Tier 2+ Cities Drive Growth Of Interactive Media Market
Chennai: The $440 million interactive media market is forecast to grow at a compound annual growth rate of 45 percent through fiscal 2030. Approximately 700 million smartphone users, especially social media consumers from tier 2+ locations, are driving growth.
More than 70 per cent of India’s 500 million social media consumers and approximately the same number of digital processors come from tier 2 and above positions.
India’s digital entertainment landscape has expanded beyond traditional music and video streaming, audiobooks and podcasts, short-form videos and online dating platforms to emerging localized formats such as micro-dramas, audio streaming, local short-form videos, social discovery apps, astro, worship services and AI companion apps.
Kuku FM, Quick TV, Pocket FM, Moj, Josh, FRND, Flutrr, AstroTalk, Astrosage, Rumik AI, Replika AI are some of the platforms.
This evolution has been shaped by India’s diverse needs and characteristics beyond metros and driven by the appetite for small, regional languages, participatory, mobile-first content and connected experiences.
The growing appetite for streaming video and decreasing attention span have contributed to the success of the microdrama format in India. The market is expected to reach $125 million in FY 2026 and exceed $1 billion by FY 2030.
Although currently more than half of the audience comes from metros and tier 1 cities, the tier 2+ audience base is planned to expand in the next 2-3 years. More than 80 percent of revenue comes from subscriptions, suggesting ad-based models may emerge.
Audio streaming platforms are taking advantage of the time consumers spend away from their screens. They grew at a staggering rate between 2022 and 2025 and are expected to dominate a $300 million market by 2030. With an average of 14 million monthly users and an average of 95 minutes of listening time per day, audio streaming platforms show all signs of growing into a mainstream format.
AI assistants like Rumik AI, Bezu AI, and ChaiMate create Hinglish and local language models. Use cases include virtual partners offering emotional support, tutoring and language learning, wellness coaching, astrology consultations, and parenting assistance.
Astrological and devotional technology services stand out as primarily urban priority category with high uptake rate among Gen Z, Millennial and NRI segments.
Demand for ‘community connection’ apps triggered by the pandemic and the TikTok ban in India has led to the growth of short-form user-generated content in regional languages and on social discovery platforms.
