Hyderabad: Netflix, one of the largest and most profitable OTT platforms in the world, has made a major change to its business plan in South India. Until now, the company spent huge amounts of money to buy Telugu, Tamil, Kannada and Malayalam films. Some movies brought good returns, but many failed to justify the high price.
According to latest reports, Netflix has now decided to stop paying record amounts for South Indian films and instead invest that money in creating web series and original content.
Why Netflix Took This Decision
During the COVID-19 period, OTT platforms bought films at very high rates. Producers made large profits, budgets shot up and star remunerations increased sharply. Later, many films failed to get strong viewership online. Satellite revenue also declined, and the theatrical market became unpredictable. As a result, OTT companies tightened their buying rules. Netflix recognized that premium rates were not giving steady returns, especially for films that failed in theatres.
Focus on Hyderabad and Regional Originals
Netflix has opened a new office in Hyderabad to support this new strategy. The company will mainly produce Telugu and Tamil web series and already has nearly six projects ready for release. Some of the upcoming titles are Legacy featuring Gulshan Devaiah and Madhavan, Takshakudu starring Anand Deverakonda, Stephen, Super Subbu and Love, Made in Korea.
This decision has shocked many producers in the South, especially those who depended on Netflix’s premium pricing. Big films may no longer receive large digital deals. Budgets might reduce and stars may have to cut their salaries. Small films are already struggling because OTT platforms have stopped buying low profile content.
The South Indian market still has huge potential. Netflix may now choose fewer projects, but it aims to create high quality originals that appeal globally. This shift may reshape the OTT landscape, encourage better storytelling and push the industry toward more sustainable filmmaking.
