Not long ago, a major Bollywood film skipping cinemas was unthinkable. Then, the pandemic forced a dramatic shift to streaming, leading many to predict the end of theatres. Yet, cinema halls are still here. What exactly happened?
The Old Golden Rule
Before 2020, the hierarchy
was clear: a film’s prestige and profitability were tied to a robust, exclusive run in theatres. A theatrical release wasn't just a distribution method; it was a cultural event. Months of marketing, elaborate premieres, and the collective experience of watching a movie on the big screen were central to Bollywood's business model. Success was measured by the coveted 100-crore club, a benchmark that seemed impossible to achieve without the pull of the box office. Smaller films or those with niche appeal often struggled, but the formula for big-budget entertainers was set in stone: cinema first, everything else later.
The Great Disruption of 2020
The COVID-19 pandemic and subsequent lockdowns brought the industry to a screeching halt. With cinemas shuttered, producers with finished films faced a crisis. Over-the-Top (OTT) platforms like Netflix, Amazon Prime Video, and Disney+ Hotstar, which were already gaining popularity, suddenly became the only viable outlet. They emerged as a lifeline, offering producers a way to recoup their investments by selling digital rights, often at a premium. This led to a wave of direct-to-digital releases, with major movies featuring big stars premiering in people's living rooms, a move that permanently altered audience expectations.
A New Kind of Premiere
The direct-to-OTT model came with its own set of economics. For producers, it offered a guaranteed sum, eliminating the risks of a theatrical flop. For streaming platforms, it was a way to attract subscribers by offering exclusive, star-studded content. However, the initial premiums offered by platforms began to decrease as theatres reopened and the market corrected itself. Platforms became more selective, and the initial gold rush cooled. This shift forced the industry to question the long-term viability of a purely digital-first approach, especially for films designed for a grand cinematic experience.
The Revenge of the Big Screen
Predictions of the cinema's demise proved premature. Post-pandemic, audiences have shown they are more than willing to return to theatres, but with a crucial caveat: they are more selective. The consensus is that if a film doesn't offer a true spectacle—a larger-than-life experience that can't be replicated at home—many viewers will simply wait for its OTT release. This has been proven by the massive success of event films, with several blockbusters in recent years smashing box office records, demonstrating that the appetite for a community viewing experience is far from dead. The box office has reclaimed its position as the primary revenue driver for major films.
The Hybrid Future Is Here
Today, Bollywood operates on a flexible, hybrid model. The strategy is no longer about choosing between theatres and streaming but about leveraging both. Big-budget, spectacle-driven films are prioritized for an exclusive theatrical run, creating an 'event' status that drives box office collections. These films then move to OTT platforms after a shortened window of four to eight weeks, giving them a second life. Meanwhile, mid-budget, experimental, or narrative-driven films that might struggle in the current theatrical landscape are finding a natural home on streaming platforms, where they can connect with a specific audience without the pressure of opening-weekend numbers. This bifurcation allows producers to tailor a film's release strategy to its specific genre and scale, maximizing its potential reach and revenue.
