By Priyanka Bhatt
Over the past two years, the Indian entertainment industry has undergone a profound transformation, one that traces its origins to the upheaval of the pandemic and culminated in what some are calling its most challenging year. When the world was in lockdown, the entertainment sector quickly adapted, flooding audiences with a steady stream of films and shows on streamers, providing essential distraction during a time of global uncertainty. But what was once a flourishing, fast-paced landscape has, as of 2024, seen a marked slowdown — both in the quantity and quality of content produced.
In the pre-pandemic years, OTT platforms were thriving, with production houses and creators delivering a constant churn of new releases. However, reports from the KPMG Media and Entertainment survey reveal a startling shift: by 2024, 70% of viewers admitted to feeling overwhelmed by the sheer volume of content available. This content fatigue, coupled with significant financial cuts in production budgets, has contributed to the industry’s current challenges. According to industry insiders, several OTT giants have slashed their budgets, at times reducing them by as much as 50% compared to pre-COVID allocations.
Take Netflix, for example. The platform, once known for its prolific output, saw a significant reduction in its original content in 2024. After producing 10 original shows and films in 2023, that number dropped to just five the following year, with many of them failing to make a notable impact. Similarly, Hotstar, another leading player in India’s OTT scene, also cut back — releasing only 11 original titles in 2024 compared to 17 the year before.
Mainstream Hindi cinema has not been immune to these trends either. While 2023 saw 218 films released — including those directly on streaming platforms — 2024 saw only 137. Even more concerning, only 10 films from that total managed to break the Rs 100 Crore mark, a stark contrast to previous years. This slowdown has been further exacerbated by the closures and mergers within the OTT space. Notably, Voot closed its doors, while MX Player merged with Amazon Prime India, and Hotstar joined forces with Jio Cinema. These structural changes, experts argue, have significantly impacted content production and reshaped the market.
Filmmakers, who once thrived during a booming time of content creation, are now grappling with the aftermath of a post-COVID landscape that has made production harder and less profitable. “During the pandemic, we were all creating at full throttle,” says Abhishek Jain, a director known for films like Hum Do Humare Do and Kevi Rite Jaish. “There was an insatiable appetite for content. But now, after the frenzy, we’re seeing a sharp decline in the number of shows being commissioned. The excitement has turned to fatigue.”
As a result, both creators and audiences are now becoming more selective. Engagement is waning, with OTT platforms reporting rising churn rates as viewers grow fatigued from the deluge of content. The sheer volume of releases has created an environment where quality struggles to shine through, and the challenge of keeping audiences hooked has never been greater. Now, the question is who will rise to that challenge?
Adding to this dilemma are economic constraints. As production costs rise, film and TV projects are becoming more expensive to produce. A producer, speaking anonymously, explained that actor fees have skyrocketed, making it increasingly difficult to balance budgets. “If I want to make a film for Rs 100, I need to allocate another Rs 100 just for the actor and their entourage,” he said. The inflation of production costs is compounding the financial difficulties faced by production houses, making even the most high-profile projects a gamble.
This financial pressure has led to a restructuring of major studios. Karan Johar’s Dharma Productions, for instance, sold a 50% stake to Adar Poonawalla of the Serum Institute of India, as it sought to secure capital. Likewise, Pocket Aces, a prominent digital content company, was forced to sell its stake to Sa Re Ga Ma, laying off several key staff members in the process.
Talking about Dharma Productions Karan Johar admitted he realised that in order to grow further, it was crucial to partner with someone who could bring fresh insights into business strategy. “I needed the partnership for that… someone who could help me create a vision and contribute strongly to growth with their business insight,” Johar said at a recent CNBC-TV18 event.
Jain added. “We are facing a situation where the budgets are shrinking, and the big names are pushing up their rates because they know they’re only doing one film instead of five. With fewer projects on the table, everyone is vying for fewer opportunities.”
Meanwhile, the government has also begun to tighten its grip on the digital space, with the Ministry of Information and Broadcasting cracking down on streamers with “obscene and vulgar” content. These regulatory moves have only added to the uncertainty within the industry. As legal and cultural pressures grow, many creators are finding it increasingly difficult to navigate the shifting terrain of censorship, while younger audiences, particularly from the millennial and Gen Z demographics, are growing increasingly alienated due to content fatigue and fundamental shifts in consumption behaviors.
A bright spot in this landscape has been the rising prominence of regional cinema, particularly films from South India. An Ormax Media report found that nearly half of Indian moviegoers now prefer South Indian films over their Hindi counterparts, citing a greater sense of originality and cultural authenticity. “The definition of superstardom and popularity has changed,” said Jain. “People are no longer flocking to theaters to watch a glossy Bollywood film shot in Switzerland. What they want now is strong storytelling that resonates with their roots.”
Indeed, as regional content continues to dominate the cultural conversation, the future of mainstream Hindi cinema looks increasingly uncertain. While the OTT platforms and traditional studios wrestle with shrinking budgets, changing tastes, and regulatory obstacles, one thing is clear: the Indian entertainment industry is at a crossroads, facing its most significant challenges in years. Whether it can adapt to this new reality remains to be seen.
When asked about his investment in Dharma Productions, Adar Poonawalla said, “It’s not such a bad business opportunity… with the verticals like music distribution and content creation, these are areas that will thrive in the next 5-7 years.”
The billionaire candidly acknowledged the unpredictable nature of the entertainment industry, where films can often underperform or exceed budget expectations. “There’s always going to be some kind of gestational period,” Poonawalla remarked, emphasising that the next five years would be pivotal in determining whether the sector’s growth aligns with expectations.
There was also the ban on 18 apps in March 2024 that I&B Ministry put in place on risqué content, thereby affecting the industry to an extent. Advocate and counsel, Bombay High Court, Siddharth Chandrashekhar opined, “Legal ambiguities, such as defining “vulgarity” & “obscenity,” allow the government disproportionate control over narratives. While the government’s regulations aim to “protect” Indian culture, they risk diluting the essence of OTT platforms—freedom and diversity in storytelling. Striking a balance between cultural sensitivities and creative liberty is not just desirable—it’s essential.”
In an official press release, the Ministry of Information & Broadcasting (I&B) informed that 19 websites, 10 apps, and 57 social media accounts associated with these platforms have been disabled for public access in India. Of the 10 banned applications, seven were available on the Google Play Store and three on the Apple App Store. The content, the Centre said, that was hosted on these platforms was “obscene, vulgar, and portrayed women in a demeaning manner.”