Shocking FICCI EY 2026 Report: India's Cinema Crisis Unveiled

Overview of the FICCI EY 2026 Report The **FICCI EY 2026 Report** has recently been released, shedding light on the evolving landscape of India's film industry during 2025. This extensive analysis covers various segments, including film production, exhibition, OTT platforms, music, television, print, and live events. The report's findings regarding the cinema exhibition sector are particularly striking, revealing both the challenges and trends that are shaping India's cinematic experience.

In 2025, the Indian film industry saw the release of 1,972 films, marking an 8% increase from the previous year, when 1,823 films hit theaters. Notably, Tamil cinema led the charge with 315 releases, closely followed by Telugu with 313 films. Kannada cinema contributed 267 films, while Bollywood accounted for 226 releases. Malayalam cinema also made its mark with 203 films released.

The growth in dubbed films is noteworthy, with 270 such films released in 2025, up from 204 in 2024. A significant portion of these dubbed films, about two-thirds, originated from South India. Moreover, 120 English films from Hollywood were released in India, underscoring India's importance as a lucrative market for international cinema.

Theatrical Revenue Insights Despite the rise of digital platforms, theatrical box office revenue remains a vital component of the film industry's earnings. According to the report, domestic theatrical revenues constituted **63%** of total income, a stark contrast to the **14%** generated from digital/OTT revenues. In a significant decline, broadcast and satellite rights fell from **12% in 2019** to just **6% in 2025**.

The report also noted a drop in OTT rights values to 8%, attributed to the consolidation of platforms and the closure of several regional services. In total, 500 films were released on OTT platforms in 2025, but only 30 were direct-to-digital releases, a decrease from 60 in 2024. This suggests a shift in how films are distributed and consumed, affecting industry dynamics.

In terms of overseas theatrical revenue, it accounted for less than 20% of domestic earnings. On a positive note, Indian films made their mark internationally, reaching 40 countries in 2025 with 390 films released abroad, a rise from 359 films in the previous year.

Challenges in the Exhibition Sector The report highlights the state of cinema exhibition in India, revealing that the country had a total of **10,033 screens** in 2025. This represents a minimal increase of just **1%**, with South Indian states experiencing a **1% decline** while the rest of India saw a **3% growth**. Overall, **240 new screens** were added, but **124 screens**—primarily single-screen theaters—shuttered their doors.

One staggering statistic from the report indicates that only 3,150 of India's 19,500 pin codes have cinema halls. This translates to a mere 6.8 screens per million people, significantly lower than countries like the USA (109), UK (66), France (95), and China (64). The report underscores the need for expansion and improvement in cinema accessibility across the nation.

Digital Challenges and Ticketing Transparency An emerging issue in the exhibition sector is the digitization of ticketing and data collection processes. Many smaller theaters, especially in rural areas, still rely on manual systems, leading to credibility issues regarding box office data and potentially impacting tax revenues.

The report alludes to practices of self-purchasing tickets, suggesting that transparency in film exhibition remains inadequate in certain regions, particularly in smaller towns and parts of South India. This raises concerns over under-declared ticket sales and the prevalence of unofficial premiums during the release of highly anticipated films.

Additionally, the rising costs associated with attending cinemas compared to viewing content online have led many audiences to wait for reviews and word-of-mouth recommendations before deciding to watch films in theaters. This trend has resulted in instances of bulk ticket purchases and heightened scrutiny over the authenticity of some reviews, further complicating the industry landscape.

Future Predictions and Industry Outlook Looking ahead, the authors of the FICCI EY report anticipate the emergence of **lower-cost cinema experiences** as a potential solution to boost audience attendance. As the industry grapples with evolving consumer preferences and economic challenges, innovative approaches to cinema management and marketing may be essential.

The emphasis on digital transformation, improved ticketing mechanisms, and enhanced transparency in operations could pave the way for revitalizing the exhibition sector. As audiences seek value and engagement, the film industry must adapt to these changing dynamics to maintain its relevance.

In conclusion, the FICCI EY 2026 Report serves as a wake-up call for stakeholders across the Indian film industry. With a focus on both challenges and opportunities, it highlights the urgent need for transformation in the exhibition sector while also celebrating the resilience and creativity of the Indian filmmaking community. As we move into the future, the ongoing dialogue about cinema's role in society and its ability to adapt to new realities will be crucial in shaping the industry's path forward.