Over the last decade the gravitational pull of India’s entertainment economy has shi fted unmistakably southward. What began as sporadic national curiosity, gradually swelled into a full-blown cultural crossover. When Naatu Naatu from the Ram Charan-NTR Jr starrer RRR lit up the Oscar stage, it signalled that southern cinema was no longer rising quietly; it was asserting itself at the centre of India’s mainstream imagination.

That momentum has now spilled decisively into the OTT universe. For years, India’s streaming landscape ran on a Bollywood-first operating system. Budgets, narratives, and viewer targeting were all sculpted around the Hindi-speaking market.

But the lockdown years changed viewing behaviour dramatically. Housebound and hungry for fresh stories, audiences began exploring Tamil, Telugu, Malayalam and Kannada films in unprecedented numbers. The runaway popularity of Pushpa: The Rise - Part 01, Kantara and RRR ensured that southern storytelling was no longer incidental, it was central.

Among the southern-language industries, Malayalam cinema has emerged as the most intriguing outlier. Despite being the smallest in scale, it has consistently punched above its weight. Films like Manjummel Boys and Aadujeevitham - The Goat Life have travelled across states, while titles such as 2018 and Premam have shown modest overseas draws. Its combination of creative discipline and financial prudence has strengthened the entire value chain, making Malayalam cinema an appealing proposition not just for theatres but also broadcasters and streaming platforms chasing quality content with dependable economics.

Today, the fiercest battle for subscribers, originals and film rights is unfolding in southern India. Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Karnataka have become high-growth markets. Every major platform is investing aggressively, drawn by more than 250 million people, deep digital penetration, mature entertainment habits and a willingness to pay.

L V Krishnan, chief executive officer of TAM Media Research, notes that southern audiences have historically shown about 50% higher content consumption. “With growing digital penetration and diverse storylines, content consumption is being further boosted by streaming platforms. Easy and cost-effective AI-driven dubbing has broadened the appeal of southern content to a global audience.”

India’s streaming ecosystem has exploded to 57 OTT platforms, spanning national giants and regional players like Aha, Sun NXT and ETV Win. Ormax Media estimates the country’s OTT audience will touch 600 million by year-end, powered by rising connected-TV usage expected to hit 129 million. With 562 million smartphones and nearly 50 million connected-TV screens, digital entertainment is now the default mode of consumption.

Content supply has kept pace —India churns out close to 200,000 hours of original programming a year—from over 1,600 films to more than 2,600 hours of premium OTT series, says a FICCI-EY report. Paid streaming is also expanding, with subscription video users projected to rise from 47 million in 2024 to about 65 million by 2027.

Although platforms do not reveal regional subscriber splits, executives say the South contributes disproportionately to paid users and viewing hours. The region’s 143 million OTT users nearly match North India’s 151 million despite its smaller population base, according to Ormax. Half the southern population already consumes OTT content, the highest penetration in India.

The investment momentum reflects this energy. Platforms are building larger content teams in Chennai and Hyderabad, experimenting with new pricing models and aggressively commissioning original series that reflect local culture rather than merely ticking regional boxes. The era of token presence is over; depth is the new strategy.

For Netflix, Prime Video and ZEE5, southern growth is fuelled by blockbuster films and originals. For JioHotstar and Sony LIV, sports strengthen their entertainment pipeline. Local giants such as JioHotstar and ZEE5 also benefit from steady daily TV content that reinforces platform stickiness.

“Streaming created a watershed moment for South cinema. During the pandemic, high quality subtitles and dubbing removed language barriers and audiences discovered stories they never had access to,” said Monika Shergill, VP content, Netflix India.

In 2022, South content viewership grew 50% year-on-year, with South titles appearing in Netflix’s global non-English Top 10 list in about 17 countries the following year. This number has now risen to 26. Last year, Vijay Sethupathi’s Maharaja became Netflix’s most-watched Indian film globally.

“South storytelling is not just becoming bigger in India, it is becoming mainstream. A large part of our slate today consists of South movies, and we acquire the Hindi dubbing rights along with multiple subtitle and dubbing language rights. This allows these powerful films to travel across different audiences,” Shergill said.

Early OTT investment focused heavily on acquiring South Indian films. Titles such as Pushpa, Kantara, Kalki 2898 AD and KGF fetched some of the highest digital acquisition fees. Films still trigger subscriber spikes, but platforms are now investing more in long-form originals to build retention.

