The great reset: How Balaji Telefilms is swapping edgy originals for a family-first future

“I feel audiences’ tastes have changed. People who started watching television in 2000 are done now. On TV, unfortunately, I have to create for the masses and have to have the whole world like it. And I’ve done it for too long,” she had told Mint. “So, maybe, a bit of stagnation has set in. Movies work too much on economics, creativity takes a back seat. Here, (on digital) I can do what I want.”

That statement did not age well. Nine years later, ALTBalaji is no more. With the government clamping down on edgy adult content, the streaming app, which came to be known for its adult programming, has ceased to exist. Kapoor herself had stepped down from the platform five years ago.

Balaji Telefilms is now focusing its energies on Kutingg, which was initially launched as a micro-drama platform. As of January, Kutingg has also begun hosting long-format fiction and non-fiction shows, transitioned some non-adult titles from ALTT, and is positioning itself as a family-friendly destination. That, however, is only one part of a three-pronged strategy.

The company, known for mostly risqué theatrical offerings such as The Dirty Picture and Udta Punjab in the last decade, is also announcing a host of feature film projects, starring mostly bankable faces, to recover investment through a combination of theatrical, satellite and OTT revenues.

Thirdly, Balaji, which saw its net loss widen by 107% to ₹24.43 crore in the third quarter of fiscal year 2026 (FY26) and reported a 53.5% year-on-year drop in total revenue to ₹41.58 crore, has also launched an astrological service and a talent management vertical.

However, the big question is, will these new bets pay off?

“Our growth strategy today is built on a multi-platform content ecosystem. Television remains a steady and important part of our business. At the same time, we are expanding our footprint in films and digital content,” Sanjay Dwivedi, group chief executive officer (CEO) and chief financial officer (CFO), Balaji Telefilms, told Mint in an interview. “Through Balaji Studio, we are also opening up our ecosystem to independent creators and new storytelling talent, enabling content creation across OTT and television platforms.”

The idea is to position Balaji as a comprehensive storytelling and content creation engine rather than just a single-format player, Dwivedi added. To this end, he said, the company continues to build partnerships with major streaming platforms and expand its presence on digital platforms such as YouTube.

Despite requests, Kapoor remained unavailable for an interview.

Motion picture focus

In the last two years, Balaji has recognized the need to evolve into an intellectual property (IP)-led company, according to Dwivedi.

“Motion pictures stand out in that sense because today, if I have to make a TV or digital show, I still need to go and pitch and get it approved. This (movie production) gives us a lot of freedom to do what we believe in, and what is core to our strategy,” the CEO said. “We believe we will pivot into a motion pictures company, and in the coming years, Balaji will be more of a movie production house than a TV company.”

He attributed the move to the decline in television’s fortunes, with costs continuing to escalate without a rise in revenue for creators. “It’s not that we are moving away from TV. But earlier, we used to do one or two movies a year, and none some years, so we were a little erratic in that sense. Now, we’ve built a strong pipeline of four to five for each of the next three years,” he added.

Movie production comes with its own challenges, Dwivedi conceded, given the volatile and unpredictable nature of the box office, which gives a film only one shot. But for this, Balaji has tried to de-risk the model by pre-selling digital rights to streaming platforms and locking in an assured amount of revenue so that theatrical earnings can become a bonus.

This April, the company is set to release Bhooth Bangla, a horror comedy starring Akshay Kumar, and will follow it up with Vann, a thriller featuring Sidharth Malhotra. It has also announced projects such as Ragini 3 (formerly Ragini MMS 3), starring Tamannaah Bhatia and Junaid Khan in lead roles, marking a new chapter for the horror-thriller franchise. Then there is Heer Raanjha, the second chapter of the Laila Majnu romantic franchise with director Imtiaz Ali.

Unlike the Balaji movie output from the mid-2000s, which was not just inconsistent but to a great extent focused on adult content, the current slate with titles in the budget range of ₹70-80 crore each, appears more wholesome to trade experts and in sync with audience tastes, favouring genres such as horror comedies.

Further, the slate, which is a combination of theatrical and direct-to-digital movies, includes mid-budget movies that should find it easy to recover costs from the sale of streaming rights since Balaji already has a relationship with most OTT platforms, which themselves look for theatrical content with mainstream faces.

Many industry experts said the bet on movies makes sense. Returns from the film business remain a big draw for content creators and recent successes such as Dhurandhar prove a massive upside is available if a film connects with the audience.

That said, challenges remain. In an earlier interview, film producer Anand Pandit said that what is needed for companies looking to invest aggressively in the movie production ecosystem is financial discipline.

“Budget tightening, successful monetization, strategic green-lighting and lots of resilience and passion will be needed to go on in the face of teething troubles,” said Pandit. “Unsold inventory will be a dampener as well and will impact cash flow if not managed carefully. And because audience fatigue is real amid overflowing content, the real work will have to unfold before a project goes on the floors.”

