Mumbai: The box-office share of Hollywood films in India fell to just 8% in 2024-its lowest in a decade-down from a peak of 15% in 2019 and 11% in 2014, a report by media and entertainment research firm Ormax Media said. This signals a potential downturn for Hollywood studios in what was widely seen as a key growth market steered by a notable shift in viewing preferences amid increasing competition from other industries and rise of streaming platforms, industry experts said.

Traditional Hollywood narratives no longer generate the same level of enthusiasm among an evolving Indian viewer base that now enjoys Korean dramas, regional Indian cinema, and select international films more than ever before, they said.

"In the past ten years, the taste of the Indian audience has changed. Their appetite for Hollywood blockbusters and conventional narratives has come down," said Sharad Mittal, founder of Kathputlee Arts & Films, a Mumbai-based film production house.

"This is the audience which is exposed to Korean dramas and other international stuff. They are looking for specific family outing experiences in theatres, which Hollywood films are not providing."

Another big reason for the dip in collections is because recent superhero films have failed to live up to expectations, experts said. Superhero films have had a huge fan following among Indian audiences. According to Ormax Media, superhero films accounted for 50% of Hollywood's box-office earnings in India at their peak in 2018. That share has now dropped to 27% in 2024.

Industry experts blame it largely on creatively disappointing storytelling as well as a growing sense of superhero fatigue. Audiences around the world are feeling worn out by the sheer volume of cape-and-mask content coming out of Hollywood, they said.

"Recently, Hollywood has been unable to create films which work on a global level," said producer and film business expert Girish Johar. "A case in point is superhero films, which have a huge following in India. These films have failed to strike a chord with Indian audiences in recent years."

Experts said the decline is partly due to studios overloading films with messaging and tinkering too much with well-established intellectual properties. This, they argue, has alienated loyal fans and made it harder to attract new audiences to these once-reliable franchises.

"Creative changes in already established IPs of studios are disappointing the loyal fan base of these IPs," said Ameya Naik, producer and founder of Fantasy Films, an event management company. 

"Studios are focusing too much on messaging, which is hampering storytelling and not serving well their existing IPs. This has impacted the overall footfalls for Hollywood films. They must create new IPs if they are keen on sharing a worldview which they are passionate about."

Recently, Disney's Snow White (2025), which has a global appeal and was made on a budget of $240-$270 million, flopped. This was because of creative changes in the IP, which did not go down well with its audiences, trade analysts said. According to Box Office Mojo, Snow White-released in the US on March 21-has collected over $183 million, much below its production cost. In India, too, the film did not get an enthusiastic response, collecting Rs. 4.54 crore in its first week.

In comparison, superhero film Avengers: Endgame (2019), which marked the end of the first phase of Marvel Cinematic Universe (MCU), collected Rs. 438 crore in India. Hollywood's global box-office revenue fell 11.5% to an estimated $30 billion in 2024 from 33.9 billion in 2023, according to Gower Street Analytics, as studios are struggling to revive cinema-going habits even as films are releasing faster on streaming platforms.

Block booking of movie tickets by producers and stars has resurfaced as a major concern in the film trade, with its impact on opening collections of recent Hindi and pan-India films drawing scrutiny.

Industry insiders highlight two key issues in this growing trend: the scale of block bookings and their link to a film’s quality.

The practice pushes up first-weekend numbers, creating an illusion of success.

Among recent films, the multilingual Game Changer saw a higher share of block bookings than organic audience ticket purchases. According to data from box office tracking firm Sacnilk, out of Rs 2.5 crore in advance bookings, Rs 1.5 crore came from block bookings. However, the film failed to sustain momentum and grossed approximately Rs 155 crore on a budget of Rs 400-450 crore.

Veteran trade analyst Komal Nahta noted, “In the past, block booking was like salt in a well-cooked dish—never too much or too little, just adequate. However, for a recent film, the producers block-booked tickets worth Rs 40 crore (net collections) out of Rs 80 crore the film collected in a week's time. This shows how excessive block booking has become.”

Analysts say that when block bookings outpace organic audience demand, films often struggle at the box office. A higher reliance on block bookings, trade experts note, also signals weaker content and poor long-term performance.

"Audiences cannot be hoodwinked. If a viewer books a ticket and finds 90% of the auditorium empty, the film is doomed through word-of-mouth," Nahta added.

