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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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
