The country’s big OTT companies have a thorny problem in common. Their offerings are increasingly commoditised. But if you are Amazon MX Player, the video streaming platform that was formed as a result of the Amazon Mini TV and MX Player merger last year, that problem is not exactly insurmountable. You already have a captive audience base and an enviable tech stack. Put the two together and you have a market ready for the taking.
Amazon MX Player is doing just that — combining technological innovation and targeted advertising solutions with a new repertoire of content. The platform believes its ability to combine reach and relevance will ensure more advertisers get on board.
To start with, it has unveiled an exhaustive content package for 2025 that features over 100 shows and movies. The platform has its eye on the growing ad supported video on demand (AVOD) market, which has played a key role in driving the OTT business in India. The video streaming service is banking also on shoppable videos —that allow viewers to shop while watching content — to give it an edge in the crowded video streaming market.
Karan Bedi, head of Amazon MX Player, says that the platform already has a reach of 250 million monthly unique users. “About 50% of our audience is from metros and tier-I markets and this set cuts across age, gender and income groups,” says Bedi. “It is time to widen that base.”
The path to monetisation will be advertising, and Bedi points out that this is where the acquisition fits in. He refuses to disclose ad revenue numbers or advertiser details, but says, “We have been able to layer Amazon’s ad technology stack to our reach, giving us the ability to use trillions of shopping signals to create relevant advertising. Customers can now seamlessly add-to-cart while watching content, and these are the kind of advertising solutions brands are seeking.”
Is the future AVOD?
As per Ormax’s OTT Audience Report, last year India’s digital audience stood at 547.3 million users, registering a 13.8% growth over 2023. This growth was driven largely by the AVOD audience, which grew at 21%. The subscription video on demand (SVOD) audience remained stagnant at 150 million in 2024. Little wonder that Amazon MX Player has its sights on the larger AVOD pie with an audience of 396.6 million.
According to industry estimates, the AVOD market revenue is around `25,000 crore and is expected to cross `30,000 crore by 2026. YouTube is a key player here with over 50% share.
The key to ensuring a large and engaged user base is offering diverse content, says Amogh Dusad, head of content, Amazon MX Player. The 2025 content plan includes mass appeal shows, international content that is translated into Hindi, Tamil and Telugu, and a strong movie library that includes titles from Amazon Prime Video’s collection. Unscripted play is an important part of the platform’s content strategy, featuring catch up shows from TV.
Bedi is clear that though Amazon MX Player will not place any content behind a paywall, there’s a sizable market for the SVOD segment as well, much like in other countries.
Dusad adds that Amazon MX Player is innovating not just in storytelling but also its formats. “For example, later this year, we will be launching a scripted series or micro dramas with episodes that are only 2-3 minutes long in vertical format for thumb-scrolling. It reflects changing consumption patterns where consumers may binge watch on weekends but choose bite-sized content on weekdays,” he says.
While ad-supported streaming is currently the primary driver of OTT growth in India, experts agree that the future will see a more hybrid ecosystem. “As Indian audiences remain price-sensitive, AVOD’s free access and regional content appeal make it the dominant driver of new users but it’s important to note that SVOD still contributes a significant share of the Indian OTT market. In short, ad-driven models will fuel mass market growth, but a hybrid ecosystem will sustain the long-term future of OTT in India,” says Russhabh R Thakkar, founder & CEO of ad-tech company, Frodoh.
The advertiser outlook for AVOD is incredibly strong. As Prashant Puri, CEO & co-founder of AdLift points out, “Despite consumers spending nearly 52% of their digital time on OTT/CTV and other digital content platforms, only 15% of digital ad budgets are allocated here. That’s a massive gap, and a massive opportunity.” OTT advertising can offer what traditional TV cannot — precision targeting, performance-driven outcomes, and a highly engaged audience cohort.
Should SVOD players take a leaf out of the AVOD playbook to drive audience growth? Santosh N, managing partner, D&P Advisory, thinks so. “SVOD platforms struggle with price sensitivity in emerging markets, piracy concerns, and the need to justify their value against free or cheaper alternatives. They may need to introduce ad-supported tiers to attract price-sensitive users while maintaining premium ad-free options.”