With Rs 13,000 Crore Revenue In 2025, Has The Box Office Spectacle Dwindled The OTT Boom?

For a brief period after the pandemic, it seemed like Indian cinema had fundamentally changed forever. Big films were arriving on streaming platforms within weeks of release- some skipping theatres entirely- while audiences grew comfortable watching major stars from their living rooms. But recently, the industry has begun swinging back toward a more traditional model that prioritises theatrical runs over quick OTT premieres.

The Post-Pandemic OTT Boom

During the COVID-19 pandemic, streaming platforms became Bollywood’s survival mechanism. With theatres shut for months, platforms like Netflix, Amazon Prime Video, and JioHotstar aggressively acquired film rights, often paying premium prices to secure direct-to-digital premieres.

Many producers relied

on OTT deals to recover investments quickly, especially when theatrical uncertainty remained high. Films starring major actors began premiering online within four weeks after their theatrical debut. Theatrical exclusivity, once considered sacred in Indian cinema, suddenly felt optional.

This eventually became a major concern for producers and exhibitors. Multiplex chains argued that short theatrical windows were discouraging audiences from visiting cinemas, directly hurting box-office revenue.

The Return Of The Theatrical Window

Even actors like Aamir Khan argued that the theatrical window should not be reduced. He told Variety in an earlier chat, “I agree with what Leonardo DiCaprio said, that the theatrical window needs to be protected to some extent. If you want the theatrical business to thrive and be healthy, you need to protect it.”

Khan said, “Mainstream films, which have a lot at stake, need a slightly longer window. A film like ‘Dhurandhar’ benefited from it. I think some really big films can have longer theatrical windows. Maybe small, experimental films need shorter ones. So, we need to have a flexible model.”

Khan previously told News18, “I don’t know any business where you offer your product, and if someone doesn’t buy it, you tell them—don’t worry, I’ll drop it at your house for free in eight weeks… It doesn’t make sense to me. That’s the reason many films aren’t doing well in theatres.”

Now, studios have gradually started extending the gap between theatrical and OTT release dates. Today, many major Indian films are maintaining an 8 to 12 week theatrical window before arriving on streaming platforms. In some cases, highly successful films are waiting even longer.

Direct-To-Digital Releases Have Reduced, Box Office Revenue Has Increased

“Movies are reaching OTT platforms much later after their theatrical release. So, OTT is no longer a substitute. In fact, it never really was,” Ajay Bijli, managing director of leading multiplex chain PVR Inox, told Economic Times (ET) in a recent chat.

ET also mentioned that per a Ficci-EY report, while the total number of films released on OTT platforms across Indian languages was 500 in 2025, direct-to-digital releases fell 50% in 2024. This means that in 2025, 470 films were released in theatres first before arriving on OTT platforms last year. The number in 2024 was 440.

The report also mentioned that the gross box office collections also saw a significant increase between 2024 and 2025. The number went up 14% from Rs 11, 400 crore in 2024 to Rs 13,000 crore in 2025. Box office numbers, as per Bijli, dictate how OTT deals are also structured.

Streaming Platforms Are Spending More Carefully

“Theatrical performance, word of mouth, and box-office collections have a very positive impact on viewership when a film arrives on OTT platforms after eight weeks,” Bijli added. During the streaming boom, platforms were competing aggressively for subscribers and were willing to overspend on film rights. But the economics have changed.

Several services have now reduced spending on expensive post-theatrical acquisitions, especially for mid-budget films that may not significantly boost subscriptions. Industry reports over the last two years have repeatedly suggested that OTT valuations for films have dropped compared to peak pandemic levels.

According to the Ficci-EY report quoted by ET, digital and OTT revenues for films declined 7% yearly. The revenue in 2025 was only Rs 2,900 crore. This indicates that streaming platforms are no longer blindly purchasing every major title at inflated rates.

Filmmaker Vishal Bhardwaj also previously told PTI that streaming platforms are increasingly relying on box office numbers to assess their deals. “…OTT people say, ‘No, we don’t want it, release it in theatres first, then we will take it here’. Good films are getting beaten in the process,” he said.

Big Films Need Big Screens Again

The success of large-scale theatrical spectacles has also reinforced confidence in cinemas. Films built around action, visual scale, mythology, horror-comedy, and event storytelling continue to attract audiences willing to pay premium ticket prices. Recently, films like Dhurandhar, Dhurandhar: The Revenge, Kantara: A Legend Chapter 1, Chhaava and Saiyaara, to name a few, have generated immense revenue at the box office.

Theatres And OTT Are No Longer Competitors

Interestingly, the industry is now moving toward a more balanced ecosystem rather than a theatrical-versus-OTT battle. Streaming platforms remain crucial for long-term revenue, global reach, and audience discovery. But they are increasingly functioning as the second phase of a film’s life cycle instead of replacing theatres altogether.

For producers, the equation is becoming clearer again: strong theatrical performance creates prestige, visibility, and revenue in ways streaming alone still struggles to replicate. And for audiences, the delayed OTT arrival may once again make the cinema hall feel special rather than optional.