Towards the end of the year, the KFPA issued a statement claiming that the industry suffered a loss of ₹650 crore to ₹700 crore in 2024.
Published Feb 13, 2025 | 8:00 AM ⚊ Updated Feb 13, 2025 | 3:28 PM
A film set. (Represdentational/ iStock)
2024 was a good year for Malayalam cinema with many films gaining widespread recognition across industries. Mollywood had also recorded more hits than the other language industries.
However, towards the end of the year, the Kerala Film Producers Association (KFPA) issued a statement claiming that the industry suffered a loss of ₹650 crore to ₹700 crore in 2024.
According to them, only 26 films managed to recover their costs, and they stated that the industry is in turmoil. The association also highlighted that the high remuneration demanded by lead actors is a major issue affecting the industry.
This news came as a shock to many film journalists who had been following the success story of the films. What exactly is going on? Let’s take a closer look.
Incidentally, the producers’ statement comes as the Malayalam industry saw the release of around 28 films in January alone.
Rekhachithram was the only hit movie in January. (Supplied)
At the end of the month, a joint meeting of various film bodies decided to go on strike starting in June this year, protesting the high production costs of films and the excessive remuneration demanded by young actors.
The association also revealed that only one movie, Rekhachithram, which was released in January, was a super hit among the 28 films that came out that month.
Updates on Ponman and Oru Jaathi Jathakam are unavailable, but both seem to have made a decent collection.
The producers association revealed that of the 200 films released last year, only 26 were successful.
They also stated that the industry faced losses of around ₹600 to 700 crore. Various associations have criticized the hefty remuneration charged by stars and technicians.
Suresh Kumar a member of the producers association, stated that the new-age actors don’t consider the impact on producers if a movie flops in theatres. He pointed out that they don’t even think about helping the producer by accepting lower remuneration for a new film, something actors did in the past.
He further mentioned that new-age actors are obsessed with pan-Indian films and aren’t willing to do smaller projects. However, he emphasized that only Marco (2024) and Minnal Murali (2022) had true pan-India appeal.
‘Marco’ cleared censor with A certificate. (X)
Suresh Kumar also criticized the “100 crore” club, calling it a fake tag given to films. He said that producers have no choice in this matter, as lead actors are responsible for pushing this narrative. “Lead stars do this because they fear their market value will decline,” he explained.
He also noted that many production houses were established after COVID-19 because people had become addicted to OTT platforms due to the lack of theatre options. “At this time, actors and technicians also started production houses, hoping to profit from OTT deals. But over time, the terms for these deals changed, and now they aren’t acquiring as many films,” he said.
Suresh Kumar predicted that these people would eventually return to producers, as the OTT deals aren’t working as expected. He appeared to be critical of the role actors and technicians play in the production and even referred to producers as mere “cashiers” in an interview.
Recent developments, such as the postponement of Mohanlal’s Thudarum from January due to uncertainty around the OTT deal, highlight how OTT releases are increasingly influencing the release dates of movies.
During the press meeting, Suresh Kumar mentioned that a producer had written a letter to the association stating that they had faced significant losses due to a movie they produced, which was supposed to be completed within a specific budget but ended up exceeding its actual cost.
While social media speculated that the film which exceeded its budget is Ratheesh Balakrishna Poduval’s Sureshanteyum Sumalathayudeyum Hridhayahaariyaya Pranayakatha, the executive producer later clarified that the movie was initially planned to be made with a budget of ₹4 crore, but the final cost ballooned to ₹20 crore.
Apart from the high remunerations charged by stars and technicians, film associations have also blamed the entertainment tax levied by the government, for the financial crisis.
“In recent years, production costs have increased several-fold in Malayalam cinema, and the government has not been supportive. They have not introduced any financial aid for the cinema industry, even in the new budget,” the association said.
“The entertainment tax, combined with the GST, now totals 30 percent of the gross. This means that if a film grosses ₹100 crore, ₹30 crore will go to the government, and the producer will only receive ₹27 crore,” Suresh Kumar explained.
He also mentioned that discussions with stars had not been successful in the past. Although their remunerations hadn’t been hiked, they are now also requesting a percentage of the profit.
Suresh Kumar stated that a joint meeting of the various cinema associations has decided to shut down operations on 1 June. This means that movies currently in production will continue, but no new films will begin production for the time being.
The strike call by the association has not been well received by certain sections of the industry, with some feeling that this is not the right way to address the situation.
An industry insider shared that producers are frustrated with actors who have turned into producers themselves, and the rising remuneration demands are becoming a problem. He pointed out that nearly every actor now has their own production house.
A scriptwriter, who wished to remain anonymous, suggested that this could be an attempt to divert attention from other allegations against the producer association.
“For instance, there is a case filed by Sandra Thomas against some well-known producers. Last year, there were ED and IT raids on various producers. These new allegations against actors and technicians could be a strategy to shift focus from the issues faced by these associations,” he said.
Another industry insider stated that this is not the right approach for a strike, as it still leaves room for big-budget films to be released. He also mentioned that financial constraints this year would likely result in fewer films being made compared to the previous year.
Meanwhile, a film journalist, speaking on the condition of anonymity, expressed that the concerns raised by the film producers seemed valid. He noted that the high remunerations of stars are indeed a concern.
“We have no choice but to trust the figures presented by the producers’ association, as they are the apex body,” he added.
The journalist also pointed out that many quality films have been released in Malayalam, and cost-cutting measures could affect the quality of future films. However, he believes the issues will likely be resolved before June.
Meanwhile, leading producer Antony Perumbavoor has criticized Suresh Kumar in a Facebook post. In his message, Antony questioned how Suresh Kumar could comment on films that had previously grossed ₹100 crore. He also raised concerns about whether the strike call was made under pressure from other film associations. He pointed out that the Producers Association, headed by Anto Joseph, had not responded to Suresh Kumar’s strike call and emphasized the need for clarity on the matter.
Antony further stated that last year was a good one for Malayalam cinema and that the strike call based on January’s data was unfounded. He also highlighted that in other film industries, the ₹50 crore, ₹100 crore, and ₹200 crore milestones are based on a movie’s total collection across all revenue streams.
Antony questioned how Suresh Kumar could claim that the association would ban films produced by certain actors or technicians, calling it unrealistic.
Regarding his movie Empuraan and the production cost revealed by Suresh Kumar, Antony argued that it was unfair to disclose the budget of a film still in post-production. He expressed disappointment over hearing such statements from a senior producer like Suresh Kumar, especially when the entire team was working hard to ensure the film has pan-Indian appeal.
Meanwhile, actors Prithviraj Sukumaran, Unni Mukundan, and Aju Varghese have shared Antony Perumbavoor’s Facebook post in solidarity with him.
On the other hand, Suresh Kumar told a TV channel that the strike call was taken as a joint decision. Stating that the minutes of the meeting are also available, he claimed that Antony doesn’t attend the meetings.
(Edited by Sumavarsha)
