Cinema advertising revenue in India grew to Rs 9 billion in 2024, marking a 20% increase compared to 2023, according to the latest FICCI-EY report. This growth was driven by a stronger push from the merged PVR-INOX exhibition chain and the limited alternative avenues for reaching affluent, theater-going audiences.
The report also added that despite the increase in advertising revenue, overall gross box office collections declined to Rs 114 billion in 2024 from Rs 120 billion in 2023. The report noted that large-budget Hindi films, along with some South Indian films, underperformed, leading to lower overall collections.
Over 70% of total box office revenue came from just the top 10 films, reinforcing the trend that films were either major successes or significant disappointments, the report highlighted.
A total of 1,823 films, including 204 dubbed versions, were released in theaters in 2024 across various languages. Telugu (323), Tamil (252), Kannada (242), Hindi (221), and Malayalam (204) had the highest number of releases. South Indian film releases declined by 3%, while releases in other languages increased by 11%. Additionally, over 100 films in English were released, highlighting India’s growing importance as a Hollywood market.
The report pointed out that Hindi films saw a 13% decline in revenue. When excluding Hindi-dubbed versions of South Indian films, theatrical revenues of original Hindi films dropped by 37%, from Rs 51 billion to Rs 32 billion. Industry discussions attributed this decline to a lack of quality screenwriting.
International theatrical revenues showed a 5% increase, reaching Rs 20 billion in 2024. Meanwhile, the number of films released directly on digital platforms grew by 20% to 500, though direct-to-digital releases remained limited, increasing marginally from 57 in 2023 to 60 in 2024.
The television segment faced uncertainty due to industry consolidations, including the mergers of Viacom18-Disney and Sony-Zee. This impacted the value of broadcast rights, which declined by 10%. Hindi film viewership on television dropped by 4%, contributing to a 2% overall decline in films shown on TV.
The report highlighted that Goldmines, a Free TV channel, emerged as one of the highest-rated movie channels, benefiting from its exclusive library of films unavailable on Pay TV or OTT platforms.
OTT platforms remained cautious in their investments, focussing on profitability and using films primarily to drive subscriptions. The report highlighted the launch of Prasar Bharati’s “WAVES” initiative in 2024 will support independent filmmakers through AVOD, SVOD, and TVOD models.
Looking ahead, the report projects India’s base of moviegoers to grow from under 100 million to 120 million by 2027, supported by rising disposable incomes and an increase in affluent households from 45-50 million to around 55 million.
The report also anticipates the emergence of low-cost theaters, requiring capital investment below Rs 4 million each, in 88 cities with populations between 100,000 and 500,000. These theaters, expected to feature lower ticket and food prices, aim to drive footfalls from underserved markets and will focus on mass and spectacle-driven films.