Netflix recently announced six new Tamil and Telugu originals, underscoring long-term commitment.

“We currently have about 26 shows in development, negotiation or production for the South. This is the largest pipeline of South Indian content we have ever had,” said Nikhil Madhok, director and head of originals, Prime Video India, adding that 60% of users watch content in multiple languages.

Sony LIV is developing 13 regional originals, 11 of them from the South. Sony LIV’s business head Danish Khan said the South’s strong legacy in films and television raises creative expectations. “Tamil and Telugu are large markets both within India and internationally. Malayalam has become a supplier of strong stories across India.”

Khan noted that consumption patterns in South India mirror national trends—sports, films and originals drive engagement. Sony LIV acquires only select Malayalam films for cost efficiency. The subscriber split is around 80:20 male to female and viewership is 70:30 in favour of men. “OTT penetration in South India is already high and content consumption per user is higher than the national average,” he said.

“We anticipate a substantial rise in the volume of OTT content originating from the South in the coming years.”

JioHotstar plans to triple its South slate to 1,500 hours of original and acquired programming over the next year. JioStar head of entertainment, South cluster, Krishnan Kutty said one-third of the platform’s viewers are from the South and account for a disproportionately high share of watch time.

“The Tamil and Telugu markets are the largest in terms of heft and creative ecosystem. Kerala punches far above its weight because it has a strong pool of storytellers. Some of our most successful movies and specials have come from Kerala. In Karnataka, we are at an early stage, but we are very excited about that market too,” Kutty said.

ZEE5 chief business officer Siju Prabhakaran said, “South contributes up to 45% of our total OTT watch time. Language packs contribute roughly 60-70% of our new subscribers. Each market has a business head who understands local culture and stories. For us, content is the hero.” ZEE5’s language packs are priced at Rs. 99 per month and Rs. 699 annually.

Executives say South Indian audiences are shaping a distinct OTT playbook. The region’s entrenched TV habits and strong cinema culture push platforms to create habit-forming content. Films remain the biggest subscription catalyst, with Prabhakaran estimating 50- 60% of new subscribers still coming from movies. Prime Video also notes the South’s affinity for films.

To build retention, platforms are adopting TV style storytelling. JioHotstar’s 80–100 episode series are “breaking conventional norms of digital content” as viewers return weekly. ZEE5’s OTT-first reality shows are among its biggest non-fiction subscription drivers.

The South is no longer a regional appendage to the national entertainment market. It has become the creative engine powering India’s soft-power ambitions. As language barriers fall and audiences embrace Indian stories, creators from Tamil Nadu, Telangana, Andhra Pradesh, Kerala and Karnataka are leading the charge. Streaming has not only expanded southern cinema’s audience; it has reshaped India’s entertainment economy and its cultural centre of gravity.

- JioHotstar plans to triple its South slate to 1,500 hours over next year.

- Prime Video has 26 South-origin shows in the pipeline.

- SonyLIV has 13 regional originals, 11 of them from the South.

- ZEE5 says the South accounts for 45% of its OTT watch time, driven by aggressively priced language packs.

- Netflix has announced six new Tamil and Telugu originals; says views of South content grew 50% YoY in 2022.

Foreign studios are stepping up their India push as box office collections rebound and streaming reach expands. In what industry executives call Hollywood’s “second wave” in India, global players that once focused on acquiring and distributing Hollywood films are now moving to owning/co-owning local film IPs, shifting from a low-risk distribution model to investing in Indian-language productions that offer deeper presence and long-term value.

Amazon MGM Studios will release three to four Indian films theatrically every year starting 2026, with each title later premiering on Prime Video. The move aims to blend theatrical scale with streaming reach.

“While our core business is streaming, we believe in the theatrical window and the magic of theatres,” said Nikhil Madhok, head of originals, Prime Video India and Amazon MGM Studios at an industry event recently. “Depending on the kind of film that we are producing, we take a joint call with our creators in terms of which project can go to theatres first.”

Warner Bros. Pictures has signed an exclusive five-film partnership with Bhanushali Studios and JOAT Films to develop Indian adaptations of classic Warner titles. The studio will provide IP and global distribution support, while Indian partners lead creative adaptation and production.

Universal Studios, part of Comcast Corporation, is reportedly planning an indoor theme park in India near Delhi. At the same time, it has held early‐stage discussions with Farhan Akhtar and Ritesh Sidhwani founded Excel Entertainment about a potential stake partnership, though no formal deal has been finalized.

