Streaming fatigue hits India, time spent on OTT down 16% in 2024: Report

Indian audiences are experiencing "digital fatigue," leading to a significant dip in engagement with streaming apps, according to Sensor Tower’s latest report, "State of Mobile 2025". 

The report reveals that the total time spent on streaming apps in India dropped from 25.9 billion hours in 2023 to 21.7 billion hours in 2024 — about a 16.2 per cent decline that underscores changing digital consumption patterns.

The number of app downloads also saw a downward trend, with 2024 recording 663 million downloads, compared to 722 million in the previous year. Analysts attribute this to a combination of macroeconomic pressures, increasing competition from social media apps, and the reliance of streaming platforms on live events and tentpole content to retain audiences.

The same report also noted that social media apps consumption in the country has gone up. The total hours spent on social media apps surged year-over-year, reaching a staggering 800 billion hours in 2024 compared to 700 billion in 2023. 

This trend reflects the increasing integration of social media into daily life, with platforms becoming essential hubs for communication, entertainment, and commerce.

The streaming industry is grappling with a new era of consumer behavior, marked by fluctuating loyalty and competition from alternative forms of digital entertainment. To thrive, platforms will need to innovate and offer compelling content strategies to re-engage users and adapt to the evolving landscape, the report shared. 

As the report indicates, maintaining audience attention in a crowded digital ecosystem requires more than just quantity; quality and differentiation are paramount. The year ahead will likely test the resilience and adaptability of India’s streaming giants as they navigate these headwinds.

"The lack of switching costs between various streaming platforms allows users to churn on and off networks based on programming," the report notes. This behavior has particularly impacted newer and smaller platforms, making it challenging for them to cultivate subscriber loyalty and achieve sustainable growth.

Rising In-App Purchase Revenue

Despite these challenges, there is a silver lining. In-app purchase (IAP) revenue witnessed an uptick in 2024, climbing to $50 million. However, researchers say that trend is indicative that Indian consumers are increasingly comfortable paying for streaming services via mobile devices, even as they divide their viewing time across TVs, phones, and other devices.

Market still growing: PwC report

The shrinking OTT landscape reflects the growing challenges of profitability and audience retention in a fiercely competitive environment. While consolidation may lead to stronger, more sustainable platforms, it also narrows opportunities for diverse content creators, actors and smaller production houses. This contraction in the OTT industry has left studios scrambling.

However, monetisation is still not an issue in the Indian OTT market. A recent PwC report reveals that India’s OTT revenues have increased four-fold since 2019. In 2023, the market grew by 20.9%, reaching Rs 17,496 crore.

“According to the report, India is expected to become the world’s fastest growing OTT market in the next five years, growing at a CAGR of 14.9% and reach Rs 35,062 Cr in next five years.The industry is still growing which gives a lot of hope to the entire ecosystem,” say experts.