WHEN SANJAY LEELA BHANSALI ventured into streaming with Netflix’s Heeramandi: The Diamond Bazaar, the ₹200-crore spectacle was a showcase of grandeur, set design, evocative music, and powerful storytelling. Set in pre-independence Lahore, the eight-episode series delved into the emotional conflicts and tragedy underneath the glamourous lives of the courtesans.

Its success was, however, global — it featured in Netflix’s Top 10 non-English shows for six straight weeks across 43 countries, garnering over 15 million views. Even Netflix co-CEO Ted Sarandos hailed it as the platform’s best-performing Indian original. And while Heeramandi was an outlier, others, including films Laapataa Ladies and The Diplomat, and series The Royals, also made it to Netflix’s global Top 10.

Indian original series and movies have been topping the global charts of rival Amazon Prime Video, too. Shows, including Paatal Lok, The Mehta Boys, Dupahiya, and Khauf have found international audiences. In 2024, Indian content trended in the platform’s global Top 10 every week.

India’s emergence as a global storyteller has been further validated by the warm reception of Homebound, a Dharma Productions film that earned a nine-minute standing ovation recently at Cannes. Streaming arms of traditional broadcasters, including Sony LIV and ZEE5, are also upping their ante. Sony LIV’s focus on authentic Indian narratives such as The Waking of a Nation and Freedom at Midnight has grabbed eyeballs. ZEE5’s film Mrs., a remake of the Malayalam movie The Great Indian Kitchen, logged 150 million streaming minutes in its first week.

The profitability puzzle

When Reliance Jio and Disney-Star inked one of the largest M&A deals ever in India ($8.5 billion), industry veterans said content, not scale, would drive eyeballs. In fact, late Viacom and CBS chairman Sumner Redstone’s phrase ‘content is king’, has never been more relevant in the context of Indian entertainment. While traditional TV relied on familiar formats such as soaps and quiz shows, OTT platforms bet on premium, edgy, subscription-driven content — something Indian audiences are now more willing to pay for. According to a Deloitte-Motion Picture Association report, India’s online curated content market, valued at $2.1 billion (₹17,300 crore), is expanding at a CAGR of 13.9% and is expected to touch $35 billion by 2030. Over ₹3,000 crore has been invested in original Indian content over the past decade. From just five original shows in 2015, the number rose to 225 in 2021. In 2023, as many as 13 non-fiction shows had a viewership of more than 5 million in India, up from 10 shows in 2022 and only four in 2021. In 2024, over 10 shows crossed the 5-million viewership mark.

Both Netflix and Prime Video’s Indian operations were among their top global contributors in 2024. Sony LIV claimed 85% audience engagement, while regional platforms, including Chaupal, STAGE, Aha, and Hoichoi reported growth. JioHotstar, powered by the Indian Premier League (IPL), amassed over 275 million subscribers.

But despite the content boom, profitability remains elusive for most platforms. Netflix India is an exception — it reported a 59% profit surge to ₹52.4 crore in March 2024, with revenue rising 28.5% to ₹2,846 crore. Though JioStar (post the Reliance-Disney-Star merger) posted ₹10,006 crore in revenue and ₹229 crore in profit for FY25, the profit stemmed largely from its linear TV operations.

By the time Indian streaming platforms gathered momentum in 2018, the challenge clearly was to make content that was edgy enough to pull audiences away from broadcast channels. This was also the time when a large section of Indian audiences was looking for differentiated content. As Sameer Nair, CEO of Applause Entertainment, says, “There are 50-100 million people who can’t see Naagin anymore, but can’t understand Narcos either. We started to cater to that world. We made shows like Criminal Justice, the Scam series and Black Warrant. It was premium Indian programming — not a saas-bahu show, or a Game of Thrones.”

