Malayalam film industry faces deep financial crisis amidst internal rift
Kochi: The Malayalam film industry is grappling with a severe financial crisis, with producers and actors locked in a public dispute over rising production costs and remuneration demands. The Kerala Film Producers Association (KFPA) has announced an industry-wide strike from June 1, citing unsustainable expenses and declining box office returns.
KFPA Vice President G Suresh Kumar blamed actors and technicians for inflating their fees after a few successful films, leading to financial instability. He claimed that even movies entering the so-called ₹100 crore club do not yield significant profits for producers. "If a film earns ₹1 from theatres, only 25 paise reaches the producer," Kumar stated.
However, prominent producer Antony Perumbavoor criticised the strike decision, arguing it lacked proper discussions among stakeholders and would negatively impact many industry workers. Several actors, including Mohanlal, Prithviraj, and Unni Mukundan, supported Antony’s stance, intensifying the divide within the industry.
The dispute escalated after KFPA, along with film distributors and theatre owners, proposed banning films produced by actors from being screened. This move, seen as an unprecedented challenge, could lead to open confrontation with stars like Mammootty, Prithviraj, and Fahadh Faasil, who own production companies.
KFPA estimates that the Malayalam film industry suffered losses of ₹700 crore in 2024, despite a total investment of ₹1,000 crore. While 207 films were released last year, only 24 were considered successful. In January 2025 alone, 28 films hit theatres, but only one, Rekhachitram, made it to the hit list.
According to Saji Nanthyatt, Secretary of the Kerala Film Chamber, poor financial discipline, high daily production costs, and increasing wages for technicians and actors are pushing producers into crisis. He noted that changing audience preferences are also affecting the industry, with younger viewers dominating theatres while family audiences decline.
During the COVID-19 pandemic, several Malayalam films, including Drishyam 2 and Minnal Murali, found success on OTT platforms. However, streaming services have since altered their strategies, now preferring films with strong theatrical performances. This shift has further reduced revenue opportunities for struggling producers.
Amidst the crisis, industry leaders are urging the Kerala government to address double taxation on movie tickets and provide financial support by officially recognising the film sector as an industry. Discussions with authorities are expected, failing which the indefinite strike may proceed.
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Another North Goa nightclub sealed; Kejriwal says corruption led to fire tragedy
Panaji (PTI): As part of a crackdown against tourist establishments violating laws and safety norms in the aftermath of the Arpora fire tragedy, Goa authorities on Saturday sealed a renowned club at Vagator and revoked the fire department NOC of another club.
Cafe CO2 Goa, located on a cliff overlooking the Arabian Sea at Vagator beach in North Goa, was sealed. The move came two days after Goya Club, also in Vagator, was shut down for alleged violations of rules.
Elsewhere, campaigning for local body polls, AAP leader Arvind Kejriwal said the fire incident at Birch by Romeo Lane nightclub at Arpora, which claimed 25 lives on December 6, happened because the BJP government in the state was corrupt.
An inspection of Cafe CO2 Goa by a state government-appointed team revealed that the establishment, with a seating capacity of 250, did not possess a no-objection certificate (NOC) of the Fire and Emergency Services Department. The club, which sits atop Ozrant Cliff, also did not have structural stability, the team found.
The Fire and Emergency Services on Saturday also revoked the NOC issued to Diaz Pool Club and Bar at Anjuna as the fire extinguishers installed in the establishment were found to be inadequate, said divisional fire officer Shripad Gawas.
A notice was issued to Nitin Wadhwa, the partner of the club, he said in the order.
Campaigning at Chimbel village near Panaji in support of his party's Zilla Panchayat election candidate, Aam Aadmi Party leader Kejriwal said the nightclub fire at Arpora happened because of the "corruption of the Pramod Sawant-led state government."
"Why this fire incident happened? I read in the newspapers that the nightclub had no occupancy certificate, no building licence, no excise licence, no construction licence or trade licence. The entire club was illegal but still it was going on," he said.
"How could it go on? Couldn't Pramod Sawant or anyone else see it? I was told that hafta (bribe) was being paid," the former Delhi chief minister said.
A person can not work without bribing officials in the coastal state, Kejriwal said, alleging that officers, MLAs and even ministers are accepting bribes.
