The year 2024 was a mixed bag for Malayalam cinema. Over 200 films made it to the theatres this year, but how many of them stayed on? Not many. Reports state that just around 30 films managed to turn in a profit, while most struggled to survive beyond the opening week.
The first half of the year gave fans and the industry something to cheer about. There was buzz and whispers of a revival. But as the months rolled on, the excitement drained, leaving everyone asking: What’s next for Malayalam cinema?
The early years of OTT platforms were a boon for Malayalam cinema, as streaming services acquired rights at premium rates, often disregarding box office performance or content quality. This era encouraged the rise of filmmakers producing content exclusively for OTT.
However, the landscape has evolved. Industry insiders reveal that Malayalam cinema is now perceived as less lucrative for streaming platforms. Even films featuring prominent actors reportedly struggle to secure deals. Producers are urging actors to reassess their increased remuneration, which surged during the OTT boom. Listin Stephen, a producer, has warned of a potential crisis if cost structures are not revised.
A stark example of this shift is Boss & Co, a movie starring Nivin Pauly. Despite a production budget exceeding ₹20 crore, it reportedly failed to attract OTT buyers. Earlier, star-led films could secure OTT deals worth ₹8-10 crore, but current estimates suggest these figures have dropped to ₹50-75 lakh for many projects, with fears of further decline.
The introduction of pay-per-view models and revenue-sharing agreements has added to producers’ woes. Unlike before, when platforms paid fixed sums for rights, revenues now depend on viewership metrics. Additionally, piracy continues to undermine legitimate viewership, with films appearing on platforms like Telegram soon after their OTT release.
Disney+ Hotstar, once a major buyer of Malayalam films, appears to be reassessing its approach following its merger with Reliance. Observers suggest that changes in top managerial personnel and tighter budgets could impact investments in regional cinema. With Malayalam films contributing only about two percent of India’s OTT revenue, the industry faces stiff competition from Tamil and Telugu content, which offers better pan-Indian appeal.
Analysts predict a decrease in Malayalam film releases in 2025. The Film Chamber secretary, Saji Nanthiyat, anticipates a reduction of at least 33 percent. While this may help streamline production and prioritize quality, it also underscores broader challenges within the industry.
Some recent releases, including Rifle Club, Marco, and E.D, have performed well during the Christmas season, as have November’s Sukshmadarshini, Hello Mummy, and Swargam. Theatre owners are optimistic that the holiday season will draw family audiences. Whether this trend marks the start of a sustained recovery remains to be seen.