Explained: Why Bollywood Is Witnessing Its Worst Period With Fewer Films and Less Money for Writers

To get a fair representation of the current state of the Hindi film industry, picture it as a multi-storey building that’s been neglected for years. Suddenly, cylinder blasts rock the ground floor, sending tenants into a desperate fight for survival as flames engulf their homes. A couple of floors above, blissfully unaware, are the landlords, playing their favourite music and blow-drying their hair.

"The industry has perhaps never been this starkly divided," says a prominent filmmaker, speaking on condition of anonymity. The financially secure are oblivious to the crisis, operating as if nothing is amiss, while those struggling teeter on the edge, crippled by anxiety and wondering if they're the only ones left behind.

The Hollywood Reporter India previously reported that the Hindi film industry is navigating its "driest period" ever, marked by slowed production and widespread pay cuts affecting everyone except top stars and high-profile filmmakers.

But what has led to this "slump"—the unfortunate word which comes up in every cafe and watering hole where industry insiders unwind—and why is it that many fear there could be no way out of it? Unless the flames threaten to burn down the building, which is when the landlords will grab the fire extinguishers.

Where Is The Money?

Everything that ails Bollywood. Getty Images (Uniquely India)

THR India spoke to multiple insiders, who informed us that usually, the industry relies on "floating money" or fresh capital injected by new investors. Case in point? When Adar Poonawalla, the CEO of Serum Institute of India, acquired a 50% stake in Karan Johar's Dharma Productions and Dharmatic Entertainment for ₹1,000 crore in 2024.

"But this is just a ripple; the industry needs a lot more of this," says a source close to the matter. "We are becoming an industry funded from within. While corporates and streamers have injected some capital, the real issue is the lack of fresh investors. Without new players entering the market, the pool of funds is shrinking. This means whatever we produce or earn is now confined to a limited ecosystem."

To break it further down, think of it like this: the market has ₹100 in circulation, but the industry needs ₹500 to thrive. With only ₹100 available, the limited pool gets cornered by the most powerful or influential players, leaving everyone else fighting for the leftovers.

The Market Crash

"In 2017-18, when OTT players came in, the number of people actively working in the industry almost doubled," says screenwriter Sudeep Nigam.

Many, including strugglers, found work with the OTT boom, he notes. "The streaming boom gave many the hope of expansion, so we had more active writers, directors, and crew. But the market slowly started to crash," he says.

According to insiders, before COVID-19, the Hindi film industry had a steady stream of small-scale independent producers, who'd get money from some source, or invest their own money to make films and sell them to the studios.

It was a sustainable model for the producers, who could manage to make decent films as well. This phase enabled many actors, even those with little box-office pull, to headline a film in the theatres, in tandem with the OTT boom of post-2017 that gave newer voices a chance.

Now that entire chain of producers has been wiped out.

"All we talk about is, 'What are Dharma, Sajid Nadiadwala or YRF doing?' These guys were always there, but the new breed of producers, who'd put together and quickly make a ₹10 to 20 crore film, have now faded," a top production source explains.

Pre-pandemic, the source says, a top streamer greenlit a show which was headlined by lesser-known stars and helmed by a filmmaker who had done little work. He directed and produced the show, which became a runaway hit.

"Now, they don't want to go to a new producer. The mandate is to get an established producer and a star. When you do that, you cut down the entire ecosystem of any new, mid-level producer. So now they're stuck. Neither the OTT players are giving them the opportunity, nor do they have the floating cash to make a film," the production source says.

The Streaming War

A lot of the "market crash" can be traced back to the streaming wars and the over-expenditure from 2020-22. This slump, as multiple industry insiders suggest, began as a "course correction" but quickly spiralled out of control when those with money started "hoarding."

During the pandemic, when cinemas shut down, OTT platforms went on an acquisition spree, recklessly buying films for ₹65 to 100 crores, regardless of quality. Producers quickly offloaded even their lower-budget films at inflated prices, capitalising on the platforms' hunger for content.

When a producer sells a ₹20 crore film for ₹65 crore, it's a cushion that lets them afford to wait out the downturn for two to three years without taking on new projects.

"But this model has a flip side: those who actually need the money—writers, DOPs, and other creatives— are getting squeezed out. The same talents who felt optimistic about their careers in 2019 aren't seeing that financial promise materialise. Now, those who cashed in during the boom are holding back, choosing to wait for better times rather than investing in new projects. They’ll return when the market improves, leaving the ecosystem stagnant," the insider says.

An actor, who was charging ₹25 to 30 crore pre-pandemic, became choosy about projects as producers were unwilling to meet his fee, citing his diminishing box-office pull. Instead, he opted to sit out the slump, exploring alternative income streams like live events.

"But it has a ripple effect on the entire industry. A multitude of professionals—writers, crew members, and even PR interns—rely on these projects for employment. If an actor decides to sit out, the entire system feels the pinch," the insider adds.

The crisis has evolved into a deeper cultural issue, industry insiders warn.

"Decision-makers are stuck in denial, believing time will fix everything without requiring any behavioural changes," says a top writer. "This entitled mindset is crippling the industry. A handful of decision makers, primarily the top producers, have stopped taking matters seriously, thinking that as long as they are afloat, everything is fine."

This has led to an increase in exploitation.

Sources reveal that streamers now demand not just a bible, but five fully fleshed-out episodes from writers, which they are expected to churn after investing their time and effort without promise of any payment.

"The streamer will ask the producer to package the show. If it is a small producer, the ask will be to get a bigger showrunner. Till about 2021, a small producer had enough floating money, say a bare minimum of one to two lakhs, to give an advance to at least put pen to paper. Now, that's gone too. So, what will writers do?"

Many among the screenwriters' community have expressed the need to pull off something similar to the historic 2023 Writers Guild of America (WGA) strike to bail out Bollywood from the current crisis. But would that even be possible, considering there isn't a "fair play"?

"WGA could achieve a resolution through strikes because it was backed by producers with a fair goal. But here it is impossible. Financially secure people are making decisions for those who create art. Their risk appetite is way lower than the one they are deciding for. How will the industry not be doomed?" the insider concludes.