iWorld
Netflix and its binge spending: $17.3 bn on content in 2020
MUMBAI: Netflix is stubborn with its content spending despite being criticised often for being “irrational”. The streaming firm is sticking to its 'grow now – pay later' strategy. According to a recent estimate, the streamer will invest around $17.3 billion on content in 2020.
In 2019, the streamer spent little up from $15 billion on content. The report by BMO Capital Markets predicts the company is on track to spend $26 billion by 2028. An increase of almost $2 billion indicates that users will not get a chance to lower their screen time from the streaming engine as most of the money is expected to go on originals.
While the popularity of the streaming platform rose with years, the competition has also turned tougher with the entry of other deep-pocket players in the ecosystem. Apple TV+ and Disney+ launch have thrown major challenges on the unofficial streaming king. Moreover, Warner Media’s HBO Max is also going to enter the market in mid 2020.
"Netflix remains the clear leader in the global streaming video, and we believe there is still room to grow as incremental investment points enter the story: continued international growth (particularly India and Japan), improving per subscriber leverage on content spending, and the beginning of long-promised FCF improvements," BMO Capital Markets entertainment analyst Daniel Salmon comments in the research note.
Considerably, among the other competitors, no one is spending extraordinarily big on content like Netflix. Disney said it would spend $1 billion on original programming for Disney Plus and will have nearly $1 billion in operating expenses in FY 20 while WarnerMedia will invest up to $2 billion in HBO Max in 2020. Comcast/NBCUniversal has planned about $2 bn for its streaming service Peacock in the first two years.
"We continue to believe the 'streaming wars' narrative is false and there will be multiple winners in global streaming and thus continue to recommend buying Netflix (NFLX), Amazon (AMZN) and Discovery (DIS) together," the note also adds.
Netflix is upping its India game significantly as the streaming giant is ready to spend Rs 3000 crore (around $418 mn) on Indian content for this year and the next. Netflix founder and CEO Reed Hastings spoke about the investment during a recent India visit while illustrating the country’s importance in their business.
"We launched in 2016 and we have continued to invest. So we have a lot of content from the United States, the UK and Spain. We are developing our Indian content here,” Hastings said. "This year and next year, we will spend about Rs 3,000 crore developing content and you will start to see a lot of stuff hit the screens," he added.
The streaming giant is set to report its fourth quarter earnings on 21 January. Netflix reported revenue of $5.24 billion, up 31 per cent year-over-year in the last quarter.
eNews
How short, addictive story videos quietly colonised the Indian smartphone
A landmark Meta-Ormax study of 2,000 viewers reveals a format that is growing fast, paying slowly and consumed almost entirely in secret
CALIFORNIA, MUMBAI: India has a new entertainment habit, and it arrived without anyone really noticing. Micro dramas, those short, cliffhanger-driven episodic stories built for the smartphone screen, have quietly embedded themselves into the daily routines of millions of Indians, discovered not by design but by algorithmic accident, watched not in living rooms but in bedrooms, on commutes and in the five minutes before sleep.
That, in essence, is the finding of a sweeping new audience study released by Meta and media insights firm Ormax Media at Meta’s inaugural Marketing Summit: Micro-Drama Edition. Titled “Micro Dramas: The India Story” and based on 2,000 personal interviews and 50 depth interviews conducted between November 2025 and January 2026 across 14 states, it is the most comprehensive study of the category in India to date, and its findings are striking.
Sixty-five per cent of viewers discovered micro dramas within the last year. Of those, 89 per cent stumbled upon the format through social media feeds, primarily Instagram and Facebook, without ever searching for it. The algorithm did the heavy lifting. Discovery, as the report puts it bluntly, is algorithm-led, not intent-led.
The typical viewer journey begins with accidental exposure while scrolling, moves through a cliffhanger-driven incompletion hook that makes stopping feel unfinished, and is reinforced by algorithmic repetition until habitual consumption sets in. Only then, when a platform asks for an app download or a payment, does the viewer pause. Trust, not content quality, determines what happens next, and many simply return to the free feed rather than pay. It is a funnel with a wide mouth and a narrow neck.
