Malayalam film industry faces crisis as strike looms; box office flops pile up

The numbers told a story of unsustainable practices, inflated budgets, and disconnect between the creative aspirations of filmmakers and the realities of the box office. “We are at a critical juncture. The current model is simply not viable. We cannot continue to operate with unchecked expenses and unrealistic expectations. If we don’t take corrective measures now, we risk crippling the entire industry,” said G Sureshkumar, senior producer and the president of Kerala Film Chamber of Commerce.

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The January data laid bare the extent of the problem. Films like Identity, directed by Akhil Paul and Anas Khan, budgeted at a hefty ₹30 crore, were vying for screen space with smaller, independent ventures like Emerald, (directed by Krishna Sagar), made on a modest Rs 20 lakh. Yet, even with such diverse budget ranges, the majority were failing to recoup their investments. The data indicated that over 60% of a film’s expenditure was allocated to the remuneration of major artists and technicians. While acknowledging the talent and contribution of these individuals, Suresh Kumar and many other producers argued that these costs had become disproportionately high, leaving little room for other crucial aspects of filmmaking, such as post-production, marketing, and distribution.

Crisis for smaller films

The plight of smaller films was particularly concerning. Aadhachayi, directed by Binoy G Russel, and 1098 Ten Nine Eight: A Countdown to Infinity, by Bengaluru-based director Aarna Saadya, both with budgets under Rs 50 lakh, struggled to find an audience amidst the larger releases. Their stories, often reflecting the socio-cultural realities of Kerala, risked being drowned out by the noise of big-budget productions. The success of Joffin T. Chacko’s Rekhachithram offered a glimmer of hope, proving that well-made films with compelling narratives could still resonate with audiences. However, it was an exception rather than the rule. The other films deemed to have recouped their investments, Dominic and the Ladies Purse, (Goutam Vassudev Menon), Ponman, (Jothish Shankar) and Oru Jathi Jathakam, (M Mohanan) were teetering on the edge, their profitability largely dependent on revenue from sources beyond theatrical releases. Interestingly, Ponman is receiving rave reviews and critical acclaim, yet it is struggling at the box office.

Thudarum, the Mohanlal-starrer, directed by award-winning Tharun Moorthy, has completed all post-production work and is awaiting release. The release date has been postponed twice. Sources say that the OTT platform that has acquired the film is dictating the terms, scheduling it for a May release. As a result, the director, producer, and Mohanlal himself will have to wait until late March or early April for the film’s theatrical run. The producers have expressed concerns over the interest accumulating on their investment. The film is highly anticipated, as it brings back Mohanlal in the role of a simple, everyday man — an image that was immensely popular in the mid-90s.

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The looming strike had created a rift within the industry. While producers like Suresh Kumar emphasised the need for fiscal discipline, many artists and technicians feared that cost-cutting measures would compromise the quality of filmmaking and jeopardize their livelihoods. “We understand the concerns about budget overruns. But we cannot compromise on the artistic vision. Filmmaking is a collaborative art, and every member of the crew deserves fair compensation for their work,” says a prominent Malayalam film technician. The debate over fair compensation was complex. While established stars commanded exorbitant fees, many struggling actors, writers, and technicians were barely making ends meet. The disparity in income levels fuelled resentment and mistrust, making it difficult to find common ground.

Calls for government intervention

“It’s a fact that there is a major crisis in film production, and what the producers and distributors are saying is largely true. Post-COVID, all the stars have increased their remuneration, and it’s true that a significant portion of production costs go towards this. Now, OTT platforms are also making theatrical success a criterion for acquiring films. These days, an average film with a superstar costs over Rs 30 crore, while a film with a regular star crosses Rs 20 crore. With the average OTT revenue being around Rs 10 crore, the remaining 50-60% of the budget must come from theatrical earnings,” says Maneesh Narayanan, film critic and journalist.

Distributors, caught in the middle of the producer-artist conflict, were also feeling the pinch. With a constant stream of new releases, they were struggling to secure enough screen space for each film. The competition was fierce, and many films were pulled from theatres after just a week or two, resulting in significant losses for distributors and exhibitors alike.

“We are facing unprecedented challenges. The audience is becoming increasingly selective. They are no longer willing to spend money on mediocre films. We need to ensure that the films we distribute are of high quality and have the potential to attract viewers to the theatres", said a distributor of decades of experience on the field.

As the strike loomed closer, there were growing calls for government intervention. Some producers urged the state government to provide financial assistance to struggling filmmakers and to implement policies that would promote the growth of the industry. Others argued that the government should stay out of the film business and allow market forces to dictate the outcome.