From Passive Viewers to Active Participants
For decades, entertainment was a one-way street: you bought a ticket, turned on the TV, and consumed what was offered. For Gen Z, born between 1997 and 2012, that model is obsolete. This is a generation that spends more than half its digital time on the 'open
internet'—platforms like streaming services, podcasts, and gaming sites. While streaming on OTT platforms is a baseline expectation, their real spending signals a deeper shift. They are moving away from being passive audiences and toward becoming active participants in interactive digital worlds. Gaming, for instance, has evolved from a simple pastime into a primary social hub and a significant area of expenditure, commanding a huge share of wallet for high-value digital transactions.
The Rise of the Experience Economy
While digitally native, Gen Z places a high premium on real-world, shareable moments. This has fueled a massive boom in India's live events industry, which grew 44% in 2025. More than 78% of Indians now say they prefer spending on experiences over products, a trend driven by this younger demographic. Music festivals, concerts, and immersive pop-ups are no longer niche interests but core lifestyle expenditures. For Gen Z, the value of an event lies not just in the performance but in the sense of community and the content it generates for their social identity. This desire for tangible, memorable moments has made live events a powerful force, drawing attendees from beyond just the major metro cities.
Investing in People, Not Just Productions
Perhaps the most profound change is where Gen Z directs its money: toward individual creators. India is home to a rapidly growing creator economy, and this generation sees supporting creators as a natural form of entertainment spending. This goes far beyond just watching free content. They are opening their wallets for everything from YouTube channel memberships and virtual gifts on streaming platforms to merchandise from their favorite gamers and influencers. A stunning 83% of Indian Gen Zers consider themselves content creators, with 75% viewing it as a viable career path. This reflects a fundamental shift in trust and connection. For them, investing in a relatable personality is often more compelling than paying for a faceless studio production.
The New Rules of the Digital Wallet
Gen Z's spending habits are digital by default, with UPI forming the backbone of their financial lives. This comfort with digital payments extends to entertainment, where recurring subscriptions for streaming services are common. However, their spending is more disciplined than stereotypes suggest. A recent analysis of over 5.2 lakh salaried Gen Z employees found that over 70% of their monthly budget goes toward essentials and recurring bills, not just discretionary fun. When they do spend on entertainment, it's often on a diverse spectrum that includes everything from K-pop and Japanese anime to gaming and local content creators. This generation's consumption is fragmented, global, and highly personalized, driven by algorithms and peer recommendations rather than traditional marketing.
