Regional OTT Content Grabs 30% of Platform Budgets as Demand Soars
Regional Languages Claim 30% of OTT Investments

The Indian Over-The-Top (OTT) streaming landscape is undergoing a dramatic transformation as regional languages claim an increasingly significant share of platform investments. Major streaming services now allocate nearly 30% of their budgets to non-Hindi content, responding to surging regional audiences and growing demand for premium storytelling in local languages.

The Regional Content Revolution

Entertainment industry experts confirm that while budgets for regional content have become substantial, platforms view them as strategic investments to build the category and tap into exploding demand. According to recent data, the mid-year list of top 50 originals features several regional successes including Tamil fiction series Suzhal – The Vortex Season 2 with 8.3 million viewers, Heart Beat at 7 million, Malayalam fiction series Kerala Crime Files Season 2 with 6.9 million, Tamil film Test at 6.5 million, and Telugu fiction series Devika & Danny with 5.2 million viewers.

However, these impressive numbers still pale in comparison to viewership figures for top Hindi originals between January and June, such as Criminal Justice: A Family Matter at 27.7 million and Ek Badnaam Aashram Season 3 at 27.1 million, highlighting the growth potential for regional content.

Budget Boom and Changing Economics

The financial landscape for regional content has evolved dramatically. Compared to per-season costs of ₹1-2 crore earlier, regional language web originals now command budgets of ₹5-10 crore on bigger platforms. This still falls significantly short of Hindi language shows, which cost upwards of ₹30 crore due to broader national marketing campaigns and higher talent costs.

According to Siju Prabhakaran, chief business officer at ZEE5, this gap is narrowing as regional markets expand and appetite for premium storytelling surges across the board. "What we are witnessing, especially in the southern states, is creators pushing the envelope with rooted yet cinematic storytelling, often requiring the same production values as mainstream Hindi shows. The cost dynamics may vary by region, but the creative investment and quality benchmark remain uniform," Prabhakaran explained.

The shift is reflected in viewership patterns, with over 65% of ZEE5's total viewership now coming from non-Hindi languages. Industry experts note that the company's budget allocation for a regional show generally ranges between ₹8-10 crore.

Challenges in Regional Content Monetization

Despite the growing investments, the return on investment for regional productions remains uncertain. Rajat Agrawal, chief operating officer and director of Ultra Media & Entertainment Group, pointed out that regional language content budgets are typically lower due to niche audiences and limited geographical reach.

"The return on investment (ROI) for these productions can be uncertain, and platforms need to carefully consider their content strategies to ensure that they are meeting the needs of their target audience," Agrawal emphasized.

The challenges facing regional content are twofold—accessibility and relevance. Viewers expect flexible, affordable plans and user experiences in their native languages. The second challenge involves cultural relevance, as each region possesses its own storytelling grammar, cultural nuances, and star ecosystems.

Charu Malhotra, co-founder and managing director of Primus Partners, highlighted that many regional viewers still access OTT content through shared family accounts or bundled telco offers. Subscription fatigue presents another real challenge, while dubbing quality and recommendation algorithms continue to skew toward Hindi or English, making it difficult for regional originals to surface organically.

Ujjwal Mahajan, co-founder of Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content, identified reach and education as additional hurdles. "These are viewers long used to paying for cable or mobile recharges, so the shift takes time. But once that initial hurdle is crossed, adoption becomes seamless," Mahajan noted.

Saurabh Srivastava, chief operating officer of digital business at Shemaroo Entertainment Ltd, observed that with increasing smartphone and broadband penetration in tier-two or three cities, appetite for mother-tongue content is growing rapidly. "The real shift is in preference; people are actively seeking out regional stories that reflect their culture. Streaming has penetrated regional households faster than many expected, but monetisation and distribution haven't scaled at the same pace," Srivastava added.

Monetisation outside metropolitan areas remains a delicate balancing act, characterized by lower average revenue per user (ARPU) and heavy dependence on ad-supported models. Each regional market brings its own unique economics, culture, and consumption rhythm, requiring tailored approaches from streaming platforms seeking to capitalize on India's diverse linguistic landscape.