New Delhi, Nov. 19 -- Movie sequels and fresh seasons of web shows help create longstanding content universes for audiences, but experts say they also come with an inevitable escalation in costs. Budgets increase as actors demand higher fees and production values need a step-up with foreign locations, grand sets and better visual effects.

However, given the failing draw of movie sequels at the box office and slowing OTT subscription growth, platform executives and content creators say reliance on the formula may not always pay off as expected.

Over the past few months, sequels and franchise films such as Baaghi 4 ( Rs.47.4 crore), Thamma ( Rs.123.6 crore) and War 2 ( Rs.185.13 crore) have underperformed at the box office. And, as stream...