The era where a film's financial success was judged solely by its box office collections is officially over. In a significant shift, major Indian film studios are now aggressively diversifying their revenue streams, moving beyond traditional theatrical, satellite, and streaming rights to build lasting intellectual property (IP) ecosystems.
The New Revenue Playbook: Audio, Apps, and Merchandise
This strategic pivot was highlighted last month when the audio series platform Pocket FM announced a collaboration with Arka Mediaworks. The partnership aims to launch an extensive original audio series based on the blockbuster Baahubali franchise. This ambitious project will feature over 250 episodes and be made available in Hindi, Tamil, and Telugu, significantly expanding the epic's universe.
This is not an isolated case. Other major players are following suit. Yash Raj Films partnered with the going-out app District to create an in-app fan engagement experience for the upcoming action-drama War 2. Similarly, the Hrithik Roshan-starrer Fighter launched its own merchandise collection. These initiatives mark a clear move from one-time transactions to continuous fan engagement.
Monetary Impact and Strategic Value
In pure monetary terms, these new avenues are currently niche. For a big-budget film, an OTT deal can fetch over ₹200 crore, while revenue from spin-offs or merchandise might be around ₹20-30 crore. However, industry experts emphasize their critical strategic value: they extend the earning cycle, deepen fan loyalty, and bring Indian cinema in line with global IP management standards.
Vineet Singh, Senior Vice-President at Pocket FM, explains that such collaborations allow films to evolve into "living, expanding IP universes." He notes that audio is a particularly powerful medium as it allows for universe expansion at a fraction of the cost and time of a new film or streaming season, while still delivering immersive storytelling.
Harikrishnan Pillai, CEO of TheSmallBigIdea, attributes this trend to the corporatization of Indian cinema. Producers are now focused on building "elastic brands" and milking success dry, moving from one-off investments to franchise-building. However, he cautions that spin-offs only work for content that has made a genuine pop culture impact.
Data: The Hidden Asset
Beyond direct revenue, these new formats offer a treasure trove of data. Keren Benjamin Dias of White Rivers Media points out that audio spin-offs and digital experiences tell producers exactly who is listening, for how long, and which characters resonate. This data is invaluable for smarter greenlighting of projects, localization strategies, and long-term franchise planning.
According to Charu Malhotra of Primus Partners, the industry is witnessing a shift from "one-time consumption" to "IP as an ecosystem." While theatrical rights remain the primary revenue driver, these new streams provide continuous, supplementary income and give producers greater control over their IP and audience interaction.
The new model treats the theatrical release not as the end goal, but as the starting point—the most potent breeder of fandom. Everything that follows—audio series, merchandise, app experiences—is designed to nurture, stretch, and monetize that emotional bond over a much longer period, ensuring a film's legacy and profitability extend far beyond its opening weekend.
