Mumbai: Content production houses are grappling with a growing backlog of unreleased films and streaming content, leaving them saddled with hundreds of crores of unsold inventory, industry executives told ET.
With television broadcasters and OTT platforms tightening budgets and going slow on content investments, the industry is finding itself at a crossroad. Executives said the ongoing consolidation in the media sector has compounded worries for content producers.
The industry is contending with the twin challenges of unsold inventory and falling acquisition prices for shows and films. Streaming rights for films have declined 30%, while satellite rights have corrected by 50–60%. The per-episode cost of some TV dramas has nearly halved while producers of big-budget reality shows are facing mounting pressure from broadcasters.
Several completed projects remain unreleased as platforms reassess spending, focusing instead on profitability and cost optimisation. Applause Entertainment, Jio Studios, and Zee Studios are among studios with unsold ready content.
"A lot of content studios went on a content production spree between 2021–23 buoyed by the spurt in demand for streaming post Covid. However, the industry was hit by a reality check as the industry was going through consolidation and the streaming giants were also re-evaluating their content strategy," said Bharat Ranga, MD, Beginnen Media. He however emphasised that the content industry “remains robust as consumption continues to remain solid”.
Industry estimates show 150–200 mid-budget films across languages are yet to find buyers among streamers or secure theatrical releases while 40–45 web series are awaiting streaming debuts. Some of the affected films include ‘Tehran’ (starring John Abraham), ‘Sarvagun Sampanna’ (featuring Vaani Kapoor), and ‘Kennedy’ (directed by Anurag Kashyap).
Aditya Birla Group-backed Applause, known for its aggressive content investments in recent years, had inventory of Rs 687 crore as of September 30, 2024. People said the company had Rs 150 crore of unsold content, which has since halved to Rs 75 crore.
“Our content investment consists of subsequent seasons, new series and movies in production and development, ambitious projects like Gandhi, and some ready shows and direct-to-platform movies. Yes, like many others, we also have a small amount of unsold inventory. However, a large part of the inventory on the books is work-in-progress (WIP) content," said Prasoon Garg, chief business officer, Applause Entertainment.
In April 2023, Reliance Industries-owned Jio Studios unveiled a slate of over 100 movies and web shows across languages and genres, with plans to release them over 18–24 months at a total investment of Rs 2,000 crore. While a major portion of that slate has been released, some titles are still awaiting buyers.
Even the reality TV space is not immune to cost rationalisation. JioStar is in active talks with Banijay Asia-owned Endemol India to cut production costs of marquee shows like Khatron Ke Khiladi and Bigg Boss Hindi, amid weak TV ad monetisation, said industry insiders.
Despite the headwinds, production houses are betting on long-term value creation. Applause, for instance, remains committed to retaining IP rights, hoping a future demand surge will unlock the value of its content library.
Analysts estimate that about 300 Hindi films are released annually. However, given the selective appetite of major streamers, only 30–40 Hindi films—typically big-budget projects with major stars—are being acquired for streaming. This leaves nearly 250 Hindi films with limited release options, forcing them to compete aggressively for buyers, which now also include aggregators and independent distributors. Mid-budget films, often lacking star power, are especially vulnerable. Experts say content buyers are more genre-specific when considering mid-budget titles.
"We have to understand the situation from two perspectives—one is streamers, and the other is theatres. I think streamers are highly selective in buying mid-budget films largely because there is low discovery for such films on their platforms. As regards theatres, the focus is clearly on big-budget or spectacle or mass films which can provide high footfalls," said Sharad Mittal, founder of Kathputlee Arts & Films, a Mumbai-based production house.
"A recourse for producers of mid-budget films is to look for aggregators who can bundle films based on a theme or genre and sell them off. These producers can also collaborate with independent film distributors who distribute mid-budget films in small yet notable territories in the overseas markets," he added.
With television broadcasters and OTT platforms tightening budgets and going slow on content investments, the industry is finding itself at a crossroad. Executives said the ongoing consolidation in the media sector has compounded worries for content producers.
The industry is contending with the twin challenges of unsold inventory and falling acquisition prices for shows and films. Streaming rights for films have declined 30%, while satellite rights have corrected by 50–60%. The per-episode cost of some TV dramas has nearly halved while producers of big-budget reality shows are facing mounting pressure from broadcasters.
Several completed projects remain unreleased as platforms reassess spending, focusing instead on profitability and cost optimisation. Applause Entertainment, Jio Studios, and Zee Studios are among studios with unsold ready content.
"A lot of content studios went on a content production spree between 2021–23 buoyed by the spurt in demand for streaming post Covid. However, the industry was hit by a reality check as the industry was going through consolidation and the streaming giants were also re-evaluating their content strategy," said Bharat Ranga, MD, Beginnen Media. He however emphasised that the content industry “remains robust as consumption continues to remain solid”.
Industry estimates show 150–200 mid-budget films across languages are yet to find buyers among streamers or secure theatrical releases while 40–45 web series are awaiting streaming debuts. Some of the affected films include ‘Tehran’ (starring John Abraham), ‘Sarvagun Sampanna’ (featuring Vaani Kapoor), and ‘Kennedy’ (directed by Anurag Kashyap).
Aditya Birla Group-backed Applause, known for its aggressive content investments in recent years, had inventory of Rs 687 crore as of September 30, 2024. People said the company had Rs 150 crore of unsold content, which has since halved to Rs 75 crore.
“Our content investment consists of subsequent seasons, new series and movies in production and development, ambitious projects like Gandhi, and some ready shows and direct-to-platform movies. Yes, like many others, we also have a small amount of unsold inventory. However, a large part of the inventory on the books is work-in-progress (WIP) content," said Prasoon Garg, chief business officer, Applause Entertainment.
In April 2023, Reliance Industries-owned Jio Studios unveiled a slate of over 100 movies and web shows across languages and genres, with plans to release them over 18–24 months at a total investment of Rs 2,000 crore. While a major portion of that slate has been released, some titles are still awaiting buyers.
Even the reality TV space is not immune to cost rationalisation. JioStar is in active talks with Banijay Asia-owned Endemol India to cut production costs of marquee shows like Khatron Ke Khiladi and Bigg Boss Hindi, amid weak TV ad monetisation, said industry insiders.
Despite the headwinds, production houses are betting on long-term value creation. Applause, for instance, remains committed to retaining IP rights, hoping a future demand surge will unlock the value of its content library.
Analysts estimate that about 300 Hindi films are released annually. However, given the selective appetite of major streamers, only 30–40 Hindi films—typically big-budget projects with major stars—are being acquired for streaming. This leaves nearly 250 Hindi films with limited release options, forcing them to compete aggressively for buyers, which now also include aggregators and independent distributors. Mid-budget films, often lacking star power, are especially vulnerable. Experts say content buyers are more genre-specific when considering mid-budget titles.
"We have to understand the situation from two perspectives—one is streamers, and the other is theatres. I think streamers are highly selective in buying mid-budget films largely because there is low discovery for such films on their platforms. As regards theatres, the focus is clearly on big-budget or spectacle or mass films which can provide high footfalls," said Sharad Mittal, founder of Kathputlee Arts & Films, a Mumbai-based production house.
"A recourse for producers of mid-budget films is to look for aggregators who can bundle films based on a theme or genre and sell them off. These producers can also collaborate with independent film distributors who distribute mid-budget films in small yet notable territories in the overseas markets," he added.
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