OTT Engagement in India Falls 16% in 2024 Due to Digital Fatigue: Report

Indian audiences are experiencing digital fatigue, leading to a significant drop in engagement with streaming apps, as revealed by Sensor Tower’s latest report, State of Mobile 2025. The report shows that total time spent on streaming apps in India fell from 25.9 billion hours in 2023 to 21.7 billion hours in 2024, marking a 16.2% decline.

Alongside this decline in engagement, the number of app downloads also decreased. In 2024, there were 663 million downloads, down from 722 million in 2023. Experts point to several factors contributing to this shift. The growing economic pressures in India, increasing competition from social media apps, and streaming platforms’ reliance on live events and blockbuster content to retain users have all impacted the streaming industry.

Interestingly, the report also highlights a surge in the consumption of social media apps in India. In 2024, the total hours spent on social media apps jumped to 800 billion, up from 700 billion in 2023. This shows how social media has become an essential part of daily life, acting as a hub for communication, entertainment, and commerce. The rising popularity of social media has created more competition for streaming platforms, which now face the challenge of re-engaging their audiences.

The changing behavior of Indian consumers means streaming services must adapt to stay relevant. The report suggests that platforms need to innovate and offer compelling content to stand out in an increasingly crowded market. While there is a growing demand for digital content, platforms are struggling to keep audiences loyal. The easy switching between streaming platforms means users are less likely to stay committed to one service for long. This has created a tough environment for smaller and newer platforms that find it harder to maintain a steady subscriber base and achieve long-term growth.

However, not all news is negative for the Indian OTT market. Despite the decline in user engagement, there was an increase in in-app purchase (IAP) revenue, which climbed to $50 million in 2024. Experts believe this indicates that Indian consumers are increasingly comfortable paying for streaming services on mobile devices, even as they spread their viewing time across different screens, such as TVs, smartphones, and tablets.

Though the OTT market is facing challenges, a report by PwC shows that the industry is still growing. According to the PwC report, India's OTT revenues have surged four times since 2019. In 2023, the market grew by 20.9%, reaching Rs 17,496 crore. Experts predict that India will become the world’s fastest-growing OTT market in the next five years, with a compound annual growth rate (CAGR) of 14.9%. The market is expected to reach Rs 35,062 crore within this period, offering hope for the future of the OTT ecosystem.

Despite challenges in user engagement, the Indian OTT market continues to expand. This growth offers significant opportunities for large players to strengthen their presence. However, it also presents a challenge for smaller production houses and independent content creators, who are finding it harder to succeed in a more competitive and consolidated market. While profitability remains an issue for some platforms, experts remain optimistic about the future growth of India’s OTT industry.