Block booking occurs in several ways. Producers buy tickets in bulk for their affiliates. Corporations—especially brands associated with film stars—purchase tickets as part of endorsement deals, with ticket values often counted as part of a star’s remuneration. Additionally, producers barter tickets in exchange for services.

A producer, speaking on condition of anonymity, said, “Producers typically set aside 2-10% of a film’s budget for block booking after gauging the response to its trailer. They consider this a marketing expense.”

Trade analysts argue that block booking is often used when producers lack confidence in their films’ ability to attract audiences. By artificially inflating opening weekend figures, they aim to negotiate better deals with streaming platforms.

Movie trade analyst Girish Wankhede remarked, “Allocating a film’s budget to boost its first three-day collection is a recent phenomenon, but it’s not an honest approach. The aim is clear—producers inflate box office numbers to secure higher prices for digital and satellite rights.”

A recent box office forecast by media and entertainment research firm Ormax Media found that corporate bookings do not translate into sustained footfalls. Initial spikes in collections fail to hold if the film does not meet audience expectations.

Ameya Naik, producer and founder of Fantasy Films, said, “If a film’s trailer is well received, audience footfalls will grow organically. Block booking reflects a lack of confidence in one’s own creation. And audiences are smart enough to recognize this tactic."

Mumbai: The poor performance of recently released Hindi films such as 'Emergency' and 'Azaad' even after lowering ticket prices to Rs. 99 due to Cinema Lovers Day has raised a question over the assumption in the industry that low ticket prices ensure high footfalls in theatres.

"The performance of both 'Azaad' and 'Emergency' at the box office has broken the myth in the industry that low ticket prices ensure high footfalls in theatres," said Ameya Naik, producer and founder of event management company Fantasy Films.

Exhibitors celebrated Cinema Lovers Day on January 17 and offered tickets at Rs. 99. On the same day, 'Emergency' and 'Azaad' were released. Despite the Cinema Lovers Day, 'Emergency' and 'Azaad' collected Rs. 2.5 crore and Rs. 1.5 crore, respectively. This shows that lower ticket prices do not translate into higher footfalls in theatres. Also, according to box office data research firm Sacnilk, the overall occupancy levels for 'Emergency' and 'Azaad' have been in the range of 5-7% since their release last Friday.

Komal Nahta, a veteran trade analyst, said, "There was a novelty factor when exhibitors launched the campaign of celebrating National Cinema Day by offering tickets at Rs. 99. But gradually, this campaign began to lose its charm. Reducing ticket prices is not enough. Audiences want a combination of entertaining and exciting content along with reasonable ticket pricing."

"Footfalls for new releases - Emergency and Azaad - even in cinemas where ticket price is Rs. 99 are so low that it seems that people are not interested in watching films even if the admission price is low," he added.

After the pandemic, exhibitors initiated a mood-changing campaign to woo audiences to theatres by offering tickets at Rs. 99 on any day. The rationale behind the campaign was to boost footfalls in theatres. The first National Cinema Day was first celebrated on September 20, 2022. But as films failed at box office, exhibitors stared at high fixed costs. To compensate for weak footfalls in theatres, exhibitors re-launched National Cinema Day with a different name and re-released well-accepted old films in theatres.

Popcorn is believed to be one of the world’s oldest snacks. Evidence —6,700-year-old cobs with puffed kernels-excavated by archaeologists in Peru suggests exactly that. For most of the time since antiquity, the humble popcorn did not cause any ruckus.

Until last week, that is, when it caused significant online chatter, after the Indian government decided to increase the goods and services tax (GST) on caramel popcorn from 5% to 18%.

Nowhere was this conversation louder than among movie-goers.

There are two kinds of people in the world. Those who watch movies in silence, and those who need the crunch of a fistful of popcorn to engage their taste buds as they stare at the silver screen.

Large multiplex chains have since clarified that the change in tax structure is applicable only to packaged popcorn and that it will be business as usual for those freshly popped tubs.

But then food and beverages (F&B) has been a nagging concern for movie-goers for a long time, even without the imposition of a new tax. Why exactly is movie food such an expensive experience? And are alternatives popping up?

Both multiplexes and audiences have valid arguments on the pricing of items that are available for a fraction of the money outside the cinemas.

Though single-screen theatres attempted to make money from almost every inch of space, audiences never felt they got a raw deal, as they do in multiplexes now. With good reason, too.

