BBC Studios Considers Quitting Indian Content Creation Industry Due to Challenges

BBC Studios, a subsidiary of the BBC Group, is considering options for its India content production business, including a potential exit, due to issues such as consolidation and dwindling content budgets from TV broadcasters and OTT platforms.

Industry analysts point out that consolidation and reduced content expenditures owing to a focus on profitability have increased competition for fewer projects, reducing content providers' margins.

BBC Studios India has created a variety of shows, including Criminal Justice, The Office, Out of Love, Jhalak Dikhhla Jaa, Nach Baliye, Rudra: The Edge of Darkness, Qayaamat Se Qayaamat Tak, and Sons of Soil. Sameer Gogate, the general manager of India Productions at BBC Studios, just stepped down.

Beyond production, BBC Studios has a strong content licensing business in India, where it distributes British shows like as Dancing with the Stars, The Office, Criminal Justice, Luther, and Press. It generates 2,000 hours of material each year and has operations in more than 20 countries.

The BBC Group also owns TV and digital news outlets in India, as well as Sony BBC Earth, which is a joint venture with Sony Pictures Networks India. In 2023, it will debut BBC Player and BBC Kids on Prime Video.

"BBC Studios intends to close its production business in India due to challenges in the broader M&E industry," claimed a source. 

"OTT platforms and broadcasters are increasingly selective about greenlighting projects, while shrinking budgets is forcing producers to maximise output," the individual further explained.

In recent years, the media and entertainment (M&E) industry has experienced numerous mergers, placing pressure on content production and distribution companies. Key transactions include the merging of Star India and Viacom18 into the $8.5 billion Jio Star, while the Sony Pictures Networks-Zee Entertainment merger fell through. Bharti Airtel's DTH unit is also in negotiations with Tata Sons and Walt Disney about acquiring Tata Play.

The CEO of a major production company stated that consolidation on the content production side is unavoidable owing to margin pressures from cost-cutting and platform consolidation. "BBC Studios' production business could well be the first victim of the consolidation wave in the M&E industry," the person added, asking anonymity.