BBC Studios weighs exiting India content production business amid challenges

BBC Studios, a subsidiary of UK’s BBC Group, is exploring options for its India content production business, including a potential exit, due to challenges like consolidation and shrinking content budgets from TV broadcasters and OTT platforms, multiple sources told ET.Industry experts highlight that consolidation and reduced content budgets due to focus on profitability have intensified competition for fewer projects, squeezing content producers’ margins.

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

Beyond production, BBC Studios has a thriving content licencing business in India, distributing British formats like Dancing with the Stars, The Office, Criminal Justice, Luther, and Press. It produces 2,000 hours of content annually, with offices in over 20 countries.

The BBC Group also owns TV and digital news platforms in India and runs Sony BBC Earth in a joint venture with Sony Pictures Networks India. In 2023, it launched BBC Player and BBC Kids on Prime Video.

“BBC Studios plans to shut down its production business in India due to challenges in the broader M&E industry,” a source said, requesting anonymity. “OTT platforms and broadcasters are increasingly selective about greenlighting projects, while shrinking budgets is forcing producers to maximise output,” the person added.A BBC Studios spokesperson told ET, “We regularly review our business operations to ensure they are as efficient and effective as possible and are currently undertaking a review of our production operating model in India.”The media and entertainment (M&E) industry has seen major mergers in recent years, putting pressure on content production and distribution businesses. Key deals include the Star India and Viacom18 merger into the $8.5 billion Jio Star, while the Sony Pictures Networks-Zee Entertainment merger fell through. Bharti Airtel’s DTH arm is also in talks with Tata Sons and Walt Disney to acquire Tata Play.

The head of a leading production company said consolidation on the content production side is inevitable due to margin pressures from cost-cutting and platform-side consolidation. “BBC Studios’ production business could well be the first victim of the consolidation wave in the M&E industry,” the person added, requesting anonymity.