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The Indian streaming landscape is undergoing a transformative shift as leading OTT platforms explore ad-supported models alongside subscription-based offerings. Amazon Prime Videos plans to roll out ads in its shows and movies across countries this year. This move marks a significant transformation, reshaping viewer behaviour by offering more affordable access to premium content. This launch broadens the audience base while creating fresh opportunities for brands to engage with diverse consumers. As hybrid models gain momentum, the question that looms large is whether they truly have the potential to reshape the streaming landscape of the Indian market.
Shift in the OTT Landscape
Amazon's moves in the OTT space reflect a strategic push into ad-supported streaming. Alongside introducing ad-supported plans on Prime Video, Amazon has acquired key assets of MX Player, one of India's leading free streaming services. This acquisition led to the merger of two ad-supported video-on-demand (AVOD) services—MX Player and Amazon miniTV—into a unified platform, Amazon MX Player.
Meanwhile, other major platforms like Zee5, SonyLIV, and Disney+ Hotstar have long offered ad-supported plans alongside premium, ad-free options. As ad-supported tiers gain traction, there’s a growing curiosity about their impact on premium, ad-free services. Will the appeal of uninterrupted viewing diminish, or will it continue to attract a demographic that values exclusivity and seamless content consumption?
“In India, OTT consumers are highly price-sensitive, with a Media Partners Asia survey showing that 50% of the streaming audience prefers free or low-cost content, highlighting the appeal of ad-supported models. The success of YouTube, India’s largest platform with over 500 million active users as of 2024, reflects the public’s acceptance of ad interruptions,” explains Avinash Mudaliar, Co-founder and CEO, OTTplay, while adding that the demand for local and regional programming is also rising, with 60% of Netflix India’s content consumption in 2023 being in local languages. Ad-supported models can capitalise on the trend by prioritising regional content to reach broader audiences. “According to Deloitte (2023), 41% of urban OTT users favour freemium or ad-supported plans over paid, ad-free options (29%), indicating a shift toward ad-supported consumption. With India’s digital ad market surpassing $10 billion in 2023 and internet users steadily increasing, OTT platforms have a substantial opportunity to tap into growing ad revenues through strategic initiatives,” he adds.
Speaking about the revenue streams and pricing structure of subscriptions in the hybrid approach, Rajat Agrawal, COO, Ultra Media & Entertainment Group, shares, “It strategically expands market reach with lower acquisition costs for ad-supported users. Once a platform builds a solid user base, ad monetisation becomes viable, serving dual objectives of growing reach and generating revenue. Ad-supported tiers attract cost-conscious users, creating an entry point for a broader audience. Although India’s CPMs are low, rising viewership in ad-supported tiers offers significant revenue potential, especially for major platforms leveraging vast, diverse audiences. As digital advertising grows, ad-supported models could rival subscription tiers in profitability. Offering both ad-supported and premium plans enables platforms to cater to varied income groups, positioning premium tiers with benefits like an ad-free experience to highlight value. Intermediate tiers with fewer ads or perks, already adopted by global players, further broaden appeal. This tiered strategy balances affordability and exclusivity, meeting diverse consumer needs.”
Opportunities for Advertisers
The growth of ad-supported OTT models in India presents significant opportunities for advertisers and brands to connect with a vast and diverse audience. Following the Reliance-Disney merger, media reports suggest that Reliance plans to position Disney+ Hotstar as the sole streaming platform, consolidating JioCinema into the service. This strategic realignment establishes Disney+ Hotstar as the flagship platform for the combined entity, with plans to stream the Indian Premier League (IPL) 2025—a highly sought-after advertising hotspot—on the platform.
Sanjay Trehan, Digital & New Media Advisor, strongly believes that brands require both premium audiences and mass reach to thrive. He says, “Depending on the personality and ethos, there is a market for both value-conscious and volume-driven brands. To stay relevant, brands must continuously innovate to engage their audiences. Staid, repetitive, and unimaginative ads no longer resonate, especially with today's smarter and savvier consumers. Brands need to think creatively and foster an immersive connection with their audience. So, I do expect that this will lead to a spurt in innovative ad formats and creatives that delight, inform and engage effectively.”
“OTT advertising has evolved significantly since its inception, and brands are already leveraging it effectively. Whether more advertisers join the fray will depend on the growth of these platforms,” states Navin Kathuria, EVP, Mudramax, while adding that brands will invest in platforms that offer a relevant and quality audience, whether OTT or any other medium. “The key lies in how innovative platforms can integrate brand advertising without disrupting the viewer experience. If platforms fail to manage this balance, audiences may leave, rendering even the most innovative ad formats ineffective. From a viewer's perspective, ads are often seen as a hindrance to the viewing experience. Therefore, if platforms want to attract brand advertising, they must ensure that the overall viewing experience remains seamless and enjoyable,” he adds.
The Road Ahead
With most OTT players in India now embracing both ad-supported and premium ad-free plans, Netflix stands out as one of the few major platforms that remains entirely ad-free. This raises the question of whether Netflix and similar platforms will continue to uphold their ad-free approach or eventually explore ad-supported models to adapt to the evolving market dynamics.
“Netflix launched its ad-supported services about two years ago and now has 70 million monthly users globally for that tier. With approximately 282 million memberships across all pricing tiers, these numbers speak volumes. Overall, there’s plenty of opportunity for everyone in this diverse landscape, and multi-tier plans are likely to thrive,” says Trehan. He further adds, “I understand Netflix has not yet introduced its ad-supported subscription plan in India, but I’m confident it would perform well here. India is a curious paradox—a price-sensitive market, yet one with a significant number of consumers at the top of the pyramid who are willing to pay for a premium experience.”
According to Agrawal, the value of an ad-free experience will likely continue to resonate strongly with audiences who prioritise seamless content consumption, particularly those with higher disposable incomes and limited time, seeking access to premium content. He goes on to add, “Ad-free options cater to convenience-driven and immersive viewers, such as young professionals. While ad-supported tiers will have broad appeal, premium tiers will retain their allure, especially as platforms position them as the ultimate way to enjoy uninterrupted, high-quality content. As a result, ad-free services will continue to attract a dedicated audience, even as ad-supported models gain traction.”