“Global studios are renewing their focus on Indian cinema, moving from distribution to local production,” said Nitin Menon, managing partner, NV Capital.

“Amazon MGM’s Superboys Of Malegaon, Nishaanchi and Mirzapur mark a shift toward theatrical storytelling. Warner Bros.’ partnership, coinciding with Paramount’s potential acquisition, could unlock capital for deeper expansion. Universal may follow with co-productions as Hollywood recalibrates its India playbook. Theatres are back in focus, though Netflix remains committed to digital-only releases.”

According to Ormax, the cumulative box office for 2025 releases stands at Rs. 9,409 crore till September, up 18% from a year ago. India’s OTT universe now includes 601 million users, with 148 million active paid subscriptions through direct payments, telecom bundles and aggregators.

After the pandemic slump, multiplex admissions and box office collections have rebounded across languages. Streaming adoption has accelerated, creating a dual-market dynamic where films earn from both theatrical runs and platform licensing.

For studios, local productions offer a way to build IPs with international potential and unlock new revenue streams from music, merchandising and streaming. Collaborating with Indian producers also helps ease distribution challenges and brings valuable market insight.

“Hollywood’s second wave in India is about reducing risk, not planting flags,” said Adi Tiwary, a Sydney-based producer and consultant. “The trend is to build with Indian partners, use library IP to de-risk, and let theatrical and streaming work in tandem. Hollywood has learned that India rewards local muscle and disciplined windowing.”

“They’re re-entering cautiously, focusing on mid-budget, locally rooted films rather than big productions. With cost rationalization underway in the US, it’s about testing the waters and understanding audience shifts,” said Neeraj Vyas, CEO of Bhanushali Studios, about the Hollywood studios’ second coming.

A decade ago, Hollywood’s presence in India largely revolved around distribution. Studios like Disney UTV and Fox Star acquired completed films such as Race, Kick and Tamasha for high minimum guarantees.

Today, global studios are stepping into the creative process, co-developing stories and co-owning IP with Indian partners, a shift toward building scalable franchises and retaining long-term rights.

“The foreign studio model has matured from buying content to co-owning it,” said Suniel Wadhwa, co-founder and director, Karmic Films. “Streamers like Amazon and Netflix set that template through partnerships such as Amazon–Maddock and Netflix–Balaji. Now global studios are following suit, as seen in Warner Bros. Discovery’s collaboration with Vinod Bhanushali to create original Indian IPs for global audiences. These alliances are no longer about one-off films but about building exportable Indian story worlds.

The recent second theatrical release by Amazon MGM Studios of director Anurag Kashyap’s Hindi film Nishaanchi reflects the indisputable importance that streaming platforms have acquired across the entertainment industry’s value chain, from creating and acquiring to distributing and exhibiting content. This marks a massive shift in the balance of power compared with the traditional funding ecosystem, producers, research firms, and industry observers told ET.

“Over the years, we have developed a multi-pronged approach to movies, licensing post-theatrical films, co-producing with studios for theatrical releases, and creating originals for our platform. It was only logical in that evolution to bring select Amazon MGM Studios’ original movies to theatres,” said Nikhil Madhok, Director and Head of Originals, Prime Video India.

“From next year, we aim to scale up and release three to four Indian feature films from Amazon MGM Studios theatrically every year,” he added. In February this year, Amazon MGM Studios released Superboys Of Malegaon, its first film in theatres.

Beyond strengthening their presence across key segments of the entertainment value chain, streamers have gained a crucial edge over traditional players through their growing contribution to total film-related revenues, which now include both digital rights sales and box-office collections.

According to a study by the US-based global financial advisory firm Kroll, in 2024, 56% of total film-related collections came from streamers, while the remaining 44% came from the box office. In 2023, the respective shares were 44% and 56%.

“Streamers have redefined the revenue structure of Indian cinema. What used to be box-office gold has now shifted to digital gold, with pre-sold rights often surpassing theatrical earnings,” said Umakanta Panigrahi, Managing Director, Valuation Services, Kroll. “This shift is not a short-term trend. It is a structural change shaping how value is created across India’s entertainment ecosystem,” he added.

Globally, platforms such as Netflix, Apple TV+, and others have been releasing films first in theatres before making them available on their platforms. The Irishman (2019) and F1: The Movie (2025) are two prominent examples.

