The streaming industry is experiencing significant consolidation as smaller platforms struggle with rising costs and competition. According to reports from Mint, Shemaroo Entertainment has acquired the library of regional platform OHO Gujarati, while Vibhu Agarwal-owned Atrangii OTT has tied up with Amazon MX Player for distribution. Saregama India acquired a majority stake in digital entertainment company Pocket Aces Pictures in 2023, and in October, Amazon said it acquired certain assets of MX Player, including the MX Player app, a free streaming OTT service. The consolidation trend is accelerating with major mergers like the planned Netflix-Warner Bros Discovery deal, which concentrates power over content and potentially limits creative variety.
Industry experts view these consolidation efforts as inevitable steps toward a maturing, less fragmented industry. As reported by Mint, Saurabh Srivastava, chief operating officer - digital business at Shemaroo Entertainment Ltd, explained that the moves reflect the need for sharper monetization, capital discipline and long-term conviction. The focus has shifted from scale-led growth to efficiency-led growth, with platforms acquiring or partnering for existing IP, audiences and distribution strength to reduce costs and time to scale. This strategic pivot is evident as streaming services have cut their acquisition costs for Southern Indian films by 50-60%, with similar adjustments seen for Bollywood content, moving away from the inflated deals of past years.
According to Mint reports, the acquisitions are focused on strengthening content depth and improving monetization. Vibhu Agarwal, founder of Hari Om OTT and Atrangii OTT, stated that the company's content will stream on Amazon two months after debuting on its own platforms, providing wider reach and bringing in newer audiences. Suyash Lahoti from Wit & Chai Group noted that acquiring proven libraries can completely change the return on investment math, as it allows companies to build depth through existing work rather than starting from scratch. The industry is now prioritizing theatrical success as the benchmark for OTT deals, with streaming deals typically happening around eight weeks after a film's theatrical debut.
As reported by Mint, the industry is transitioning from platform expansion to content aggregation as consumers do not subscribe to platforms for abundance alone but stay for relevance. Dr Ameya Sunildatta Bal, assistant professor at Somaiya School of Humanities and Social Sciences, emphasized that acquisitions like Shemaroo-OHO Gujarati and Saregama-Pocket Aces are strategic moves to own culturally rich IP and pre-existing digital audiences. The trend is driven by the need for digital transformation, monetization strategies, and adapting to changing consumer preferences. This shift is particularly evident as the number of films directly premiering on digital platforms plunged by 50%, from 60 in 2024 to just 30 in 2025, while films released theatrically before heading to OTT rose to 470 from 440.
According to industry experts cited by Mint, there is likely to be deeper consolidation, rise of IP-first strategies, and hybrid models where companies act as both studios and distributors. Mitchelle Rozario Jansen from White Rivers Media noted that the industry is entering a phase of measured consolidation and collaborative growth, with focus shifting from volume to efficiency and differentiated storytelling. Amit Dhawan from Crack'd indicated this reflects a clear shift from scale-led growth to efficiency-led growth, reducing room for smaller players and creative risk-taking. The FICCI-EY report forecasts the entire M&E sector to reach ₹3.3 trillion by 2028, growing at over 7% annually, though digital licensing now makes up only 8% of a film's total income compared to 63% from theatrical releases.
