In recent years, India has witnessed a dramatic transformation in how consumers engage with entertainment, driven largely by the explosive growth of OTT (Over-the-Top) platforms, cable services, satellite television, and traditional cinema. As of 2024, spending across these segments reflects changing consumer habits, and here’s a detailed breakdown of how much money Indians allocate toward their entertainment.
OTT Platforms: Rising Star of Entertainment
The OTT market has emerged as one of the fastest-growing sectors in Indian entertainment. As of 2024, the OTT sector, with platforms like Netflix, Amazon Prime Video, Disney+ Hotstar, Zee5, and others, generates significant revenue. Indians are spending around ₹10,000 crore ($1.3 billion) annually on OTT subscriptions, and this number is expected to grow at an astonishing rate of 20% year-on-year. The rapid increase in affordable data plans and the growing appetite for regional content are key drivers of this surge. By 2026, OTT revenue is projected to cross ₹19,000 crore ($2.4 billion), while paid subscribers are expected to reach over 224 million.
Cable and Satellite Services: A Declining Giant
Cable and satellite services, once the primary source of entertainment in Indian households, have seen a gradual decline due to the rise of digital streaming. However, they still command a substantial portion of the market, with consumers spending over ₹25,000 crore ($3 billion) annually on cable and satellite subscriptions. The number of Direct-to-Home (DTH) subscribers, once at 103 million, has dwindled to around 69 million due to widespread cord-cutting, as viewers shift toward OTT platforms.
Cinemas and Theatres: A Nostalgic Favourite
Despite the growing popularity of digital platforms, cinema remains a cherished experience in India, especially for blockbuster releases. On average, Indians spend approximately ₹15,000 crore ($1.8 billion) annually on movie tickets. This figure includes the spend on traditional theatres, multiplexes, and regional cinemas. While cinemas experienced a setback during the COVID-19 pandemic, they are making a gradual recovery, especially with the release of major Bollywood and regional films.
Combined Expenditure on Entertainment
When considering the total entertainment spend—including OTT, cable, satellite, and cinemas—Indians collectively allocate ₹50,000 crore ($6.2 billion) or more annually to entertainment. With multiple platforms catering to various demographics and geographies, this market remains highly fragmented. OTT has been a significant disruptor, eating into the revenues of traditional services, but cable and cinema continue to retain loyal customer bases.
In summary, the Indian entertainment landscape is evolving rapidly. OTT is set to dominate, but traditional forms of entertainment like cable TV and cinema still hold sway over a substantial segment of the population. As consumer preferences continue to shift, especially toward digital and regional content, companies across these sectors will need to innovate to capture a slice of the ever-growing entertainment spend.
