflect evolving audience preferences, at a far more affordable entry point. This has helped reduce entry barriers and unlock new user segments, while improving conversion across a wider base,” Siju Prabhakaran, chief business officer, ZEE5 said.
Bundling has also emerged as an important lever, Prabhakaran added, helping drive scale by integrating ZEE5 into larger ecosystem offerings, improving reach as well as ease of access for consumers.
To be sure, most services now operate as hybrid platforms across AVoD (advertising video-on-demand), SVoD (subscription video-on-demand), and TVoD (transaction video-on-demand), where overall revenue is increasingly seen as a more meaningful indicator than subscriber numbers alone.
According to Soumya Mukherjee, chief operating officer at Bengali streaming service hoichoi, the shift has been from just subscriber growth to sustainable revenue and retention quality. Metrics like ARPU (average revenue per user), cohort retention, engagement (watchtime), content ROI and subscription longevity are now central to evaluating long-term business health, he pointed out.
“Over the last two years, most of these platforms have moved to a hybrid model, where there are now lower-priced plans, mobile-only plans, and most importantly, there are now ad-supported models. The other aspect is that there is now more advertising, especially with events like cricket and reality shows going online. Even apart from sports, there is now a lot more focus on OTT as a medium for advertisers, given its higher level of targeting and measurement capabilities in comparison to traditional TV,” said Munish Vaid, vice-president, Primus Partners, a management consultancy firm.
Other than deeper penetration into unexplored markets, Ujjwal Mahajan, co-founder, Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content, said overseas revenues have also risen, with such subscribers offering a much higher ARPU.
“This year, in addition to these factors, we are adding multiple new revenue streams. These include display ads, in-stream ads, native product ads, brand integrations in content, e-commerce, and gaming onto the app,” Mahajan added.
Challenges persist
That said, OTT platforms in India continue to face significant revenue headwinds.
Content piracy remains a major concern, with unauthorized distribution of premium content affecting revenue potential and content investment returns.
According to Rajat Agrawal, chief operating officer, Ultra Media & Entertainment Group, subscription fatigue among price-sensitive consumers is also a growing issue. Further, evolving regulations require operational investments in review processes, balancing creative freedom and audience engagement, he pointed out.
“One of the ongoing challenges is balancing scale with value. As more platforms compete for attention, there is always pressure to keep pricing accessible, which affects revenue growth. Another challenge is predictability. Unlike traditional media, OTT revenues can fluctuate based on content performance, platform changes, or even how content is discovered,” said Saurabh Srivastava - chief operating officer - digital business at Shemaroo Entertainment Ltd.
“There is also the question of cost discipline. Content investments, especially in originals, can increase quickly. This becomes harder when users are not always willing to pay or stay subscribed for long. The industry has already seen phases where aggressive spending didn’t translate into sustainable returns. So, the focus now is on measured growth, building a steady pipeline rather than chasing spikes. Additionally, fragmentation continues to be a challenge. Audiences are spread across platforms and devices, bringing that together into a cohesive monetization strategy is still work in progress,” Srivastava added.