The recent second theatrical release by Amazon MGM Studios of director Anurag Kashyap's Hindi film Nishaanchi reflects the indisputable importance that streaming platforms have acquired across the entertainment industry's value chain, from creating and acquiring to distributing and exhibiting content. This marks a massive shift in the balance of power compared with the traditional funding ecosystem, producers, research firms, and industry observers told ET.
"Over the years, we have developed a multi-pronged approach to movies, licensing post-theatrical films, co-producing with studios for theatrical releases, and creating originals for our platform," said Nikhil Madhok, director and head of Originals, Prime Video India. "It was only logical in that evolution to bring select Amazon MGM Studios' original movies to theatres."
In February this year, Amazon MGM Studios released Superboys of Malegaon-its first film-in Indian theatres.
As the experience curve matures, Madhok is willing to commit more time, effort and funds to turn the trickle into a steady stream of handsome revenues.
"From next year, we aim to scale up and release three to four Indian feature films from Amazon MGM Studios theatrically every year," Madhok said.
The theatrical releases reflect the increasing role of streaming platforms in the Indian entertainment industry's value chain. They have graduated from merely creating and acquiring content to distributing and exhibiting it, producers, research firms, and industry observers told ET.
Beyond strengthening their presence across key segments of the entertainment value chain, streamers have gained a crucial edge over traditional players through their growing contribution to total film-related revenues, which now include both digital rights sales and box-office collections.
According to a study by the US-based global financial advisory firm Kroll, in 2024, 56% of total film-related collections came from streamers, while the remaining 44% came from the box office. In 2023, the respective shares were 44% and 56%.
"Streamers have redefined the revenue structure of Indian cinema. What used to be box-office gold has now shifted to digital gold, with pre-sold rights often surpassing theatrical earnings," said Umakanta Panigrahi, managing director, Valuation Services, Kroll. "This shift is not a short-term trend. It is a structural change shaping how value is created across India's entertainment ecosystem," he added.
Globally, platforms such as Netflix, Apple TV+, and others have been releasing films first in theatres before making them available on their platforms. The Irishman (2019) and F1: The Movie (2025) are two prominent examples.
"Streamers releasing films first in theatres reflects not only a strategy to unlock revenues across the film's lifecycle but also a move towards becoming vertically integrated. They have deep pockets and access to nuanced data about audience consumption patterns, advantages that give them strategic leverage over the traditional funding ecosystem," said a veteran producer and founder of a leading Indian production house.
"These advantages have resulted in a clear shift in the balance of power," he added.
"Over the years, we have developed a multi-pronged approach to movies, licensing post-theatrical films, co-producing with studios for theatrical releases, and creating originals for our platform," said Nikhil Madhok, director and head of Originals, Prime Video India. "It was only logical in that evolution to bring select Amazon MGM Studios' original movies to theatres."
In February this year, Amazon MGM Studios released Superboys of Malegaon-its first film-in Indian theatres.
As the experience curve matures, Madhok is willing to commit more time, effort and funds to turn the trickle into a steady stream of handsome revenues.
"From next year, we aim to scale up and release three to four Indian feature films from Amazon MGM Studios theatrically every year," Madhok said.
The theatrical releases reflect the increasing role of streaming platforms in the Indian entertainment industry's value chain. They have graduated from merely creating and acquiring content to distributing and exhibiting it, producers, research firms, and industry observers told ET.
Beyond strengthening their presence across key segments of the entertainment value chain, streamers have gained a crucial edge over traditional players through their growing contribution to total film-related revenues, which now include both digital rights sales and box-office collections.
According to a study by the US-based global financial advisory firm Kroll, in 2024, 56% of total film-related collections came from streamers, while the remaining 44% came from the box office. In 2023, the respective shares were 44% and 56%.
"Streamers have redefined the revenue structure of Indian cinema. What used to be box-office gold has now shifted to digital gold, with pre-sold rights often surpassing theatrical earnings," said Umakanta Panigrahi, managing director, Valuation Services, Kroll. "This shift is not a short-term trend. It is a structural change shaping how value is created across India's entertainment ecosystem," he added.
Globally, platforms such as Netflix, Apple TV+, and others have been releasing films first in theatres before making them available on their platforms. The Irishman (2019) and F1: The Movie (2025) are two prominent examples.
"Streamers releasing films first in theatres reflects not only a strategy to unlock revenues across the film's lifecycle but also a move towards becoming vertically integrated. They have deep pockets and access to nuanced data about audience consumption patterns, advantages that give them strategic leverage over the traditional funding ecosystem," said a veteran producer and founder of a leading Indian production house.
"These advantages have resulted in a clear shift in the balance of power," he added.
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