The year 2025 marked a definitive shift in India's streaming landscape, with the rise of micro-dramas and short episodic storytelling capturing audience attention. As the industry steps into 2026, this trend is poised to strengthen further, driven by platform selectivity and budget constraints. However, a shadow looms in the form of growing global consolidation, which experts fear may squeeze out independent and small-scale content creators.
The Reign of Short-Form and Selective Storytelling
Faced with tightening budgets and slowing subscription growth, Over-The-Top (OTT) platforms in India have become highly selective about their content investments. While big-budget films remain a staple, the demand for concise, impactful narratives has surged. Deepak Dhar, Founder and Group CEO of Banijay Asia & EndemolShine India, predicts a continued explosion of premium short-form content in 2026. He notes that as audiences consume media across various screens and in shorter time pockets, short-form acts as a powerful complement to long-format series.
This shift is also moving towards creator-led storytelling, with audiences gravitating towards authentic, personality-driven voices. Platforms are increasingly curating their slates around specific creators and showrunners. Furthermore, regional content, especially from the South Indian market, is expected to drive the next wave of hit originals, according to Dhar.
The selectivity of platforms is now sharper than ever. Vikram Malhotra, founder and CEO of Abundantia Entertainment, states that platforms seek stories with impact, purpose, and emotional connection that can also reach a wide audience. Raghavendra Hunsur, Chief Content Officer at ZEE5, emphasizes that cultural authenticity is the primary filter, seeking concepts that feel native to the community they represent.
Monetization Challenges and the YouTube Alternative
India remains a low Average Revenue Per User (ARPU) market for both advertising-based (AVoD) and subscription-based (SVoD) video services. This makes monetization a constant balancing act for platforms, as seen with Prime Video introducing ads in 2025. Partho Dasgupta, Managing Partner at Thoth Advisors, points out that the share of digital advertising going to OTTs hasn't grown significantly, and he wouldn't be surprised to see smaller OTTs getting acquired for survival.
Amid this, YouTube has emerged as a significant alternative. The platform saw a surge in individual creator channels and content from celebrities and production houses, exemplified by Aamir Khan's Sitaare Zameen Par. This trend offers lower costs, high reach, and greater creative control, presenting a viable path outside traditional streaming platforms.
Saurabh Srivastava, COO of Digital Business at Shemaroo Entertainment, attributes part of the monetization struggle to a fragmented market with too many platforms and pricing models, forcing households to make tough choices about their subscriptions.
The Consolidation Villain and the Hope for Diversity
The potential for major consolidation is the central concern for 2026. The year 2025 saw the merger of Jio and Hotstar, and ended with speculation around a mega-merger involving Netflix and Paramount making bids for Warner Bros. Discovery. Dasgupta warns that while such mergers bring scale and cost benefits, they risk stifling innovation and diversity in storytelling by independent creators.
Monisha Advani, producer at Emmay Entertainment, echoes this, expressing fear that organized content is becoming prescriptive. As major platforms also function as studios, they define the content's framework, leaving creators to work within predefined lines. She contrasts this with the more democratic freedom found on social media and in micro-drama creation.
However, not all voices are pessimistic. Saugata Mukerjee, Head of Content at SonyLIV, believes the viewer is spoilt for choice, which will force long-form makers to work harder on unique storytelling. He anticipates more light-hearted, relatable shows, more content centered on women's issues, and a focus on the underserved young adult genre in 2026.
Looking ahead, Srivastava pins hope on the growth of digital advertising, expected to grow at high double digits, which may allow for more experimentation with embedded storytelling formats, especially on connected TVs. The story of India's streaming industry in 2026 will thus be a tightrope walk between the explosive potential of micro-content and the consolidating power of global giants.
