Platforms have engaged consultant majors like EY, PWC and Deloitte to create content cost benchmarks – to help them allocate resources for various projects more effectively with a clear reference point to assess production costs in comparison with shows of similar scale on other platforms.
“The move reflects a shift towards profitability and operational efficiency, as platforms look to streamline workflows, reduce wastage, and align with global best practices,” said a media executive aware of the development.
The cost optimisation push comes amid a spike in production expenses of OTT content and increased focus on profitability in a competitive market where subscribers are sensitive about charges 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, media and entertainment leader at EY India.
According to a Media Partners Asia report, the streaming industry in India spent over $2 billion on originals between 2018 and 2024. It is projected to spend another $2.2 billion between 2025 and 2028.Previously driven by aggressive growth targets, the industry is now focusing on structured spending to ensure sustainable growth without compromising on storytelling quality, executives said.The CEO of a leading media company said the industry has been conducting production audits for years to ensure that content budgets are spent judiciously and wastage is minimised.
“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 said requesting anonymity.
Amit Goenka, president – digital businesses and platforms at Zee Entertainment, said the company has always been judicious with its content investments.
“When international players entered the market, they approached large production houses that quoted fixed prices and began creating content. Now, these players are looking to optimise costs,” he said. “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 said the presence of big stars in OTT shows should be justified by their value to the script. “If the story holds its own, why would I pay crores to an actor just for being there?” he said.
A media analyst noted that India’s OTT industry, still at a relatively nascent stage, is maturing, and these exercises reflect a concerted effort to bring order to rising production costs. “India doesn’t yet have a gold standard for what it costs to produce a streaming show,” the analyst said. “With boards of entertainment companies asking tougher questions, it has become essential for the industry to develop such a framework.”
