Indian filmmakers are targeting the country's burgeoning cable and satellite television sector as well as the Internet for new sources of income to recover from a two-year slump, experts say.

The sale of cable, satellite and music rights, as well as DVDs, Internet and mobile phone downloads, is emerging as a potential money-spinner for studios keen to offset losses at the box office.

Until recently, Indian filmmakers could be virtually assured of high box office returns, with cinema one of the few forms of entertainment and moviegoers traditionally loyal to big name stars.

But a combination of poor quality content, rising overheads, the global economic downturn and an increase in other ways for people to spend their spare time and hard-earned cash has hit studios in the pocket.

Overall revenues fell 20 percent in the last three years from $2.3 billion in 2008 to $1.85 billion in 2010, global consultancy firm KPMG said in its latest report on India's media and entertainment sector.

"In the future, the contribution of local theatrical revenues to the overall industry is expected to reduce, while the share of cable and satellite rights is set to increase," KPMG's media and entertainment head Rajesh Jain said.