The Malayalam film industry is navigating tough times, and the latest blow comes from a slump in satellite rights sales. Once a key revenue stream for filmmakers, TV broadcast rights are no longer fetching the kind of money they used to. Why? The rise of OTT (over-the-top) platforms and shifting audience preferences.
Not long ago, selling a film’s satellite rights to television channels was a surefire way for producers to recover their investment. But things have changed. With most movies available on OTT platforms shortly after their theatrical release, audiences no longer wait for TV premieres. Ratings for films on television have dropped, and channels are reportedly reluctant to spend big.
In fact, many films aren’t even getting TV deals anymore. Out of more than 200 Malayalam films released last year, only about a third were picked up by satellite channels. This year, the unsold count is expected to rise further.
Some sources suggest that channels are considering a revenue-sharing model instead of paying a fixed price upfront. If that happens, filmmakers might struggle to make even the limited money they are getting now.
OTT platforms were once seen as a financial lifeline. Initially, these platforms would buy a film’s rights for a lump sum, offering a guaranteed return for producers. But after failing to generate profits from many films, OTT platforms have changed their approach.
Now, instead of paying big money upfront, they offer revenue based on how many people actually watch the movie. It sounds fair in theory, but in practice, it’s proving to be a problem for filmmakers. A recent example? A Malayalam film released on OTT reportedly brought its producer just ₹90,000.
Unless you’re a superstar-led blockbuster, getting a fixed-price OTT deal is now rare. Even when they do happen, the prices are said to be lower than before. Mohanlal’s upcoming film Empuraan, set for release on 27 March, is one of the few currently negotiating a high-value OTT deal.
Meanwhile, piracy remains a huge issue. More people are reportedly watching Malayalam films illegally on Telegram and other unauthorised websites than on legitimate OTT platforms. Within hours of a movie hitting an OTT service, pirated copies start circulating.
Earlier, pirated versions mostly leaked after a theatrical release. Now, OTT releases are the new target. For producers, this means a double hit—they’re already earning less from legal platforms, and piracy eats into whatever audience they might have left.
The financial crunch has led to calls for government intervention. The Kerala Film Chamber had planned a protest to push for changes, especially against what they call “double taxation” (GST plus entertainment tax). However, after the government assured discussions on the issue, the protest was called off.
A meeting between cultural minister Saji Cherian and industry representatives is expected after 10 March. But producers have warned that if the talks don’t result in meaningful changes, an indefinite strike will begin on June 1.