Small-Budget Regional Films Face Streaming Hurdles Despite Growing Demand
Small-budget films in regional languages continue to struggle with securing streaming deals despite increasing demand for diverse content. Industry experts reveal that only about half of movies made in many regional languages find buyers on over-the-top platforms.
Limited Acquisition Opportunities
Major streaming services like Netflix, Prime Video, and JioHotstar dominate acquisitions, with SonyLIV and ZEE5 playing smaller roles. These platforms operate with packed calendars and tight budgets, creating significant challenges for producers of regional films.
Many movies remain completely unreleased or must wait indefinitely for platform interest after theatrical runs. This situation persists even as streaming audiences increasingly consume content beyond Hindi, with regional originals gaining substantial viewership.
Viewership Trends and Platform Investments
Recent data highlights the growing popularity of regional content. The mid-year list of top 50 originals published by Ormax in 2025 featured several successful regional titles:
- Suzhal – The Vortex (Season 2): 8.3 million viewers
- Heart Beat: 7 million viewers
- Kerala Crime Files (Season 2): 6.9 million viewers
- Test (Tamil film): 6.5 million viewers
- Devika & Danny: 5.2 million viewers
Platforms have announced significant investments in regional content. Netflix revealed six new Tamil and Telugu originals in October, while JioHotstar committed to 1,500 hours of fresh South Indian programming alongside a ₹4,000 crore investment over five years.
Scale Challenges for Smaller Languages
Nitin Gupta, Chief Content Officer at Chaupal, explains the core issue. "National OTT platforms simply don't focus enough on regional markets. Audience sizes for regional languages aren't as large as Hindi, forcing producers to work within extremely tight budgets."
He notes that greenlighting decisions have become more measured. Producers now carefully evaluate cost recovery potential, cast value, and content longevity before proceeding with projects.
Charu Malhotra, co-founder of Primus Partners, confirms the disparity. "In Hindi, Tamil, and Telugu, OTT rights are almost guaranteed for mid-to-large films. But in Marathi, Gujarati, Punjabi, Bengali, and other languages, many films don't find buyers due to scale limitations."
Producer Adaptations and Market Changes
Producers in smaller language industries are adapting cautiously. Some delay projects while others reduce budgets significantly, recognizing they cannot rely on OTT revenue to cushion financial risks.
Regional OTT platforms sometimes step in, but their smaller budgets mean they rarely offer rates that allow full cost recovery. For many producers, the OTT window has become more of a bonus than a guaranteed revenue stream.
Independent trade analyst Sreedhar Pillai observes dramatic market changes. "Platforms regret pandemic-era decisions to pay large sums for content acquisition. Now there's a complete clampdown, leaving a huge inventory of unsold regional films."
He notes that films without star power face particular challenges, though movies featuring top actors like Mammootty and Mohanlal in Malayalam still find takers.
Limited Platform Capacity
Mukesh Mehta, founder of E4 Entertainment, provides concrete numbers. "Between Netflix, Prime Video, JioHotstar, SonyLIV, and ZEE5, platforms can premiere at best 60 films annually. Even with pay-per-view and rental options, only about 50% of regional film libraries get sold."
This low success rate creates a vicious cycle where platforms assume smaller regional films won't perform well, further limiting acquisition opportunities despite growing audience interest in diverse content.
