Diwali blockbuster slump: What are cinema chains doing to attract advertisers?

For decades, Diwali has been the crown jewel of Bollywood’s release calendar. Lavish sets, star-studded casts, and high-budget films once dominated the festival season, as families flocked to theatres for their annual dose of Bollywood magic. Films like Dilwale Dulhania Le Jayenge or Kuch Kuch Hota Hai became iconic, forever tied to the festive spirit of Diwali. I still recall watching Chennai Express with my family, or when we reluctantly agreed to watch Prem Ratan Dhan Payo for it had become an unspoken tradition for the whole family to watch a movie to truly celebrate the festival.   

This year, however, the festive season is unfolding differently, and the sparkle of fresh blockbuster releases seems somewhat dimmed. With fewer big-budget, original Hindi films and a growing reliance on re-releases and regional cinema, the landscape of Diwali box office entertainment is changing dramatically.

Although the anticipation for films like Singham Again and Bhool Bhulaiyaa 3 is palpable, the lack of multiple major Hindi releases marks a significant shift in the industry. While exhibitors have found ways to adapt—leaning heavily on re-released films and regional cinema to fill seats—this shift raises critical questions about Bollywood’s future. Is this a temporary recalibration, or are we witnessing a more profound transformation in how Bollywood operates during its most lucrative season?

Are we lacking blockbusters this Diwali?  

It has been a long-standing pattern during the premier festival that at least one movie featuring the Khans graces the screen and draws big numbers as well as the discourse around it. This break in tradition is especially notable given the history of Diwali being synonymous with Bollywood blockbusters. What happened to the flood of new Hindi films that usually illuminate the screens this time of year?

Bhavesh Joshi, Founder and CEO, MovieMe, attributes this change to the lingering effects of the pandemic and the cautiousness it has instilled in production houses. “Studios are becoming more conservative about the films they release in theatres,” Joshi explains, “opting to delay high-budget films until market conditions improve.” This caution is understandable. The pandemic disrupted production timelines and altered audience behaviour, making studios hesitant to gamble on major releases unless they’re confident of a significant return.

Adding to this conservative approach is the rise of streaming platforms, which have emerged as viable alternatives for film releases. Theatrical windows, once seen as crucial, have lost some of their shine as more and more films, particularly mid-range and content-driven projects, go directly to OTT platforms. Amit Sharma, Managing Director, Miraj Entertainment, acknowledges this shift but remains optimistic: "The emergence of streaming services is similar to when satellite TV first arrived. People thought it would be the end of cinema, but the theatrical experience is still unique."

While cinemas aren’t going anywhere, there’s no denying that streaming is reshaping when and how audiences consume content, forcing multiplex chains to rethink their strategies.

Multiplexes, faced with fewer original blockbusters, have had to adapt. To keep audiences engaged, many are turning to alternative content. “Theatres are hosting retro film festivals, re-releasing popular classics, and showcasing regional films to maintain footfalls,” says Devang Sampat, Managing Director, Cinepolis India. By broadening their programming, theatres are not only catering to a wider audience but also finding ways to stay afloat during lean periods. But while these strategies are creative, they also reflect the pressure that cinemas face as Bollywood becomes more cautious.

Re-releases: Nostalgia or necessity?

Perhaps the most telling sign of the times is the surge in re-releases. Iconic films like Rockstar and Laila Majnu have returned to theatres, and in some cases, they’re earning more now than during their original runs. But while this trend might initially seem like a heartwarming tribute to cinema’s past, it also raises deeper questions about the state of the industry. Is the re-release phenomenon a deliberate celebration of cinematic nostalgia, or is it merely a stopgap measure to compensate for the lack of new content?

For many industry insiders, the answer lies somewhere in between. Sharma points to the power of nostalgia, noting that "Re-releases have succeeded largely due to the desire for the big-screen experience and the emotional connection audiences have with these films." The communal aspect of watching a beloved classic in a cinema, surrounded by like-minded fans, is hard to replicate at home on a streaming platform. There’s something undeniably magical about seeing a film like Rockstar on the big screen, especially for younger audiences who may have missed its original release. Perhaps this is why Miraj Cinemas exclusively showcased Gangs of Wassypur I and II across its properties to tap into the cult status of the films and mythos that has been built over the years. 

