Malayalam Film Industry Faces Crisis: Producers Announce Potential Shutdown from June 1
Malayalam Film Industry Faces Crisis: The Malayalam film industry faces closure beginning June 1 2024 because producers and distributors alongside exhibitors continue to suffer economically despite recent blockbusters. Moving forward the industry made this statement while facing major financial dilemmas together with failing business practices.
The producer G Suresh Kumar delivered the news on Thursday during a significant meeting where various stakeholders such as producer associations and exhibitors among others and Film Employees Federation of Kerala (FEFKA) participated. Statistics from the event highlight the severity since 200 films from the past year produced only 24 profitable releases among the total 200. Around 188 films released during the year ended with financial deficits falling between ₹600 crore and ₹700 crore.
The ongoing crisis continues even though the year 2024 brought blockbuster movies like “Manjummel Boys,” “Premalu,” “Aavesham,” “The Goat Life” and “Marco.” Several Malayalam movies proved successful during that period including “Kishkinda Kaandam,” “Guruvayur Ambalanadayil,” and “Varshangalkku Sesham” as they brought in more than ₹75 crore from ticket sales. The industry has not managed to turn its total losses into profits despite its recent winning films.
An array of succeeding reasons creates the present situation. Major disagreement exists about the excessive pay demands of stars and technicians who the producers believe have created an unmanageable financial situation for the Malayalam film industry. According to representatives from the entertainment industry, the actors took part in discussions regarding fee modifications but they failed to deliver the promised changes to their payment terms after meetings.
The imposed tax obligations have made the situation even more difficult. Since One Nation One Tax implementation entertainment taxes together with GST now eat up thirty percent of gross earnings which heavily affects industry profitability. Members of the film industry describe production expenditures as they have skyrocketed in recent times thus creating an unmanageable situation for Malayalam movie production.
Producers note that OTT platforms select their content by focusing on theatrical successes because they use these factors to determine streaming rights fees. OTT platforms have restricted the earning opportunities of low-performing movies in theaters.
In 2025 the Kerala Film Producers’ Association foresees major challenges with business sustainability so they must get moviegoers to return to theatres based on their predictions. Before the planned June 1 shutdown, the associations have decided to stage a symbolic strike in front of the Secretariat located in Thiruvananthapuram.
The Malayalam film industry faces significant financial problems because it continues to produce acclaimed films yet its business structure shows signs of failing. According to industry stakeholders, the present economic model for Malayalam cinema faces sustainability issues because it demands major adjustments to star compensation as well as tax organization and production budgetary structures.
Through this shutdown entertainment professionals want to manifest two purposes – to demonstrate their displeasure and invite all stakeholders including the government to work together in developing sustainable solutions that protect India’s creative film industry’s long-term success.
