India’s digital entertainment landscape is evolving rapidly. New formats like microdramas are gaining strong traction, while regulatory changes in gaming are reshaping user behaviour.
According to Lumikai’s State of Interactive Media Report 2025, India’s interactive media market has reached $13.8 billion, growing at 17% year on year. The growth is supported by a base of over 877 million smartphone users.
Microdrama platforms have emerged as a key growth driver. They have already crossed $300 million in revenue within their first year. The segment has recorded over 450 million downloads and 100 million monthly active users. These platforms are expected to scale into a $4.5 billion market by 2030.
The rise reflects a clear behavioural shift. Users are moving away from passive viewing to short, interactive formats. Microdramas now generate around 60 minutes of daily engagement, nearing OTT consumption levels.
RMG Users Move Offshore
At the same time, stricter regulations are impacting real money gaming. Following the Promotion and Regulation of Online Gaming Act, 2025, nearly one in three users has shifted to offshore betting platforms.
These users are spending up to Rs 10,000 per month on platforms such as Bet365 and 1xBet. This activity takes place without regulatory oversight, taxation, or consumer safeguards.
The report also notes a rise in VPN usage and increased traffic to offshore sites. This suggests that demand has not declined but has moved beyond India’s regulatory reach.
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Meanwhile, the broader gaming ecosystem remains stable. Excluding RMG, the market crossed $1.5 billion in 2025, backed by 555 million gamers and growing in app purchases.
The findings highlight a larger trend. Users are not leaving digital platforms. Instead, they are shifting toward interactive and personalised experiences. At the same time, regulatory gaps are influencing where and how money is spent, creating new challenges for both companies and policymakers.
