How is interactive media driving spending in India’s digital entertainment market

New Delhi: Indians’ digital entertainment habits have shifted dramatically in recent years. Whereas earlier generations spent primarily on astrology, Bollywood, and cricket, the so-called cultural A-B-C, today, digital consumption encompasses a far wider spectrum. 

Lumikai, India’s venture fund for interactive media, digital platforms, and games, identifies a broader array of categories now commanding consumer attention and spending: astrology through online consultations, Bollywood via OTT platforms, cricket through gaming, dating and devotion apps, education including AI tutors, fandom through live streaming and creator economy, and gaming.

The trends were highlighted at Lumikai Insignia 2025, India’s interactive media summit, where the firm launched its research report Swipe Before Type, How Indians Watch. Listen. Play. Pay. The event gathered more than 100 industry leaders and executives from companies including Amazon Prime Video, Spotify, JioStar, Intel, AMD, Stillfront, Mihira Visual Lab, MTG, and Oxmiq Labs to discuss how audience behaviours are reshaping the country’s $12.5 billion interactive media sector. 

The report combines consumer data with insights into emerging trends across gaming, video, audio, social platforms, live streaming, AI companions, micro-dramas, and astrology.

The research, based on primary data from nearly 3,000 mobile users, shows that India’s digital audience is young, data-intensive, and increasingly willing to pay. Women now make up 46% of interactive media consumers, over two-thirds are from non-metro regions, and more than 80% consume over 1GB of mobile data regularly. UPI has become the dominant payment method, with 80% of users employing it, and 40% holding three or more active subscriptions. On average, users download a new app every week.

Attention and monetisation now flow toward interactive formats. Social apps, OTT platforms, music streaming, short-form video, and gaming dominate time spent online. Passive social media use remains high at 83%, AVOD video at 67%, gaming at 49%, and interactive social apps at 25% of attention share. 

Regional differences are notable: the South leads in gaming, the North in passive social media, the West in gaming and interactive social platforms, and the East in AVOD consumption.

Gaming drives the largest share of consumer spending for ticket sizes above INR 1,000, while video and social dominate the mid-tier range of INR 200–500. Audio subscriptions lead for payments under INR 200. Within video content, 54% of users pay for access, mainly through monthly or annual subscriptions and data bundles, with Netflix, Prime Video, and JioHotstar emerging as popular platforms. 

Short-form video, microdramas, and spiritual content are increasingly significant, while interactive social platforms such as ShareChat, Eloelo, Astrotalk, and Bumble are driving recurring payments. Approximately 22% of users are now on UPI autopay.

Gaming patterns have evolved, with 45% of players now women and 60 per cent from non-metro regions. Device diversity is expanding: nearly 30% use gaming PCs, while 22% have console access. 

Casual and mid-core mobile games dominate playtime and monetisation, with Ludo King, Candy Crush, Free Fire, and BGMI leading in gameplay, and Free Fire, BGMI, Clash of Clans, and Coin Master generating the most revenue. Around 33% of gamers make in-app purchases, typically for cosmetic upgrades, power-ups, or ad removal, and over 80% of transactions occur via UPI.

The report also highlights emerging trends such as microdramas, anime, and AI adoption. About 30% of metro video users watch anime regularly, with Netflix and Crunchyroll leading consumption, while platforms like StoryTV and ReelShorts are gaining traction for snackable, mobile-first storytelling. AI adoption remains cautious but is growing faster in metro regions, with 27% using AI technologies compared with 11% in non-metro areas.

Speaking on the findings, Salone Sehgal, founder and managing partner of Lumikai, said, “India has moved from A-B-C to A-B-C-D-E-F-G in just five years, from paying only for Astrology, Bollywood, and Cricket offline to now monetising seven distinct digital categories. For founders, investors, and platforms, the message is clear: the playbook has changed. Success today requires understanding not just where attention goes, but how cultural rhythms, regional preferences, and emerging formats like anime, gaming, and AI are creating entirely new monetisation frontiers. India is writing its own rules for digital entertainment, and the world is watching.”

Aditya Deshpande, vice president of investments at Lumikai, added, “Our ‘Swipe Before Type’ report unlocks the preferences of the digital consumer with data that will surprise many: gaming captures the largest wallet share, new monetisation models like in-app purchases and virtual gifting are no longer niche, and the need for interactive, personalised experiences is the new normal. These aren’t fringe behaviours, they’re mainstream consumption patterns that define India’s $12.5 billion interactive media economy.”