‘Kutingg’ edge content

The second part of the Balaji strategy is its new digital service, Kutingg, launched after ALTT’s demise. The information and broadcasting ministry blocking multiple OTT apps, citing obscenity and indecency provisions, compelled a rapid compliance reset, said Rohit Jain, managing partner of law firm Singhania & Co. “Balaji then repurposed Kutingg, earlier positioned around micro-dramas, into a full OTT, migrated paid subscribers with existing packs, and ported non-adult or library titles while rebuilding as “family‑first.”

This also aligns with the Information Technology Rules, 2021, and stock‑exchange disclosure discipline, Jain said.

Calling digital a business that has a future, Dwivedi said the company should be in it but with more financial discipline while learning from past mistakes. He also pointed out that high-budget shows are hard to recover with the subscription and advertising opportunities currently available in India.

The company will follow a hybrid model of paid subscriptions, ads and branded content on Kutingg. It will look at cost-effective content that still comes with Kapoor’s storytelling essence while Balaji creates high-budget shows for other streaming platforms.

Dwivedi emphasized the company is not looking to compete with foreign rivals. Industry experts estimate that while big-ticket shows on platforms like Netflix can cost upwards of ₹100 crore, Kutingg’s shows will be in the ₹10-15 crore category.

“Our move from ALTT to Kutingg was part of a broader reset of our digital strategy. Kutingg has been designed as a family-first, mobile-friendly platform that focuses on accessible storytelling formats such as micro-dramas and binge shows,” Dwivedi explained.

The platform will feature a mix of micro-dramas, binge-worthy series, chat shows and reality-led formats across genres such as drama, youth, lifestyle and family entertainment. The content pipeline includes over 200 micro-drama titles alongside longer-format shows.

ALTT had accumulated a certain fan base over time, but it was also known for a specific kind of content, mostly of an adult nature. This limited its chances of becoming a platform for a wider family audience or of attracting big advertisers and partners, said Charu Malhotra, co-founder and managing director, Primus Partners, a management consultancy firm.

“By shifting its content to Kutingg, Balaji is seemingly trying to implement a soft pivot, as opposed to a hard stop,” Malhotra explained. “The idea is to begin anew under a new brand that does not bear the burden of its predecessor’s association in the minds of consumers, and that might appeal to a wider demographic.”

However, standing out in the Indian OTT world is very difficult today. The industry is already flooded with well-funded global brands, large Indian broadcasting groups with streaming divisions, and many niche brands. For a new player to succeed, it must have a very different identity or content pipeline. Kutingg’s ‘family-friendly’ positioning is hardly compelling at a time when viewers can watch such content for free on YouTube. “Unless the platform is able to produce content that is being consumed extensively through social media or attracts word-of-mouth, they may struggle to stand out in the clutter,” Malhotra added.

Where is the funding from?

While many of the movie projects are likely to be funded via OTT deals, which the company says is a priority for the film vertical, it has also spawned a range of new businesses that could offer easy returns—from a talent management vertical to an astrology service, besides also hosting content on YouTube that ensures easy ad revenue.

The single biggest change in the company’s strategy is the shift away from TV production, where it only has a few shows on air currently, including the ‘Kyunki Saas Bhi Kabhi Bahu Thi’ reboot.

That said, with well-funded OTT and corporate studio rivals, the going could be tough. A decade ago, Balaji’s rivals were deep-pocketed TV networks. Now, the competitors are Big Tech platforms flush with US dollars.

Dwivedi emphasized that the company’s current focus is on building a strong content pipeline and expanding audience reach. Revenue will come through a combination of advertising, platform partnerships, and content licensing.

“As the platform grows its audience base and content library, we expect monetisation to follow. Our approach is to build the business in a sustainable and disciplined way rather than pursuing growth at any cost,” he added.

Balaji is behaving less like a single-format studio and more like a diversified entertainment-and-services house, according to Rishabh Gandhi, founder, Rishabh Gandhi and Advocates. “Kutingg is one pillar. Talent management (Hoonur) is another—because controlling or aligning talent pipelines reduces friction and creates cross-vertical monetisation such as shows, brand deals, appearances,” he said. “Astrology is a different bet: high-frequency, sticky use case, potentially better margins if executed well. Meanwhile, commissioned TV and films still contribute meaningfully to revenue. Put simply: they’re trying to monetize audience, IP and talent across multiple rails, not only through one subscription app,” Gandhi said.

However, challenges persist. The overall OTT space has become much tougher than it was a few years ago. Growth in subscribers has slowed, and platforms have become much more conservative in commissioning new content. Moreover, the theatrical business is inherently volatile, and that makes the business of filmmaking a tricky proposition.

For Balaji, the first challenge will be to pick up the pace in OTT while keeping costs under control. Another will be to ensure that the audience tries the new platform even though there are many other choices available.

The company will also have to consider changing the strategy it had employed in the past for ALTT. Shock content, which worked previously, might not be easily applicable in the new scenario. It will have to be a much more balanced content strategy that can travel across the country and across different age groups.

“The past year was more inward-looking for us. Now, our real test starts, where the pyramid shifts to motion pictures, then digital and TV, and you should see all our efforts paying off,” Dwivedi said.