The production arm of the UK-based BBC Group, BBC Studios is reportedly exploring options for its India content production business, including a potential exit. This decision comes in response to challenges within the media and entertainment (M&E) sector, such as industry consolidation and shrinking content budgets from TV broadcasters and OTT platforms, according to multiple sources, as reported by The Economic Times.
The current market dynamics have made content production increasingly competitive. Industry experts note that as broadcasters and OTT platforms tighten their budgets and focus on profitability, the number of projects being greenlit has declined. This shift has intensified competition among content producers, reducing their margins and making the business environment more challenging.
“BBC Studios plans to shut down its production business in India due to challenges in the broader M&E industry,” said a source familiar with the matter, who requested anonymity. The source further explained that both OTT platforms and broadcasters have become more selective about approving projects, pushing producers to maximise output within constrained budgets.
A BBC Studios spokesperson responded to queries from The Economic Times, stating, “We regularly review our business operations to ensure they are as efficient and effective as possible and are currently undertaking a review of our production operating model in India.”
BBC Studios’ potential move reflects broader trends within the industry, where profitability and efficiency are increasingly prioritised, posing significant challenges for production houses globally.