With a slew of flops on the box office and no takers for many films on OTT platforms, the Malayalam film industry is staring at a huge crisis.
The situation came to a boil when G Suresh Kumar, the vice president of the Kerala Film Producers Association (KFPA), announced an industry-wide strike June 1 onwards, after he launched a scathing attack against the actors and other technicians. He alleged that they were hiking their remuneration manifold after one or two films, leading to the current mess.
Antony Perumbavoor of Ashirwad Films, a major producer in Malayalam film industry, rebuffed Suresh Kumar's claims in a Facebook post saying the decision to go for a strike was announced without proper discussion among the stakeholders, and that it would affect a large number of people without any income.
The ongoing financial crisis in the Malayalam film industry began during the COVID-19 period, which forced theatres to shut down, and movies were produced targeting OTT audiences.
The next two years viz., 2022 and 2023 saw 400 films getting released but most of them bombed at the box office. The industry showed signs of revival in the first half of 2024, with several films, including Manjummel Boys, Aavesham, and Premalu, entering the Rs 100 crore club, and the trend gave hope to the industry.
"No Malayalam films have helped producers to get Rs 100 crore from the box office. The figures that they are revealing are the gross collections. If you receive Re 1 from the theatres, the producer gets only 25 paise," said Suresh Kumar.
"The production cost is high. The remuneration of actors, chief technicians, and directors is high. If the situation continues, the producers will have to struggle,” he said.
A joint meeting by KFPA, the Kerala Film Distributors Association, the Film Employees Federation of Kerala, and the Film Exhibitors United Organisation of Kerala recently decided to go on a strike to highlight the losses the Malayalam film industry was going through. Suresh Kumar also said that film produced by actors will not be allowed to screen, perhaps an open challenge, not seen in the past.
A week later, Antony Perumbavoor wrote a Facebook post against the proposed strike. Actors Prithviraj, Unni Mukundan, Aju Varghese, and Mohanlal rallied behind Antony, sharing the post.
Later, Association of Malayalam Movie Artists (AMMA) ad hoc committee vice president Jayan Cherthala came to the support of actors saying people watch films after seeing the actors on film posters and that issues are now being created as a few producers have lost control over the films released.
“Actors or superstars are the most important factor in the success of a film. These films get audiences because of these actors who are accepted and recognised by the people,” said Jayan.
The ongoing tussle for control in Mollywood has been brewing for some time. In December 2024, the Kerala Film Producers Association released the list of films released in the year, stating that only 17 or 18 films could be categorised as hits.
According to KFPA, the industry incurred a loss of Rs 700 crores in the year 2024, this despite movies like Manjumel Boys entering the Rs 100 crore club, while the total investment was Rs 1,000 crores.
Saji Nanthyatt, the secretary of the Kerala Film Chamber, said that there is no financial discipline in the industry, and this leads to huge losses.
"Most of these new producers do not know how to manage expenses. Around Rs 15 lakhs are spent every day on shooting and production. There is a considerable increase in the wages of technicians and actors. We need to regulate expenses," he said.
Saji said the audience's tastes have changed. "Now more youngsters come to theatres. We don't know their tastes. We need a family audience too," he said, adding that the release of the Hema Committee report has also affected the industry.
He also echoed Suresh Kumar's view that when we talk about Rs 100 crore club it does not reflect what the producer gets.
However, Antony claimed that across film industries, the gross collection is what is calculated. "In Kerala and other film industries, when we say a movie has entered the Rs 100, Rs 200, and Rs 500 crore clubs, it is based on the gross collection," said Antony.
He is also against the move to not screen films produced by actors. Right now, many leading actors including Mammootty (Mammootty Kampany), Prithviraj (Prithviraj Productions) and Fahadh Faasil (Fahadh Faasil and Friends Pvt Ltd) own film production companies, sidelining established producers.
If KFPA and the theatre owners try to impose any such ban, it will lead to an open confrontation, said industry players.
OTT FACTOR
During COVID-19 and the following lockdown, Kerala witnessed several films, including Maalik, Drishyam 2, Minnal Murali, and other films being directly released on OTT platforms Amazon Prime, Netflix, and other local platforms and accepted by audiences across the globe.
However, these platforms too now take films that are successful in the theatres.
"The OTT platforms used to purchase films at a higher cost during COVID-19. However, now they have changed their norms. Only films that are successful in the theatres are purchased by the OTT platforms. The amount is too small and is paid in installments. This affects the producers," Saji said.
According to Charles George, an OTT consultant based in Kochi, OTT platforms take films that can bring more subscribers.
"Quality of the content is what OTT platforms look into. They choose films that can bring new subscribers and increase the viewership of the platform. The theatre's response to a film is also a factor in it. Also, the amount is negotiated based on the quality of the content, popularity, and the audience response," he said, adding that several OTT platforms have been coming up with 'Originals,' produced by these platforms in multiple languages.
According to Saji, an industry like Mollywood does not need more than 200 films a year, and regulation is not possible.
"In January, out of the 28 films, only one film could make it to the hit list, that is, Rekhachitram. The audience is not aware of most of these films that are released. We do not need 10 or more films to be released every week. Ours is a small film industry," he said, adding that the chamber looked into the possibilities of regulating the number of films released every week.
"Our country ensures the right to freedom of expression, and regulating the release of films can violate it," he added.
B. Rakesh, the secretary of KFPA, added that the number of films released in a week is more; however, regulation is not possible.
DEMAND TO THE GOVERNMENT
The film industry already pays entertainment tax to the state government. However, since GST was implemented, there has been double taxation on movie tickets. Thus, the film bodies are planning to hold discussions with the state government on reducing the entertainment tax.
“The cost of producing and exhibiting a film has increased. We have been demanding the state government reduce the entertainment tax on movie tickets. No action has been taken. The state receives around 30 percent of the collection for film. Kerala and Telangana are two states that have imposed double taxation on movie tickets. The state government should also cooperate by cutting double taxation and other costs,” said Suresh Kumar while addressing the media in Kochi last week.
Rakesh said that the film bodies will discuss with the government the demands. "We will go ahead with the indefinite strike if the discussions fail to decide to resolve the issues in the film industry. The producers have been struggling. We need to find a solution," he said.
"We have also been demanding that film be established as an industry. So that we can also avail ourselves of benefits and subsidies on electricity charges and apply for bank loans. It will help theatre owners as well," added Saji.