But creating edgy, cerebral content required steep budgets. The good old TV economics of producing 250 episodes, with each costing in the region of ₹10-20 lakh couldn’t be replicated in the streaming model of creating high-octane content. Therefore, platforms partnered with filmmakers and costs escalated upwards of ₹3-4 crore per episode for a 10-episode original series. Since the likes of Netflix, Amazon Prime Video and JioHotstar had deep pockets, they could afford to splurge. The pandemic further inflated budgets, with platforms shelling out massive sums to acquire films and keep viewers engaged during lockdowns, leading to accumulation of debt and forcing most services globally and in India to taper content investment.

This splurge has since led to cost pressures and reduced content investment. Originals dropped from 225 in 2021 to 206 in 2023. “In 2023 there was 2,986 hours of premium OTT content; in 2024 it came down to 2,620 hours. This year is expected to be flat, and costs will come down. Going forward, there will be more content created at lower price,” says Ashish Pherwani, partner, media and entertainment, EY.

Veteran filmmaker Ram Madhvani, creator of Arya and The Waking of a Nation, and founder, Ram Madhvani Films and Equinox, reflects on the shift: “Before OTT, we were not able to offer content for TV. It had to be made of a certain quality and I was not able to make content at that cost. The anxiety today is not to make money, but being able to continue to bring work.”

EY’s Pherwani stresses cost control: “To be profitable, they will have to cut content cost, customer acquisition cost, and bring in efficiencies in streaming. Earlier, a cable operator sold a set-top box and had monthly billing. Now, if you don’t like a streaming service, you are free to drop it. More often than not, the cost of acquiring a customer is higher than what they pay.”

In fact, the challenge JioHotstar is staring at is retaining its 275 million-plus subscribers after IPL. While it offers a broad library, including Disney, Paramount, Peacock, and HBO content, retaining IPL viewers who don’t consume premium shows is a challenge. The company spends $2 billion annually on IPL and ICC rights and must also invest in compelling content to maintain subscriber loyalty.

Still, Vivek Raicha, former executive director and investment head at Emerald (KKR’s pan-Asia private equity fund), says businesses going overboard with investment at the time of launch is common. “When Prime Video and Netflix launched, they were aggressive with content. Everyone goes through these cycles. There is a mismatch between cost of production and revenue per subscriber. But if you are thinking over a 10–20 year horizon, I don’t see a problem. Per capita income will go up to $14,000.”

In summary, while Indian OTT platforms have successfully taken the nation’s stories to a global audience, sustaining growth and profitability will require a more measured approach to investment, content creation, and customer retention. The next phase will be about balancing creativity with commercial prudence.

Rationalisation over cost-cutting

Gaurav Gandhi, vice president, Amazon Prime Video, Asia-Pacific & Middle East-North Africa, maintains that the platform remains deeply committed to the Indian market, despite adjustments in content spending. “When more players actively acquire content, demand rises. Conversely, as the market consolidates and fewer buyers remain, the volume of acquisitions declines — a typical demand-supply adjustment, also seen in the Indian streaming landscape. However, this shift should not be mistaken for a negative outlook on the sector. Those who are invested in this space remain deeply committed,” Gandhi explains, alluding to the Reliance–Disney-Star merger and the failed Sony-Zee deal.

Jyoti Deshpande, president, media and content business, Reliance Industries Ltd, agrees. “In that period, when Sony was looking at Zee, and Reliance was looking at Disney, the big players were distracted. What should have gone on four-five platforms were being offered to two —Netflix and Amazon, as they were not in any M&A.”

Monika Shergill, vice president, content, Netflix India, says profitability has always been a priority, but not by compromising on quality. “We are clear that we are not going to win by being cheaper. We focus on high-quality entertainment,” she says. Netflix has heavily invested in premium Indian content, including Heeramandi, Black Warrant, Dabba Cartel, The Roshans, the Khakee series, Jewel Thief - The Heist Begins, Pushpa 2: The Rule and The Diplomat. “Budgets are not guiding the Netflix programming strategy; our priority is to take Indian storytelling across the globe.”

