In the ever-evolving landscape of media and entertainment, the key to success lies in capturing consumer attention. As Sameer Nair, CEO of Applause Entertainment, pointed out at FICCI Frames 2025, people must genuinely like what they see before they spread the word. This organic growth—fueled by audience appreciation—eventually translates into revenue.
The Intersection of Creativity and Profitability
During a fireside chat moderated by film trade analyst Komal Nahta, Nair dismissed the notion of a “secret formula” for content success. Instead, he emphasized the fundamental principle: If it doesn’t sell, it’s not creative. He recalled a debate with screenwriter Anjum Rajabali, which led to refining this idea: “You have to create content that earns applause. If you get applause, you will make money.”
Nair underlined the importance of appreciation, stating that money follows where admiration leads. This principle has been the foundation of Applause Entertainment’s strategy—producing content that resonates with audiences and, in turn, drives financial success.
The Business of Content Consumption
Despite industry challenges highlighted in the EY Report—which noted 2024 as a difficult year for many media players—Nair believes that people continue to consume and pay for content. The key is striking the right balance between pricing and quality.
Using Netflix as an example, he noted, “They have 300 million subscribers paying $10 a month. If they didn’t like the content, they wouldn’t be paying for it.” The underlying message: content remains king.
Challenges in the Content Business
The struggles of the content industry, according to Nair, stem from multiple factors like Not telling compelling stories, Following herd mentality rather than taking calculated risks, Over-reliance on formulaic storytelling and Budget mismanagement.
He acknowledged that while gut instinct plays a role, even seasoned industry players make mistakes. As Nahta queried who ultimately profits, Nair candidly responded: “The big stars. But beyond that, the financial model is complex.”
Platforms, channels, and theatres bear significant operational costs. If content underperforms, these platforms struggle to recover investments. He pointed to the downturn in India’s advertising market, where viewers can easily skip ads online—unlike on television, where they are unavoidable.
The Changing Dynamics of Theatrical Releases
One of the biggest concerns for the industry is the limited number of cinema screens in India. Nair compared screen density across countries:
- India: 9,000 screens for 1.5 billion people
- China: 70,000 screens for the same population
- USA: 40,000 screens for 300 million people
This stark disparity, coupled with shrinking theatrical-to-streaming windows, has impacted movie success rates. “When you release a movie, the first question people ask is: ‘On which platform?’” Nair noted.
He stressed that for a movie to succeed in theaters, it must be compelling enough for audiences to brave external factors—a cold, wet Monday night, a long commute, and the cost of a ticket. Otherwise, they will wait for the streaming release.
The High Cost of Movie Making
The industry’s financial structure is often lopsided, with excessive production budgets making success an all-or-nothing game. Nair agreed with the saying, Movies don’t flop; budgets do. He noted that multiplex pricing has kept a significant portion of the audience away, leading to reduced footfall and limited profitability.
“The very fans who take selfies with stars on the road can’t afford multiplex tickets,” he observed. Unlike South India, where laws ensure affordable front-row seating, many regions lack such provisions, further widening the accessibility gap.
The Need for Industry-Wide Collaboration
Nahta highlighted the absence of a collective industry effort to ensure long-term sustainability. Nair concurred, emphasizing that leadership must drive change. “The onus is on us. There are too many moving parts—multiplex owners, streaming platforms, advertisers—all with their own interests,” he said.
While unintended consequences shape the industry, Nair remains optimistic. “This is not all gloom and doom. The media and entertainment industry is too big to fail.” The challenge, he believes, lies in striking a balance between theatrical and streaming revenue.
The Future of Content Monetization
Nair pointed out that subscription-based models like HBO and Netflix set the gold standard. Contrary to popular belief, people are willing to pay for premium content. The assumption that audiences only want free content is flawed—social media content, for instance, thrives on user-generated material rather than professional production.
“The reality is simple—if advertisers won’t pay, consumers must. Someone has to bear the cost,” Nair concluded.
