The Rise of AI-Generated Content on Indian Streaming Platforms
Artificial intelligence is revolutionizing content creation across India's digital landscape, with AI-generated material increasingly appearing on YouTube and various OTT platforms. From short films and microdramas to educational explainers and reimagined mythological epics like Mahabharat, this new form of content is gaining visibility. However, industry experts note that a clear pathway to profitability for this emerging genre remains elusive.
The current scenario shows digital-first brands cautiously experimenting with AI content through advertising support, while traditional television channels prefer sticking to formats with established audience track records. According to entertainment industry specialists, the sponsorship potential for AI shows on digital platforms will depend on multiple factors including content nature, audience reception, and the hosting platform's pricing and positioning strategy.
Advertising vs Subscription: The Revenue Model Debate
In the long-term perspective, advertising appears to be a more viable revenue model for AI content compared to paid subscriptions. Rupali Chavan, senior vice-president and head of business at media agency Mudramax, observed: "We're starting to see AI content surface more on YouTube and OTTs—short films, explainers, music videos, and now even reimagined classics like Mahabharat. Brands that want to be seen as modern and tech-forward are showing interest, especially on digital where younger audiences are more open to new formats."
Chavan added that while television advertisers are monitoring developments closely, they're moving cautiously until audience acceptance becomes clearer. The pricing structure for advertising within AI content remains unsettled across both digital and traditional broadcast mediums.
The novelty factor of AI-generated shows presents both opportunities and challenges. Viewers demonstrate curiosity about this new format but aren't yet prepared to pay subscription fees for access. This makes AI content an ideal testing ground for advertisers rather than subscription-driven platforms. However, this dynamic could shift if AI technology advances to offer personalized storylines, allowing each viewer to experience slightly different versions of the same narrative.
Industry Perspectives on Monetization Strategies
Neelesh Pednekar, co-founder and head of digital media at marketing agency Social Pill, highlighted that AI-generated content is still perceived as experimental, which could result in lower advertising rates compared to traditional content, at least initially. Advertisers are likely to experiment with CPM-based pricing (cost per thousand impressions) rather than committing to flat sponsorship fees due to uncertainties about long-term audience behavior.
Pednekar believes that "as AI content becomes more mainstream, rates should eventually rise, especially for premium, AI-enhanced content that integrates more complex elements like personalization and predictive storytelling." He envisions a hybrid strategy combining both advertising-driven and subscription-based models for AI content in the long term.
For platforms like WAVES OTT, which plans to stream the AI-led Mahabharat, advertising revenue appears to be the natural starting point. As more brands consider sponsoring these shows, platforms will find it easier to sustain content creation costs while making AI content accessible to mass audiences.
Vishal Agrahari of BC Web Wise identified natural sponsorship fits for AI content, including technology companies like cloud services providers, GPU manufacturers, and SaaS platforms, as such partnerships signal innovation. Telecom and broadband brands align well with streaming and connectivity themes, while consumer brands can leverage these spaces for edgy creative experiments to capture audience attention.
Harikrishnan Pillai, CEO and co-founder of digital marketing agency TheSmallBigIdea, emphasized that AI content sponsorship will depend entirely on content nature. Children-focused content will attract kids' brands, while mature or action-oriented material will better align with brands targeting older demographics.
Sudarshan Sirsat, assistant professor of data science and technology at K J Somaiya Institute of Management in Mumbai, suggested that advertisers might explore product placement, episodic, or scene-based sponsorship models, particularly for small brands and mid-range advertisers. He noted that "advertisers might be able to connect with the new generation when it comes to OTT platforms, and the old generation if it is broadcast on national TV – Doordarshan."
Siddhant Sethi, senior manager in the founder's office at digital agency White Rivers Media, summarized the current landscape: "In the short term, ad-supported model makes the most sense because AI content benefits from volume and constant iteration. You learn what works by making more, faster. But as the quality curve improves and creators figure out how to use AI for depth and not just speed, subscription models will start to make sense."
Sethi identified the potential tipping point: "The tipping point will come when AI helps create something audiences feel is made for them, not just made efficiently. That is when people pay. Until then, advertisers will fund the learning phase, and that is not a bad place to be in."
The development coincides with state broadcaster Prasar Bharati establishing partnerships to broadcast AI content, signaling institutional recognition of this emerging content category. Despite the monetization challenges, industry observers believe AI storytelling will ultimately thrive alongside traditional films and influencer-driven content, carving its own niche in India's rapidly evolving digital entertainment ecosystem.
