Even as the cinema industry grapples with declining box office returns and dwindling footfalls, one revenue stream appears surprisingly resilient: advertising. Despite a 6 percent drop in theatrical revenue — which fell to ₹188 billion in 2024 from Rs200 billion the year prior — advertising income across multiplex chains and single-screen cinemas has remained largely unaffected, even growing in some quarters. Multiplex revenues declined 7.5 percent to Rs61 billion, while single-screen theaters reported a more modest dip, falling to Rs57 billion from Rs60 billion in 2023.
Advertising revenue, however, surged. From Rs5 billion in 2022, the figure jumped to ₹9 billion by 2024. For PVR INOX, the country’s largest multiplex chain, the third quarter of FY25 brought in Rs149 crore in ad revenue — its highest since the onset of the pandemic. Other major players, including Cinepolis and Miraj Entertainment Limited, reported Rs67.75 crore and Rs15.75 crore respectively, according to data from Private Circle.
“Advertising remains a critical pillar of the business,” said Chandrashekhar Mantha, Media and Entertainment Sector Leader at Deloitte India. “Pre-show advertising and in-theater branding continue to deliver robust monetization opportunities, particularly as brands value the captive audience experience.”
Yet, challenges persist. Analysts say that, on average, the industry’s annual advertising income remains below Rs1,000 crore — still shy of pre-pandemic levels. Saurabh Parmar,a Fractional CGO (Chief Growth Officer), attributes the sluggish recovery to a combination of factors: the rise of streaming platforms, a decline in blockbuster releases, and a shift in audience behavior. Parmar said that while box office revenues are a key factor, there are multiple forces at play. The other two key stakeholders – brands and cinema halls may also have other priorities beyond ad revenue from movies.
The numbers bear this out. The total gross box office collection slipped to Rs114 billion in 2024, from Rs120 billion the year before. While Hindi-language films earned 13 percent less than in 2023, South Indian cinema led box office performance, with six of the year’s ten highest-grossing films originating from the southern region.
Regional cinema has found growing favor with audiences. Malayalam-language films saw their theatrical revenue grow by 104 percent in 2024, while Gujarati films rose by 66 percent. In contrast, original Hindi films saw theatrical revenues fall 37 percent, dropping to Rs32 billion from Rs51 billion, according to a report by Ormax Media.
Industry insiders point to a quality gap. “Between 2022 and 2024, Bollywood offered a string of underwhelming films that lacked narrative depth,” said Neha Chopra, Partner at creative agency Enormous. “Some stories, though intimate and nuanced, were better suited for the small screen — like Shefali Shah’s The Three of Us.”
Chopra added that the emotional resonance and storytelling strength of South Indian films — exemplified by blockbusters like Kantara and Pushpa — are drawing audiences away from Bollywood’s more formulaic fare. South Indian stars such as Nayanthara, Samantha Ruth Prabhu, Ram Charan, and NT Rama Rao Jr. have also attained pan-India popularity, further elevating regional cinema.
Part of the challenge lies in the shifting habits of Indian consumers. According to FICCI, India remains underserved in terms of screen density, with just 6 percent of the population visiting theaters annually. In a country with nearly 10,000 cinema screens — almost half of them in the south — low-cost alternatives like streaming services have transformed how people consume content.
The OTT boom has further accelerated this change. Amazon Prime Video, Netflix, and YouTube accounted for roughly 58 percent of India’s OTT video revenue in 2024. With global ad-tier offerings — including Prime’s 200 million users and Netflix’s 70 million monthly actives — streaming platforms have secured a growing foothold in the entertainment economy.
“The democratization of content through subtitles has reshaped viewing habits,” said Chopra. “Audiences today are willing to engage with films in multiple languages, provided there is emotional authenticity. OTT has become a great equalizer.”
In response, multiplexes are working to adapt. Many are investing in premium formats and diversifying content offerings — from live sports and concerts to select OTT screenings — in a bid to lure audiences back. Technological upgrades and immersive experiences remain central to this strategy.
Still, some industry voices believe theaters hold an enduring appeal. “Streaming has changed the game,” said Mantha. “But the grandeur of the big screen — the communal experience, the larger-than-life storytelling — is something streaming platforms cannot replicate. It’s not a matter of one replacing the other, but of both coexisting.”