New Delhi, April 14 -- The entry of Bollywood studios and music labels into regional languages isn't all that it's cracked up to be and comes with several business risks, according to experts. Such ventures over the past few years have typically led to budget inflation, higher regional star fees and costlier marketing for an audience that remains limited and niche.

Success in these markets is culture-led and not driven by scale. Entering such regions without understanding cost and recovery structures can often result in commercially unsustainable projects, disrupting an otherwise stable language market overall.

In the recent past, Bollywood studios including Dharma Productions and music labels T-Series and Saregama, among others, have v...