Sameer Nair on balancing Art and Commerce – “If it doesn’t sell, it’s not creative”

FICCI Frames 2025 hosted an insightful fireside chat featuring Sameer Nair, CEO of Applause Entertainment, moderated by Komal Nahta, Film Trade Analyst. The discussion centered around ‘The Art & Economics of Captivating Content’ and delved into the delicate balance between creativity and commercial success in the entertainment industry.

The Secret Formula to Success

When asked about his secret to success, Nair dismissed the idea of a magic formula for success, instead emphasizing that content must strike the right balance between creativity and commerce. “If it doesn’t sell, it’s not creative,” he remarked, recalling a debate with screenwriter Anjum Rajabali that helped refine this philosophy. “You have to create content that earns applause. If you get applause, you will make money.”

Further sharing his perspective, Nair said, “The reason our company is called Applause, with the tagline ‘Not Entertainment If There’s No Applause’, comes from a fundamental belief – content must be appreciated to be valuable.”

Who is Really Making Money in the Industry?

Komal Nahta posed a crucial question, “At the end of the day, who is really making money—the content creators, the platforms, or the cinemas?”

Nair responded candidly, “Big stars are definitely making money, but beyond that, it’s a mix. Platforms face high operational costs and need to attract and retain customers. Individual content creators experience highs and lows, while platforms deal with long-term sustainability challenges. Advertisers, too, are struggling as audiences increasingly skip ads.”

He also highlighted how global shifts impact the industry, stating, “The last couple of years have been difficult, with economic downturns, writer and actor strikes, and industry consolidations. The market is depressed, and that has affected everyone.”

The Changing Face of Theatrical Releases

Addressing the challenges facing the theatrical business, Nair underscored India’s screen shortage – just 9,000 for a population of 1.5 billion – compared to China’s 70,000 and the US’s 40,000. With audiences increasingly prioritizing convenience, filmmakers must offer an undeniable reason to step out. He emphasized the importance of compelling storytelling: “When making a film, ask yourself: will someone travel 10 km on a cold, wet Monday night to buy a ticket? If the answer is no, then the content isn’t compelling enough.”

“Low screen density means films get very little time in theaters. Even if a movie is released, it is quickly replaced by the next big release. Moreover, with shrinking theatrical-to-digital windows, audiences often prefer waiting for OTT releases,” Nair said.

Discussing the evolving landscape of cinema, Komal Nahta pointed out, “Pre-COVID, even average-performing films helped sustain theaters. Now, it’s either a ‘Pushpa’-level hit or nothing. Are we doing something wrong with our content?”

Nair responded thoughtfully, “It’s easy to blame content when a film underperforms, but there are many factors at play. Take ‘Zwigato’, a beautiful film by Nandita Das starring Kapil Sharma. Despite strong storytelling, it didn’t perform theatrically. Later, when released on Amazon Prime Video, it accumulated viewership worth Rs 34 crore in ticket-equivalent revenue. The same people who skipped theaters watched it at home.”

Striking the Right Balance

The discussion reflected on whether the industry is taking enough creative risks. Nair observed, “Sometimes, we follow formulas too rigidly or take unnecessary risks without understanding what audiences truly want. The key lies in balancing originality with audience expectations.”

On the future of content monetization, Nair pointed to the success of subscription-based models like Netflix and HBO, proving that audiences are willing to pay for premium content. As advertising revenues shrink, he noted, the responsibility of funding content shifts either to advertisers or directly to consumers. “If advertisers won’t pay, consumers must. Someone has to bear the cost,” he concluded.

Despite the industry’s challenges, Nair remained optimistic. “The media and entertainment industry is too big to fail,” he concluded. “We just need to strike the right balance between theatrical and streaming revenue.”

With Applause Entertainment continuing to push creative boundaries, Nair’s vision reaffirms that applause isn’t just a marker of success—it’s the foundation of the entire business.