The streaming industry is at a crossroads. As more platforms fight for consumer attention, one thing is clear—not everyone is willing to pay for content. This is especially true in India, where price sensitivity is high, and users often juggle multiple free and paid services.
Globally, the freemium model—a mix of ad-supported (AVOD) and subscription-based (SVOD) content—has gained traction. Netflix introduced its ad tier in 12 countries last year, boosting 6% of its new subscriptions and generating extra ad revenue. Most major streaming services now offer a hybrid approach, recognizing that ads can unlock new audiences.
While freemium works globally, India’s low digital ad rates pose a problem. Monetizing free users effectively remains difficult, and the cost of delivering high-quality content isn’t cheap. Unlike Western markets, where brands pour billions into digital ads, India’s advertising ecosystem hasn’t yet matured to the same extent.
Yet, the potential is undeniable. India has a massive user base that demands free content, and with over $200 billion in global online video ad revenue, the shift towards freemium is inevitable. The key will be scaling ad inventory, improving targeting, and increasing brand confidence in digital advertising.
Can it be sustainable?
Let’s see.
For freemium to thrive in India, streaming platforms need to:
Maximize Ad Revenue – Smarter ad tech and AI-driven personalization can make digital ads more effective.
Balance Content Investment – Premium content needs to stay attractive enough for users to upgrade to paid plans.
Leverage Scale – India’s sheer population size can compensate for lower ad rates if platforms scale correctly.
Freemium is the way forward, but for it to be sustainable, platforms must rethink their ad strategies. If done right, it could unlock India’s next big wave of OTT growth.