Movie sequels and fresh seasons of web shows help create longstanding content universes for audiences, but experts say they also come with an inevitable escalation in costs. Budgets increase as actors demand higher fees and production values need a step-up with foreign locations, grand sets and better visual effects.
However, given the failing draw of movie sequels at the box office and slowing OTT subscription growth, platform executives and content creators say reliance on the formula may not always pay off as expected.
Over the past few months, sequels and franchise films such as Baaghi 4 ( ₹47.4 crore), Thamma ( ₹123.6 crore) and War 2 ( ₹185.13 crore) have underperformed at the box office. And, as streaming platforms bank on new seasons of web shows, the needle isn’t really moving as far as their paid subscriber numbers go.
India's OTT audience universe – those who have watched digital videos at least once in the past one month – is now at 601.2 million people, according to media consulting firm Ormax. Annual subscriber growth was 9.9% in 2025, lower than the 13%-plus growth rate in 2023 and 2024.
“Costs almost always rise with a show’s second season, especially if the first one was a hit,” said Ujjwal Mahajan, co-founder of Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content. “Success naturally drives up expectations and, in turn, expenses. Artists often demand higher fees and marketing spends increase to sustain the momentum. Unless multi-season contracts are locked early on, which is rare, producers face tricky negotiations when renewing.”
Actor fees definitely go up for sequels or later seasons, but there’s a limit to what’s feasible, Mahajan added.
Overnight change
Charu Malhotra, co-founder of Primus Partners, a management consultancy firm, said once a film or show becomes successful, the cast’s market value changes overnight. Lead actors, in particular, often negotiate higher upfront fees or profit shares.
In films, the increase can range from 30% to even 80%, depending on how central the actors are to the franchise. For web series, the hike is a little more measured, usually 20-40% between seasons – more if the show becomes a breakout success, she added. Further, inflation in crew rates and production rentals adds up.
“Visual effects, CGI (computer-generated imagery) and music rights have also become major cost centres, especially for big franchises. For OTT shows, there is an added cost of retaining key creative teams like writers, showrunners and directors, who now command premium rates once a show becomes popular. Also, when a show moves into its third or fourth season, the shoot calendar usually expands; more episodes, more locations, higher unit costs,” Malhotra said.
Experts emphasize that marketing and promotions become bigger with every successful title. Post-production is another area that adds to the cost. Arpit Mankar, head, non-Bollywood category at Shemaroo Entertainment Ltd, pointed out that if a shoot takes longer than planned, holding the crew and sets for extra days adds up too.
“Another less visible but significant driver is the creative evolution itself. As stories progress, the number of shoot days, the balance of indoor versus outdoor locations can also play a role in cost escalation. Small increments across many moving parts have a higher impact on overall costs,” Mankar added.
Executives including Mankar say making a franchise works only when the story has more to say. If the theme and characters have space to grow, then building the next instalment can make sense.
Relevant and fresh
According to Rajat Agrawal, chief operating officer and director of Ultra Media & Entertainment Group, the returns on investment for creating a brand or franchise can be substantial, but it depends on factors such as engaging storytelling, memorable characters and high production values that can lead to a loyal audience and positive word of mouth. Effective marketing strategies can help build a strong brand identity and attract new audiences.
“Successful franchises can generate additional revenue streams through merchandising, licensing and brand partnerships. However, franchises must innovate and evolve to stay relevant and fresh,” he said, adding that it's important to acknowledge that not all franchises are successful and the risks associated with creating a franchise can be significant. Careful planning, execution, and audience engagement are essential to maximizing the returns on investment.
“You can’t force it just because the first one worked. Returns don’t always match the extra spend. The first one often benefits from novelty while the next ones carry the burden of expectations. What matters is how each instalment strengthens the brand and builds loyalty. The real success is when people remember and return to that world again and again,” Mankar added.