The reason is because there aren't any screens for a large mass of Indians.
At 250 million unique visitors a month, MX Player has for long been in the same bracket as YouTube (454 million) and Meta (324 million) in reach.
DD Freedish is the 'largest TV platform in India', going to 58 million homes, featuring 70-odd private channels. DD Freedish reaches about 278 million people, and is easily among the top five TV platforms in the world.
Dangal's and Shemaroo's entry shows there is ad-supported gold at the bottom of the Indian consumer pyramid if you can keep the costs low.
For years it has been evident that fibre and DTH would give tough competition to cable in India where regulatory overload has mutilated an already warped industry structure. OTT added fuel to the fire. From Rs 27,000 crore in 2010, cable's share of subscription revenues is now estimated at Rs 13,000 crore.