All production, distribution, and exhibition of Malayalam cinema will shut down from June 1 if the financial crisis currently facing the industry continues, said film producer G Suresh Kumar. He announced the decision on February 6, after a joint meeting of the associations of producers, exhibitors, distributors, and the Film Employees Federation of Kerala (FEFKA).
“Of the 200 films that were released last year, only 24 ran successfully. The loss faced by producers of the remaining films came to 600 to 700 crore rupees,” Suresh Kumar said.
The associations blame the excessive remunerations charged by stars and technicians, as well as the entertainment tax levied by the government, for the crisis. “Production costs have increased several-fold in the last few years. Malayalam cinema cannot sustain this. Artists’ remuneration is the biggest issue, and they have no commitment to the industry. The government is also of no help. After the ‘One Nation, One Tax’ scheme was introduced, the entertainment tax together with the GST now totals 30% of the gross, which means if a film grosses Rs 100 crore, Rs 30 crore will go to the government and the producer will get only Rs 27 crore,” representatives of the associations stated.
Talks with stars had not been successful in the past, as they agreed to everything during the meeting but later did as they pleased, Suresh Kumar said.
Over-the-top (OTT) platforms are also not always a viable option, since they are interested only in films that do well and then buy them at prices they set, he added.
Ahead of the June 1 shutdown, a symbolic strike will be held in front of the Secretariat in Thiruvananthapuram as a show of protest.