The Malayalam film industry, which saw several successful films in 2024, including Manjumal Boys, The Goat Life, Premalu, and Marco, is now facing a serious financial crisis. Despite impressive box-office earnings in comparison to their budgets, the internal picture of the industry tells a different story. Due to mounting financial losses, producers have warned that film shootings and screenings could be halted starting June 1, 2025.
According to News Minute, discussions held last Thursday with the Film Producers Association, exhibitors, distributors, and the Kerala Film Employees Federation (FEFK) revealed the grim situation. Producer J. Suresh Kumar announced that, unless immediate action is taken, all film shootings and screenings would be suspended by June 1.
It was also revealed that of the 200 films released in 2024, only 24 achieved commercial success, while the remaining films have caused losses of up to 600 to 700 crore rupees for the producers. OTT platforms have shown greater interest in commercially successful films, further exacerbating the financial strain on the industry.
The rising production costs are cited as the primary reason behind the crisis, with excessive actor fees being identified as the major problem. Additionally, the increase in government taxes, including entertainment tax and GST, has added to the burden. The producers expressed concern that the industry could no longer sustain itself under such financial pressures, especially with the absence of government assistance.
Suresh Kumar emphasized that the production costs have surged drastically in recent years, and the biggest issue remains the skyrocketing fees of actors and technicians. He also pointed out that the government’s imposition of a 30% tax after the introduction of the “One Nation, One Tax” scheme has further strained the industry.
As a last resort, a symbolic strike will be held in front of the Secretariat in Thiruvananthapuram before the proposed shutdown. If no solution is found, the industry might be forced to take drastic measures to survive.