India’s OTT boom faces trust deficit as dark patterns persist, survey finds

/ 4 min read
AI Hub

A new nationwide survey conducted by LocalCircles found widespread consumer dissatisfaction with OTT subscription practices and billing mechanisms.

The findings suggest that difficulty in cancelling subscriptions remains one of the biggest pain points.
The findings suggest that difficulty in cancelling subscriptions remains one of the biggest pain points. | Credits: Narendra Bisht

India’s over-the-top (OTT) streaming industry has expanded rapidly over the last decade, powered by affordable smartphones, low mobile data costs and rising digital adoption. Global streaming giants alongside domestic and regional platforms have transformed entertainment consumption, offering users unprecedented access across languages, genres and formats.  

Platforms operating in India have also benefited from bundled telecom offerings and flexible pricing models, helping accelerate adoption. Industry estimates suggest the OTT market could continue its strong growth trajectory and potentially double in size by 2030 as users increasingly shift away from traditional television and local content production scales up.  

However, as the market matures, growth is slowing and consumer concerns are rising.  

According to Ormax Media estimates for 2025, India’s OTT audience crossed 601 million viewers, registering year-on-year growth of under 10% — significantly lower than expansion rates seen in earlier years. The slowdown has coincided with increased market fragmentation, with users subscribing to multiple platforms to access desired content, contributing to subscription fatigue and higher churn.  

At the same time, engagement patterns are changing. Industry data from late 2025 and early 2026 indicates that while the number of users continues to increase, average viewing time per user has declined due to competition from short-form content and changing digital habits.  

Dark patterns

Against this backdrop, OTT platforms have shifted focus from aggressive subscriber acquisition to sustainable monetisation, particularly through advertising-supported models. Consumer groups, however, say this transition has also intensified the use of so-called “dark patterns” — interface designs that allegedly influence users into making unintended purchases or subscription decisions.  

A new nationwide survey conducted by LocalCircles found widespread consumer dissatisfaction with OTT subscription practices and billing mechanisms.  

Recommended Stories

The survey collected more than 118,000 responses from users across 324 districts in India. Of the respondents, 61% were men and 39% women, while 44% came from Tier-I districts, 29% from Tier-II and 27% from Tier-III, IV and V locations. LocalCircles said it also used an AI-powered dark-pattern detection engine to validate consumer complaints across OTT applications.  

Difficulty in cancelling subscriptions 

The findings suggest that difficulty in cancelling subscriptions remains one of the biggest pain points.  

Among 16,550 respondents to a question on subscription cancellation, 60% said they frequently faced situations where cancellation options were unavailable or hidden within the interface. Of these, 22% reported experiencing the issue very frequently and 38% said it occurred sometimes.  

The survey also highlighted concerns around recurring billing after cancellation. Among 18,926 respondents, 40% said platforms continued charging them periodically despite discontinuing subscriptions — a practice categorised as SaaS billing dark pattern.  

Fortune 500 India 2025A definitive ranking of India’s largest companies driving economic growth and industry leadership.
RANK
COMPANY NAME
REVENUE
(INR CR)
View Full List >

Unexpected charges emerged as another major complaint.  

Among 16,014 respondents, 72% said they were not informed at the time of subscribing that additional rental charges would apply for certain movies or shows — classified as a “bait and switch” practice.  

Similarly, 65% of 16,338 respondents said they encountered additional fees such as convenience charges and taxes only at the final stage of payment, indicating the prevalence of drip pricing. 

Forced reactivation of subscriptions

Users also reported forced reactivation of subscriptions. Among 17,029 respondents, 43% said that after cancelling an OTT subscription, logging in again allowed content access but automatically restarted the subscription.  

Subscription traps were another recurring issue. Of 17,242 respondents, 65% said cancellation or decline options were often difficult to locate, greyed out or presented less prominently than subscription prompts.  

Nagging emerged as the most frequently reported concern. Among 16,755 respondents, 77% said platforms repeatedly encouraged them to purchase or upgrade subscriptions despite declining such prompts.  

During the ongoing Football World Cup, LocalCircles said it received thousands of consumer complaints alleging the use of dark patterns on the Zee5 platform. According to the consumer platform, users reported being influenced through practices categorised as Bait & Switch, Forced Action and Subscription Traps. Similar complaints were also reported across other OTT platforms, including SonyLiv and JioHotstar.

LocalCircles said consumer experience appears to have deteriorated compared to last year, with nearly 8 in 10 OTT users surveyed reporting exposure to one or more dark patterns.

According to the survey, 72% of OTT users said they had frequently encountered Bait & Switch practices, where they were promised one level of service during subscription — such as access across four screens — but ultimately received access restricted to a single screen. In addition, 43% of respondents reported experiencing Forced Action practices, alleging that existing users were logged out or removed from active sessions to accommodate new users.

Beyond consumer responses, LocalCircles said it used its AI-powered dark pattern detection engine to validate reported cases and found that, on average, four to five dark patterns were present across the 12 OTT platforms examined.

Consumer complaints

Consumer complaints have reportedly increased sharply in recent years. According to the survey note, grievances span both international and domestic streaming platforms and include allegations of continued billing after cancellation, advertisements despite premium subscriptions, hidden charges, auto-renewals and limited refund options.  

Recent complaints highlighted by consumer groups include concerns linked to sports streaming subscriptions and subscription disclosures, though the broader complaint pattern extends across the OTT ecosystem.  

The findings come despite the Central Consumer Protection Authority (CCPA) issuing guidelines in 2023 defining and prohibiting dark patterns. Consumer advocates argue that stronger enforcement and greater transparency may be necessary as India’s OTT industry enters its next phase of growth.  

While streaming platforms continue to expand consumer choice and digital access, the survey indicates that improving user trust and simplifying subscription practices may become increasingly important for sustaining long-term growth. 

NEXT STORY