Digital Video Ad Spending to Surpass TV by 2026: Amazon MX Player, Karan Bedi

India's digital streaming landscape is at a crossroads, with ad-supported video-on-demand (AVOD) quickly emerging as the preferred mode of content consumption. This shift in viewer behaviour is prompting advertisers to increase their investment in the format, which is expected to surpass television advertising spending as early as next year.

"Streaming has become mainstream. For years, we've talked about how digital would eventually supplant television, and I believe we can officially say that day has arrived," said Karan Bedi, director and head of MX Player. He was speaking at MMA Global Impact 2025.

According to data trends, "83% of internet users in India stream audio or video content, and video accounts for the overwhelming majority." This is not just a metro phenomenon; more than half of the viewers come from rural India.

Streaming has also become a significant draw for advertisers. "Compared to user-generated content or even television, streaming video drives stronger recall, brand recognition, and long-term ROI," Bedi said.

Amazon MX Player aims to lead the AVOD sector by providing premium entertainment at no cost to viewers. "There are free platforms with no premium content and premium platforms that charge. We believe the true magic is in providing both—premium entertainment for free," Bedi added.

MX Player is available across Amazon's ecosystem, including the MX app, the Amazon Shopping app, Fire TV, and Prime Video, allowing it to reach both mass and premium urban audiences. The platform has over 1.5 billion downloads and 250 million monthly active users. "Our content appears on every screen that Amazon touches. This means that brands can reach both the base of the pyramid and India's top 20 million households," Bedi explained.

MX Player is also preparing to launch Fatafat, a new vertical dedicated to micro-dramas, which are one-minute episodic content that is gaining popularity around the world. Each episode will be presented vertically, making it ideal for mobile viewing. "It is an exciting, new format that promises high engagement in short bursts. And, yes, there is a lot of room for brands to integrate meaningfully," stated Bedi.

Beyond content, MX Player is leveraging Amazon's vast data ecosystem to help advertisers target more effectively.

Beyond targeting, Bedi demonstrated how Amazon is experimenting with immersive ad formats. "If you're an endemic brand that sells on Amazon, while a customer is watching content on MX or other surfaces, your product can actually come straight through the content," he added.

He described a new ad format that allows users to navigate a product's detailed page while watching an ad, resulting in a smooth transition from awareness to consideration. "Not only can viewers watch your ad, but they can browse through the product specifics right then and there," he told me.

Bedi explained MX Player's distinct positioning, saying, "Our model is built on three pillars: differentiated reach, differentiated content, and differentiated ad solutions. As digital overtakes TV not only in consumption but also in ad spending, platforms like ours will be critical to how India watches and brands connect."