Beyond the Box Office: Music Rights, Merchandising & Ancillary Revenue Streams in Indian Films

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When we talk about film revenues in India, most people immediately think of box office collections. But the truth is, tickets are only the tip of the iceberg. A film’s commercial success is no longer tied solely to how much money it makes in theatres. Today, music rights, merchandising, digital streaming, and other ancillary revenue streams often generate more money than the box office itself. And for smart filmmakers, that’s where the real opportunity lies.

Illustration highlighting multiple revenue streams in Indian cinema beyond ticket sales—music rights, merchandising, OTT platforms, and IP—titled ‘Beyond the Box Office,’ alongside a small poster of the film Badass Ravikumar.

🎵 Music Rights: The Unsung Hero of Film Revenues

India is a music-driven country. Songs are often released before the film to generate buzz, and labels are willing to pay big for exclusive rights.

  • Pre-release monetization: Music labels like T-Series, Saregama, and Sony Music purchase soundtrack rights in advance. This not only funds production but also provides upfront cash flow.

  • Streaming platforms: With Spotify, JioSaavn, Wynk, and YouTube in the mix, every play is a potential revenue source.

  • Case in point: For many mid-budget films, music rights alone can recover 30–40% of production costs before the film even hits the screen.

Merchandising: Turning Films into Brands

Merchandising is still underutilized in India, but the potential is massive. From action figures to T-shirts, mugs, posters, and even NFTs — fan-driven culture can turn a film into a lifestyle brand.

  • Children’s films & superheroes: Animation and action titles lend themselves naturally to toys and games.

  • Cult films: Quirky dialogues, iconic characters, and memes can translate into apparel or accessories.

  • Bollywood lag vs. Hollywood scale: While Hollywood blockbusters like Marvel mint billions through merchandise, Indian cinema is slowly waking up to this opportunity. Recent cult successes have already shown demand for limited-edition collectibles.

Satellite, OTT & Digital Rights

The biggest revenue disruptor in the past decade? Digital platforms.

  • Satellite Rights: TV channels pay hefty sums for first telecast rights.

  • OTT Rights: Platforms like Netflix, Amazon Prime Video, Disney+ Hotstar, and Zee5 are paying premiums for exclusive premieres.

  • For many films, OTT + satellite deals alone recover the entire budget, making box office an additional bonus rather than the main source of income.

Ancillary Streams & IP Value

Beyond the obvious, there are other clever revenue streams:

  • Remake & adaptation rights (other languages, web-series formats).

  • Brand collaborations & in-film placements.

  • Stage shows, concerts, and live performances based on film music.

  • YouTube monetization from songs, trailers, and film clips.

This is where Intellectual Property (IP) registration becomes crucial. Owning the IP means controlling not just the film, but every derivative — music albums, remakes, merchandising, even memes. Without proper IP registration, filmmakers risk losing out on long-term revenues.

Case Study: Badass Ravikumar (2024)

An interesting example is Himesh Reshammiya’s Badass Ravikumar. While it didn’t click theatrically and was widely perceived as a flop:

  • Estimated Budget: Around ₹20 crore.

  • Box Office: Net collections in India were around ₹8–9 crore, with global grosses near ₹11 crore — far below hit status.

  • Ancillary Revenues: Music rights, OTT, and satellite deals reportedly cushioned losses, with some trade analysts suggesting the film was still profitable for its makers, despite weak box office performance.

  • Public Perception vs. Reality: Audiences saw it as a flop, but thanks to non-theatrical revenues, the makers did not necessarily lose money.

This demonstrates how a “flop” in audience perception can still be financially manageable or even mildly profitable due to diversified revenue streams.

Takeaways for Aspiring Filmmakers

For new or independent filmmakers, understanding these revenue streams is critical:

  1. Think beyond theatres – plan for OTT, music, and merchandising from the start.

  2. Register your IP – safeguard your film, music, and characters legally.

  3. Leverage digital-first strategies – build a fan base through YouTube, Instagram, and streaming platforms even before release.

  4. Build brand partnerships – even small films can integrate product placements or tie-ups.

  5. Don’t fear “box office flops” – if your revenue streams are diversified, you can still emerge profitable.

🚨 Disclaimer

This article is for informational and educational purposes only. Revenue figures, case study data, and examples are based on industry reports and publicly available information. Actual earnings may vary for each film. Filmmakers are advised to consult financial and legal experts before making business decisions.

👉 In today’s Indian film industry, box office is just one seat in a much bigger theatre. The real game is in music, streaming, merchandising, and IP-driven exploitation — and those who understand this are the ones turning their films into enduring revenue machines.

Which films, in your view, made their mark by earning big outside the box office? Let us know in the comments.

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