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Microdramas clock $300 Mn revenue in a year; RMG users shift to offshore betting apps

Entrackr · 2d ago

Medial

India's digital entertainment space is changing fast, with new formats like microdramas growing quickly. At the same time, stricter rules on real-money gaming (RMG) are pushing users toward offshore platforms. According to Lumikai’s State of Interactive Media Report 2025, India’s interactive media market has grown into a $13.8 billion ecosystem, expanding at 17% year-on-year, led by over 877 million smartphone users. Microdrama platforms have already crossed $300 million in revenue within their first year, clocking over 450 million downloads and 100 million monthly active users, the report shows. The platforms are projected to scale into a $4.5 billion market by 2030. The growth shows a deeper behavioral shift; users are moving away from passive viewing to interactive, bite-sized, and habit-forming formats. Microdramas already deliver 60 minutes of daily engagement, nearing OTT levels. Another interesting thing is the RMG shift. According to the report, following the ban on real-money gaming under the Promotion and Regulation of Online Gaming Act, 2025, nearly one in three RMG users migrated to offshore betting platforms, spending up to Rs 10,000 per month without regulatory oversight, taxation, or consumer safeguards. The report also highlights a measurable rise in VPN-enabled browser usage and increased traffic to offshore platforms such as Bet365 and 1xBet, indicating that demand has not disappeared but shifted beyond India’s regulatory perimeter. Interestingly, the remaining user base is not exiting digital entertainment altogether. Instead, time spent is being redistributed toward categories like microdramas, social media, and free-to-play games, accelerating growth in these segments. India’s gaming ecosystem, excluding RMG, continues to remain resilient. The market crossed $1.5 billion in 2025, supported by 555 million gamers and a 25% payer conversion rate, with in-app purchases emerging as the primary monetisation lever. At a broader level, the report shows, platforms focused on specific user needs are making more money than large, general platforms. Apps like astrology and micro-learning earn more per user ($8.4 and $5.5 annually) than social media, despite having smaller audiences. This suggests that the next big digital companies in India will be built on deeper user engagement, not just scale. Platforms that are interactive, personalised, and solve specific user needs are likely to win. What stands out is the unintended consequence of tighter RMG regulation, which seems to be pushing user spending beyond domestic oversight rather than reducing it. At the same time, the rise of microdramas shows how seamless payments, particularly UPI autopay, are enabling high-frequency monetisation at scale. Together, these trends highlight a clear shift: growth is increasingly driven by payment ease and regulatory gaps, making it harder for both companies and policymakers to keep pace.