Shergill acknowledges early overspending but compares it to a startup’s growth curve. “It takes multiple pivots for a startup to find its room and place. It’s the same for streaming services. When we started programming, it was a journey of listening and learning. The more we listened, the more we learnt about audiences and their preferences. It was important for us to understand audience dynamics and correctly invest in storytelling,” she adds.

After Covid-19, there was an over-supply of content, which led to a dip in quality, acknowledges Deshpande. “OTT platforms were grabbing whatever was available at a heightened price. Now rationalisation has happened; the focus is back on quality, not quantity. We are making fewer stories that we are confident about.” Deshpande claims 2023 was a stellar year for Jio Studios. “We had more than 50% of the box office. Four out of the Top 10 films were monster hits — Singham Again, Shaitaan and Article 370. At one point the top three of Netflix’s most viewed films globally were Jio Studios films — Article 370, Laapataa Ladies, and Shaitaan.”

Echoing her sentiment, Vikram Malhotra, founder and CEO of Abundantia Entertainment (maker of originals such as Breathe and films, including Chhorii and Jalsa), says the last two years have been excellent for his firm. He believes it’s not about blind cost-cutting but a smarter, more strategic approach. “Streaming services are more calculative now — there is more focus on customers and input costs, which means measures of return on investment (RoI), efficiency and timeliness are coming in a very big way.”

Platforms continue to invest in high-end content but are also picking quality stories that don’t break the bank. For instance, Laapataa Ladies was made on a modest ₹20-25 crore budget and still earned an Oscar nomination. Spending on high-fee stars has also been reined in.

Gandhi adds that the early streaming era was led by film directors and creators. “The 8-10 episode format felt closer to the cinematic storytelling of movies than traditional television that India was creating in the past 15 years. This ecosystem has evolved dramatically since then. Today, we are proud to partner with both traditional powerhouses such as Dharma and Excel, as well as digital-native creators like TVF,” he says.

Nair of Applause Entertainment says streaming services may rationalise costs in the short-term, but eventually they have to invest in content. “Audiences have tasted premium content. We are writing too many obituaries. The industry needs to double down and build the business,” he asserts.

Varied strategy

The streaming battle in India is about engaging audiences with compelling content. Each platform — JioHotstar, Netflix, and Prime Video — is following a unique strategy based on strengths, target audience, and market dynamics.

JioHotstar aims to reach one billion screens, tapping into scale, inherent to Reliance’s DNA. According to Kiran Mani, CEO, digital, JioStar, the app targets both premium users and those on ₹2,500 Jio feature phones.

JioHotstar is leveraging Disney-Star’s legacy in television. Popular shows like Anupamaa, Bigg Boss, and MTV Roadies now have exclusive digital content. “Fans of Anupamaa will get to see bite-sized content, big moments they might not catch on TV. Technology changing from a wire behind the TV should not change what content you are comfortable watching,” Mani told Fortune India in an earlier interview.

In addition to premium global content from Marvel, Disney, HBO, and Warner, JioHotstar is expanding user-generated content (UGC) via JioHotstar Sparks. “People had to go to three places — TV for habitual content, niche hubs for unorganised UGC, and OTTs for hero content. Our hope is to cater to all three,” Mani had said.

Cricket remains JioHotstar’s biggest draw. “Cricket is the biggest attractor of eyeballs. JioStar is spending around $2 billion a year on IPL and ICC rights. It is expensive, but that’s a long-term strategic bet they have taken,” says Gaurav Mehta, partner, head of India, Raine, a global strategic advisory and investment firm.

Amazon Prime Video and Netflix have focussed solely on entertainment, especially in India. “We made a strategic choice to invest more deeply in entertainment. We are not closed to sports, we keep evaluating,” says Gandhi. “An important aspect of retaining your customers is how often you offer them something new as well as how deep your library is.” Prime Video launched 70 original shows and movies last year, with over 100 currently in production.

