ZEE5 sees traction from tier-two, three markets as regional content soars

ZEE5 has seen success with recent releases like Manoj Bajpayee-starrer Sirf Ek Bandaa Kaafi Hai, and is set to expand its offering with new titles such as Gyaarah Gyaarah, produced in collaboration with Karan Johar’s Dharmatic Entertainment and Guneet Monga Kapoor’s Sikhya Entertainment. Upcoming content includes Manorathangal, a Malayalam anthology film and Bangla title - Kaantay Kaantay.

Manish Kalra, chief business officer, ZEE5 India, in an interview, highlighted a 25% annual growth in time spent per user, attributing this to the platform's strategic focus on regional content and targeted investments.

"Till about two years ago, there was about a 70-75% skew towards users from metros and tier-one cities but now we see more viewers from tier-two, three and four cities and towns. Plus, because of our foray into regional languages, content in Tamil, Telugu, Kannada, Malayalam, Bangla and Marathi makes up 50% of overall consumption on the platform," Kalra said.

Kalra noted that in addition to post-theatrical releases like Sam Bahadur, The Kerala Story, and Tejas, southern language titles such as HanuMan, Paruvu, and Thalaimai Seyalagam, which focuses on Tamil politics, have performed well on the platform over the past six months. 

He said that consumers now expect content output to match demand across language markets. ZEE5 is preparing to release four new originals and around eight movies in southern languages in the coming months, alongside the second season of its Hindi original Mithya, and two films featuring Manoj Bajpayee and one with Nawazuddin Siddiqui.

Following the collapse of its merger with Sony Pictures Entertainment, Zee said it was  adopting a three-pronged strategy to cut costs, reduce business overlaps, and enhance content quality. The company aims for an 18-20% Ebitda (earnings before interest, taxes, depreciation, and amortization) margin by 2025-26, despite expected staff reductions. 

Kalra emphasized that ZEE5 remains a strategic priority, focusing on quality content delivered at a sustainable cost, rather than over-investing in high-priced acquisitions.

“We haven’t cut down on investments this year versus last, we are focused on good quality content coming at a good frequency to the consumer so that it doesn’t impact viewership, retention or engagement numbers. The few areas where we felt we had over-invested, those costs and line items we have optimized and right-sized to support the business," he said.

In India’s cluttered OTT market, ZEE5 faces stiff competition from established players like Amazon Prime Video, Disney+ Hotstar, and Netflix. These platforms, often backed by substantial financial resources, continue to dominate the market with standout original content. 

“OTT is a heavy investment game. While on the one hand, you have the likes of foreign giants like Amazon, whose losses are subsidized because of the e-commerce business, there is JioCinema on the other, which is going aggressive with sports and regional content," a rival streaming platform executive said on condition of anonymity.

Also read | OTT, film channels stare at content drought

Kalra remains optimistic, asserting that ZEE5 is well-positioned to capitalize on the growing shift toward digital consumption, particularly in regional markets. The platform's strategic focus on diverse, high-quality content aims to strengthen its market presence amidst intense competition.