India's video streaming industry is undergoing a significant strategic shift. With the explosive growth in paid subscriptions now slowing down, platforms are turning their attention to a new key metric: the depth and quality of viewer engagement. Total watch time, session duration, and user interactions are becoming the primary indicators of success, replacing the singular focus on subscriber numbers.
The New Currency: Attention and Engagement
Industry experts confirm that the days of 30-40% subscription growth, seen during the pandemic peak, are over. In response, platforms are meticulously tracking how users interact with content. Metrics like total time spent on the platform, time per session, content completion rates, likes, comments, and shares are now prioritized. This data provides a clearer picture of true user loyalty beyond a monthly payment.
Ujjwal Mahajan, co-founder of the home-grown streaming service Chaupal, which specializes in Punjabi, Haryanvi, and Bhojpuri content, emphasized this change. "For us, watch time and user engagement are as important as subscription numbers," he stated. He explained that without strong engagement, subscriber growth is shallow and ultimately leads to users leaving. Chaupal's own monthly retention rate has reportedly surged from 17% to nearly 70%, a improvement Mahajan attributes directly to increased watch times and longer platform sessions.
Monetization Moves: AVoD, Password Crackdowns, and Budget Rejigs
As monetization becomes more challenging, platforms are deploying a multi-pronged approach. To boost revenue without hiking subscription prices, they are adopting tactics like blocking password sharing—a move pioneered by Netflix—and introducing cheaper, advertising-supported video-on-demand (AVoD) plans. Amazon Prime Video is a prominent example of this hybrid model.
Gaurav Gandhi, Vice-President of Amazon Prime Video for Asia-Pacific & Middle East-North Africa, framed it as a matter of consumer choice. "We have programmed the same content across both (lower and higher subscription tiers). Customers can choose how they want to consume the content," he said in a recent interview.
Concurrently, there's a notable shift in content spending. Rajat Agrawal, COO of Ultra Media & Entertainment, revealed that average budgets per episode have fallen from ₹1-2 crore to a range of ₹30 lakh to ₹1 crore. However, investment is flowing into regional language content, with seasons now commanding budgets of ₹5-10 crore. Compact web series of five to seven episodes, tailored for mobile audiences with budgets around ₹90 lakh to ₹1 crore, are also gaining traction.
The Balancing Act and Future Challenges
While AVoD plans and password enforcement can drive subscription numbers, experts warn of a risky gamble. These strategies might reduce overall engagement if users, unwilling to pay for separate plans, migrate to free alternatives. Rajesh Sethi of PwC India noted that the hybrid model suits price-sensitive Indian families seeking flexibility.
The industry's next big hurdle is not reach, but discovery. Anil Goel of Nielsen pointed out that with massive content libraries, ease of navigation and personalization are critical. "Viewers often spend significant time simply deciding what to watch," he said, highlighting that engagement metrics like session duration and return frequency are essential for understanding true platform performance.
Another emerging focus is cross-platform attribution. A viewer might see an ad on TV, browse on a phone, and subscribe on a laptop. Measuring this journey requires advanced data models and AI, especially as the number of devices used continues to grow. For India's streaming giants, the battle is no longer just for subscribers—it's for their undivided attention and time.