“As a service, we don’t believe that it is required to have sports to build stickiness because we are an entertainment platform. That is our core,” adds Netflix’s Shergill.

Prime Video’s acquisition of MX Player (merged into MiniTV) expands its mass reach. It also produces films for digital and theatrical release. “We are building an entertainment hub, giving customers content of their choice,” says Gandhi.

Adds Karan Bedi, director and head, Amazon MX Player. “We have 250 million audience per month, so the ideas we pick up has to resonate with a wider pool of audience. In fact, after our transition into the Amazon ecosystem, the ability for us to create high-quality ad experiences for both our users and our advertisers has increased manifold.”

In addition to its own shows, Prime Video has partnered with Apple TV, BBC Player, Sony Pictures Stream, and CN Rewind, as well as regional players Hoichoi, Chaupal, and ManoramaMAX. This is an addition to its own portfolio of content in 10 vernacular languages, and movie rental service. “We are building a category of movie rentals which didn’t exist in India. For this we are partnering with global studios and local ones,” explains Gandhi.

Netflix India, with about 12–14 million subscribers, maintains its premium positioning. The entry-level monthly plan is ₹149, and the highest tier is ₹649 — compared to Prime Video (₹299) and JioHotstar (₹149 with ads and ₹299 without). Shergill, however, says the platform is designed for all audiences. “Being a global streaming service with quality benchmark, it’s important for us to do the highest quality storytelling. Budgets have to be the best to tell that story.”

Engagement is key to Netflix’s success. “We focus on engagement. That brings in high-quality audiences,” says Shergill.

Netflix follows a disciplined programming strategy. “Month-on-month, we programme more than any other entertainment service. We’ve produced about 165 originals in the last seven years and around 30 per year in the past three to four years.”

The platform’s aim is to be the anchor service in India. “This won’t come by just chasing more customers. It will be driven by the quality of stories we tell, how well we tell them, and how consistently we do that,” says Shergill.

Most streaming platforms in India — except Netflix — rely on advertising. Prime Video already has MX Player and will introduce ads to its ₹99 plan from June 18. For ad-free viewing, users will pay ₹129 per month.

Netflix has launched ad-supported tiers in markets, including the U.S., the U.K., and Australia, but isn’t planning that in India. “We are doing well in SVOD (subscription video on demand). It’s important for us to keep growing in our subscription offering, which is happening,” says Shergill.

India’s digital ad market is worth ₹70,000 crore, of which Google and Meta hold ₹60,000 crore. With lower ad rates in India compared to mature markets, Netflix prefers to stick to a subscription-only model for now.

The challengers

While JioHotstar, Amazon Prime Video and Netflix are the big daddies of India’s streaming market, challengers like Sony LIV and ZEE5 are leaving no stone unturned to make a mark with differentiated content strategies.

When Sony Pictures Network decided to do original content on Sony LIV in 2020, its competitors were already burning huge amounts of capital in that space. “The only way we could compete was by picking stories that would surprise our audience and delight them. We decided to tell stories from India, which are slightly more cerebral and authentic,” explains Danish Khan, EVP & business head, Sony LIV and StudioNEXT, Sony Pictures Network India.

The platform, says Khan, was careful not to splurge, certainly not by roping in big stars. “If we have to take the risk of telling fresh stories, we have to control costs in a way so that we can take multiple risks. If we put lots of budgets (money), our ability to take risks in terms of story selection will go down.” The streaming platform, which has 5-6 million subscribers, doesn’t do more than 20 original shows a year. Apart from Hindi content, Sony LIV is also investing significantly in Malayalam content and plans to also get into Telugu, Tamil, and Bengali.

