We all know that post-COVID, Mollywood has experienced a renaissance, with Malayalam content gaining wide acceptance not just among Malayalis but also across India. In recent years, more and more Malayalam films have gained popularity outside Kerala, achieving significant financial success with titles such as Lokah: Chapter 1 – Chandra, Thudarum, Manjummel Boys, and Premalu, among others. If we consider films that have received both critical acclaim and box-office success, Malayalam cinema is clearly leading the chart with projects like Kishkindha Kaandam, 2018: Everyone Is a Hero, and Bramayugam, among others.
So, the industry should be booming, right? With films releasing left, right, and center, it might appear that everything is hunky-dory in the Malayalam film industry, at least that’s what most media reports suggest. But that’s not the case at all. The number of films being made is not what it once was. According to Onmanorama, the monthly average of film registrations at the Film Chamber used to be around 20, but in October, less than half of that, only 8 films, were registered. That’s a sharp drop. But what could be the reason behind this?
Profit & Loss Reports Reveal The Harsh Reality
Kerala’s film industry, like most other film industries around the world, loses a lot of money because only a few films that are released become financially successful. Many inexperienced individuals invest their money in this industry and ultimately lose it completely. Even seasoned producers sometimes face losses, making it a bit of a gamble. To address this issue, producers began publishing monthly profit and loss statements to make newcomers aware that the likelihood of loss is very high.
Headlines such as “Malayalam Box Office: 11 Flop Films in February 2025 Turn Disasters, with the Biggest Flop Registering a 99.9% Loss” give outsiders a realistic picture of the industry. Thanks to the Producers Association, there is now concrete evidence showing that producers are indeed losing money during the theatrical runs of their films.
Post-Theatrical Rights Sales
During COVID, there was a boom in demand for content, as streaming platforms were competing with each other to acquire films. Producers made good money during that period, and as a result, actors increased their remuneration. Now that COVID is over and things have returned to normal, OTT platforms have lost interest in acquiring low-quality films. Only critically acclaimed or box office successful films are being picked up, and even then, the pricing has become very competitive.
According to Onmanorama, only an average of 25 films are acquired by streaming platforms in a year. The same trend applies to satellite rights as well. Since OTT platforms have decided not to spend as much as before, producers are struggling. They still have to pay the high remuneration demanded by actors, which was not an issue during the OTT boom because those costs could be recovered through streaming deals. Now, with poor theatrical runs and no buyers for OTT rights, producers are left holding the bag.
Who Is Really Affected By This?
According to Film Employees Federation of Kerala (FEFKA) working secretary Sohan Seenulal, the Malayalam film industry employs more than 5,000 daily wage workers, and they are the ones most affected by the shortage of films. He mentioned that many of them have contacted him, saying they do not have any work. These workers fill roles such as light boys, art assistants, make-up artists, costume assistants, and other similar positions. They are the people most affected by the current slowdown.
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