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2016 Malayalam films had an official 21 certified hits and one film earned membership in 100 crores club. An average of 140 films are getting released and 5 crores budgeted films including superstar movies will be a total of 40 films, while the balance 100 films are budgeted 2 crores each. So the total business is 400 crores and the actual picture is worse as Mollywood is unable to regain the 400 crores through collection as only few films are actually giving profits. Tomichan Mulakupadam, the producer of Mollywood’s first 100 crore club film provided the shocking statistics that gave the real picture of a successful film.
Tomichan says that if the movie had collected 100 crores, then 20 crores should be paid as entertainment tax and the balance is 80 crores. So after deducting the theatrical share, the profit will come down to 40 crores, but again the budget and publicity cost takes away another 32 crores and finally the producers profit is 8 crores. Normally the money used for production is borrowed for high interest rates, so the profit will again come down. CD and Satellite rights are not a high amount now, apart from these, 33% of Income tax also should be paid; that means the profit of the film is almost nil.
This shocking calculation of Tomichan has really sent shockers as it shows the real picture of all producers. Every producer is having the same opinion of Tomichan. In actual if the film is a success, the producer is earning just a little sum. Tomichan says that for the second part of ‘Pulimurugan’ he need to borrow money. He also said that ‘Pulimurugan’ has gained good opening in Andhra and Telangana region and is expected to sustain the collection, so that producer can earn more. In future the business of Malayalam films are crucial in other states as well as gulf countries for the producer to earn profit.