How often are these big hits domestically?
“Bollywood” refers specifically to mainstream, popular movies made by the large production companies based in Bombay (Mumbai). These are pretty much all the gaudy Hindustani musicals that appeal to the mainstream market.
However, Bollywood is not the beginning and end of the motion picture output of India. There are movie industries for all the major languages of India, such as the Bengali film industry and the Telegu film industry (both called “Tollywood,” for different reasons).
Bengali films based in Calcutta are in particular known for “serious” movies. Check out the films of Satyajit Ray, for example.
In India they are called “art films.” They have their own following, but aren’t as lucrative as the mainstream Bollywood movies.
I just found this relevant wiki List of Indian films without songs - Wikipedia
@Acsenray is essentially correct but he is using terms my parents would use 
For example “Hindustani” is a term, people of Bengal used like 30-50 years back. Its simply Hindi now and “Hindustani musicals” is referred to as mainstream hindi movies by most Indian folks.
There are many many serious Indian movies and serious netflix drama and series. if you have a particular genre in mind, I can point you to some.
IMO, that list is not at all relevant and contains very few, if any, of the good movies.
I used “Hindustani” intentionally as a linguistic term to indicate the the language used in the movies encompasses both Hindi and Urdu. But yes most people say “Hindi movies” when referring to the genre.
(And also my parents emigrated in the 1960s, so I probably do talk like your parents! My wife makes fun of me because my Bengali vocabulary makes me sound simultaneously like a kindergartener and her grandpa.)
I get what you are saying and this sentence is funny in many ways. Consider this :
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Bollywood hindi is heavily influenced by Marathi or what is know as Mumbaiya hindi. It does not have the sweetness of hindi spoken say in Brij or the sophistication of the Urdu spoken in Lucknow.
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I am not sure how much you know about the history of Pakistan (since you grew up outside India) but they made Urdu the official language of Bangladesh (erstwhile East Pakistan) much to the anger of Bangladeshis. Similarly in Pakistan, Punjabi language was discouraged and Urdu was and is the national language. Many Pakistani punjabis speak Urdu with a Punjabi accent and are made fun of. Anyways, the point is that Urdu is portrayed as a Muslim language only by the Muslim elite : Punjabi Muslims do not speak Urdu, neither do Marathi Muslims etc etc
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Hindustani implies Northwest India (for example Hindustani Music) and excludes places like Hyderabad where Hyderabadi Hindi / Urdu is spoken or even Rajasthan or MP.
My wife and I, both grew up in the smack center of India in Madhya Pradesh. (Our parents would use sentences like : “Aamra Bangli, Ora Hindustani” (referring to the locals)
We grew up in government industrial complexes and we had people from all corners of India. I speak bengali, but can barely read it and definitely cannot write it. I went to college (undergraduate) in West Bengal and it was heavily cosmopolitan at our college too, but was still made fun of by the “Tagore by rote” Bengalis. Wife and I talk in Hindi / Bengali / English without even realizing when we have switched languages. Wife knows a lot more about Bengali poets and movies. I like Urdu poets like Ghalib better.