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Although Malayalam cinema was one of the few film industries in India to record an uptick in box office collections in 2024, stakeholders say it is still struggling to stand on its own feet. According to the Kerala Film Producers’ Association (KFPA), the industry incurred losses of Rs 650-700 crore in 2024, even as production costs surged to Rs 1,000 crore. In response, various film bodies in the state have announced an indefinite strike starting June 1, 2025, protesting against these mounting losses, which they attribute to high entertainment taxes and skyrocketing actor remunerations.
While announcing the decision, KFPA vice president and renowned producer Suresh Kumar strongly criticised leading stars for demanding exorbitant fees that fail to reflect in the box office returns of their films. Addressing the media recently, Suresh openly challenged stars to name a film that had earned over Rs 100 crore at the box office in share revenue. “For us, what matters is share, not worldwide gross,” he asserted. Share refers to the actual earnings received by producers and distributors after all deductions. He further claimed that while producers typically refrain from making inflated statements, they do so due to the pressure created by stars. Producers, he added, were fully aware of their films’ financial outcomes.
Only in SCREEN | Why Malayalam cinema reported Rs 700 cr loss in 2024: Surging production costs, escalating actors’ fees, emphasis on star power
“Many producers are in a dire situation of leaving the country. Malayalam cinema is currently in a situation where no producer can make a film in any way. Stars are receiving a remuneration that we cannot even imagine. We will not move forward without stars reducing their remuneration” Mathrubhumi quoted him as saying.
Mentioning that KFPA has decided to launch a YouTube channel named Vellithira to provide monthly public updates on films’ actual box office performance, he also warned that if disputes persist, the association will disclose the remuneration details of all actors, particularly those receiving disproportionately high pay.
Over a fortnight ago, SCREEN had published a detailed report assessing the industry’s situation and broader outlook for 2025, based on insights from key figures within major film associations. While all agreed that Malayalam cinema delivered outstanding content and performed relatively well at the box office in 2024 compared to 2023, they acknowledged that the industry’s financial health remains precarious and identified escalating production costs and soaring actor salaries as primary factors behind the severe losses.
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