Malayalam Film Industry Announces Total Shutdown Protesting ‘Gobbling Up’ Of Films’ Cost By Actors
In a significant development, various Malayalam film bodies have announced a strike that will shut down the industry starting June 1, 2025. The decision comes after a recent meeting where representatives of several associations discussed the growing challenges faced by the industry.
According to a report by Mathrubhumi, the associations are demanding the withdrawal of the Goods and Services Tax (GST) as well as the entertainment tax levied on the industry. The strike will halt all film-related activities, including shooting and screening of movies, as the industry seeks to address these financial burdens.
In addition to the tax issues, the associations are also calling for a reduction in the high remunerations being demanded by film stars. The soaring costs of actor salaries have raised concerns among producers and film bodies, with many calling it a significant hurdle to the industry’s survival.
Leading Malayalam film producer Suresh Kumar, also the father of actress Keerthy Suresh, was among those who voiced their concerns. In a statement, he highlighted the disproportionate tax burden on the industry. “There is no industry being taxed at 30%, including GST and the additional entertainment tax. The government must intervene and withdraw these taxes,” Kumar said.
Kumar further addressed the escalating issue of actor salaries, stating, “60% of a film’s cost is gobbled up by actors, which is hugely detrimental to producers.” He also pointed out that even new actors and directors are charging substantial fees, putting added pressure on production budgets. He argued that films that could typically be completed in 50 days are now being stretched to 150 days, with minimal returns on investment.
The ongoing financial strain has been reflected in the industry’s recent performance. In 2024, 176 out of all the films released were box office failures. Only a handful of films, including the Asif Ali and Anaswara Rajan starrer Rekhachithram, managed to turn a profit in early 2025.
The Film Producers’ Association had previously warned the Association of Malayalam Movie Artists (AMMA) about the possibility of a shutdown if actors did not reduce their fees. However, no further discussions have been held on this issue.
With the proposed strike now on the horizon, it remains to be seen whether the government or other stakeholders will intervene to resolve the ongoing crisis in the Malayalam film industry.
