The Indian film industry is firmly reverting to a theatrical-first release model as streaming platforms tighten spending and studios increasingly prioritise box office revenues, according to industry executives.

The shift marks a decisive move away from the post-pandemic phase, when several films premiered directly on OTT platforms. Today, films are typically arriving on streaming services around eight weeks after their theatrical release.

“Movies are reaching OTT platforms much later after their theatrical release. So OTT is no longer a substitute. In fact, it never really was,” said Ajay Bijli, managing director of PVR INOX, adding that box office performance continues to act as a benchmark for how OTT deals are structured.

According to a FICCI-EY report, while the total number of films released on OTT platforms remained steady at 500, direct-to-digital premieres fell 50% from 60 in 2024 to 30 in 2025. In contrast, 470 films released in theatres first before arriving on OTT platforms, compared with 440 in 2024.

Gross box office collections rose 14% from Rs 11,400 crore in 2024 to Rs 13,000 crore in 2025, marking an all-time high for the sector.

“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.

While theatrical revenues surged, demand for digital licensing weakened amid consolidation and tighter spending by streaming platforms. The merger of Disney+ Hotstar and JioCinema into JioHotstar further reduced movie acquisitions compared with the post-pandemic years. As a result, digital and OTT revenues for films declined 7% to Rs 2,900 crore in 2025, according to FICCI-EY estimates.

For streaming platforms without cricket rights, theatrical films continue to remain a key subscriber acquisition driver, with cricket and Bollywood still the two biggest tentpole content categories.

At the same time, there is growing acknowledgement within the industry about the need to build a sustainable economic model that benefits all stakeholders.

During a recent interaction, Gaurav Gandhi, Vice President, Asia-Pacific and ANZ, Prime Video said consolidation in the streaming market has reduced both content investments and overall output. With fewer buyers acquiring video content, demand has softened, leading to a natural demand-supply correction and rationalisation in pricing and spending.

“There has been some rationalisation of demand. But there is also an acknowledgement across the industry that while we have to grow, some of these costs are not tenable. Therefore, people have made choices. I think those choices have taken multiple forms. You don't necessarily buy what doesn’t work for you, but you can also build your own,” Gandhi said.

He added that Prime Video India has expanded from co-productions after the pandemic to creating original films while continuing to acquire film rights. Reflecting the renewed push towards theatres, Prime Video recently unveiled a five-film theatrical slate under Amazon MGM Studios India.