“Streamers releasing films first in theatres reflects not only a strategy to unlock revenues across the film’s lifecycle but also a move towards becoming vertically integrated. They have deep pockets and access to nuanced data about audience consumption patterns, advantages that give them strategic leverage over the traditional funding ecosystem,” said a veteran producer and founder of a leading Indian production house. “These advantages have resulted in a clear shift in the balance of power,” he added.

At present, streamers have become so vital to the filmmaking ecosystem that the pre-sale of digital rights is often essential for stakeholders to remain committed to a project.

“Today, a de-risking mentality dominates the industry. Production houses and even private investors backing independent producers rarely commit seriously to a film unless its digital rights have been pre-sold to a streamer. It is largely about cost recovery, and it underscores just how central streamers have become to the ecosystem,” said film producer Vishesh Agrawal, associated with films such as Dangal (2016) and Dream Girl 2 (2023).

Streaming platforms have diversified their content strategy over the past year and a half, moving beyond dark Action, Crime and Thriller (ACT) content to family-friendly dramas, romance and comedies that reflect cultural values, emotions, and everyday realities of small cities and towns. This shift, consultants and streaming platforms said, is aimed at connecting with a much wider and long-overlooked viewer base.

Web series such as Gram Chikitsalay, Mitti - Ek Nayi Pehchaan, Dupahiya (Amazon Prime Video), Ghar Wapsi and Thukra Ke Mera Pyaar (JioHotstar), Bada Naam Karenge (Sony LIV) and Pyaar Testing (Zee5) show this trend.

"Audiences from tier-2 and tier-3 cities are decisively shaping the next chapter of digital entertainment growth. We are expanding beyond metro-centric narratives and investing in stories rooted in regional ethos. This has led to deeper audience engagement,” said Raghavendra Hunsur, chief content officer at Zee Entertainment Enterprises.

The share of content in the ACT genres in the total streaming content has reached a saturation point at 43%, shows data from media and entertainment research firm Ormax Media.

“India’s streaming content is currently dominated by shows in the action, crime and thriller genres. As platforms increase their subscriber base beyond tier-1 cities, we will see a clear rise in family-friendly content,” said Keerat Grewal, head of business development, streaming, TV and brands at Ormax Media.

Increasingly, as streaming platforms expand their presence beyond metros, family-friendly stories will find more takers as ACT content lacks broad appeal, said industry consultants.

"Streamers have been aware of the political system in India. There are limitations to storytelling. In this context, Action, Crime and Thriller (ACT) emerged as safe and exciting genres. Data insights also supported the demand for such content,’ said Shrirang Nargund, an independent consultant on streaming business. ‘But content in these genres does not have a broad appeal especially with the Indian family audience,’ he added.

Even the treatment of Indian ACT content has also been unsuitable for family viewing, pointed out industry veterans.

‘‘Streaming content especially in the crime genre is handled so well in the west. There is so much warmth in their crime content. But the treatment of Indian streaming content in the crime genre is too dark to the point of being repulsive. This is unsuitable for Indians, especially family audiences,’ explained Saurabh Varma, a veteran film marketing strategist.

While only 45% of Hindi web series are set in small towns and rural settings, they account for 60% of high engagement shows, according to Ormax Media research. Besides comforting optimism and emotional connection, a key factor which has worked for them is their rootedness.

A case in point is one of the most acclaimed Hindi web series, Panchayat, of Amazon Prime Video. In its fourth season, the series shows the experiences of an engineering graduate who settles for a low-paid job as a secretary of a gram panchayat in a fictional village of Uttar Pradesh. According to the data shared by Amazon Prime Video, India, Season Four of the series in its launch week was streamed in 95% of India’s PIN codes as well as in over 180 countries and territories.

“For us, genre is just a way of telling a story that explores a particular theme. This approach allows us to tell deeper, more nuanced stories rooted in local sensibilities, enabling a wide range of viewing experiences, be it individual, family, or community-based,” said Nikhil Madhok, director & head, Originals, at Prime Video, India.

Increasing share of connected televisions (watching streaming content on TV) in India has also boosted the share of family-friendly content on streamers. In the past five years, the number of connected TVs in Indian homes has jumped four times. According to Ormax Media, this has led to a shift from solo viewing of OTT content to family viewing, leading to more balanced content offerings.

