OTT Platforms Struggle for Profitability, Says EY-FICCI Report

OTT Platforms Struggle for Profitability, Says EY-FICCI Report
Premium content on Over-the-Top (OTT) platforms declined by 12 percent in 2024, as streaming services scaled back high-cost productions in an effort to achieve profitability, according to the latest EY-FICCI report on India’s media and entertainment sector, as reported by ANI.

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Premium OTT Content Sees Double-Digit Decline

The report highlighted that cost pressures are likely to intensify in 2025, as Pay TV households continue to decline and platforms struggle to manage their business models sustainably. While content volumes on OTT platforms are projected to rise in the coming year, they will likely come at a reduced average cost of production, reflecting a shift towards cost-efficient content strategies.

“2024 saw a 12 percent fall in premium OTT content, and 2025 is expected to see significant pressure on costs as well, as Pay TV homes continue to decline, and OTT platforms struggle for profitability,” the report said.

It added, “In 2025, we expect OTT content volumes to increase, but at a lower average cost of production.”

Theatrical Releases Still Preferred

In 2024, only 60 films were released directly on OTT platforms, even though around 500 titles eventually made their way to digital streaming. This trend suggests a continued preference among filmmakers for theatrical releases before moving to digital platforms.

The report noted that OTT platforms are increasingly focusing on efficiency over scale, leading to tighter content budgets. Regional language content continued to gain prominence, with 48 percent of all OTT releases in 2024 featuring regional languages, either originally produced or through dubbed and subtitled formats aimed at wider audience reach.

The Indian film industry showed slight signs of recovery, with more than 1,600 films released during the year, excluding 200 dubbed versions. This marks an increase of 64 titles over 2023, indicating gradual stabilisation post-pandemic.