Indian Cinema’s New Business Model – Can Multiplexes, OTT Platforms and Movie Halls Grow Together?

Indian cinema is going through an important business transformation. For several years, streaming platforms such as Netflix and Prime Video changed the way movies reached audiences. Now, the industry appears to be moving toward a more balanced model in which cinema halls, multiplexes and OTT platforms can each play a different role.

The question is no longer simply whether people will watch movies in theatres or at home. The bigger question is: How can the entire Indian film ecosystem become more profitable?

The OTT Boom Changed Indian Cinema

During and after the pandemic, streaming platforms became an important destination for Indian films. Audiences became comfortable watching new content from home, while producers gained another source of revenue through digital rights.

Netflix and Prime Video became particularly important buyers of major Indian theatrical films. According to Ormax Media, these two platforms accounted for more than 75% of major Hindi, Telugu and Tamil theatrical film acquisitions between 2022 and 2024.

But the market has now changed.

Streaming companies are becoming more selective, and film producers can no longer depend on large OTT deals in the same way they could during the post-pandemic boom.

Why Are Multiplexes Facing Pressure?

Cinema halls have several major costs, including rent, staff, electricity, maintenance and technology.

At the same time, audiences have more entertainment choices than ever before.

A major issue is the limited number of cinema screens in India. EY reported that India had about 9,927 screens in 2024, while screen density remained low compared with several other major film markets.

The problem is particularly visible outside major cities, where many locations still have limited access to modern cinema halls.

Can Movie Halls Become More Profitable?

The answer may be yes, but simply increasing ticket prices is unlikely to be enough.

Cinema operators could focus on creating a better overall experience.

Some possible strategies include:

• Comfortable premium seating
• Better sound and larger screens
• Affordable family tickets
• Regional-language movie programming
• Food and beverage improvements
• Special screenings and fan events
• Loyalty and membership programmes
• More screens in smaller cities
• Flexible ticket pricing based on demand

The aim should be to make going to the cinema feel like an experience, rather than simply another way to watch a movie.

Multiplexes Need More Than Blockbusters

One major challenge is the dependence on a small number of successful films.

A blockbuster can bring huge crowds, while several smaller movies may struggle to fill screens. High real-estate and operating costs make this problem even more significant for multiplex operators.

A healthier cinema industry needs both major event films and strong mid-budget movies.

Regional cinema could also play a bigger role because audiences across India are increasingly interested in films from different languages.

What Should Netflix and Prime Video Do?

OTT platforms also need a sustainable strategy.

Instead of competing with theatres for every new release, streaming services can position themselves as the second stage of a movie’s journey.

A possible model could be:

Cinema → Digital rental/premium access → OTT subscription → Television/other platforms

This gives a successful movie several opportunities to generate revenue.

Theatrical films are still valuable to streaming platforms because they can attract new subscribers. Ormax’s 2026 analysis found that theatrical films continue to be an important customer-acquisition driver for subscription streaming services.

A Longer Theatrical Window Could Help

One major change already happening is the return of a longer gap between theatrical and streaming releases.

Industry reports indicate that many films are now reaching OTT platforms around eight weeks after their cinema release, compared with much shorter windows for some films during the post-pandemic period.

This could encourage audiences to watch important movies in theatres first instead of simply waiting for the streaming release.

However, the window needs to be carefully designed. A very long delay could reduce the value of the movie for streaming platforms, while an extremely short window could discourage cinema attendance.

The Future Could Be a Hybrid Model

The strongest future for Indian cinema may not be OTT versus theatres.

It could be OTT plus theatres.

A successful film could generate revenue from:

1. Cinema tickets
The first opportunity to earn from the audience.

2. Food and beverages
An important additional revenue stream for cinema operators.

3. Digital rights
Streaming platforms can acquire the film after its theatrical run.

4. Satellite and television rights
Another potential source of revenue.

5. International distribution
Indian films have growing audiences outside India.

6. Merchandise and brand partnerships
Popular franchises can generate additional commercial opportunities.

More Screens Could Mean More Growth

India has a huge potential audience, but many parts of the country still have limited access to cinema screens.

EY estimates that increasing India’s screen count from roughly 9,927 to around 20,000 could potentially add about ₹6,600 crore in annual theatrical revenue and create approximately 1.25 lakh direct jobs.

That suggests the industry’s future growth may not come only from making more expensive films. It could also come from building more accessible and affordable places for audiences to watch them.

Final Thoughts

Indian cinema is entering a new phase.

Netflix and Prime Video are still important parts of the movie business, but theatres remain essential for major releases. At the same time, multiplexes need to improve their customer experience, control costs and reduce dependence on a handful of blockbusters.

The future could therefore be a three-way ecosystem:

🎬 Movie Halls → Create the Event
📺 OTT Platforms → Extend the Movie’s Life
🎥 Producers → Build Content That Works Across Both

If the industry can find the right balance between theatrical windows, affordable cinema experiences and sustainable OTT deals, Indian cinema could create a much stronger business model for the years ahead.

This article is an original analysis based on publicly reported industry trends and is not affiliated with Netflix, Prime Video or any cinema chain.