However, nostalgia alone can’t explain the industry’s increasing reliance on re-releases. Joshi offers a more critical perspective, suggesting that the trend is as much about practicality as it is about sentimentality. "Studios are looking for ways to keep theatres filled during a time when fewer new films are being produced or released theatrically," he says. "Re-releases are a way to fill that gap." While re-releases might draw crowds, they also hint at a deeper problem—Bollywood’s current struggle to consistently produce fresh, engaging content that can match the fervour of its past.

Moreover, the re-release trend underscores the precarious balance the industry is trying to maintain. Re-releasing a film is a safer bet than launching a new, untested project. Films like Laila Majnu or Tumbbad, which didn’t achieve massive success during their original runs, are being given a second life—this time with the benefit of nostalgia and improved marketing. But while this strategy may work for now, relying too heavily on re-releases risks diminishing the excitement and innovation that once defined Bollywood during Diwali.

Multiplexes, including PVR INOX, have embraced the opportunity to curate diverse programming. Alongside Diwali’s releases, PVR INOX is featuring its Halloween Film Festival, which includes titles like Munjya, Stree, and IT Chapters One & Two. This approach aims to appeal to a wider variety of viewers, especially horror fans. "The strong turnout for diverse programming reflects how multiplexes are adapting to meet changing audience expectations,” explains Gautam Dutta, CEO of Revenue & Operations at PVR INOX Limited, noting that sequels and classic re-releases help maintain footfall and ensure steady advertising revenue.

Dutta attributes this success to an insightful strategy that taps into both nostalgia and high-quality cinematic experiences. “Films like Veer Zaara, Murari, and Rockstar are hitting occupancy rates of up to 100%," he explains. “It’s a mix of nostalgia and the immersive experience that draws people back.” Despite their availability on streaming platforms, audiences seek the collective experience and emotional resonance of these classics in a cinema setting, a dynamic that streaming at home can’t quite replicate.

In addition to the strong nostalgic pull, PVR INOX has seen a new generation of moviegoers, particularly Gen Z and Gen Alpha, discovering these films for the first time. For them, re-releases are fresh content. This phenomenon, Dutta observes, allows younger audiences to connect with films that previous generations loved, creating a unique, cross-generational appeal. Patterns of re-release success are evident, with Bollywood classics performing especially well in metro areas, while regional films like Ghilli (Tamil) and Pokiri (Telugu) thrive in Tier II and Tier III cities, drawing devoted regional audiences who continue to support these films.

Growing reliance on regional cinema

As Bollywood pulls back, regional cinema has stepped forward to fill the gap. This year, Tamil, Telugu, and Malayalam films are playing a bigger role in the Diwali box office than ever before. Films like Amaran and Lucky Bhaskar are gaining traction as multiplexes increasingly showcase regional content to draw in diverse audiences. For many cinema owners, this is a necessary move. Sharma believes the growing demand for language films pan-India is a trend that cannot be ignored. "Regional films are now finding audiences beyond their home states, thanks to wider distribution and subtitles," he says.

The rise of regional cinema reflects a broader shift in audience preferences. No longer content with the typical Bollywood formula, viewers are increasingly seeking out diverse stories and fresh voices. According to Sampat, this openness to experimentation is driving the success of films like 12th Fail and Laapata Ladies, which wouldn’t traditionally be seen as big releases. "Audiences today are more willing to explore different genres and storytelling styles," he says, "which is why we’re seeing unexpected hits that break the mould of the traditional blockbuster."

Dutta emphasises that the inclusion of regional re-releases highlights an important shift in preferences. "Regional films have a stronghold in smaller towns and cities, where they have seen high turnout and consistent demand," he explains. This strategy also ensures multiplexes reach audiences beyond the Bollywood-centric metros, with movies like Ghilli achieving impressive revenue (₹40 crore) in smaller cities where these films enjoy loyal fanbases.

However, the rise of regional cinema during Diwali also underscores Bollywood’s current vulnerability. For years, Bollywood was the dominant force in Indian cinema, but now it faces stiff competition from regional industries that are producing high-quality, innovative content. While this is a positive development for Indian cinema as a whole, it also puts pressure on Bollywood to adapt or risk losing its dominance.

Where are advertisers leaning? 

The changing dynamics of the box office have also affected advertisers, who once relied on the festive season’s big releases to reach vast audiences. Traditionally, advertisers would flock to cinemas during Diwali, tying their campaigns to the release of blockbuster films. But with fewer original big-budget releases and more regional films and re-releases, advertisers are being forced to rethink their strategies.

