Mumbai: Release windows will get redefined says the FICCI EY Report. OTT release windows have shortened over the past two years; a survey showed that 81% of cinemagoers believed that films would release on streaming platforms within four to eight weeks, and 53% of them had decided not to watch a film in a cinema hall within the last three months. The report expects that industry stakeholders will work towards giving each window a chance to monetise efficiently and harmonising windows across languages and regions.
The report also expects innovation in windows, where films releasing in one language can be made available on OTT platforms in markets/ states where that language is not spoken at premium prices e.g., a Bengali film could be available in South Indian states and Punjab along with its theatrical release in West Bengal.
Remakes will be reduced: The South Indian film industry has historically been a rich source of remakes across languages. However, as the consumption of subtitled and dubbed content grows, the trend is undergoing a notable shift. The success of original, rooted narratives has reduced dependency on remakes. Consequently, remakes are increasingly scrutinised, and while they still exist as a riskmitigation strategy, the industry is clearly moving toward authentic, culturally rooted storytelling with pan-India appeal.
Pan-India releases will re-shape regional cinema: The rise of ‘Pan-India’ films has significantly altered release strategies across South Indian industries Large-scale, multilingual releases are increasingly dominating screens, often compressing theatrical windows for mid-budget and regional-language films. This has led to intensified competition for screens and show timings, even the strategic clustering or postponement of smaller films. Pan-India films will increase pressure on regional content to scale up in narrative and production value.
Production expenses will increase, talent costs not as much: Producers believed that costs would increase in 2026. With OTT platforms reshaping viewing habits and quality expectations, drawing people back to theaters requires stronger content and bigger marketing spend.
At the same time, rising expenses across production elements such as technology, hospitality, sets, post-production and logistics are putting additional pressure on filmmakers, making profitability harder to achieve. Talent models are, however, showing some signs of moderating and being linked to film performance, a practice that 44% of production houses believe will only increase over time.
International markets will play an important role: Faster revenue growth from international markets, which are used to higher-quality content and special effects. Movies like Namit Malhotra’s Ramayana, which are being created at global standards for a multicountry release, can re-position India as a global standard production base NFDC, through its WAVES Film Bazaars, is strategically expanding into untapped domestic and global markets with an aggressive push to position.
Indian content on a global stage. Upcoming large-budget films are expected to drive international box office revenues beyond diaspora markets and position Indian cinema as a global spectacle alongside Hollywood franchises. In turn, these films could attract cross-border collaborations, co-productions and global talent
AI and technology will transform film production: AI’s ability to clone or synthesize the voice and face of big stars raises serious integrity and ethical concerns. However, it can significantly increase the career arc of talent.
Newer technologies like virtual production and LED walls are also being used by production houses to reduce expenses where shooting in real locations is challenging due to permission issues, crowd management, difficult terrain and high logistics costs. It will be critical for Indian industry to invest in training and developing talent to keep pace with — and indeed define — new production-tech ways of working and the adoption of newer technologies.
The US foreign film tariffs can impact international revenues: A proposal introduced in May 2025 and reiterated in September 2025 called for a 100% tariff on all films produced outside the US. However, it remains unclear how a film would be classified as ‘American’ and when the tariff would be implemented. The tariff, if effective, would double the import cost for US distributors, making it commercially unviable to release many non-US films, including mainstream film releases in Hindi, Tamil and Telugu.
Thus, the increased tariff has raised significant concerns for Indian filmmakers, given its growing dependence on the US as a key overseas market. In essence, while the proposal is positioned as an attempt to bring production back to the US, its ripple effects could significantly limit the overseas theatrical potential of Indian films, reduce cultural exchange and create new barriers for Indian content in the US market.
Pricing caps can challenge growth: In September 2025, the State Government of Karnataka introduced a cap of Rs. 200 on cinema ticket prices across theaters and languages, with an exemption for premium multi-screen halls of up to 75 seats. The industry has challenged the move, and the Karnataka High Court placed an interim stay on the notification, which remains in effect pending further review.
The pricing cap may compress revenues for multiplexes and premium screens, limit technology upgrades and affect the viability of high-investment formats such as IMAX and 4DX, with lower ceilings also impacting box-office performance during peak periods.
Further, a school of thought suggests that improved affordability could draw larger audiences, increase footfalls and help soften the revenue pressure while widening access to theatrical content. One would need to see how this plays out for the industry, both for theater owners and producers.
Animated content will see increased investment: Indian animation is witnessing a surge in popularity, driven by improved technology, streaming platforms, and a growing audience for culturally rich content. The success of recent projects shows that animation is no longer confined to children’s entertainment, and its high-quality visuals and compelling narratives are helping it break into mainstream cinema.
Religious/ mythological themes like ‘Mahavatar Narsimha’ and ‘Kurukshetra: The Great War of Mahabharata’ have resonated deeply with Indian audiences, as have foreign anime films. The report expects that Indian animation – and anime – will see increased focus in 2026 and beyond as the market matures, especially for mythological/ religious storytelling, which could become a dominant genre in the years ahead.
Lower-cost cinema infrastructure will emerge: Only 3,150 of India’s 19,500 pin-codes have cinema halls, The report expect sthat lower-cost cinemas will be built through partnerships with the government to use their land, bus stands, train stations, airports, etc. For smaller towns and villages, bundling cinema screens with community health centers, municipal office and other public infrastructure could pave the way for the next 150 million Indians to experience the theater.
Music rights will continue to gain value: As the music industry makes efforts to grow AVOD and SVOD audiences, the value of music rights is expected to increase rapidly Consolidation in music labels is taking place at between 10x and 20x of their revenues, indicating confidence in the increased monetisation of music rights and potential future revenues. The report expects more consolidation of music labels, driven mainly by international brands, and expect music rights to retain their elevated values.
Music rights are contributing significantly to prerelease revenues as songs become viral marketing tools across platforms. They also help in creating long-tail IP value beyond the film life cycle. The report therefore expects more film studios to hold onto their music rights or create their own labels to take advantage of these high valuations.
