As Indian investors widen their horizons beyond equities and bonds, a new and unconventional asset class is entering the mainstream: film intellectual property. In a move that could reshape the economics of movie-making, CineNow Limited has launched a ₹1,350-crore Secured Participation Fund aimed at turning film financing into a structured, institutional-grade investment opportunity.
The initiative comes at a time when investors are actively diversifying across asset classes as traditional instruments are offering relatively unstable returns. Against this backdrop, CineNow is repositioning film IP long viewed as a high-risk, relationship-driven business as a disciplined financial product with defined risk controls and exit mechanisms.
At the heart of the proposal is a slate-driven investment model, under which investor capital is deployed across multiple film projects. The fund structure is backed by a first-ranking lien on the underlying intellectual property and associated rights, including theatrical releases, digital streaming, satellite broadcasting, music licensing and merchandising.
This diversified rights pool is designed to provide multiple revenue streams and mitigate concentration risk. What sets the model apart, however, is its emphasis on value creation during the production lifecycle rather than reliance on box-office performance alone.
What does CineNow argue
CineNow argues that a film’s valuation evolves significantly as it progresses from script development to casting, filming, post-production and distribution packaging. By capturing this “re-rating” phase, the fund aims to generate returns even before a movie reaches theatres.
A key innovation is the introduction of a liquidity window through tokenisation. Under the structure, early investors could exit roughly 12 months after the fund’s closure, when the film slate is expected to have appreciated in value. This creates a pre-release exit option – an uncommon feature in traditional film financing which would allow investors to monetise gains without waiting for theatrical performance.
Investors who remain beyond this stage, including token holders, would continue to participate in the downstream revenues generated by the films, such as streaming deals, satellite rights and other exploitation channels.
This dual-stage return framework marks a departure from legacy models where returns hinge almost entirely on box-office success and investors are often locked into a single project long-term.
Why does the timing matter?
The timing of CineNow is significant. India’s media and entertainment industry has grown rapidly, crossing ₹2.5 trillion in 2024. Yet, the film segment has shown signs of stress. Industry estimates indicate that film revenues declined about 5% to ₹187 billion last year, despite more than 1,600 releases. Only 11 Hindi films crossed the ₹1-billion mark at the box office, down from 17 the previous year.
At the same time, revenues from digital streaming and satellite rights have softened, falling by around 10% as platforms shift focus from aggressive content acquisition to profitability. For producers and financiers, this has highlighted a structural challenge: while films generate multiple revenue streams, the need to service debt or plug funding gaps often forces early monetisation of rights, potentially limiting upside.
CineNow’s model seeks to address this by inserting a liquidity layer before release, enabling rights holders to defer monetisation until market conditions are more favourable. By reducing dependence on premature sales, the structure could, in theory, improve overall returns across the film value chain.
The broader digital ecosystem adds weight to the proposition. India’s OTT market continues to expand rapidly, with strong growth projections over the next five years. Rising internet penetration, a large and youthful audience base, and increasing adoption of connected TVs are reshaping content consumption patterns, creating a scalable and recurring demand for film content.
Supporters argue that combining this expanding demand with financial innovations such as tokenisation could democratise access to film investments, opening the door to a wider pool of participants, including retail investors and entertainment enthusiasts who have historically been excluded from the sector.
CineNow has also emphasised institutional safeguards within its structure, including third-party administration, legal oversight, auditing and compliance frameworks – features that have traditionally been limited in film financing.
Whether film IP can evolve into a mainstream alternative asset class remains to be seen. But as the lines between entertainment, technology and finance continue to blur, CineNow signals a broader shift: one where the business of cinema is no longer just about storytelling, but increasingly about structured capital and scalable returns.
