OTT Platforms Devise Fresh Strategies to Reduce Costs

Key Highlights

• Leading OTT services—Netflix, Prime Video, JioHotstar, ZEE5—benchmark production costs to improve fiscal discipline and profitability.
• Industry tightens budgets amid oversupply, reducing acquisitions and mid/mega-budget content in favor of leaner scripting. 

India's OTT industry is entering a period of financial discipline, with leading platforms such as Netflix, Prime Video, JioHotstar, and ZEE5 conducting content production benchmarking exercises to manage costs and implement fiscal prudence, according to industry executives.

Platforms have hired major consulting firms such as EY, PWC, and Deloitte to develop content cost benchmarks, which will help them allocate resources for various projects more effectively and provide a clear reference point for comparing production costs to shows of similar scale on other platforms.

"The move reflects a shift toward profitability and operational efficiency, as platforms seek to streamline workflows, reduce waste, and align with global best practices," said a media executive familiar with the development.

The cost-cutting push coincides with an increase in OTT content production costs and a greater emphasis on profitability in a competitive market where subscribers are concerned about fees and the number of advertisements.

"The rising costs of OTT episodic content - which is created in shorter seasons compared to longer-running television shows - combined with a focus on profitability by OTT platforms as they mature out from the growth phase, has led to increased cost-consciousness," said Ashish Pherwani, manager of media and entertainment at E India's subsidiary.

According to a Media Partners Asia report, India's streaming industry spent more than $2 billion on original content between 2018 and 2024. It is expected to spend an additional $2.2 billion between 2025 and 2028.

Previously driven by aggressive growth targets, the industry is now focusing on structured spending to ensure long-term growth without sacrificing storytelling quality, executives stated.

Also Read: Kuku Takes Flight To Global Markets With Its Audio & Video OTT Platforms 

The CEO of a major media company stated that the industry has been conducting production audits for years to ensure that content budgets are spent wisely and waste is reduced.

"Production benchmarking, on the other hand, has been prompted by the realisation that companies need to reduce losses and move towards profitability by optimising content spending, which remains the largest cost component for streamers," he told me on condition of anonymity.

Zee Entertainment's president of digital businesses and platforms, Amit Goenka, stated that the company has always been prudent in its content investments.

"When international players entered the market, they approached large production houses with fixed prices and started producing content. "Now, these players are looking to optimise costs," he explained. "They're asking critical questions: how much is going to talent, how much to line production, and how much to VFX... They're asking for detailed breakups."

Goenka stated that the presence of big stars in OTT shows should be justified by their contribution to the script. "If the story holds its own, why would I pay crores to an actor just for being there?" he asked.

According to a media analyst, India's OTT industry, which is still in its early stages, is maturing, and these exercises reflect a concerted effort to control rising production costs. "India doesn't yet have a gold standard for what it costs to produce a streaming show," according to the researcher. "With boards of entertainment companies asking tougher questions, it is critical for the industry to develop such a framework."