India’s OTT audience base is now estimated at 601.2 million people, representing 41.1% of the country’s population, according to a recent report by media consulting firm Ormax. Growth has slowed to 10% as of July 2025, below the 13-14% pace seen in the last two years as metros and tier-1 markets mature.
Yet, connected TV (CTV) adoption is booming, with 129.2 million active users across 35-40 million homes, an 87% increase in adoption between 2024 and 2025.
Platforms are redesigning for the big screen: larger-than-life cinematic content, family-friendly viewing, smoother discovery, and CTV-first ad formats like contextual integrations and less disruptive.
This shows that the story is no longer only about adding new users, but also about increasing engagement, content diversity, and cross-device consumption within the existing base.
Hitting reset
“When more than 40% of India is already tuning in to digital content, especially in our bigger cities and even tier-two towns, it is natural for those headline growth rates to taper a bit,” a ZEE5 spokesperson said.
“OTT platforms have had to evolve rapidly over the past few years. Audiences do not want just more content; they want stories that feel authentic and rooted in their culture,” the spokesperson added.
This has led the industry to prioritize regional content depth, invest in technology that elevates connected TV experiences and enables smoother discovery, and experiment with advertising models that engage without disrupting viewing, the person added.
ZEE5 has doubled down on a seven-language content approach that connects with audiences across metros and smaller towns alike. It has introduced formats like pause-ads and contextual storytelling that allows brands to advertise discreetly, the spokesperson added.
Streaming giants like Netflix are investing in reality shows with family-friendly television personalities such as Kapil Sharma.
Experts across the entertainment industry agree that cities are saturated with OTT subscriptions, making it challenging for platforms to acquire new users.
The top 15 cities account for half of all paid OTT subscriptions, leading to subscription fatigue. Average paid platform subscriptions per user dropped from 2.8 to 2.5 as of July, reflecting selective user behaviour.
OTT adoption in India is slowing also because the market is maturing as most internet-first audiences in metros and tier-one cities are already on one or more streaming platforms. Growth has naturally tapered from high double digits to around 10% in 2025.
Most new viewer growth is in advertising video-on-demand (AVoD) audiences who prefer free content on YouTube and social media.
The pandemic-driven boom in streaming has cooled down, and growth is now more organic, Rajat Agrawal, chief operating officer and director of Ultra Media & Entertainment Group said.
“OTT platforms are shifting focus from sheer content volume to profitability, which might be contributing to the slowdown in growth,” he said. With CTV, precise audience targeting helps attract both advertisers and subscribers.
OTT platforms that adapt to CTV trends and offer localized content can gain a competitive edge in the market, Agarwal added.
Key Takeaways
- Connected TV adoption is increasing rapidly in India, with 129.2 million active users as of 2025.
- OTT platforms are focusing on localized content and innovative advertising strategies to boost engagement.
- The market is maturing, leading to subscription fatigue among users in major cities.
Cutting corners
Platforms are reducing oversupply and focusing on high-impact, original production, said Mahesh K. Sharma, president – strategic partnerships, Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content. “They’re aggressively expanding into non-subscription models, regional languages, and bundled offers to acquire new audiences and unlock the next wave of growth.”
With live shows, interactive features, and family-viewing packs, OTT is reclaiming lean-back entertainment from traditional TV.
“Bold moves in localising content, genres, and platform interfaces are driving deeper engagement, while the launch of live shows, interactive experiences, and family viewing packs are transforming streaming into a destination for diverse, shared, and immersive entertainment,” Sharma added.
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