From single screens to streaming: How OTT is changing India’s film culture

The cinema landscape in India has dramatically changed, with OTT platforms becoming a crucial factor for filmmakers. The magic of film culture in our country is at a crossroads, with streaming platforms challenging traditional theatres. Single-screen theatres – long the heart of India’s film culture – are rapidly fading. For years, cinema halls offered communal excitement with hooting, whistling, and coin-flinging at the screen.

As of 2025, India’s streaming audience has surged to 601.2 million users, over 40% of the population. By contrast, only 11.1% of Indians (157 million people) visited a movie theatre at least once in 2023. This gap highlights how OTT (Over-the-Top) platforms have surpassed cinemas in terms of reach. Today, many stand abandoned or repurposed; moreover, the Covid-19 pandemic left consumers with very few entertainment options. They invariably seek ways to entertain themselves within the safe confines of their homes. And this is where OTT platforms have come to the rescue.

Nostalgia of Single-Screen Culture and Decline

And mind you, these are the same theatres that had crowds clapping, whistling, dancing and even flinging coins at the screen in joy and appreciation back in the day while watching their most awaited new releases. The first day, the first show atmosphere inside these single-screen cinemas could convey if the movie would be a blockbuster or not. The ticket counter would then hang a ‘Housefull’ board and shutter its mini glass window, only leaving you with the option of buying a ticket from shady folks who’d hoard extra tickets and sell them in black.

But what remains of these single screen cinemas now are dark and dusty aisles, lonely old chairs, torn posters and light beams seeping in from dilapidated ceilings. It’s pretty much the same all over the country. The impact on single-screen cinemas has been dramatic – their numbers plunged from about 8,500 in 2018-19 to 6,200 in 2022. Hundreds of legacy theatres have shut their doors, particularly in the North and rural regions. In Uttar Pradesh, the most populous state, there are barely 1.33 cinema halls per million people, highlighting a “spatial-cultural marginalisation” as cinema-going becomes scarce outside.

Changing Viewing Habits

During 2020–2022, when lockdowns emptied cinemas, producers turned to digital releases – over 300 films premiered online in those years. This has undeniably impacted moviegoing habits. With vast libraries of content readily available at home and often at a lower cost, the convenience factor of OTT is undeniable. Audiences, too, formed new habits, enjoying first-run movies from the comfort of their own homes.

Even after theatres reopened, many Indians now prefer waiting a few weeks for films to hit OTT platforms rather than buying a theatre ticket for mid-budget releases. The result is that cinemas draw crowds mostly for big-budget spectacles and star-driven blockbusters, while dramas, thrillers, and niche stories often find their audience online. Notably, streaming has even become a primary revenue source for production houses, yielding 1.5× more income than theatrical box office in recent years. The financials changed for filmmakers, a lucrative Netflix or Amazon deal sometimes outweighs the uncertain returns of a theatrical run.

Personalised Digital Viewing

The rise of OTT has also fundamentally changed audience behaviour and cultural relationships with cinema in India. Content consumption is now personalised and private, often on a smartphone screen. By simply connecting their smart devices to the subscribed OTT services, viewers gain access to content anytime, anywhere, and on their preferred device. Therefore, the mobile channel is quickly emerging as the most preferred video delivery platform and the predominant service distribution channel for accelerated growth.

This convenience contrasts with the traditional ritual of going out to a single-screen theatre, which used to be a weekly family outing for many in earlier decades, Today’s viewers, especially urban youth, prize the ability to watch anything, anytime – and often alone or in small groups – rather than the once-universal “first day, first show” frenzy at local cinemas.

Technology Enabling OTT

We should also note that technology has played a pivotal role in the propagation of OTT video services. Complimentary features such as streaming services being cloud-based, support to Live-content with Video-on-demand (VOD), a large content repository, zero-buffering, adaptive bitrate streaming, the intuitive content discovery make OTT platforms easy to use. Consumers want to have the freedom of choosing the genre and watch the content as per their comfort and flexibility. This has driven the adoption of VoD services and thus home entertainment has made its way via streaming services.

Localization & Personalization

Localization of content, a gamut of choices with regards to genre, titles, personalization, and flexibility of viewing on any device at any place and anytime has provided a seamless experience to viewers. From an OTT services provider perspective, such deep consumer insights gleaned from OTT apps helps them tailor their offerings by making data-driven decisions. For instance, a Tamil teenager might devour a Korean drama on Netflix, while a Mumbai professional gets hooked on a Spanish thriller.

Class Divide in Digital Access Data-Driven Content Production

In the past, access to such variety was limited; now it’s the norm. Cultural habits have shifted from collective viewing to “personalized escapism.” However, this also introduces a class divide: digital streaming tends to skew toward urban, English-speaking, and middle-class subscribers. Those without reliable internet or OTT subscriptions – often rural and lower-income Indians – risk being left out of the new entertainment ecosystem. Data analytics also inform content production. Streaming platforms track which genres or actors draw engagement and help creators decide whether to green-light projects.

The success of gritty crime thrillers and genre-bending web series on OTT, for example, has encouraged more such productions targeting young adult demographics. Meanwhile, family-oriented or patriotic films that pull theatre crowds remain in the big-screen pipeline. This data-driven approach ensures storytelling is increasingly aligned with what audiences actually want – a shift from the old days when box office numbers were the only feedback loop after a film’s release.

India in the Global OTT Context

Another reason for India’s high streaming consumption is that the country’s OTT market has grown from a niche segment to a globally competitive one. India’s streaming surge mirrors worldwide trends: in the U.S., casual viewing has shifted online, while theatres prioritise premium blockbusters; China expanded screens and strengthened its box office; and Southeast Asia has embraced mobile-first streaming, with fewer traditional cinemas. India remains distinct, balancing limited multiplex growth and declining single screens with rising digital demand.

India’s move from traditional theatres to streaming is transforming the entertainment ecosystem. Creators benefit from greater freedom, niche audiences, and lighter censorship, though competition with global content is intense. Producers adopt hybrid release models, with digital rights often outweighing theatrical revenue, while cinemas upgrade or diversify to stay relevant. Multiplexes consolidate, and single-screen closures continue. Streaming platforms attract heavy investment, driving demand for originals, tech innovation, and regional personalization; consolidation is rising.

Conclusion

Despite OTT’s dominance, cinema still offers unmatched communal, premium experiences. The future is hybrid—big theatrical event films supported by streaming for reach and longevity, redefining India’s storytelling landscape.

Disclaimer: The views expressed here are solely those of the author and do not in any way represent the views of exchange4media.com.