Rs 9 billion was generated from cinema advertising in 2024, a 20% growth over 2023, according to the FICCI-EY Report. The growth is attributed to increased focus on such sales by the merged PVR-INOX exhibition chain, and the scarcity of avenues to reach affluent theater-going audiences. Movies of big stars/ production houses–which were missing in 2024 except for some releases in November and December–will return in 2025, along with more mass films, providing a boost to domestic and international theatrical revenues.
Industry discussions also indicate that key stars and production houses are now taking longer to deliver their movies to ensure that they meet the audiences’
expectations. As digital platforms focus on growing subscription revenues, their demand for tentpole films, and those which are made for affluent multiplex audiences, both will remain strong, though values would be range-bound for most non-premium, mid-sized and non-concept films which could find it hard to get sold.
The TVOD opportunity is also expected to scale, given the proliferation of new platforms and digital payments. Uncertainties due to mergers have now receded, and this should help stabilize broadcast rights volumes; however, declining viewership of premiers as well as
falling movie genre viewership could keep rights values at the lower end in 2025
Overall, the base of moviegoers will probably increase from under 100 million to 120 million by 2027, on the back of continued growth in per capita disposable income and growth in affluent households from the current 45 to 50 million to around 55 million.
Fewer, quality films will be greenlit
1,823 films (including 204 dubbed films) released in theaters in 2024 across languages and dubbed versions, compared to 1,796 releases in 2023
The highest number of films were released in Telugu (323), Tamil (252), Kannada (242), Hindi (221) and Malayalam (204). South Indian language film releases reduced by 3%, while other language releases increased by 11%
Over 100 films released in English, making India a key international market for Hollywood.
However, in the recent future, theatrical infrastructure will evolve. Given the environment of caution in 2025, fewer films will be produced on account of rising production costs, less digital and broadcast pre-funding/ pre-sales of rights, and higher dependence on theatrical revenues, especially for certain categories of small- or mid-budget films.
It is expected that longer production times, larger writers’ pools and more consumer research will be used to select films for production. A lot of unsold content from 2023 and 2024 could get sold as originals on digital platforms.
Now that films are attracting audiences across language markets, we could see more investment in pan-Indian content, more intermingling of stories, cultures and themes, of production values and music, than ever before. While the largest multiplex distributor has planned to add 100 new screens in FY2026 using an asset-light model13, we believe that low priced theaters, aided by the growth in mass-themed films, will come into being in the medium term, and this will expand the number of families and footfalls which can enjoy the theatrical experience
It is believed that very low cost theaters (with a capital investment below INR4 million each) will also come into being across approximately 88 cities with populations between 100k and 500k, and in the next 300 to 500 even smaller towns with populations below 100k. These theaters, which will thrive on mass and spectacular films, will have lower ticket and food and beverage prices, and will help in growing footfalls from underserved markets
Portable and inflatable cinemas are also revolutionizing the way movies are screened, particularly in regions like Chhattisgarh, Odisha, Andhra Pradesh, Telangana, Madhya Pradesh, Uttar Pradesh, and Goa where traditional cinema infrastructure is limited.
TVOD will scale
The growth of wired broadband and connected TVs is providing a fillip to TVOD revenues, and this trend is likely to gain importance, including for India’s high volume of films which do not find digital buyers.
The growth of aggregators like Play Store, Prime Video, Dor, Watch, WAVES and TataPlay Binge will increase the potential of TVOD offerings, and it is anticipated that online platforms like ticketing portals will enter the space of long-tail online film distribution.
To penetrate smaller markets effectively, a georestricted TVOD window could complement theatrical releases, either simultaneously or shortly after. This
approach ensures that audiences in areas with limited theater access can still engage with the content digitally.
The large number of unsold digital films could also release in increased numbers on AVOD platforms like YouTube, on the AVOD portions of pay OTT platforms,
and even on social media platforms that have large audience reach, on revenue share models.
Given the niche segment of India’s population who watch films, and the growth of larger screens at home, the type of films which will be made for theatrical
releases will be of the highest quality.
Films with a large amount of VFX, high-concept films, and larger-than-life stories will be created with increasing frequency, while smaller budget films with
limited special effects will find it increasingly difficult to find release windows.
At the other end of the paradigm, broadcasters will commence producing/ commissioning films in the sub INR15 million cost range, particularly for FTA and
regional channels.
Given the environment of caution in 2025, it is predicted that fewer films will be produced on account of rising production costs, less digital and broadcast prefunding/ pre-sales of rights, and higher dependence on theatrical revenues, especially for certain categories of small- or mid-budget films. It is like that longer production times, larger writers’ pools and more consumer research being used to select films for production. A lot of unsold content from 2023 and 2024 could get sold as originals on digital platforms.
Now that films are attracting audiences across language markets, we could see more investment in pan-Indian content, more intermingling of stories, cultures and themes, of production values and music, than ever before.
While the largest multiplex distributor has planned to add 100 new screens in FY2026 using an asset-light model13, it is projected that low priced theaters, aided by the growth in mass-themed films, will come into being in the medium term, and this will expand the number of families and footfalls which can enjoy the theatrical experience.
Very low cost theaters (with a capital investment below INR4 million each) will also come into being across approximately 88 cities with populations between 100k and 500k, and in the next 300 to 500 even smaller towns with populations below 100k. These theaters, which will thrive on mass and spectacular films, will have lower ticket and food and beverage prices, and will help in growing footfalls from underserved markets.
Portable and inflatable cinemas are also revolutionizing the way movies are screened, particularly in regions like Chhattisgarh, Odisha, Andhra Pradesh, Telangana, Madhya Pradesh, Uttar Pradesh, and Goa where traditional cinema infrastructure is limited.