MOVE OVER Netflix and Amazon Prime Video. Whether it’s a Bhojpuri action drama or a Punjabi romantic comedy or a Bengali thriller, regional OTTs such as Hoichoi (Bengali), Aha (Telugu), ManoramaMAX (Malayalam) and Chaupal (Punjabi) are winning hearts and turning small-town vibes into big business.

Regional content volumes surpassed 50% of the total volume in 2023 and are expected to reach over 55% by 2026, says a recent Deloitte report on the online curated content industry in India in 2024.

But then, growing fast also means struggling with rising content costs, pressure on profitability, and stiff competition from both local and global giants. “We’ve never tried to outspend the giants — we’ve instead focussed on out-engaging them. That’s been our biggest differentiator,” says Vishnu Mohta, co-founder, Hoichoi, and ED, SVF Entertainment. Since its inception in 2017, Hoichoi has streamed 600-plus Bengali films, and 135-plus original web series, shorts, and documentaries.

Sustainable economics, leaner models, sharper storytelling, and movie acquisitions are driving regional OTTs.

Aha, for instance, has always focussed on giving “audiences a sense of belonging,” says co-founder and director Ajit Thakur. Aha, which caters to Telugu and Tamil audiences, has stayed majorly on the path of subscription video on demand (SVOD). “We started as a subscription-only platform because we were confident of our content offering and positioning. Lately, we have added AVOD (advertising video on demand), which is a more competitive market,” says Thakur.

With profitability becoming a priority, Aha has embraced hybrid storytelling formats like TV-plus — a multi-episode format with episodes released at regular intervals, similar to traditional television but available on demand, and tapped into new revenue streams such as premium packs and short-form content, an approach that has helped them build a base of over 2.3 million subscribers. It now plans to focus on branded content.

Hoichoi, on the other hand, is betting on short-form content. “We are very clear about our unit economics. Shorter seasons, five to six episodes, aren’t a compromise; they’re a design choice. This format aligns with consumption patterns while also allowing for sharper storytelling,” says Mohta. Hoichoi’s business model combines subscription plans, strategic partnerships, and innovative payment solutions. Its freemium section offers select shows for free without ads, often developed in collaboration with brands.

“Our growth strategy is audience-first. We adopt a hybrid approach of mixing marquee projects with more agile formats. We also rely heavily on data. Every greenlight is backed by performance intelligence, ensuring we aren’t producing in a vacuum. By building a content library of literary adaptations, iconic revivals, and culturally rooted narratives—we ensure a longer shelf life and repeat value, which helps justify the initial investment,” says Mohta.

For Chandigarh-based Chaupal, however, acquisition has been key since its inception in 2021. Co-founder Ujjwaal Mahajan claims the platform has 96% of last year’s Punjabi theatrical releases, including those of Diljit Dosanjh and A.P. Dhillon, which it balances with selective, high-cost originals featuring regional stars. Chaupal, which focusses mainly on Punjabi, Haryanvi, and Bhojpuri content, has 800 movies and 35 originals on its platform, and a user retention rate of 78%, says Mahajan.

With $10 million-plus in revenue, 5 million-plus subscribers, and an ARPU (average revenue per user) of $4 across 165 countries, its model is built around grassroots marketing. “Our senior leadership personally led activations across hundreds of towns and villages in Punjab, directly connecting with subscribers. We focussed on monthly plans to get people on our platform for a longer attention period,” says Mahajan.

Meanwhile, ManoramaMAX is betting on innovation and cinematic quality. Executive editor and director Jayant Mammen Mathew, however, says the road to scaling remains steep. “Investment and marketing are huge challenges in scaling up a regional OTT platform. We need sizeable investment to increase production as well as discoverability of the platform for non-Malayalis to come in.”

Innovative revenue models are reshaping content monetisation and distribution across the industry. Sun NXT, the OTT platform from Sun TV Network, has rolled out a pay-per-view model to help producers earn revenue based on viewing hours. Producers receive a certain amount for every hour their content is streamed on the platform, without upfront licensing deals. The move is expected to help small- and medium-sized producers gain more eyeballs.

Strategic partnerships are also helping regional OTTs grow faster and reach wider. “While we continue to acquire some films, we do a majority of our film acquisition through revenue-sharing. This helps us reach an otherwise untapped audience pool,” says Aha’s Thakur.

Hoichoi’s Mohta agrees. “Strategic collaborations with aggregators such as Amazon Prime Video channels and Apple TV+ have further amplified our reach.” Around 40% of Hoichoi’s revenue comes from markets outside India, including the U.S., the U.K., Canada, and Bangladesh.

What next for OTTs then? “There has been a rationalisation in the last seven years. It is a tightrope walk between value and volume. Things are correcting now,” says Deepak Dhar, founder and group CEO of Banijay Asia and Endemol Shine. “If independent players build their models only on AVOD, it will be a long journey before they can recover their investment. A hybrid model of SVOD and AVOD, (currently around 70: 30) will be the way forward; 50:50 is something we are looking at,” says Thakur.

Is consolidation then the way ahead for the industry, especially since the big ones are planning to foray into regional languages?

“Indian OTT currently has around 40 million paid subscribers who buy directly from the company, and 100 million who buy bundled plans from different telcos. The 40 million is likely to hit 100 million in three to four years and 100 million will become 300 million. People will pay for content, and consolidation will help in that, especially in some particular genres,” says Danish Khan, EVP & business head, Sony LIV and StudioNEXT, Sony Pictures Network India.

“Consolidation is inevitable, but it doesn’t have to mean loss of identity. Smaller players that are culturally focussed and audience-loyal will remain attractive, especially to larger platforms looking to deepen regional relevance,” says Mohta.

That can only mean good news for both OTT players and viewers.