Daijiworld Media Network - Thiruvananthapuram

Thiruvananthapuram, Dec 23: As Malayalam cinema winds up a difficult 2025, the industry has once again begun introspection over declining box-office success and mounting operational challenges. With barely around 10 per cent of films released each year turning profitable, the Kerala Film Chamber of Commerce (KFCC) has now taken a confrontational stance against the state government, alleging continued neglect of long-pending demands.

At a press conference held on Tuesday, the KFCC announced that it will stop distributing films to theatres operated by the Kerala State Film Development Corporation Ltd (KSFDC) from January 2026 onwards. The KSFDC is a government-owned body that runs several theatres across the state.

The Chamber accused the government of failing to address critical issues faced by the film industry, chief among them being the burden of double taxation on movie tickets. KFCC representatives said the additional tax pressure has severely affected theatre viability and overall revenue at a time when the industry is already struggling with low success rates.

Another key demand raised by the KFCC is the introduction of special electricity tariffs for cinemas, which they say would provide much-needed relief amid rising operational costs.

Industry stakeholders said repeated appeals and representations to the government have yielded no concrete action, forcing the Chamber to adopt stronger measures. They warned that unless corrective steps are taken soon, the situation could further weaken Kerala’s film ecosystem.

The announcement has added fresh tension between the state government and the Malayalam film industry, even as producers, distributors and exhibitors brace themselves for another challenging year ahead.