Why creators are fleeing to YouTube

But the studio head knew better; only days earlier, the streaming service, known for deals with top Bollywood studios, had inked a multi-film partnership with a film production house, allowing it to screen all of the latter’s upcoming titles as part of their post-theatrical release. Industry experts pegged the deal size at close to ₹500 crore.

“There is no math to what they do, they end up picking the most random films for obscene amounts and pay disproportionately high sums to a few studios. Obviously, they would have no budgets left for smaller or mid-scale high-quality content,” the executive told Mint, on condition of anonymity.

As video-streaming platforms go slow on green-lighting web originals and acquiring films post-theatrical release, the ones largely bearing the brunt are small and mid-budget companies and regional filmmakers—bigger studios with clout are still managing to strike lucrative deals.

Further, even a theatrical release is not a viable option for many small projects. Industry experts point out that films made with production budgets of ₹6-8 crore have to still spend an equal amount on promotion to gain mindshare among audiences for a theatrical release. That is impossible for many.

In a departure from the practice of securing a streaming partner before a theatrical release, a growing number of films are now arriving in cinemas without such deals, if they can manage to get there.

As a result, many disgruntled creators see an urgent need for an alternative. YouTube, a platform that doesn’t commission content but allows all kinds of programming to be uploaded, largely for a free viewing experience, has emerged as one such alternative.

This July, actor Aamir Khan made his production Sitaare Zameen Par available on YouTube via a pay-per-view model—viewers in India would have to pay ₹100 to watch the film once. Khan, who voluntarily chose not to opt for an OTT deal, is a rare example.

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Gradually, however, a few more names in the entertainment business are choosing YouTube as their debut platform, despite the brand and lure of other video streaming companies.

While Aditya Birla-owned Applause Entertainment has launched a kids’ animation channel, ApplaToon, on YouTube, The Viral Fever (TVF) has released shows such as MitronPolitan and Very Parivarik on the platform even after the success of originals such as Panchayat on OTT platforms.

So, can YouTube upend the long-format content game in India?

Woes of small producers

Over the past few years, OTT had emerged as a tool for smaller films, especially regional cinema, to climb the ladder, said filmmaker Hemanth Rao, known for Kannada titles such as the two-part Sapta Sagaradaache Ello.

“Digital rights were making up a huge chunk of how we planned our films. But once they pulled the plug and turned profit-conscious, it has caused a huge tremor for smaller and regional cinema,” Rao said. OTTs want to concentrate resources on what can bring them assured viewership, he added.

Rao further said that no streaming service, other than ZEE5, is open to Kannada films at the moment, which puts the entire onus of recovery on the box office.

To be sure, the pandemic years of 2020 and 2021 saw scores of films across languages released directly on OTT platforms, bypassing theatres, which were anyway shut. JioCinema (now JioHotstar) added to this in 2022 with its launch promise of a new piece of original content every Friday.

The pandemic years of 2020 and 2021 saw scores of films across languages released directly on OTT platforms, bypassing theatres, which were anyway shut.

Over the years, OTT subscriber growth has slowed, along with a drop in demand for content itself as normal life resumed. Moreover, few films brought dividends that could justify their acquisition rates. According to a report by media consulting firm Ormax, of the 50 most-watched streaming originals in India in the first half of 2025, just five are films.

Now, no platform commissions original films except ZEE5, Netflix and Amazon Prime Video to some extent. As most services release films made by their production arms (Amazon with Amazon MGM India, JioHotstar with Viacom18 and Jio Studios films), smaller films, unattached to big platforms or studios, suffer. In fact, several films that were green lit during the pandemic are lying unreleased.

While the wider OTT mandate is for deals and acquisition prices to be linked to the theatrical box office, it only benefits bigger films. “Only 10% of all films that get released actually make money. That is why the big star vehicles manage deals while the mid-level prestige movies suffer. Every producer now only wants to make films with big stars which is detrimental to the growth of cinema,” said director Ajay Bahl, known for films such as B.A. Pass and Section 375.

To be sure, some small and mid-budget films are taking the plunge into theatres, and in a few cases such as 12th Fail, the move has paid off. However, these are mostly films backed by producers who can afford to invest in marketing and distribution, with these costs ranging between ₹8-10 crore, even for the smallest titles.

Industry experts such as Rao see YouTube as a fantastic alternative, especially since rival streaming platforms are only increasing subscription fees, a trend that is likely to pinch middle-class households soon.

On the ascendancy

All of this is playing out at a time when YouTube is enjoying a surprising countertrend in India, with consumption of its long-form videos on connected TVs surging while short-form videos continue to dominate smartphones and attention spans shrink.

Last December, over 50% of YouTube connected TV watch time in India was on content 21 minutes or longer. And this April, YouTube reached over 75 million people in India aged 18-plus on connected TV.

The platform is seeing very healthy interest from both standalone creators and organized studios to launch content, said Gunjan Soni, country managing director, YouTube India, which may be attributed to a combination of factors, including the increasing reach of connected television, the fact that the company helps take local talent global, ecosystem trends where India operates with limited movie screens and a general slowdown in commissioning.