ZEE5, on the other hand, like its parent company, Zee Entertainment, believes in frugality. Instead of investing in expensive original series, the platform sees more merit in acquiring films. It launches 50-60 films across 12 languages every year and does just four-five original series. “While a show could cost me ₹1,000 per subscriber, a movie would cost me maximum ₹350-400 per subscriber,” explains Amit Goenka, president, digital businesses and platforms, Zee.

Having a film-heavy portfolio makes sense, especially in today’s era of snackable content, adds Goenka. “People don’t want to spend 7-8 hours watching a series. There have been instances when we commissioned a story, and during the shoot realised it won’t lend itself to a 7–8-episode series. We crunched it and made a movie out of it. We did that with Attack, a story around the attack on Parliament.”

ZEE5 has also been reducing the number, or duration, of episodes of its original series. “We don’t go beyond six episodes, and not more than 30 minutes each. If we do eight episodes, we reduce it to 25 minutes per episode,” says Goenka. “We stay away from the large content studios. The most expensive piece of original content I have ever produced is around ₹35 crore. If I were to spend ₹30 crore on content, I would buy two films instead. It would give me better RoI.”

ZEE5 has kept customer acquisition costs low through a financially prudent content strategy, but retention remains a challenge. Goenka believes loyalty lies with content, not platforms. Like Amazon Prime Video, ZEE5 is experimenting with a rent-a-piece-of-content model, targeting users unlikely to subscribe by letting them pay a fee to watch individual movies. “Those are experiments we need to make to expand the market,” explains Goenka.

The TV-plus model

Coming back to rationalising costs, the new phrase doing the rounds in the industry is the TV-plus model. If linear TV channels made 250 episodes at ₹10-20 lakh per episode, OTT platforms are seeking a sweet spot at ₹30-50 lakh per episode for an 8–10 episode series. ZEE5 sees merit in this model, and JioHotstar is also looking to reach a mass audience.

“We are trying to create the same show with TV production values. It is TV quality, but great finite stories. We have just launched a Kannada show, Ayyana Mane, which has done phenomenally well. It is a TV-plus model. It cost me ₹1 crore for the entire series,” says Goenka.

Deepak Dhar, founder and group CEO of Banijay Asia and Endemol Shine, calls TV-plus a great way to build a profitable business. “With the migration of audiences from TV to OTT, a considerable set looks for finite premium dramas. They don’t want to binge all at once. This audience wants a daily episode drop — 30-40 finite episodes,” he explains. Banijay produces around 50 shows yearly, with 50% moving towards the TV-plus model.

Sony LIV’s content strategy is a mix of TV-plus and premium content, says Khan. “We have a 30-episode series, Adrishyam - The Invisible Heroes, and Rajsinghani vs Rajsinghani. TV-plus is not just an economic solution but a habit solution. TV viewers follow characters daily, and TV-plus fills that gap. However, every TV-plus or 10-episode original costing over ₹1 crore per episode must meet the simple criterion — is the unit economics working?”

Amazon Prime Video’s MX Player uses the TV-plus model as an AVOD (advertising video on demand) offering, but Gandhi warns that replicating this for Prime Video’s premium content could be disastrous. “If we have to invest deeply in the long term, it has to make sense economically.”

Malhotra of Abundantia adds, “Streaming needs its own plus-plus content model for the plus-plus audience. What worked on linear TV can’t be blindly adapted for streaming to access a wider audience.”

Nair of Applause agrees, “Should you reduce the quality of content because you have to keep prices under control and crash this place, or should you double down and create better and continue to do what you are doing, is the call platforms need to take.” According to the 2025 Ficci-EY report, digital media in India surpassed traditional TV, contributing ₹80,200 crore to the ₹2.5 lakh crore M&E sector, while TV fell to ₹67,900 crore.

Platforms are shifting focus from metros to the Top 50 cities, with more family-friendly and regional language programming, says Malhotra. “There is a clear desire to programme for youth and families. Platforms aren’t bearish about content.”

India’s narrative of creating quality content for local and global audiences is gaining steam, but growth will be measured and mindful.