In addition to this, streamers are of the view that increasing share of family-friendly content is largely a part of a diversification strategy.

“The strategy is to have a diversified content slate. With connected TVs, there is a propensity towards a little more ‘inclusive viewing’. In this context, most of our shows have been covering upcountry and other geographies,” said Sony LIV content head Saugata Mukherjee.

Industry consultants said streamers must rely more on writers’ creativity than data insights to produce content.

Family-friendly genres such as sci-fi and horror-comedy, which are under-explored, can help streamers to gain more subscribers, they said.

Prime Video and Netflix topped India’s 15 most-viewed Hindi streaming shows in 2024, while Disney+ Hotstar led in Tamil and Telugu, according to Ormax Media’s ‘Streaming Originals in India - The 2024 Story’ report.

The report emphasized the dominance of platforms like Netflix, Prime Video, and Disney+ Hotstar, which collectively have an estimated 70 million subscribers. It highlighted the growing role of regional content and franchise-driven formats in shaping India’s streaming landscape.

Netflix and Prime Video each had five entries in the top 15 Hindi streaming shows. Mirzapur Season 3 was the most-watched Hindi series with 30.8 million viewers, followed by Prime Video's Panchayat Season 3 (28.2 million) and Netflix’s Heeramandi (21.5 million). The viewership estimates were based on primary data, according to Ormax.

In the non-fiction OTT category, JioCinema's Bigg Boss OTT Season 3 led with 17.8 million viewers. Netflix’s The Great Indian Kapil Show Season 1 ranked second with 15.7 million viewers, while SonyLIV's Shark Tank India Season 3 secured 12.5 million viewers.

The report also highlights a wide variety of unscripted genres, spanning TV extensions, documentaries, game shows, and reality formats driven by influencers.

Netflix also dominated Hindi direct-to-digital films claiming 11 of the top 15 spots, with Do Patti leading at 15.1 million viewers, followed by Sector 36 (13.9 million) and Sikandar Ka Muqaddar (13.5 million).

“Audiences today seek more choices—across stories, devices—and we’re here to meet that demand,” said Monika Shergill, Netflix India’s vice president, content. “The sheer convenience of streaming with improved accessibility and broadband and CTV market growth is leading to a revolution in how we consume our entertainment. Exceptional storytelling enhanced by quality subtitles and dubbing in several languages is enabling more stories to travel and be consumed by more audiences in India and around the globe."

She further noted, “At Netflix, originals like Heeramandi: The Diamond Bazaar, Amar Singh Chamkila, The Great Indian Kapil Show, and blockbuster movie slates in Hindi, Tamil, and Telugu have demonstrated how entertainment and experience can together become the key drivers of streaming growth.”

Nikhil Madhok, Head of Originals, Prime Video India, stated that Indian audiences are open to good stories regardless of language, format, or genre. He highlighted Prime Video's success in engaging audiences across languages with titles like Mirzapur Season 3, Panchayat Season 3, Inspector Rishi, and global hits like The Boys and The Rings of Power.

"We are in a unique time, a renaissance in Indian entertainment, where all kinds of stories are being told and all genres are being explored on streaming. We will continue to collaborate with the finest creators and storytellers from India and around the world to offer our customers some of the most dynamic, fresh, out-of-the-box stories," he said.

Last year, Netflix and Prime Video unveiled ambitious content slates. Netflix’s 2024 slate included 14 shows and eight films, while Prime Video India announced plans to release 70 series and films over the next two years.

In regional content, Disney+ Hotstar's Save The Tigers Season 2 (5 million viewers) and Prime Video's Inspector Rishi (4.9 million viewers) were the top Telugu and Tamil shows, respectively. Disney+ Hotstar dominated the top 10 lists in both languages, with four Telugu and seven Tamil entries.

Netflix’s Squid Game Season 2 became the most-watched international show of 2024 with 19.6 million viewers, securing its place as India’s all-time leader. Among international films, Prime Video’s Road House led with 6 million viewers.

While the report excluded YouTube Originals, it acknowledged the success of India’s Got Latent on Samay Raina’s YouTube channel, which could have ranked in the top three.

According to Ormax, the report evaluated the top original shows and films released in 2024 in Hindi, International, Telugu, and Tamil across parameters such as viewership, marketing buzz, and content strength. It focused exclusively on original content, excluding theatrical films, catch-up TV, sports, and other non-original streaming content.