The numbers on consumption tell their own story. Viewers spend a median of 3.5 hours per week watching micro dramas, spread across seven to eight sessions of roughly 30 minutes each, peaking sharply between 8pm and midnight. Daytime viewing is snackable and low-commitment, squeezed into morning commutes, work breaks and coffee pauses. Night-time is where the format truly lives: private, uninterrupted and, for many viewers, socially invisible. Ninety per cent watch alone, compared to just 43 per cent for long-form OTT content. Half the audience watches during their commute, well above the 37 per cent figure for streaming platforms, a direct reflection of the format’s low time investment advantage.
The audience itself breaks into three segments. Incidental viewers, comprising 39 per cent of the total, are passive consumers who stumble in and rarely seek content actively. Intent-building viewers, the largest group at 43 per cent, are beginning to form habits and seek out episodes but remain cautious. High-intent viewers, just 18 per cent, are the ones who download apps, tolerate ads and occasionally pay: skewing male, younger and urban.
What audiences want from the content is revealing. The top three genres are romance at 72 per cent, family drama at 64 per cent and comedy at 63 per cent, precisely the same top three as Hindi general entertainment television. The format rewards emotional familiarity over complexity. Romance in particular thrives because it demands low cognitive investment, needs no elaborate world-building and plays naturally into the private, pre-sleep viewing window where inhibitions lower and emotional intimacy feels safe.
The most-recalled shows, led by Kuku TV titles such as The Lady Boss Returns, The Billionaire Husband and Kiss My Luck, share a common narrative DNA: rich-poor conflict, hidden identities, power imbalances, melodrama and cliffhangers that make stopping feel physically uncomfortable. Predictability, the research warns, is fatal. Each episode must re-earn attention from scratch.
The terminology question is telling. Despite the industry’s embrace of the phrase “micro drama,” viewers have not adopted it. They call the content “short story videos,” “short dramas,” “reels with stories” or simply “serials.” One respondent from Chennai said bluntly that “micro sounds like a scientific word.” The category is at the stage that OTT occupied in 2019 and podcasts in the same year: widely consumed, poorly named and not yet crystallised in the public imagination.
Platform awareness remains alarmingly thin. Only three platforms, Kuku TV at 78 per cent, Story TV at 46 per cent and Quick TV at 28 per cent, have crossed the 20 per cent awareness threshold. The rest languish in single digits. This creates a trust deficit that directly throttles monetisation: viewers who cannot remember which app they used are hardly primed to enter their payment details.
Yet the appetite is clearly there. Sixty-five per cent of viewers watch only Indian content, drawn by the TV-serial familiarity of the storytelling, the comfort of Hindi as a shared language and the sight of actors they half-recognise from decades of television. South languages are rising fast: Tamil, Telugu and Kannada together account for 24 per cent of first-choice viewing. And AI-generated content, still a novelty, has landed better than expected: 47 per cent of viewers call it creative and unique, with only 6 per cent actively rejecting it.
Shweta Bajpai, director, media and entertainment (India) at Meta, called micro drama “a category that is rewriting the rules of Indian entertainment,” adding that the discovery engine being social distinguishes this wave from previous content formats. Shailesh Kapoor, founder and chief executive of Ormax Media, was characteristically measured: the format, he said, is showing “the early signs of becoming a distinct content category” and, given how closely it aligns with natural mobile behaviour, “has the potential to scale very quickly.”
The format’s fundamental mechanics are working. It enters lives quietly, through boredom and a scrolling thumb, and burrows in through incompletion and habit. The challenge now is monetisation: converting a category of highly engaged but deeply anonymous viewers into paying customers who trust the platform enough to hand over their UPI credentials. The story, as any micro-drama writer knows, is only as good as the next cliffhanger. India’s platforms had better have one ready.
