1As a part of The Quint's series Screen Test, we spoke to media expert and author Vanita Kohli - Khandekar, who has been tracking the media and entertainment business for over two decades.
From the urgent need for more screens, to marketing emerging as the industry's weakest link, lack of capital, the need for unity in the industry, Vanita shares what she thinks is holding the business back — and what needs to change for it to thrive.
In an era where instinct is being traded for analytics, capital has become a defining factor, “now it’s all excel sheet,” Vanita points out. “Thoda sa excel sheet ko kum karo, thoda instinct ko badhao” (The industry needs to rely more on their instincts and reduce their focus on monetary gain)."
She cites Adar Poonawalla's investment in Dharma Productions as an exception, “what Adar Poonawalla has done by investing in Dharma, he’s given him capital on a plate which is non-strategic, non-questioning. It’s very difficult to get that kind of capital, I agree.”
What the industry needs most, she believes, is patronage investment —which does not only focus on returns.
In India, only 11% of the population goes to the theatres — a stark contrast to Europe and the U.S., where the number is between 50% - 80%. For Vanita, this gaps boils down to the fundamental issue: lack of screens.
"Films is a pay business. 60-70% is the box office revenue," she explains. "So my point is, the more screens you build, the more subscribers you get. The more people you get to pay, the more money that comes back into the system. After some point, if you generate enough cash, it (the film industry) will become very self sustaining. People are trying to build subscription businesses in other media and film has built it for 109 years."
Pre-pandemic we sold 980 million tickets, in 2023 we sold 943 and 2024 we fell. I think we sold 880 million tickets sold. Footfalls fell in Hindi cinema.Vanita Kohli - Khandekar
For Vanita, theatres are about about larger-than-life entertainment and has unmatched power, "events and concerts are going through the roof. So people are stepping out — people are not stepping out for your film, because you have not kept the theatres lubricated enough. Teen teen mahine koi release nahi hoti (there are no releases for 3 months)."
The numbers back her concern. India produces 1,800 to 2,000 films a year, yet in Hindi cinema, the release cycle has shrunk alarmingly. "When we talk about release cycles, Shailesh Kapoor of Ormax, qualifies it — he says, 'a film that releases in at least 1,000 screens is considered a major release.' By that definition, no major release has happened for eight to ten weeks. You can’t do that," she points out.
Due to which even ticket pricing can not be corrected, "they can play with it (prices) a little more and they choose not to play with it because occupancy is so low. If occupancy increases, then prices are variable, you can play with it happily. I think it’s that balance which they can’t seem to get right."
It all comes back to screens — more screens, and these same guys will reduce their prices to Rs.100. If we were at 15,000 - 30,000 screens today, a PVR would be less expensive.Vanita Kohli - Khandekar
Kohli-Khandekar believes that marketing has become so narrowly targeted and digital-first that it has lost both its soul and its reach, "I think film marketing is the weakest link in the chain right now. There aren't even enough posters of films."
The contrast with the earlier decade is sharp. There was a time when actors used to travel to cities and promote their films, creating awareness in the every corner, but today that is also an additional cost, "earlier these things were built into the contract, now it’s become a separate cost. If an actors has to travel to Vadodara or Ahmedabad, then it becomes a separate cost.”
Weighing in on the on-going issue of skyrocketing entourage cost, and make-up artist being paid more than writers, she said, "even if you say talent costs, you’re talking about ten or 20 people. Talent costs in the middle or the lower level haven’t risen phenomenally. So my point is that equitability will not happen in price because talent is not equitable."
Nobody has put a gun to a studio’s head and said you use this star with this project. So, when they complain about it (entourage), I feel like saying aap kyun use karte ho (why are you using them). Use somebody else, market the film better.Vanita Kohli - Khandekar
"This is where your courage and your spine comes. You want to whine and whine. I’m so sick of hearing about this entourage, costs, screens nahi hai, and capital problem. Get up and do something then. What stops you? This is a private business.”
If the early OTT boom years were marked by deep pockets and lavish spending, the mood today is far more cautious. Platforms are recalibrating — tightening budgets, stabilising investments, and putting pressure on producers to deliver more with less.
"Streaming guys have all the money — that’s not a problem. They don’t make money. Very few of them make money. But they have large global corporations backing them," she explains.
Watch the video for more:
"They have not cut back on budgets, they have stopped increasing them — the budgets have stabilised. But what they’re doing is they are squeezing people on season two, season three. Not just to cut costs but also to cut corners."Vanita Kohli - Khandekar