The Covid-19 pandemic brought with it a host of challenges, leaving an indelible mark on society. And the Indian film industry – touted as one of the world’s most prolific industries producing nearly 2,000 movies each year – is no exception.
The closure of cinemas for over a year, coupled with capacity restrictions upon reopening, disrupted livelihoods across the industry and deprived audiences of their primary source of entertainment. Revenues plunged by 24%, falling to the 2017 level of US$18.9 billion.
But turns out, the pandemic also sparked a transformative shift that reshaped this vibrant sector. A recent study led by UniSA arts management expert Professor Ruth Rentschler OAM and the University of Adelaide’s Dr Rajeev Kamineni revealed that a silver lining emerged in the form of a digital revolution. covid impact indian films
According to experts, streaming platforms (Netflix, Amazon Prime and Disney, and so on) enabled Indian films to reach wider audiences across the globe. Thanks to that, the Indian media and entertainment sector posted a robust 21% growth as of 2022, having crossed the US$24 billion mark in annual revenue for the first time.
“Digital transformation enabled producers to plan their projects better,” says Dr Kamineni, who has produced 14 Indian films over the last decade. “Before the pandemic, digital/OTT revenue was viewed as an additional source of income supplementing the theatrical revenue. However, during the pandemic, producers had no other option but to depend on the digital/streaming platforms to recover their costs.”
And the power of digital avenues has become evident. “Now, producers view it as a major source of revenue and no longer as a supplementary source.”
Indian cinema writes its next chapter
The pandemic sped up the process of change, due to necessity as a means of survival. However, change and disruption are not new to the Indian film industry. Prof Rentschler explains, “Producers in the industry have seen shifts from single cinemas to multiplexes, from cassettes to DVDs to digital content stored in the cloud. They are part of the fight to retain their intellectual property in a disruptive industry, ensuring they survive and thrive. However, the shift from ‘box office’ sales to streaming networks was one of the biggest disruptions of all time. Film audiences now receive their films direct, without the cinema intervening.” covid impact indian films
Digital transformation means that customers from the lower socio-economic sections of the society can access content on their phones.
“They might not have good TV screens in their homes but they have affordable smart phones and very affordable unlimited data packages available which means that they can watch content on a small screen held in their palm,” Dr Kamineni shares. “Thanks to digital transformation, content is widely available. And so, producers have to adjust their content to suit the tastes of audience who no longer have to come to a cinema screen to watch the content. This has been a steep learning curve for producers after the pandemic and they are coming to grips with this changed reality.”
The Indian film industry ranks second in the world, after Hollywood. In 2019, it was worth US$2.1 billion, not significant in an emerging economy like India. “But Deloitte (2020) reckons it will employ directly or indirectly 3.77 million people by 2024,” Prof Rentschler adds. “The industry provides India with soft power across the globe, setting it apart from other neighbouring countries, and contributing to people-to-people relationships internationally.”
Dr Kamineni and Prof Rentschler offer several such in their paper titled No Lights, No Camera, No Action: Indian Movie Industry Practitioner Perspectives on Life After the Pandemic.
Covid impact on Indian films: Like a phoenix rising from the ashes
One of the most significant change post-pandemic is that regional cinema has grown in popularity. In short, if the content is captivating, language and regions are not a constraining factor anymore.
“The rise of Indian regional cinema post-pandemic can be attributed to a confluence of factors, including increased accessibility through streaming platforms, a shift in audience preferences, high-quality content, support from regional governments, and growing global interest in diverse cultures,” Dr Kamineni says.
The role of Indian diaspora is also crucial in promoting regional cinema abroad. “The diaspora has created a demand for films that connect them to their cultural roots. Additionally, global audiences are increasingly interested in exploring diverse cultures and stories, and Indian regional cinema offers a rich and varied tapestry of cultural experiences that also lead to increase in international collaborations with regional filmmakers, leading to co-productions and exchange of talent, further expanding the reach of regional cinema.”
The global Indian diaspora, including a significant population in Australia, plays a key role in boosting revenue for all-language Indian films through streaming platforms and film festivals. “For instance, the 2024 Adelaide Film Festival highlights Indian cinema, reflecting the growing influence of Indian immigrants in Australia, who now form the largest migrant group post-COVID due to education and migration opportunities,” informs Prof Rentschler.
In conclusion, what does the Indian film industry’s future look like?
“Exciting,” responds Dr Kamineni. “There will be a focus on content-driven cinema, technological advancements, pan-Indian collaborations, and a hybrid distribution model. By embracing diversity, innovation, and global perspectives, the industry can continue to captivate audiences worldwide and solidify its position as a major force in the world of entertainment. A hybrid model balancing digital and traditional distribution channels has already emerged as the dominant approach, allowing filmmakers to cater to diverse audiences and maximize their reach.” covid impact indian films
While theatrical releases will remain crucial for big-budget spectacles and event films, offering a communal viewing experience and contributing to box office revenue, streaming platforms will provide a wider reach for diverse content, including regional films and niche genres, catering to individual preferences and viewing habits.
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