The Malayalam film industry is witnessing a sharp slowdown, with the number of film shoots across Kerala dropping by more than 30 per cent—from around 30 to 35 simultaneous productions to fewer than 20—raising concerns over widespread job losses and declining investments.
The impact has been severe on daily-wage workers, particularly cab drivers, technicians, makeup artists and junior artistes. According to the FEFKA Cine Drivers’ Union, only about 120 drivers are currently employed, compared to more than 300 just a few months ago. The union says it has also seen a rise in requests for financial assistance from unemployed members.
Gold 101.3FM, UAE’s No.1 radio station, reports that industry insiders attribute the slowdown to rising production costs, shrinking investor confidence and a sharp decline in revenue from OTT and satellite rights. Production controller Mehmood said several projects have already been shelved after producers failed to secure funding, despite completing pre-production work.
Producers Venu Kunnappilly and Vijay Babu say investors from the Gulf and Tamil Nadu have become increasingly cautious, while OTT platforms are acquiring far fewer Malayalam films than before. They also point to higher actor remunerations, longer shooting schedules and leading actors taking up fewer projects each year, making filmmaking significantly more expensive and risky.
According to the Kerala Film Chamber, only 89 Malayalam films have been released so far in 2026, compared to around 130 during the same period last year. The industry has also recorded fewer new film registrations and reduced pre- and post-production activity.
While acknowledging the slowdown, Kerala Film Chamber President Anil Thomas expressed optimism, saying Malayalam cinema has overcome challenges in the past and recent blockbuster successes could help revive the industry in the months ahead.
