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.
According to the report, television remained a dominant medium in terms of content consumption, with General Entertainment Channels (GECs) contributing 65 percent of total TV viewing hours in 2024, excluding news programming.
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Television Remains a Dominant Medium
The report also pointed to an outlook for video consumption in India, underpinned by expanding digital infrastructure. By 2030, the number of large screens (such as smart TVs) is expected to surpass 200 million, while small screens, including smartphones, are projected to reach nearly 700 million.
Driven by increasing per capita income, higher smart TV penetration, and affordable broadband, the number of subscribing OTT households is projected to grow from 47 million in 2024 to over 65 million by 2027.
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