Partho Dasgupta discusses The Balancing Act of OTT Services in 2025

In the ever-evolving world of Indian entertainment, over-the-top (OTT) platforms have become the life of the party, captivating audiences and changing how we consume content. With internet access spreading like wildfire and data plans that won’t break the bank, it’s no surprise that OTT has become a household favorite. 

As of 2024, around 38.4% Indians are streaming away, proving that when it comes to binge-watching, we’re all in—snacks and all! The pandemic only accelerated this trend, turning our living rooms into makeshift cinemas and virtual hangouts into social events. 

With heavyweights like Netflix squaring off against local champions like Hotstar, the competition is hotter than ever. So, what’s on the horizon for these streaming giants? Let’s explore with Partho Dasgupta, former CEO of BARC India and currently Managing Partner at Thoth Advisors.

As of January 2025, the OTT landscape in India is nothing short of a digital revolution, with over 900 million internet users expected by the end of the year. 

According to a report from the Internet and Mobile Association of India (IAMAI) and market research firm Kantar, a remarkable 732 million people in India—accounting for nearly 83% of all internet users—are now accessing over-the-top (OTT) audio and video content, making it clear that streaming services have become the new go-to for entertainment. It’s like a buffet where everyone is feasting on their favorite shows and the best part? No one has to share the remote!

Another recent PwC report revealed that the OTT market is set to double by 2028, which means we’re not just talking about more viewers; we’re talking about serious cash flow. With revenues projected to soar, it’s no wonder platforms are scrambling to keep up with viewer demands. 

“Personalization and data analytics are becoming the secret sauce for success. Imagine being served content that feels like it was handpicked just for you—because it probably was! This tailored experience is what keeps viewers glued to their screens, binge-watching until they forget what daylight looks like!” says Partho Dasgupta.

As we kick off 2025, the streaming landscape is buzzing with excitement, and it seems the OTT giants are ready to shake things up. With the rise of subscription services, there’s a growing emphasis on striking that delicate balance between ad-supported content and premium offerings. 

Netflix, ever the trendsetter, is gearing up to launch a free, ad-supported plan in select Asian and European markets by the end of this year. This move is not just about keeping up with the competition; By tapping into regions where free TV networks reign supreme, Netflix aims to lure in viewers who might otherwise stick to their local channels. After all, who wouldn’t want access to a treasure trove of content without having to pay a dime? 

But wait, there’s more! Amazon Prime is also getting in on the action, planning to introduce ads in its content by 2025. It seems that even the streaming behemoths are realizing that a little advertising can go a long way in keeping subscription prices manageable. Picture this: you’re watching your favorite show, and suddenly an ad pops up—perhaps for a product you didn’t know you needed but now can’t live without. It’s the perfect blend of entertainment and marketing magic!

With Netflix reporting that over 50% of new sign-ups are for its ad-supported tier in eligible countries, it’s clear that viewers are warming up to this new model. And as Netflix prepares to roll out its advertising technology platform by the end of 2025, they’re not just dipping their toes into the ad pool—they’re diving headfirst with style.

However, there is another twist in the story. In the world of digital advertising, the lack of neutral third-party measurement has turned the arena into a playground for the big kids. 

Major tech and e-commerce companies, including Google, Meta, Amazon, and Flipkart, collectively reported advertising revenues exceeding ₹60,000 crores during the financial year 2023-24. This marks a 9% increase from ₹55,053 crores in the previous financial year, according to filings from the Registrar of Companies. 

Notably, this is the first time that the Indian divisions of Google and Meta have achieved a combined gross revenue surpassing ₹50,000 crores, highlighting their dominant position in the digital advertising landscape. Meanwhile, other OTT platforms are left standing on the sidelines, peering enviously at the feast. 

Partho Dasgupta believes, “Indian media is changing fast and without people noticing that google and meta are the largest media companies now. The lion’s share of the growing digital pie goes to these two companies and the TV and print companies look very small in comparison” 

While Google and Meta ride the wave of growth with their vast data resources and loyal user bases, smaller players are left scrambling for crumbs. Without robust measurement tools to help them shine in the spotlight, smaller OTT services find it tough to attract advertisers and secure their slice of the ever-expanding digital ad pie—projected to exceed $1 trillion globally by 2025. 

Who knew that in the world of streaming, sometimes it’s not just about having great content, but also about who gets to call the shots?

So, what does this mean for viewers? More choices, more content, and perhaps a few more ads sprinkled throughout your favorite shows. Looking forward Partho Dasgupta says “ hybrid model is the way to go, SOVD and AVOD models are here to stay. However, measurement will be a key issue with non meta and google apps to get advertisement growing.”

Overcoming this hurdle through advanced ad platforms, better targeting solutions, and transparent technology investments will be crucial for maximizing returns and ensuring the continued success and long-term viability of AVOD platforms, allowing them to compete effectively in the increasingly competitive streaming market.