Theatres see loss in revenue, is OTT vs theatres back again? Industry weighs in

Even as OTT continues to see a surge in viewership, the debate around the relevance of theatres refuses to die down.
According to an Ormax report, the OTT audience in India has reached 547.3 million users year-on-year, which translates to a 38.4% penetration rate. With more people turning to streaming, theatres are implementing various strategies to remain viable — often buoyed by occasional blockbusters such as Jawan, Pathaan, Animal (all 2023), and this year’s Stree 2: Sarkate Ka Aatank.
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However, a recent financial report from PVR INOX paints a less-than-rosy picture. The company reported a consolidated net loss of ₹12 crore for the second quarter of the fiscal year 2025, a significant decline from the net profit of ₹166 crore reported in the same quarter last year, an Afaqs report found.
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Writer Niren Bhatt, who penned scripts for films such as Stree 2 and Serious Men (2020), notes that the pandemic altered Indians’ viewing habits. “During the pandemic, OTT was the only medium of entertainment,” he says, adding, “We are still reeling from the after-effects of Covid. A lot of film shoots went haywire during the pandemic, that’s why we are still seeing these patches when there are no new films.”
Now, theatres have begun re-releasing some popular older films in an effort to draw viewers. This year, films such as Rockstar (2011), Laila Majnu (2018) and Jab We Met (2007) were re-released to packed houses. However, it is critical to note that the average cost for a ticket for a fresh release hovers around ₹250, while re-releases are priced lower, around ₹150. While re-releases have dominated, trade analyst Taran Adarsh says, “Low ticket prices are one of the contributors for theatrical chains’ low figures. But when it comes to a higher price tag than that, attitude hota hi hai ki, ‘OTT pe dekh lenge’.”
The dismal numbers are also a result of the audience’s preference to wait for a films’ OTT release instead of spending money on cinema tickets. Manoj Desai, executive director of G7 Multiplex and Maratha Mandir cinema, states this has impacted business by as much as 30%. “Bilkul asar padha hai logon ki aisi belief se. OTT mein ek baar paisa de ke free mein movies dekhne ko milti hai, aur free ki cheez sabko achchi lagti hai. My hope is that producers think hard about the kind of content that works on the big screen.”
Amit Sharma, managing director of Miraj Cinemas, believes that the choice to go to cinemas “is not a debate anymore.” “If that was the case, we wouldn’t have seen films reach the ₹500 crore mark after the pandemic. In the last two years, 8-10 films have crossed that mark. It boils down to whether we can provide such content to the viewers or not.”
While the existing business model was based on pre-pandemic trends, he remains optimistic. “We are in black, not in red. But, I believe this is temporary. Makers are now making films for those who want to come to the cinema. It will take time for those films to be completed; 2025 should be better.”