Navendra Singh, AGM at a leading real estate firm, says, “Today, I am paying more than two times the money I incur on ticket prices, on food and beverages. I have to plan my theatre outing carefully. It is no longer a weekend ritual.”

According to various estimates, movie ticket prices in multiplexes could be in the range of Rs 260-350, depending on a film’s budget, star cast and the response the film’s trailer has received. A medium-size tub of popcorn could cost anywhere between Rs 300 and Rs 500, higher than the average ticket price in multiplexes, which in the case of PVR Inox, the segment leader among multiplexes, was Rs 257 last quarter. Soft drinks may be charged in the range of Rs 200-300, with combo packs starting at Rs 600. This means, for a middle-class family of four, the entire movie-hall experience can be prohibitively expensive.

The result? Along with the increasing supply of mediocre and unentertaining films and the proliferation of streaming platforms, audiences have got one more reason to reduce the frequency of going to the movies. This is reflected in a fall in footfalls.

According to mall developers, multiplexes used to generate 10% of footfalls in malls. This has fallen to 6-7% in recent years. The total admissions (footfalls) in PVR Inox properties fell to 38.8 million in the September 2024 quarter, from 48.4 million in the same period in 2023.

Yogesh Parker, a banking professional with a leading money transfer platform, says, “Today’s audience weighs an outing in multiplexes in terms of a trade-off.” The trade-off he is referring to is whether the cost of an outing in a multiplex can be used to offset the subscription amount of streaming platforms, since most films are available on streaming platforms within two months of theatre release.

There are close to 8,500 screens in India. Of these, less than 6,500 are operational after the pandemic. There are 3,500 multiplex screens and the remaining are single screens. PVR Inox, which has 1,747 screens, has recorded a higher growth in revenues from F&B than from the sale of tickets in the past four years; the former has grown at a compound annual growth rate (CAGR) of 15.3% to Rs 1,958 crore in FY24.

In the same period, revenues from the sale of movie tickets grew at a CAGR of 13.6% to Rs 3,279 crore. This has resulted in the share of F&B in total revenues for PVR Inox increasing to 31.5% in FY24 from 27.8% in FY20.

While the share of movie ticket revenues has grown in the same period—from 50.1% to 52.8%—F&B has been outpacing it. That, along with the higher margins from F&B, goes a long way in explaining why multiplexes price it high.

Producer and film business expert Girish Johar says, “Operating profit margins in the food & beverage segment are much higher.”

Estimates suggest F&B in a cinema costs more than three times outside it. F& B is a stable source of revenue for multiplexes.

Girish Wankhede, a movie trade analyst, says, “Exhibitors share revenues from the sale of movie tickets with distributors. Also, they must pay taxes on the sale of tickets. But food and beverage revenues go entirely to the multiplex.”

Multiplexes cite the high costs of operations (real estate, staff salaries and various overheads) as a reason for high F&B prices.

Rahul Dhyani, founder of Connplex Cinemas, a miniplex (75- seat theatre) chain, says, “Today, a family spends more on dinner at a restaurant than in a multiplex. So, we don’t think F&B costs are very high.”

But not all multiplexes are sticking to the script. Some are trying to disrupt the established pricing regime in a bid to trigger demand, especially at a time when most Hindi films are failing. Recently, multiplex chain Mukta A2 Cinemas capped its F&B prices at Rs 99.

Ask Satwik Lele, COO, Mukta A2 Cinemas why they shifted their strategy and he says, “Our strategy of capping F&B prices under Rs 99 has effectively increased three times our items per head (IPH).” Essentially, Mukta is trying to play the volume game. But can focusing on volume rather than value be a sound strategy?

An analyst, who did not wish to be named, says, “Even if a multiplex caps its F&B cost at Rs 99, it will make an operating profit margin in the range of 50-75% from the food and beverages segment.” Multiplexes must now choose between value strategy—high ticket prices and F&B rates but low footfalls—and volume strategy— affordable ticket and F&B prices but high footfalls.

Ameya Naik, founder of Fantasy Films, an event management company, is in the latter camp, arguing that more people coming into the movies is the need of the hour. He says there is a large audience seeking affordable movie-going experience.

“The audiences who prefer premium services in multiplexes are irregular and smaller in number as they are clear about what they want to watch in theatres,” he says. This strategy can have a broader impact.

If F&B costs are relatively affordable, even an average film may do reasonably good business at the box office.

So which way will your neighbourhood multiplex swing?