More than half of the current fiscal year has passed, and the Indian entertainment industry is poised to enter a mature yet challenging phase, according to some online reports. While broadcaster-owned OTT platforms are projected to see a healthy revenue growth of 10–15% (year-on-year), the overall maths doesn’t look that promising.
As we approach the 2026 fiscal year, the industry is caught between soaring digital consumption and a structural economic mismatch that threatens long-term sustainability.
On the surface, the numbers look promising. The Indian OTT market is ballooning, having reached an estimated INR 37,940 crore in FY25. However, a deeper look reveals a lopsided ecosystem. YouTube continues to dominate this scenario, accounting for nearly 38% of total revenue. For traditional broadcasters trying to carve out a digital future, the climb is much steeper.
While digital advertising is growing, it hasn’t been enough to fill the void left by a nearly 20% decline in traditional TV ad sales and distribution revenues. This so-called scissors effect, where digital costs rise faster than legacy revenues can support, is putting immense pressure on even the biggest players.
Premium sports, such as the IPL, have emerged as the primary driver of both scale and financial strain. The economics of sports rights have become the industry’s greatest paradox.
We have JioStar as the projected market leader. With an estimated total revenue of nearly INR 33,000–34,000 crore for FY26, its scale is unmatched. Yet, despite JioHotstar’s massive standalone revenue (estimated at INR 9,500 crore), profitability remains elusive.
The reason? A staggering annual outflow of nearly INR 10,000 crore for IPL rights against an inflow of roughly INR 5,000 crore. This INR 5,000-crore gap naturally raises an important question: Can sports ever be a sustainable profit driver in a price-sensitive market like India?
On the other hand, other OTT platforms, such as ZEE5 and SonyLIV, are seeking to carve out their own unique paths in the market.
Both streaming services are seeing stable but incremental growth. ZEE5 is expected to contribute INR 1,200 crore to ZEEL’s INR 8,000-crore revenue, while SonyLIV is projected at a similar range. Interestingly, Sony remains a rare example of a company where the combined broadcast and digital business remains profitable, thanks to a more diversified content core.
Another top regional OTT player, Sun NXT, contributes about 15% of Sun TV’s revenue. However, experts note that a lack of OTT-first original content and a heavy reliance on TV catch-up programming are limiting its breakout potential.
Now, the challenge is no longer about proving that Indians will watch content on their phones, that much is certain. The challenge is whether platforms can move beyond catch-up TV and high-burn sports to create sticky, year-round value that advertisers and subscribers are willing to pay for.
Until the gap between content costs and consumer spending narrows, the digital revolution will remain an expensive gamble. Stay tuned for more updates.
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