OTT platforms tighten content budgets to sustain growth and scale

After years of high-stakes content creation and million-dollar webseries, India’s OTT industry is gradually undergoing a sharp course correction. Streaming platforms who once spent an average Rs 1-2 crore per episode on high-end web series have now reduced it to Rs 30 lakh to Rs 1 crore, depending upon the producer and star cast. 

Content budgets have been trimmed by 20–50  per cent across the board, say industry insiders. As a result, the cost of producing an episode for a web series — typically around one hour in duration — now falls within the same range as that of a traditional Hindi television episode, which averages Rs 25–30 lakh for approximately 30 minutes of content, several studio heads told e4m. 

Some projects, which were under discussion have been downsized, or renegotiated, production houses say. This drastic shift in budget is forcing producers, writers, and studios to recalibrate expectations and rethink the future of long-format storytelling in the streaming space. 

An executive told e4m, “There is a visible slowdown. Even established platforms are not commissioning big-ticket shows unless they tick all boxes—cast, genre, cost, and franchise potential.”

Between 2019 and 2022, OTT platforms competed fiercely for premium content—greenlighting ambitious projects, onboarding top film talent, and placing massive bets on subscriber growth. But as reported by exchange4media, the party has ended. They have scaled down their content budget by almost half, from over Rs 5,500 crore in 2021 to about Rs 2,500 crore in 2024, e4m had reported earlier. 

Some producers view the shift not as a cutback, but as rationalisation—and even a smart business move. “In real terms, content budgets haven’t necessarily come down in aggregate—it’s more a reassessment of how and where the money is spent,” said Vikram Malhotra, Founder & CEO, Abundantia Entertainment. “Instead of allocating big budgets to a small number of shows, platforms are now commissioning a higher number of shows with lower per-unit spends.”

“As the market matures and expands into regional and lower-tier towns, there’s greater emphasis on volume, consistency, and a broader content mix. It’s not just about low-ticket content either—there’s still investment in premium shows and returning seasons. The game now is about balancing scale, frequency, and diversity to survive and grow,” quips Malhotra. 

Why the Curbs?

Multiple factors are driving the budget reset, say observers. “There is a pressure to show profitability. With most Indian OTT platforms still in the red, investor scrutiny is higher than ever. Cost-control has become a key metric,” says an expert.

The earlier glut of formula-driven thrillers and crime dramas has led to diminishing returns. Platforms are now seeking tighter scripts and lower risk. 

Besides, audiences are increasingly drawn to regional content, short-form videos, and true-crime/documentary formats, which can work on leaner budgets. 

Rise of 'TV-Style' OTT Programming

Interestingly, the reset is triggering a shift toward more TV-style storytelling on OTT. Instead of cinematic, limited-episode formats, producers are now reworking pitches into longer arcs, often with family drama, comedy, or procedural templates that mirror daily soaps—albeit with better production values.

One platform executive summed it up aptly: “We’re not in the business of burning cash anymore. It’s about creating sticky, cost-efficient IP that drives consistent engagement.”

Nitin Burman, Group Chief Revenue Officer of Balaji Telefilms, says, “Most OTT platforms today are working with a mix of two content strategies-one involves premium, high-value projects with bigger star casts and expansive stories. The other focuses on leaner, low-budget, story-driven shows that are easy on the pocket—often tailored for mobile audiences or YouTube-style formats. While budgets per episode may vary, the average content cost balances out across the slate.”

We're also seeing a rise in habit-building formats—longer, TV-plus-OTT hybrids with 50 to 70 episodes. These shows create stickiness and scale, helping platforms retain users while managing costs, Burman adds. 

As the OTT industry navigates a more cautious fiscal landscape, success will hinge on IP ownership, scalability, and long-term audience value. Platforms will need to identify which stories truly warrant high investment—and which can be told effectively with restraint, industry leaders noted.