Indian cinema needs strategy re-jig

The Indian cinema industry is navigating a turbulent phase. Changing audience habits, declining footfalls and technological shifts have all forcing the exhibitors to rethink on their strategies.

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These concerns dominated discussions at the Big Cine Expo 2025, held on August 19–20 at the Chennai Trade Centre.

The Expo saw leading industry voices debate the way forward.

The panel included Bhuvnesh Mendiratta (Miraj Cinemas), Denzil Dias (Warner Bros. Discovery), Devang Sampat (Cinépolis India), Preetham Daniel (IMAX), Satish Kottakota (NY Cinemas), and Sushil Chaudhary (PictureTime DigiPlex). The panel discussion was moderated by Karan Taurani (Elara Capital).

A recurring theme was the challenge of attracting Gen Z and millennials, who together form half of the country’s population and drive 60 per cent of consumer spending. Unlike older generations, they are impulsive, have low brand loyalty and prefer spending on experiences rather than savings. “They are glued to Instagram and YouTube Shorts,or turning to live events and gaming. The task for cinemas is to make the big screen compelling enough to bring them back,” said Taurani.

Cinema attendance has slipped sharply, with average per-screen footfalls falling from about 100,000 to 80,000 since the pandemic. While ticket prices have risen, higher operating costs have cut into margins, making audience recovery critical. Industry leaders also pointed to the loss of nearly 20 per cent of the cinema-going audience post-COVID, a segment yet to be re-engaged.

The panel noted that Hindi cinema continued to struggle. However, South Indian films have grown their market share from 20–25 per cent before the pandemic to as much as 40 per cent today. Hollywood’s performance has been uneven, partly due to the Hollywood strike, though quality dubbing in Indian languages has widened its reach.

Advertising revenue remains underdeveloped, held back by lack of reliable data. Advertisers increasingly demand transparency on reach and demographics before committing spends. Panelists highlighted AI-driven tools as a solution, offering real-time tracking of audience profiles and campaign impact.

Premium viewing formats, however, are expanding strongly. IMAX, for instance, has recorded 70 per cent growth over the past four years, with audiences willing to pay more for immersive experiences. “Audiences don’t mind paying extra when they see value,” said Preetham Daniel, who expects India to support up to 150 IMAX screens in the future.

Despite current challenges, the outlook remains optimistic. Growth in regional films, advances in dubbing, AI-enabled marketing and better technological upgrades in sound and picture quality were cited as major opportunities. A more transparent and data-driven ecosystem could also boost advertiser confidence and encourage repeat visits.

Industry leaders agreed on one point: Indian cinema is no longer competing only with other films but with every form of entertainment, from short videos to live concerts.

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