India's media and entertainment industry has reached an important milestone. The sector crossed ₹2.78 lakh crore in 2025, growing 9% YoY and outpacing India's per capita GDP growth, according to a recent report by Ficci-EY. Filmed entertainment recorded its strongest performance to date, generating ₹20,500cr in revenue from more than 1,900 releases, with 37 films crossing the ₹100cr mark.
These are no longer the numbers of a creative industry alone. They represent the scale of an economic sector powered by intellectual property (IP), technology and global consumer demand. The industry's next phase of growth will not be determined solely by the stories it tells, but by the financial architecture that supports those stories.
Indian entertainment is approaching an inflection point. After decades of relationship-driven financing, it is beginning its evolution into a structured, transparent and institutionally investable asset class.
1 October 2026
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Film Financing
The evolution of Bollywood financing closely mirrors India's broader economic transformation.
For decades, films were financed through informal networks of private financiers, distributors and producers. Capital was raised through personal relationships, advance distribution agreements and market reputation. Decisions were based largely on experience and conviction rather than standardised underwriting or institutional governance.
Despite these limitations, this entrepreneurial model built one of the largest film industries in the world. It enabled generations of producers, directors and actors to create an ecosystem that continues to shape popular culture across continents.
The first major structural shift came in 1998, when filmmaking was granted industry status in India. This was a watershed moment. It allowed banks and financial institutions to formally participate in film financing, introducing greater transparency and accountability into an industry that had historically operated outside the traditional financial system.
The next test for Indian entertainment industry is to build a sophisticated investment ecosystem
The following decade witnessed the emergence of professionally managed studios including UTV, Eros International, Reliance Entertainment, Viacom18 Motion Pictures, Disney India and others. Corporate governance improved. Financial reporting became more disciplined. Production planning became increasingly structured. Organised distribution expanded rapidly.
Yet one aspect remained largely unchanged. Capital continued to be deployed predominantly on individual films. Investment outcomes remained dependent on the performance of a single title, often determined within the first few days of theatrical release. While the industry became more organised, it had not yet become institutionally investable.
Today, that reality is changing. Streaming platforms have fundamentally altered the economics of content. Revenue is no longer generated only through theatrical collections. IP now creates value across streaming platforms, satellite television, music rights, international distribution, licensing, merchandising and long-term library ownership.
At the same time, digital consumption has made audience behaviour measurable. Entertainment has evolved from a business driven largely by instinct into one increasingly supported by data. That transformation is creating the conditions necessary for institutional capital to participate with confidence.
Structured Finance
Every industry reaches a point where relationships alone can no longer finance sustained growth. Entertainment is now entering that phase.
The data reflects this evolution. Digital media crossed ₹1 lakh crore for the first time in 2025, growing by more than 30% YoY. Digital video subscriptions increased by 60% to ₹16,300cr, with 216mn paid subscriptions across platforms. Live entertainment expanded by 44% while filmed entertainment recorded its highest revenues on record.
These are measurable businesses supported by recurring revenue streams, sophisticated audience analytics and diversified monetisation models. They possess many of the characteristics institutional investors typically seek before allocating long-term capital.
Structured finance does not reduce creative freedom. It strengthens the financial framework that allows creativity to flourish.
Instead of concentrating investment in a single film, capital can be diversified across carefully selected portfolios of IP. Funding can be released progressively against production milestones rather than committed entirely at inception. IP can provide security until investors recover principal and agreed returns, while producers retain complete creative control.
Equally important, value creation should be assessed across the full commercial life cycle of content. Revenue today extends far beyond theatrical exhibition into streaming, satellite broadcasting, music licensing, international sales, consumer products and long-term library ownership. This transforms entertainment from a project-based business into a portfolio-driven investment opportunity.
The Next Era
International markets have demonstrated what disciplined financial structures can achieve.
In 2005, Marvel Entertainment secured a $525mn financing facility arranged by investment bank Merrill Lynch by pledging the film rights of a portfolio of comic book characters as collateral. Rather than financing one film at a time, the facility supported an entire slate of productions.
That financing structure ultimately enabled Marvel Studios to build one of the most successful entertainment franchises in modern history. The lesson extends well beyond Hollywood.
The opportunity is no longer simply to finance films. It is to invest in IP that compounds value over time.
The creative potential of India's entertainment industry is already well established. The next phase of growth depends on building financial institutions, investment structures and governance frameworks capable of matching that creative ambition.
India has built one of the world's largest storytelling economies. Its media and entertainment industry is projected to reach ₹3.3 lakh crore by 2028. Growth will be driven by filmed entertainment, digital platforms, live experiences, animation, visual effects and globally distributed IP.
The next challenge is to build one of the world's most sophisticated entertainment investment ecosystems. Relationships laid the foundation for the industry. Institutional capital will shape its future.
The financialisation of entertainment is not merely about unlocking new sources of funding. It is about recognising IP as a mainstream investment asset, capable of attracting sophisticated domestic and global capital while creating long-term value for producers, investors and the broader creative economy.
India's stories have already captured global audiences. The opportunity now is to build the financial architecture that allows those stories to become one of the country's most valuable investment assets.
The writer is chairman and managing director, CineNow