Shrenik Gandhi, Co-Founder and CEO, White Rivers Media, points out that while re-releases are generating interest, they don’t carry the same advertising weight as fresh blockbusters. "Re-released films draw in niche, dedicated audiences, but they don’t have the mass appeal or the buzz that a major new release generates," he says. Advertisers, who are typically looking for wide reach and high engagement, may be less inclined to invest heavily in campaigns tied to older films, even if they’re popular with certain demographics.

Dutta highlights that while re-releases have a strong nostalgic appeal, they don’t offer the same advertising reach as new blockbusters. "Re-released films draw a dedicated audience, but they lack the broad visibility of major new releases," he says. However, the sustained interest in nostalgic and regional films remains valuable, providing advertisers with a targeted platform to engage specific segments, such as Gen Z and Gen Alpha.

That said, advertisers are not abandoning cinema entirely. In fact, re-releases and regional films are still valuable in targeting specific audiences. Sharma explains that "brands are happy to invest in advertising around re-releases because they attract a very engaged, nostalgic audience." These films offer advertisers a more targeted, if smaller, platform to connect with viewers who are deeply invested in the cinematic experience.

Moreover, cinemas still offer something that OTT platforms can’t: a captive audience. As Gandhi notes, "Theatres provide an uninterrupted, immersive environment, which is hard to replicate on digital platforms where distractions are common." For advertisers, this remains a key advantage, especially for high-impact, large-format campaigns. However, as the lines between digital and theatrical continue to blur, it’s clear that advertisers will need to strike a balance between the two formats to maximise their reach.

Implications of OTT

The rise of OTT platforms has undoubtedly disrupted the traditional theatrical release model, and their influence is particularly felt during major release windows like Diwali. Many mid-range and smaller-budget films, which might have once premiered in theatres, are now opting for direct OTT releases. This shift has led some to wonder whether OTT platforms are eroding the dominance of cinemas, or whether the two formats can coexist.

However, Dutta believes OTT platforms are not competitors but rather a complement to the cinema experience. "The theatrical experience is unique and irreplaceable,” he says. “But OTT has expanded the range of content people are willing to engage with, and that helps cinemas as well.” As OTT continues to draw audiences, the platforms enable filmmakers to experiment with storytelling styles, raising the bar for everyone.

Sharma remains cautiously optimistic, comparing the current situation to the arrival of satellite TV. "When satellite TV came, people said it would be the end of cinema, but the big-screen experience is still unique," he says. While OTT platforms offer convenience and personalised viewing, the collective experience of watching a film in a theatre remains irreplaceable for many. Sampat echoes this sentiment, predicting that cinemas will continue to thrive alongside streaming platforms, with each serving its own distinct role.

However, the impact of OTT platforms is undeniable. Films that might have once been released during Diwali are now debuting on streaming services, further thinning the theatrical lineup. For some filmmakers, the decision to release on OTT is a financial one—streaming platforms offer guaranteed revenue, reducing the risk associated with a theatrical release. For audiences, OTT provides a more convenient way to access content, particularly for smaller films that might struggle to compete in a crowded box office.

But while OTT platforms may have drawn some films away from cinemas, they have also created new opportunities. As Sampat points out, "OTT platforms have made it easier for filmmakers to experiment with genres and storytelling, which has raised the bar for everyone." In this sense, OTT and theatrical releases are not in direct competition but rather part of a larger ecosystem where both formats can thrive.

A time of transition

This year’s Diwali box office is emblematic of a larger transition within the Indian film industry. The reliance on re-releases and regional films, the cautiousness of Bollywood studios, and the growing influence of OTT platforms all point to a period of change. While the festive season is keeping cinemas afloat, the absence of multiple original Bollywood blockbusters signals a shift that could redefine how Diwali at the box office is perceived in the years to come.

As Bollywood navigates this period of uncertainty, one thing remains clear: the industry will need to evolve to stay relevant. Whether this means embracing more diverse content, finding a balance with OTT platforms, or taking bigger creative risks, the path forward is anything but certain. What is clear, however, is that audiences’ tastes are changing, and the industry will need to adapt to meet these new expectations if it hopes to reclaim Diwali as the premier window for fresh, innovative cinema.