Also, with changing audience preferences, the market has become so selective that only box-office successes and star-studded films are attracting buyers, leaving most Hindi films unsold on both streaming and TV, experts said.
Although satellite rights began declining with the rise of streaming platforms like Netflix, Prime Video and Disney+ Hotstar, the drop accelerated during the pandemic when filmmakers released films directly on streaming platforms to cut losses due to cinema closures.
“Producers, recognising the immense financial opportunities and investments made by streaming giants, have increasingly turned their attention to these platforms as their primary avenue for selling film rights,” said Shariq Patel, former CEO of Zee Studios.
The shift of advertising revenue from TV to digital has also prompted broadcasters to reassess the return on investment (ROI) for acquiring movies.According to industry estimates, broadcasters that previously allocated Rs 400–800 crore for satellite rights now face significant cuts, with many reducing their budgets substantially.Veteran media executive Neeraj Vyas, formerly with Sony Pictures Networks India, observed that with major films appearing on OTT platforms within weeks of theatrical releases, audiences increasingly prefer streaming over traditional TV, impacting viewership and ratings.
The gap between theatrical and OTT releases is typically 8–10 weeks.
Vyas said films on TV previously attracted strong ratings over multiple airings, but now, even after just two or three broadcasts, viewership declines sharply.
The reallocation of ad budgets from TV to digital platforms has further impacted TV monetisation for the film genre. “TV broadcasting is feeling the financial impact of this shift, as digital platforms and e-commerce continue to capture a growing share of ad revenues that once predominantly supported TV,” Vyas said.
Selective Deals
Hindi film producers are also finding it harder to secure on-demand streaming deals amid increasing selection and competition from across the country and the world.
As streaming services have matured, they have become more selective in their acquisitions, focusing on financially sustainable content aligned with their brand, Patel said.
“This selective approach has further intensified competition among producers, who now face the dual challenge of navigating lower satellite revenues and stricter streaming deals,” he said.
While satellite rights now account for only 20% of a film’s value, streaming contributes the remaining 80%.
To remain competitive, broadcasters are now looking to acquire both TV and digital rights of films to support their movie channels and streaming platforms.
Streaming platforms seek only digital rights.
Channels Stay Upbeat
Despite these challenges, Hindi movie channels still capture 25% of TV viewership, with 70% of movie consumption on TV coming from iconic catalogue titles, according to Ruchir Tiwari, chief cluster officer – Hindi movie channels at Zee Entertainment.
Growth in the free-to-air (FTA) space has expanded viewership, especially for older films, which continue to perform well on television despite also being available on YouTube, he noted.
While OTT offers a niche, premium experience, TV remains an accessible and affordable platform, ensuring sustained viewership for Hindi films and potential growth in revenues with realigned cost structures, Tiwari said.
Industry stakeholders, including filmmakers and platforms, are adjusting cost structures to foster a healthier ecosystem for Hindi cinema, he said.
“This dynamism makes me very optimistic about the growth of the Hindi film industry, which will provide an impetus for movie channels to increase their revenues with sustainable, realigned cost structures to reach healthy financial stability,” Tiwari said.
While agreeing with him that the movie genre remains a fundamentally strong content proposition, Vyas said the answer to the immediate situation could well be joint or co-licensing of certain large marquee titles, where broadcasters could enter into an agreement to mutually split the cost and divide the screenings of a title throughout the year.
“This approach would ensure that films continue to attract satellite buyers, and broadcasters can alleviate the pressure while monetising the product effectively,” Vyas said.
Experts said TV has seen a shift in audience profile, now catering more to the 30-plus age group, as younger audiences increasingly move towards other platforms. This shift is accompanied by growing viewership in second- and third-tier towns, highlighting the continued reach and buoyancy of television across these areas.
“In terms of content, it’s not streaming that directly impacts viewership but rather the type of movies that resonate with these audiences. Evergreen films continue to perform well on television, indicating a strong connection with viewers,” said LV Krishnan, chief executive of TAM Media, leaders in television audience measurement in India.
“From a return on investment (ROI) perspective, rerunning classic or older films offers better value compared to acquiring new releases, as these reruns reach the right demographic at a lower cost, delivering stronger ROI for broadcasters,” Krishnan said.
He added that the broader ecosystem reflects this trend, with even cinemas re-releasing blockbuster films from past years to attract audiences back to theatres, similar to how television capitalises on classics to draw viewership.
A case in point is PVR Inox holding the Kareena Kapoor Film Festival, celebrating the 25-year illustrious journey of the Bollywood star, re-releasing her popular films like Tumbbad, Laila Majnu, Rehnaa Hai Terre Dil Mein, and Veer Zaara. The festival contributed approximately 6% of overall PVR Inox admissions in the second quarter ended September.
