- Share
- Tweet
MUMBAI: Theatrical cinema’s economic contribution extends well beyond box-office collections, driving activity across retail, tourism, hospitality, advertising and digital entertainment. From film-inspired merchandise and destination tourism to multiplex footfall and ancillary rights, the big screen creates opportunities for businesses across industries. In this guest column, Rahul Puri, director of academics, Whistling Woods International, examines how theatrical cinema fuels the wider entertainment economy, strengthens interconnected business ecosystems and generates economic and cultural value long after audiences leave the theatre.
Theatrical cinema has always been more than a medium of entertainment. It is a shared experience encouraging camaraderie and togetherness among family and friends, creating conversations, showcasing social messages and highlighting how audiences engage with stories and creativity. While box-office collections remain a key measure of a film’s commercial performance, the true economic impact of theatrical cinema extends far beyond ticket sales. A successful film can stimulate activity across retail, tourism, hospitality, advertising, digital platforms and several other industries, making cinema an important contributor to the wider entertainment economy.
One of the biggest strengths of cinema is its ability to bring people together. Watching a film is not just about entertainment; it is also a shared experience where people from different communities come together to celebrate their favourite stars and films. This is particularly evident in South India, where star fandom is a big part of the culture. From fan clubs and celebrations to community screenings and other activities, the love for cinema goes well beyond movie theatres. It also creates opportunities for businesses to connect with these passionate audiences.
Cinema also creates significant opportunities for retail through intellectual property (IP), merchandising and brand collaborations. Popular films and their characters can inspire demand for apparel, collectibles, accessories and lifestyle products. Retail brands such as The Souled Store have demonstrated how entertainment-driven merchandise can create meaningful consumer engagement. Beyond merchandise, films offer brands opportunities to integrate their products into their storytelling and collaborate on promotional campaigns. The concentrated promotional activity surrounding a theatrical release can provide brands with a powerful platform to capture the audiences attention and create awareness.
Cinema also helps impart knowledge on our country’s historical and political incidents as well as some of the nation’s unsung heroes as depicted from movies like Ramayana, Dhurandhar, Shershaah, Chaava and Padman. Cinema helps to send out social messages to a much larger audience and also create awareness on important subjects that can positively impact our society.
Another reason for why impact of cinema extends far beyond the screen is because multiplexes are usually located within shopping malls. Due to this a film’s theatrical release can drive significant footfall, creating opportunities for food courts, restaurants, retail outlets and entertainment zones. The movie-going experience often becomes part of a larger outing, with audiences combining cinema with dining, shopping or leisure activities. Gaming centres and arcades can also benefit through co-branded experiences, interactive promotions and film-inspired activities. In this sense, theatrical cinema becomes a catalyst for the wider mall ecosystem, contributing to consumer spending beyond the cinema hall itself.
Another important dimension is the influence of cinema on tourism and travel. Films have the power to transform locations into aspirational destinations by presenting them through compelling visual narratives. Switzerland became one of the most prime destinations for Indian cinema, through films produced by Yash Raj Films. Films like these create an impact on the audiences, broadening tourism. Similarly another example is the movie Kaho Naa… Pyaar Hai which helped bring notice New Zealand’s landscapes, while Zindagi Na Milegi Dobara showcased Spain as an attractive destination for travel, adventure and exploration. Hence, cinema inspires audiences to visit locations they have experienced on screen, creating opportunities for tourism boards, hospitality businesses, airlines and local economies.
The commercial impact of theatrical success is equally significant within the film industry itself. A film that performs well at the box office can enhance the value of its ancillary rights, including OTT, satellite television, home video, music and other distribution formats. Strong theatrical performance often builds audience confidence, increases demand and strengthens the negotiating position of rights holders. This creates a ripple effect across producers, distributors, exhibitors and the platforms that subsequently acquire and distribute the film. A successful theatrical release can therefore serve as the foundation for a film’s broader commercial lifecycle, enabling it to generate value across multiple windows of exploitation.
Theatrical cinema also plays an important role in advertising and brand communication. Film promotions create opportunities for partnerships across television, digital media, outdoor advertising, retail activations and experiential marketing. Brands can associate themselves with a film’s themes, characters or audience appeal, while producers benefit from promotional support and expanded visibility. These collaborations can create mutually beneficial opportunities, allowing films to reach wider audiences while giving brands access to culturally relevant content.
Ultimately, theatrical experience has one of the most adverse effects on the economy of a country. Its value lies not only in the revenue generated at the box office, but also in the communities it builds, the consumer behaviour it influences, the businesses it supports and the commercial opportunities it unlocks across nations.
As India’s entertainment landscape continues to evolve, it is important to recognise theatrical cinema as an integral part of a connected creative economy. The big screen does not operate solely, rather it carries an entire ecosystem of businesses, experiences and industries. Beyond ticket sales, cinema’s greatest strength may well be its ability to create economic and cultural value that continues long after audiences leave the theatre.
