In this episode of Industry Spotlight by Creative First, Neeraj Goswamy, a film and media veteran with over two decades of experience in theatrical distribution, joins Lohita Sujith, Sr. Director, Copyright & Digital Economy, Motion Picture Association, for a wide-ranging conversation on how theatrical distribution in India has evolved, how audience behaviour is changing, and what the future could look like for cinema exhibition.

Neeraj looks back at the transition from 35mm prints to digital distribution and how it fundamentally changed the economics and scale of theatrical releases. Digital technology has made it faster, more cost-effective, and easier to take films to audiences across the country — but, he argues, technology is only one part of the equation.

For Neeraj, the bigger opportunity lies in rethinking how films are released. Rather than following a one-size-fits-all model, distributors need to consider the film, its audience, and its potential much earlier in the process. A film’s release strategy, he suggests, should not be determined solely by its stars or budget. Starting with the right number of screens and expanding based on audience response can often be a smarter approach than trying to go wide from day one.

The conversation also challenges the assumption that streaming is taking audiences away from theatres. Instead, Neeraj sees audiences becoming more discerning about what deserves a theatrical experience. Spectacle, anticipation, shared viewing, and word of mouth can still create a powerful reason to leave home, while films that lend themselves better to home viewing may benefit from a more targeted theatrical release.

He also reflects on the growth of multiplexes and the role smaller screens have played in creating space for a wider variety of films. Recalling the success of Hyderabad Blues, Neeraj points out that word of mouth has long been one of the most effective ways of building an audience — well before social media transformed film marketing.

That distinction between attention and audiences becomes particularly relevant when the conversation turns to digital marketing. Online engagement can create awareness and conversation, but it does not necessarily translate into ticket sales. Neeraj discusses how platforms such as YouTube, along with emerging technologies like AI, could democratise filmmaking, marketing, and audience discovery, while emphasising that the creative impulse at the heart of a film remains uniquely human.

Looking ahead, Neeraj sees considerable potential for India’s exhibition sector, particularly in tier-two and tier-three cities. But growth, he believes, is not simply about building more screens. It is also about making better use of existing infrastructure,improving affordability, choosing release dates more intelligently, and matching films with the audiences and screens where they have the greatest chance to succeed.

At the end, the conversation returns to a simple idea: the future of theatrical cinema will depend on better films, smarter distribution, sensible pricing, and giving audiences a compelling reason to come together and experience stories on the big screen.