Kochi, May 11 – Amid growing dissent within the Kerala State Film Producers' Association (KFPA) over the publishing of monthly theatre collection reports for new films, the association has issued a clarifying statement defending its position. The decision, it says, is aimed at informing prospective investors about the financial challenges facing the industry.
In a letter addressed to all its members, KFPA secretary B. Rakesh expressed disappointment over the "misleading interpretations" surrounding the association's recent actions. He called these allegations "painful and baseless," noting that certain vested interests were spreading propaganda suggesting that the move was meant to discourage new investments and protect the business interests of KFPA leaders.
Rakesh clarified that the decision to publish the monthly theatre collection reports was made three months ago, with the well-being of producers in mind. He emphasized that the intention was not to harm the industry's growth, but to provide transparency about the current financial state of Malayalam cinema.
Industry in Crisis
The letter outlined the numerous challenges the Malayalam film industry is currently facing. It stated that the sector is undergoing an "unprecedented crisis" in terms of theatre collections, a situation that has worsened post-pandemic. While producers initially saw some revenue through OTT platforms during the COVID-19 period, the scenario shifted once theatres reopened, and the revenue streams became more reliant on box office performance alone.Rakesh also pointed out the rising production costs, largely due to the high remuneration demands from actors and technicians. On top of this, the dual taxation system — the combination of GST and entertainment tax — has further reduced the number of theatregoers, adding financial strain to an already struggling industry.
Publishing Reports for Transparency
To address these issues, the KFPA committee unanimously decided to release the details of monthly collections from theatres. This move is meant to keep producers informed and provide prospective investors with accurate data about the financial realities of film production. The association hopes that this transparency will enable better decision-making and help new investors understand both the potential and the risks in the industry.The letter also highlighted the disparity in film success, noting that only a few films featuring popular stars are able to secure revenue from international markets, OTT platforms, and digital rights. For the majority, revenue depends entirely on the performance of their films in Kerala theatres.
Call for Unity and Support
The KFPA stressed the importance of unity within the film producer community during these challenging times. The association encouraged its members to support one another and create a favorable environment for new ventures. The letter concluded by reiterating that the decision to release the theatre collection data was made with the intention of fostering long-term growth and ensuring the sustainability of the industry.In closing, Rakesh reaffirmed the KFPA’s commitment to protecting the interests of its members and helping them navigate the tough landscape of film production in Kerala.