Bollywood's biggest problem is piracy - where people copy the films and either sell them or show them to other people for free.
At the moment not all films made make more money than they cost to make, even though they can be seen by around one billion people.
If everyone paid to see the film legally the industry would make lots more money.
At the moment Bollywood film producers are trying to work out a way to stop this happening.
Another problem is that younger generations sometimes find the stories a bit predictable and are get bored of the similar tales.
Film-makers are trying to solve this by changing storylines to reflect real life - like the fact that children of Indian families now study abroad.