Lights, camera... crisis: Fewer film shoots trigger anxiety in Malayalam film industry
Changes in the business model, particularly the decline in OTT acquisitions and the reduced willingness of platforms to purchase films without exceptional performance, alongside diminished satellite rights revenue, have made filmmaking riskier and reduced the number of available investment opportunities.
Changes in the business model, particularly the decline in OTT acquisitions and the reduced willingness of platforms to purchase films without exceptional performance, alongside diminished satellite rights revenue, have made filmmaking riskier and reduced the number of available investment opportunities.
Changes in the business model, particularly the decline in OTT acquisitions and the reduced willingness of platforms to purchase films without exceptional performance, alongside diminished satellite rights revenue, have made filmmaking riskier and reduced the number of available investment opportunities.
Not long ago, Malayalam cinema was running at full throttle. On any given day, around 30 film shoots, big and small budget films alike, would be underway across Kerala. Production controllers, cab drivers, lighting technicians, makeup artists, junior artistes and hundreds of daily-wage workers moved from one set to another, keeping one of the state's biggest creative industries alive. Today, that picture has changed.
Industry insiders estimate that film shoots have fallen by over 30 per cent, with the number of simultaneous productions dropping from around 30 to 35 to fewer than 20. The slowdown has rippled across the ecosystem, leaving hundreds of workers literally jobless. The impact is perhaps most visible among cab drivers, one of the largest workforces attached to film productions.
"We conducted a census last week, and found that less than 200 cab drivers were currently employed in film shoots. Just a few months ago, over 300 to 350 drivers were constantly employed," said Anish Puthenpura, general secretary of the Cine Drivers' Union under FEFKA. According to him, the latest union assessment paints an even bleaker picture.
"As per our assessment, there are only 14 film shoots and two web series shoots taking place across Kerala. Cab drivers and prop vehicle drivers are indispensable on film sets as they transport artistes, equipment, props and even food. Currently, only 120 drivers are employed. In my 11 years in the industry, I have never seen a slowdown like this. Even during the floods and Covid, the industry suffered, but the present situation feels far more worrying," he said.
The union has now shifted its focus from employment to welfare. "We have asked unemployed drivers and those struggling to buy medicines or pay rent to approach us. Last month alone, we received 60 applications for financial assistance. Very few drivers move to platforms like Uber because most have spent their entire careers in cinema and have few connections outside the industry. Many stay because of their passion for films," he said.
The crisis extends well beyond drivers. Production controller Mehmood, based in Kozhikode, said four films for which locations had already been finalised were shelved after producers failed to secure funding. "It is disheartening to see projects collapse even after pre-production work has been completed," he said, adding that this could be attributed to high production costs, which was slowly derailing the business.
A shrinking investor base has emerged as another major challenge for Mollywood. According to producer Venu Kunnappilly, who recently co-produced ‘Aadu 3’, investors are increasingly reluctant to back Malayalam films due to uncertainty over returns.
"There was a time when pre-business sales kept the industry running," he said. "Earlier, several investors from Chennai and the Gulf would invest in Malayalam cinema after locking in pre-business deals. That ensured a relatively safe return of 60 to 70 per cent through music rights, OTT deals, satellite rights and other revenue streams. Today, the situation has changed drastically and most investors are reluctant."
He added that non-resident Indian (NRI) investors were also becoming cautious amid geopolitical uncertainty, particularly the Iran-Israel conflict. The decline in OTT acquisitions had significantly altered the business model. "OTT platforms are no longer willing to buy a film just because it is a hit. Production houses now have to prove exceptional numbers, which is possible only with a superhit or blockbuster. Satellite rights have also declined sharply, and as a result, the number of investors, particularly from Tamil Nadu, has reduced."
Producer Vijay Babu echoed these concerns. "There was a time when each OTT platform would acquire around 30 films per year. Now, across four or five major platforms, they purchase a maximum of about 45 films a year. Earlier, at least one film premiered on an OTT platform every week. That is no longer the case," he said.
Vijay said filmmaking had also become significantly riskier because of rising production costs. "It is not the same anymore. Actor remunerations have increased substantially, and productions now demand much higher levels of technical perfection. There was a time when Malayalam films were completed in less than 30 days. Today, schedules are much longer and far more expensive."
He also noted that leading actors were now signing only two films a year, compared with four or five projects annually in the past, further reducing the industry's overall output. Industry observers say very few first-time producers were willing to return for a second venture. "The financial figures released by the Producers' Association last year frightened many potential investors. When industry losses are highlighted so prominently, investors naturally become far more cautious," said an industry source.
FEFKA treasurer R H Satheesh said that although the number of shoot days increased following the adoption of an eight-hour work schedule, it had not translated into more employment opportunities. "Even if a film's shooting schedule increases from 30 days to 45 days, the people working on that project remain the same. So while those already employed benefit from the extended schedule, it does not create additional jobs for others," he said.
The slowdown is also reflected in official figures. According to data from the Kerala Film Chamber, only 89 Malayalam films had been released so far in 2026, compared with around 130 during the same period in 2025, which is a decline of more than 30 per cent. Industry sources also point to a drop in new film registrations, as well as reduced pre-production and post-production activity.
Kerala Film Chamber president Anil Thomas acknowledged the slowdown though he did not disclose the exact figures. "There is a slight slowdown in production. But Malayalam cinema has always shown resilience, and recent blockbusters have generated fresh momentum. We believe the industry can recover," he said.