This strategy has enabled the platform to increase both advertising and subscription revenue while reducing expenses. It expects the advertising business to pick up once the ad rate correction occurs in the industry and Connected TV (CTV) numbers increase. On the subscription side, it has partnered with Vodafone Idea and is in advanced discussions with Bharti Airtel.
In the quarter ending in June, ZEE5 reduced its operating loss by 48% to ₹177 crore, while revenue grew by 16% to ₹223 crore. Over the 12 months ending in March, revenue increased by 24% to ₹919 crore, although the operating loss remained steady at ₹1,105 crore.
“We are focused on driving efficiency and improving overall productivity without compromising growth. It’s an interesting challenge because consumers have many choices, so we must provide them with best-in-class content without overspending like others in the industry,” said ZEE5 Chief Business Officer Manish Kalra.
ZEE5 has identified Hindi, Bangla, Tamil, and Telugu as key markets for original web shows and movie acquisitions. It also plans to launch original content in Kannada, Malayalam, and Marathi, having limited its focus to movie acquisitions in these markets until now.
Kalra noted that nearly 40% of ZEE5’s subscriptions come from cities outside the top 20, with regional content accounting for more than 50% of the platform’s total watch time. This shift towards regional content has been a key factor in expanding their audience base.On the technology front, ZEE5 has made significant advancements to enhance the user experience. The technology team in Bengaluru has been focusing on refining the recommendation engine and utilising machine learning to deliver more accurate results.Drawing from its roots in producing family-oriented television content, ZEE5 is adopting a similar approach while ensuring that storytelling and creativity remain uncompromised.
“In the past 12 months, our content has featured very little profanity and no intimate scenes. Indian consumers enjoy good plots, complex characters, and layered stories. However, they want content that can be enjoyed with family, as India remains largely a single-TV household,” Kalra explained.
In terms of original movie production, ZEE5 is focused on creating content that delivers a strong return on investment. Kalra mentioned this includes negotiating better deals with production houses and effectively managing actor fees.
Kalra also pointed to emerging trends in the OTT industry, such as Connected TV (CTV) and 4K streaming. He noted that while there are 35 million CTV households in the country, only 25 million are internet-connected.
He shared that 75% of ZEE5’s paid subscribers prefer watching content on CTVs, while 82% of free content consumption occurs on mobile. Additionally, 20% of ZEE5’s users stream content in 4K, and nearly 80% of the platform’s content library is available in 4K.
