A new report by Esya Centre reveals that Indian online gamers spend less than an hour a day and less than INR 100 a month on gaming

HYDERABAD: A recent report by Esya Centre, a leading tech and policy think tank, has revealed that an average user spends less than an hour a day and less than INR 100 a month on online gaming. The report, titled “New-Age Digital Consumption: A Survey of Social Media, OTT Content and Online Gaming,” examines the consumption and engagement patterns of users across three digital entertainment avenues: Social Media, OTT, and Online Gaming, including real money gaming, e-sports, and casual gaming.

The report is based on a comprehensive survey conducted across ten major cities in India, involving 2,000 respondents and in-app data from over 20.6 lakh users, spanning 143 mobile applications. An academic version of the report has been published in an IIM-A working paper co-authored by Dr. Rajat Sharma, Associate Professor, IIM-Ahmedabad, and Dr. Vikash Gautam, Adjunct Fellow, Esya Centre.

Key findings of the report include:

• Daily engagement in terms of time spent is the highest for social media at 194 minutes a day, followed by OTT at 44 minutes and Online Gaming at 46 minutes.
• A median user spends less than INR 100 a month and less than an hour a day on online gaming, while the corresponding number for OTT is INR 200-400.
• Users indicate a high price sensitivity, with a 30% increase in participation fee for online games potentially leading to a 71% dip in engagement, compared to only a 17% dip for OTT.
• While OTT is considered a significant stress buster, 28% of Digital Nagriks consider online gaming important for their employment prospects.
• User stickiness is highest for social media, with 89% of users active every day, compared to 22% for OTT and 12% for Online Gaming.

Amjad Ali Khan, Director at the Esya Centre, commented on the report’s findings, stating that there is a lack of research examining both policy and user adoption trends in key digital markets. He expressed hope that the insights from the report will help inform a forward-looking policy stance that focuses on user protection over paternalistic interventions and blanket bans.

Mr. Rajat Sharma, Associate Professor, IIM-A, highlighted that India’s regulatory landscape is more progressive than its peers, moving from a command-and-control model of regulatory oversight to a light-touch model for new industries. He emphasized the importance of understanding consumption patterns to build an agile policy ecosystem for the three sectors.

The report’s release follows the GST Council’s meeting that changed the GST levied on the online gaming industry from 18% on Gross Gaming revenue (GGR) to 28% on deposits, leading to a 350%-400% jump in the industry’s GST outgo. User addiction and loss of money were cited as key reasons behind this steep hike.

The report also identifies user safety, grievance redressal, and cumbersome KYC requirements as the three key points of concern for users across Social Media and Online Gaming. Users of OTT, however, describe their experience as smooth on almost all accounts, indicating the standardization of quality of service in the digital entertainment industry.