Films dominate OTT views, but original series key to subscriber retention
Content creators and platform executives said many first-time subscriptions are taken when a big film is on offer. That said, originals are required to retain user engagement and sustain binge-watching between such film releases and are likely to emerge as a bigger priority, going forward.
“On most Indian OTT platforms, acquired films often dominate in sheer numbers. Originals, however, contribute disproportionately to subscriber retention and platform loyalty,” said Rajat Agrawal, chief operating officer of Ultra Media & Entertainment Group, which owns OTT platform Ultra Jhakaas. “Typically, 60-70% of initial views may go to acquired films, but 30-40% of sustained engagement and binge-watching stems from originals. Acquired, big-budget movies with star power have a wide and immediate appeal, driving spikes in viewership when released.”
Originals drive differentiation and brand identity, appealing to more niche and dedicated viewers seeking unique content not available elsewhere, Agrawal explained.
Arpit Mankar, head of the non-Bollywood category atShemaroo Entertainment Ltd, agreed that acquired films generally attract viewers due to their familiarity and mass appeal and they remain the dominant contributor to viewership while originals offer a unique, platform-exclusive value, helping build a distinct identity and loyalty among viewers.
Returns on investment
“We have been consistently making aggressive investments in acquiring new Gujarati films and it wouldn’t be incorrect to say that these investments are a key factor in encouraging the industry to produce more quality Gujarati films for theatrical audiences. Moving forward, we will continue our investment in new Gujarati films, while dramatically increasing our investments in original series to grow the market. This is because we believe that originals play a vital role in driving preference for OTT platforms,” Mankar said.
Despite a slowdown in investments and efforts to link the acquisition costs of movies to their box office collections, experts said OTT platforms dedicate substantial budgets to acquire the digital rights of big-ticket movies to secure mass viewership.
“The cost of acquiring a recent blockbuster can range between ₹60-100 crore, that too if the movie is acquired at the pre-production stage. Once the movie hits the big screen and is a big hit, this amount goes much beyond ₹200 crore,” said Charu Malhotra, co-founder and managing director at Primus Partners India, a management consultancy firm. “To manage costs, platforms are adopting flexible film acquisition deals such as time-bound streaming windows. As these platforms have to balance the returns on investment that can be generated from these huge investments, there is a slowdown in the market for acquisition of big budget movies.”
The target audience for films and original content can be quite different, according to Soumya Mukherjee, chief operating officer of Bengali streaming service hoichoi. While overseas audiences may prefer a film not released in their area, domestic audiences could take to originals. The platform doesn’t usually buy films before theatrical release and waits to observe how the box office turns out, Mukherjee added.
To be sure though, services are increasingly seeing value in bolstering original libraries. Ujjwal Mahajan, co-founder of Chaupal, a platform specialising in Punjabi, Haryanvi and Bhojpuri content, said outside content definitely helps get subscriptions sooner as there is demand, but original content is what builds platform brand awareness and loyalty.
“The chance of making more seasons of the original series is another plus. The cost of creating a high-quality show with a good cast is the same as, or sometimes even more than, a theatrical acquisition. Today, 30 originals on Chaupal contribute to the same amount of viewership as the top 150 acquired movies. They’re viewed five times more. A series with decent actors gets more eyeballs than box office rockers with crores in collections and big names. The reason is simply the quality and relatability of the content,” Mahajan said.
Hybrid approach
Kaushik Das, founder of AAO NXT, an Odia language OTT, said the platform’s strategy is to expand its portfolio of original content to meet growing demand for regional stories.
“This includes allocating significant resources toward discovering and nurturing local talent, improving production quality, and enhancing the variety of genres in our Odia originals. Investments in AI-driven personalisation and viewer insights will help us tailor content and monetise effectively across SVoD (subscription video-on-demand), TVoD (transaction video-on-demand or pay per view), and AVoD (advertising video-on-demand) models,” Das added.
Sourjya Mohanty, chief operating officer of EPIC ON, emphasised that future investments will adopt a hybrid approach, guided by analytics that track regional consumption trends such as urban-versus-rural preferences or genre-specific demand.
“Acquiring content requires a lower upfront investment and allows for rapid catalogue expansion. However, increasing competition in the OTT space is driving up licensing fees, and such agreements often come with limitations, such as time-bound availability,” Mohanty said.
Over time, platforms are likely to prioritise original content to build sustainable competitive advantages. Strategic acquisitions will continue to supplement the content library by filling gaps. Rather than compete for expensive blockbuster titles, platforms may focus on niche or regional content with untapped potential, thereby optimising costs, he added.
