The Big Picture
Bollywood’s ₹15,000 crore theatrical industry is shrinking while digital platforms surge ahead. Bollywood OTT vs cinema has reached a total value of INR2.5 trillion (US$29.4 billion). This represents a growth of INR 81 billion from the previous year, marking a 3.3% increase. Growth slowed down from 8.3% in 2023, due to falling subscription revenues, and a global decline in Animation and VFX work outsourced to India. The sector contributed 0.73% to India’s GDP in 2024. “Shape the future: Indian media and entertainment is scripting a new story” has revealed a remarkable milestone for the Indian Media and Entertainment (M&E) sector in 2024.
Source: FICCI-EY M&E Report 2024 | Statista – Netflix India subscribers
Why This Shift Is Happening Now
The pandemic accelerated consumer migration to streaming. Months of lockdown normalized OTT habits, and even after theatres reopened. A single family visit to cinemas can cost upwards of ₹1,000, while a yearly OTT subscription comes cheaper. Growth in mobile ad revenue overtook wired revenue in 2019 and is expected to be 74.4% of the total internet advertising revenue of INR 30471 Cr by 2025. In 2020 revenue from mobile internet advertising in India was INR 7331 Cr and will rise to INR 22350 Cr in 2025 – increasing at a 25.4% CAGR. This makes India the fastest-growing mobile ad market in the world, reflecting the potential for growth.
Source: PwC India Entertainment & Media Outlook 2025
OTT Platforms as the New Distributors
Much like Spotify disrupted music, streaming services are reshaping film distribution. Netflix and Amazon Prime rely on data to greenlight originals, ensuring alignment with consumer viewing patterns. JioCinema, meanwhile, has bet on sports streaming and regional cinema to capture Tier-2 and Tier-3 markets. This shift reduces Bollywood’s dependence on theatrical releases and places distribution control firmly in the hands of platforms.
For audiences, personalization matters as much as star power. Regional content now outpaces Hindi cinema on streaming platforms, underscoring India’s fragmented but opportunity-rich media landscape. Ormax Media (2024) found that regional titles account for 54% of India’s OTT viewership, compared to just 36% for Hindi-language films.
Source: Ormax OTT Audience Report 2024
The Challenges Facing Theatres
Despite recovery efforts, cinemas face steep headwinds. PVR-INOX’s FY2024 report reveals footfall remains 20% below 2019 levels. Operational costs continue to rise, and over-reliance on “tentpole” films means a string of flops can destabilize exhibitors. Experiments with subscription-based passes, gourmet food offerings, and premium seating aim to reinvent the experience—but these are largely urban luxuries.
Meanwhile, Gen Z and millennials are digital-first, often discovering global Netflix shows or K-dramas before Bollywood theatrical releases. For this demographic, cinema is an occasional event; streaming is a default habit.
Source: PVR-INOX FY2024 Annual Report
What Audiences Want
Consumer expectations are reshaping industry strategies:
- Flexibility: Anytime, anywhere viewing.
- Regional storytelling: Strong demand across Tamil, Telugu, Malayalam, and Bengali films.
- Value for money: Lower-cost access vs. high-priced multiplex visits.
- Immersive add-ons: Bonus content, watch parties, and interactive formats.
The Road Ahead
Bollywood’s future may lie in hybrid strategies. Simultaneous OTT and theatre releases could help balance scale with exclusivity. Studios stand to benefit from OTT’s analytics-driven commissioning, while theatres must lean into experience-driven formats to stay relevant. Regional cinema, riding the digital wave, is set to claim a larger share of India’s storytelling pie.
Conclusion
Bollywood is approaching its “Spotify moment”, a world where platforms, not producers, control access to audiences. For an industry long defined by the box office, this shift is both disruptive and liberating. Theatres will survive as premium experiences, but OTT will define the mainstream. The winners will be those who adapt fastest to the reality that distribution, not just production, is destiny.
