The Malayalam Film industry is on the verge of a completete shutdown Starting June 1, as Financial Struggles Continue to Plague Producers, Distributors, and Exhibitors. Film producer g suresh kumar announced this decision on February 6 Following a joint meeting of Industry Association, Including The Film Employees Federation of Kerala (FEFKA).
According to suresh Kumar, the financial distress has reacted alarming levels. He stated that out of 200 films released last year, only 24 was successful. The producers of the remainfred losses Amouning to Rs 600 to Rs 700 Crore.
Industry representatives blame the Financial Crisis on Soaring Production Costs, Particularly The High Remuneration of actors and Technicians. They also highlight the burden of government-primesed entertainment taxes, which, along with gst, take up 30% of a film’s gross earnings. They argue that these facts are making it Increasing
According to suresh Kumar, previous negotiations with actors have been infective, as they agreed to terms during meeting meetings but later throwing.
Ott platforms have not been a dependable alternative, as they only acquire successful films and dictate the pricing, limiting options for the Industry.
As people were confused about the box office numbers stated by suresh and the shutdown, producer antony perumbavaoor slammed the decision through a social media post.
Following his Facebook post, prithviraj sukumaran, who is gearing up for the release of l2: Empuraan, supported Him, and Mohanlal also shared the post, stating that that cinema is more important Many speculated that ongoing debate is a promotional strategy for L2: Empuraan, which is set to theatres on March 27, While others Sugged a Rift SURESH KUMAR and MOHANALALAL.
Nevertheles, this situation shds light on how the shutdown from July will impact many industry works beyond just the stars. It will affect livelihoods Across Various Sector, from theATRE BUSINESS to Unit Workers. Let’s examine how mollywood’s future could be shaped if film production halts.
“Shutdown is more a threat to Reduce Star Salaries” – Ramesh bala
Trade Analyst Ramesh Bala recently addressed the issue in a conversation with etimes. “The success ratio is Common Across Industries – WHETHER BOLYWOOD, Malayalam, or Tamil – WHEHERE 80–90% of Films Flop and only 10–20% successed Each Year. So, it is not a big deal for the malayalam industry that so many films have fat. Also, Inflating Box Office Figures to Satisfy a Hero’s Ego or Stardom is Quite Common Accross All Industries, “Ramesh Told Etimes.
He further added, “Usually, shutdowns are more of a threat. As the deadline approaches, some shutdowns will not happy. But if this one does, it will certain affect the livelihood of works. “
According to Him, the shutdown is Merely a tactic to put actors under pressure and force them to reduce their salary. “Shutdowns are more of a threat to Reduce Star Salaries. So, if stars agree to a pay cut, the shutdown may not happy, “He stated.
He Also Acknowledged That The Ongoing Dispute Between Suresh Kumar and L2: Empuraan Producer Antony Perumbavoor is intensifying.
Ramesh suggested that a temporary industry shutdown could be beneficial, Similar to what happy in Tamil Cinema, where halting film production allowed pending movies to be released, clear the backlog. He noted that the industry faces an oversupply issue, and a break in new shoots for three to six month months could help stremline film releases.
“Shutting the industry down is not the solution…” – Lata Srinivasan
Meanwhile, Film Critic Lata Srinivasan Shared Her Views on the matter. “The producers ‘council in kerala has threatened to shut down the industry on 1 June if issues are not resolved, particularly Regarding actors’ Fees. However, another key issue they pointed out is the government’s entertainment taxes. So, it’s a combination of factors, and I don’t think shutting down the industry is the answer, “She Told Etimes.
She Continued, “The Debate over Star Salaries has been ongoing in the Hindi, Tamil, and Malayalam Film Industries. Now that Malayalam Actor are seeing success India and no longer category soly to the malayalam audience, their market has expanded. For instance, Unni Mukundan’s Marco Became One of the biggest hindi hits of 2024, despite heMed relatively unknown outside kerala. Naturally, as their market grows, stars increase their feet. But producers in kerala, who are used to make Rs 20 crore films, are now forced to spend ₹ 100 crores due to raining star remuneration. Entertainment taxes are also also adding to the financial burden, which is an issue across all industrys. “
Lata emphasized that shutting down the industry is not the solution; Rather, an open discussion is Necessary. “That’s why they are meeting the Chief Minister to find a resolution,” She added.
She also noted that many industry professionals’ livelihoods are at stake, making a complete shutdown unlikely. “Producers have Investigated Significant Amounts, and they too would be affected. When a strike occurred in kollywood, people simply shifted their shoots to hyderabad. Malayalam Film Producers Could Do The Same – Take, For Example, Prithviraj, Who is Producing L2: Empuraan; He could easily relacate the shoot, as he is bot the star and the producer. So, alternative solutions exist. “
While addressing speech that the shutdown news is a prure strategy for l2: Empuraan, lata dismissed the claims, saying, “It has noting to do with prithviraj’s film. The producers –ntony perumbavoor and prithviraj Himself – are insiders. So, the strike will hardly impact them; It’s more about the rest of the industry. “
“I believe the shutdown plan is an ideological move…” – PS Arjun
Filmmaker ps arjun also weighed in on the matter, asserting that shutdown plan has noting to do with the pr of Empuraan.
“Suresh Kumar’s press release did not indicate any connection to that. Personally, I believe the shutdown plan is an ideological move that only affects that thats that is working in the film Industry. The shutdown does not impact the general public, as we when the covid-19 pandemic –cinema is not an essential communication for common people. The high entertainment tax issue will be discussed with the government to find a proper resolution, “He Shared.
He believes that Major Industry Figures Will Speak Publicly About The issue as the Shutdown Date Approaches.
Regarding the possibility of the industry transitioning completes to ott, arjun stated, “Bypassing traditional structures like feefka and shifting to direct digital disorder is not feasible for the malayalam filam Industry at this point. While it offers Financial Flexibility – Adeucing Distribution and Publicity Costs, Which Typically Range from Rs 50 Lakh To RS1 Crore Per Film – Most Platforms Do Not Buy Films Whit Buy Films Whit Theatrical release. A strong theatrical presence and effective publicity is essential for second ott deals, particularly for films without
He also pointed out that the business model of ot platforms remains uncertain, making a full transition impractical. “Most Malayalam film producers are independent and not corporate-backed. They are not interested in revealed or pay-speed models on ot. So, for now, this transition is not feasible, ”He explained.
As movie lovers and industry professionals worry about the shutdown, the only viable solution is Inclusive Discussions Involving Major Stars and the Government. Reports sugges that Industry Association Plan to Hold a Symbolic Strike in Front of the secretariat in Thiruvananthapuram, Kerala.
