The Malayalam film industry is bracing itself for pay cuts and a temporary freeze on big-budget movies following the financial crisis induced by the COVID-19 outbreak.

A salary cut for actors and technicians, low-budget movies, and push for alternative revenue streams figure in the bailout package being formulated by the Kerala Film Producers Association (KFPA).

“We will meet on Friday to chalk out the way forward. We hope to garner the support of other trade bodies in the industry in these tough times. Producers may not be able to think beyond a budget of ₹4 crore to ₹5 crore for a movie in the near future considering the uncertainties ahead,” said B. Rakesh, treasurer of KFPA.

G. Suresh Kumar, former president of KFPA, suggested a 50% salary cut for actors as a remedial measure. “Since there is no clarity on when the situation would become normal, investors in the Gulf and other countries would not be keen on taking a risk and funding new ventures,” he said.

Overseas collection

M. Renjith, president of KFPA, said a dip in revenue from overseas collections would impact the industry’s earnings. “Even if the situation in Kerala improves, we do not know when the overseas theatrical release, which remains crucial for the overall box office, will resume. We are equally concerned about the fate of the 66 movies that were either completed or at various stages of post-production when the lockdown was declared,” he said.

Actor Jagadeesh, treasurer of the Association of Malayalam Movie Artistes, said actors had always co-operated with the producers in difficult times. “We also know that the revenues may take a hit in view of the unprecedented situation. Actors may have to bear a share of the possible losses incurred by the producers,” he said.

B. Unnikrishnan, general secretary of Film Employees Federation of Kerala, said any response on the issue can be made only after studying the concrete suggestions being forwarded by the association of producers.