2024 seemed like a good year for the Malayalam film industry, with hits like Manjummel Boys, Premalu, Aavesham, The Goat Life and Marco. However, the producers, distributors and exhibitors claim that the film industry suffered major financial losses that year for various reasons. They also warned of a shutdown from June 1 should these issues not be resolved. (Also Read: Basil Joseph talks about veering off comedy in Ponman: ‘Wanted to experiment as an actor’)
Producers warn of industry shutdown
A NewsMinute report states that film producer G Suresh Kumar announced the decision on Thursday after a meeting with producer associations, exhibitors, distributors, and the Film Employees Federation of Kerala (FEFKA). “Of the 200 films that were released last year, only 24 ran successfully. The loss faced by producers of the remaining films came to 600 to 700 crore rupees,” he told the press. He also stated that talks with stars have not been successful as they agreed to terms during meetings, but things haven’t changed. The producer also called out OTT platforms for being interested only in films that do well in theatres and setting prices accordingly.
The associations discussed how remuneration charged by stars and technicians, apart from the entertainment tax levied by the government, has put them in crisis. Representatives of the associations reportedly shared, “Production costs have increased several-fold in the last few years. Malayalam cinema cannot sustain this. Artists’ remuneration is the biggest issue, and they have no commitment to the industry. The government is also of no help. After the One Nation, One Tax scheme was introduced, the entertainment tax, together with the GST, now totals 30% of the gross.”
{{/usCountry}}The associations discussed how remuneration charged by stars and technicians, apart from the entertainment tax levied by the government, has put them in crisis. Representatives of the associations reportedly shared, “Production costs have increased several-fold in the last few years. Malayalam cinema cannot sustain this. Artists’ remuneration is the biggest issue, and they have no commitment to the industry. The government is also of no help. After the One Nation, One Tax scheme was introduced, the entertainment tax, together with the GST, now totals 30% of the gross.”
{{/usCountry}}It has been announced that a symbolic strike will be held before the Secretariat in Thiruvananthapuram ahead of the June 1 shutdown.
Malayalam film industry’s losses in 2024
IE reported last year that the Kerala Film Producers’ Association released a statement on the losses faced by the Malayalam film industry. They stressed the need to bring people back to the theatres in 2025.
Films like Manjummel Boys, The Goat Life, Aavesham, Premalu, and ARM performed well, making over ₹100 crore this year, becoming the industry’s highest-grossers. Films like Kishkinda Kaandam, Guruvayur Ambalanadayil and Varshangalkku Sesham brought in over ₹75 crore.
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