With foreign streaming platforms such as Netflix and Prime Video, along with major broadcasters, turning cautious on acquiring theatrical films for OTT and satellite television, small-budget and regional-language cinema is bearing the brunt.
Entertainment industry experts say big-star films continue to find buyers, but small and mid-budget titles in languages such as Tamil, Kannada, Malayalam, Punjabi and Gujarati often remain unsold after their theatrical run.
Against this backdrop, the launch of Tamil general entertainment channels Sony Vizha and Sony Vizha HD by Sony Pictures Networks India (SPNI), alongside the company's broader push into regional films across television and OTT, and players such as Gujarati entertainment firm JOJO Ltd strengthening acquisitions, signals positive news for regional filmmakers.
The emergence of new regional channels strengthens the broader content ecosystem by bringing fresh investment into programming and film acquisitions, creating additional monetization opportunities for producers. At the same time, regional stories are increasingly finding audiences beyond their home markets.
New buyers
“A new broadcaster or platform does much more than add another buyer—it expands the market for regional content. More acquisition avenues give producers greater confidence to back new ideas, particularly films that may not be conventional star vehicles but have strong storytelling at their core,” said Rajaraman Sundaram, chief content officer – south, Sony Pictures Networks India (SPNI).
As the company launches Sony Vizha and expands its South entertainment portfolio, movies will be a key pillar of its content proposition, Sundaram added.
Regional-language film acquisitions have become a strategic priority for both OTT platforms and linear broadcasters, offering a cost-effective alternative to high-budget Hindi productions while delivering strong audience engagement, agreed Chandrashekhar Mantha, partner, media and entertainment sector leader, Deloitte India.
Market correction
Industry experts believe the regional film acquisition market has become far more discerning over the past few years.
Kaushik Das, founder and chief executive officer of Odia platform AAO NXT, said a genuine correction is underway, with smaller-budget non-Hindi films bearing the biggest impact.
“The pandemic era, when platforms were buying everything at inflated prices, is firmly over. National OTTs have become selective, and their selectivity favours either big stars or films that have already proven themselves theatrically. That squeezes the mid and small budget regional film badly,” Das said.
New regional channels and OTT platforms are becoming the primary market for smaller films rather than a secondary one. For a small budget Tamil, Odia or Assamese film today, a dedicated regional platform is often the difference between recovering costs and not releasing at all.
Going forward, Das sees regional players doing three things: setting a price floor for smaller films, funding content at the development stage rather than merely acquiring completed films, and building export corridors for regional content to diaspora markets.
Dhruvin Shah, founder and chief executive officer of JOJO Ltd, said the divide between big and small films has widened. “The star-led regional film with a theatrical run is being bid for aggressively across satellite and digital. The genuinely small film, the ₹1–5 crore picture, has had a harder few years, because satellite buyers consolidated their slots and OTT platforms tightened their per-title spend at the same time.”
The result, he said, is that many completed regional films fail to find buyers at prices that allow producers to recover costs.
“Where the market does work is when a film has a defined audience that a buyer can actually reach.”
For Gujarati content, that audience extends beyond India. “For Gujarati content, that audience isn't only in Gujarat, it's in the US, the UK, East Africa, Australia. That changes what a title is worth to us versus what it's worth to a purely domestic buyer,” Shah said.
Beyond borders
At the same time, industry experts agree the market for non-Hindi films has expanded, particularly on OTT platforms, as audiences have become more willing to watch quality cinema regardless of language.
Film producer Anand Pandit said the wide acceptance of films such as Dragon, Premalu, Ponman and Aavesham demonstrates that regional stories can resonate well beyond their home markets. Dubbing and subtitles have further widened their reach.
Since regional-language content also drives a significant share of OTT subscriptions, platforms need to strengthen their language-specific offerings. For independent producers, this creates more opportunities to recover investments even when theatrical performance is modest.
Growth engine
According to Rajat Agrawal, chief operating officer, Ultra Media & Entertainment Group, new regional channels and OTT platforms are carving out a niche by targeting underserved audiences through local-language storytelling.
They are focusing on niche audiences and local advertisers, creating opportunities for regional brands and SMEs (small and medium-sized enterprises). Regional languages already account for over 50% of India's paid OTT subscriptions, led by strong adoption in South India and the fast-growing Marathi and Bangla markets, according to Agrawal.
Rajesh Sethi, partner and leader–media, entertainment and sports, PwC India, agreed that new regional channels and OTT platforms play a critical role in expanding opportunities for filmmakers by creating additional demand for content, improving discovery and giving audiences more choice.
They are already contributing to the growth of regional media ecosystems, particularly in South Indian markets where content consumption remains strong, he said.
Rohit Dalmia, chairman and managing director of entertainment financing platform CineNow, said long-term success will depend on more than just new launches.
“New regional channels are important because they reduce dependence on a limited buyer pool and create additional monetization windows for producers. Their real impact depends on distribution strength, advertising support and sustained content investment. A credible new entrant can improve both competition and the long-term economics of regional content,” said Dalmia.