Various associations within the Malayalam film industry have jointly decided to cease all activities, including film production and screenings, starting June 1. This decision follows extensive discussions on the growing financial distress in the industry.
Announcing the shutdown in Kochi, prominent producer G. Suresh Kumar highlighted the dire situation, emphasizing the severe losses that have plagued filmmakers. “This industry is already in the doldrums with film after film bombing at the box office, leaving the producers in a quandary,” he stated.
A major concern raised by Kumar is the heavy taxation imposed on the industry. “There is no industry which is being taxed at 30 per cent, and it includes GST besides additional entertainment tax. The government has to step in and withdraw this,” he demanded. Kumar, who is the father of National Award-winning actress Keerthi Suresh, stressed that such tax burdens are making film production increasingly unviable.
Another significant issue affecting the industry is the skyrocketing remuneration of actors and crew members. According to Kumar, this has created an unsustainable financial structure for producers. “The remuneration of actors and others has skyrocketed like never before, and it has to be scaled down. 60 per cent of the cost of a film is gobbled up by remuneration to the actors, which is hugely detrimental to a producer. They (actors) have no concern for this, and we just cannot go forward in this manner,” he explained. Kumar’s wife, Maneka, was a popular actress in the past, giving him deep insight into the industry’s changing dynamics.
Kumar pointed out that even newcomers in the industry demand exorbitant fees, further burdening film budgets. “Even the new actors charge a hefty fee, and so is the same with directors too. A film that can be finished in 50 days gets over in 150 days. Not even 10 per cent is recovered from the theatres compared to the remuneration of the actors. We will not cooperate with the films produced by the actors,” he asserted.
The financial crisis is further highlighted by the staggering number of box office failures in recent times. Kumar revealed that in the past year alone, 176 Malayalam films failed commercially. He also provided alarming figures regarding theatre losses in early 2025. “During January 2025, the loss for the theatres alone was Rs 101 crore,” he stated, indicating the industry’s worsening financial health.
The situation has also severely impacted the livelihoods of those working behind the scenes in the industry. “As many as 60 per cent of the film industry professionals who make a living working behind the screens are in dire straits,” Kumar said, underscoring the crisis that has left thousands struggling.
Another challenge is the uncertain revenue stream from OTT platforms. Previously, streaming services provided a crucial financial cushion for filmmakers, but that support has diminished significantly. Kumar explained that unless a film performs well in theatres, OTT platforms are hesitant to offer substantial deals. “The state government is silent, and presently, the situation is that the OTT market has dried up. If a film is received well at the box office, then the OTT market offers a sum… to receive the committed amount, it takes six to ten months,” he explained.
With such pressing concerns, the decision to halt industry operations is seen as an urgent move to force action from stakeholders, including the government and industry professionals. The coming weeks will determine whether negotiations can lead to relief measures or if the shutdown will prolong the crisis.