Malayalam cinema will come to a standstill from June 1, 2025. Several film associations have decided to halt all activities due to rising production costs, high actor fees, and heavy taxation.
The decision comes after discussions about the financial struggles faced by filmmakers.
Why Malayam Cinema Is Shutting Down?
According to a report from Siasat.com, one of the main issues is the soaring cost of film production. Producer Suresh Kumar (actress Keerthy Suresh’s father) explained that actor fees have become a major burden.
“60% of a film’s cost is gobbled up by actors, which is hugely detrimental to a producer,” he stated. He also pointed out that even newcomers demand high fees, which makes it hard for producers to recover their investment.
Another major concern is heavy taxation. The industry is pushing for the removal of the 30% tax, which includes Goods and Services Tax (GST) and entertainment tax. Kumar called for government intervention and said, “There is no industry which is being taxed at 30%. The government has to step in and withdraw this.”
Film Industry Crisis
Malayalam cinema has been struggling financially. Reports reveal that in 2024, 176 films flopped at the box office. In 2025, only Rekhachithram, starring Asif Ali and Anaswara Rajan, has been profitable.
Longer production timelines are also adding to the crisis. Films that used to be completed in 50 days are now taking 150 days, yet revenues remain low. With production costs rising and profits shrinking, the industry is under immense pressure.
With the strike in effect, all filming and screenings will be paused. The Film Producers’ Association had earlier warned AMMA (Association of Malayalam Movie Artists) about a shutdown if actor fees weren’t reduced, but no agreement was reached. Now, the industry faces an uncertain future.
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