Film industry gets more than three fourth of its revenue from the box office ( Indian theatrical and global theatrical collections ). The other revenue streams are TV rights and other sources. India has been losing screens at an alarming rate. There are barely 10000 screens, from about 12000 some five years back. The ticket prices being high has made multiplexes the preserve of the rich. The average occupancy of the multiplexes is 30 per cent. Single screen theatres have been downing shutters. The number of Indians watching films has fallen consistently in the last five years. In 2010, we had an audience of 82 million. In 2014, we have an audience of 78  million. Here is the major crunch. There is pressure on talent costs margins. It is time to rethink the business model. OTT platforms offer opportunities to monetise better.

Revenue numbers show a rise as the ticket prices are high, but in fact footfalls have actually fallen.

Hollywood deals with business risks efficiently. It banks on franchises, special effects and creature films. It works since more than 2/3 rds of its revenues come from global markets. In India of the total revenues, 90 per cent come from the local Indian cinema.

There are techniques of MR, predictive analysis, focus groups and script testing to reduce risks.