“Unlike other streaming platforms, distribution and monetization of content on YouTube is in the hands of the producer. In the case of movies, for example, the makers can choose if they first want to go to theatres, launch directly on digital, or go to a different streaming platform,” Soni said.

YouTube’s dominance is fuelled by affordable data and smartphone penetration, enabling user-generated content to flourish even in smaller towns, further strengthening its position as the go-to platform for creators and audiences alike, according to Anil Goel, chief technology officer, Nielsen.

“In a streaming environment defined by rising subscription fees and heavy investment in originals, YouTube’s primary advantage is accessibility. Most of its content is free and supported by advertising, which removes the entry barrier for consumers and broadens reach across demographics,” said Goel. “Another advantage is content diversity. YouTube combines professional studio uploads with creator-driven content, live events, sports and shorts.”

Popular YouTube channels such as Goldmines Telefilms and Shemaroo boast 107 million and 60.5 million subscribers, respectively. Entertainment industry experts estimate that big companies easily make over ₹100 crore per month from YouTube.

Pricing and IP ownership

YouTube encourages pricing flexibility and options such as buying or renting in the case of films. Creators are free to tap into other monetization tools for intellectual property (IP), including brand sponsorships or channel memberships, which allow viewers to provide them with monthly payments in exchange for exclusive perks, content, and more.

“It’s a complete ecosystem because one size does not fit all. Just like India has such a diverse tapestry of creators, content types and languages, we are trying to mimic it at our end to say that not only are you welcome to put your content out, but also to choose the ways in which you want to build your businesses,” Soni explained.

Calling the platform’s approach democratic, Soni told Mint that what sets the service apart is the easy access—there is no green lighting process in order to launch content. “You’re very welcome to make YouTube your global stage and we work hard and spend a lot of time and investment on technology to make sure that the right talent reaches the right audience worldwide,” she added.

Partnerships on YouTube are based on revenue-sharing arrangements. On OTT platforms, the revenue model is largely commission-based, said Nitin Burman, group chief revenue officer of Balaji Telefilms. They select a show, fund its development, and then own or control distribution. On YouTube, however, creators produce content based on their own vision and audience needs. Revenue comes from YouTube sharing a portion of ad earnings, depending on views.

Partnerships on YouTube are based on revenue-sharing arrangements. On OTT platforms, the revenue model is largely commission-based.

Moreover, say executives at production houses, on YouTube, they can own the brand and build a dedicated fan following, unlike in deals with OTT platforms, which often require giving up on IP.

Balaji Telefilms is betting big on creating YouTube originals. “In our case, it was a strategic move to create shows specifically for YouTube. First, we identified a gap in the Indian channel offerings. Second, by producing content for YouTube, we retained the IP rights, which allowed us to control both creation and distribution through our own channel,” Burman explained.

On the other hand, YouTube relies far more on organic discovery, which makes for a big challenge. In the words of one film producer, the platform “doesn’t really treat anything as its own.”

More recently, large film studios have begun moving their library of older films that were previously behind a paywall on a streaming service to YouTube, where they can be rented, or watched for free. This year, Reliance-owned Viacom18 Studios released movies like That Girl in Yellow Boots (2010), Bazaar (2018), and its 2018 ₹100-crore hit film Andhadhun for free on YouTube.

Aamir Khan Productions, too, has moved many of the films in its catalogue from various streaming platforms to YouTube, where titles such as Dangal, Lagaan, Peepli Live and Delhi Belly are available to rent for ₹50-75 per view. This was done to build buzz around the actor’s YouTube channel in the run-up to the premiere of Sitaare Zameen Par.

Challenges galore

That said, every creator or filmmaker Mint spoke to said the picture isn’t entirely rosy when it comes to premiering content on YouTube, especially with respect to monetization. For one, Rao pointed out the cost of production of an entire film is unlikely to be recouped by a YouTube premiere.

Production houses such as TVF have worked around this challenge by integrating brand deals into their shows so that sponsorships cover production costs.

Further, OTT advertising continues to grapple with challenges in India. Besides contending with low cost-per-mille (CPM), or cost per thousand impressions, industry giants such as Meta, along with e-commerce, social media and short video platforms, are emerging as major rivals in capturing impressions and audience attention.

Digital advertising in the country’s streaming industry is at a nascent stage. While there is a massive user base, effective ad rates are low, making YouTube’s largely ad-driven strategy somewhat of a challenge, especially for relatively lesser known channels.

Further, pay-per-view has not emerged as a preferred mode to watch content. The pay-per-view model on YouTube could help Sitaare Zameen Par make just about ₹25-30 crore over the next few months as audiences pay ₹100 for each viewing, with the revenue to be split in a ratio of 55:45 in favour of Khan. By comparison, an OTT deal would have brought him at least ₹125 crore, industry watchers said.

As Balaji’s Burman put it, “It’s a long-term game, and revenue recovery is slow. While we will definitely see more creators moving to YouTube, I don’t think big-budget shows or movies will release there directly, at least not until YouTube starts guaranteeing revenues to creators.”