Kerala Film Industry Faces INR 650–700 Crore Loss Despite Blockbusters in 2024

The Malayalam film industry, often praised for its creative brilliance and national appeal, has faced a surprising setback in 2024 despite blockbuster successes like Aadujeevitham, Marco, and Manjummel Boys. According to a report released by the Kerala Film Producers’ Association (KFPA), the industry suffered a massive loss of INR 650–700 crores this year.

KFPA revealed that of the 204 films released, including remastered versions of five classic Malayalam movies, only 26 achieved financial success, collectively generating a net profit of INR 300–350 crores. The industry’s total investment for 2024 stood at INR 1,000 crores, meaning the majority of the films failed to recover their costs, marking a second consecutive year of significant losses.

KFPA Secretary B. Rakesh attributed the losses to several factors, including an oversaturated market with over 200 films released annually. He emphasized the importance of focusing on quality storytelling rather than sheer quantity. Additionally, the absence of substantial pre-release business and the failure of box office flops to secure OTT deals further compounded the financial challenges.

To address the crisis, the KFPA suggested cost-cutting measures, including reducing production budgets and actor fees, which constitute a major expense. However, Rakesh cautioned that actors must take these pay cuts seriously, unlike previous years when similar requests were ignored.

The report underscores the urgent need for strategic changes in Mollywood to sustain its vibrant legacy amidst evolving audience preferences and market dynamics.