Freeze-Frame: :Screens go dark, Kollywood heads for massive loss

An estimated loss of Rs 350 crore, which is feared to rise to Rs 500 crore if the lockdown is extended; thousands of technicians and workers, and also the staff at theatres and malls rendered jobless; more than two dozen new releases stalled of which the fate of the smaller ones is uncertain as yet. The Tamil film industry, among the top three in the country in terms of the number of releases and revenue, is facing a crisis that it has never seen in all these decades.

According to veteran producer-distributor G Dhananjayan, the Tamil cinema industry has suffered a loss of Rs 350 crore since March due to the shutdown of theatres and absence of new releases.

“The theatre shutdown has resulted in a loss of Rs 200 crore. Another Rs 100 crore that used to come in through online booking, food and beverage sales, parking charges, etc., have also been lost. The remaining Rs 50 crore is the interest in film financing. Now that the films are delayed, the producers will have to pay more interest to financiers,” he says.

However, as the State and central governments are expected to extend the shutdown, the worst is perhaps not yet over. With no big releases in May, which is a crucial month for major releases that rings in the box office collection, the industry is heading towards a loss of Rs 500 crore.

Film financing is often alleged to be a form of usury. However, producer T Siva of Amma Creations, a member of the ad-hoc committee set up by the Tamil Nadu Film Producers’ Council, says that the producers will not have to bear the heavy interest during the lockdown.

“There are no shoots happening and there is no cash flow at the moment. Hence, we have been relieved of paying interest to financiers for now. We will discuss the formalities with them once work resumes.

This is an industry that functions on relationship and trust,” he adds.

Ram Vasu, a financial advisor for Tamil films who has been in the industry for over a decade says the concept of film financing is misinterpreted. “Producers have to pay the interest only at the time of release. We calculate the finance they received from the start of the shooting to the day of release. No producer has been asked to pay interest in the middle of a film’s shoot,” Ram Vasu explains.

“In such a situation, producers are likely to be spared of paying the interest for this period – provided the lockdown is extended. The producers, financiers, and exhibitors are among the worst-hit by the lockdown,” he adds.

The fate of more than 25 films that were supposed to hit the screens in the last 20 days is unknown. “We will have to regulate releases once theatres open.

Our priority will be to release small films and the ones that have already completed the censoring procedure, and schedule their release in chronological order,” says Siva, adding that malls and theatres will not open to full occupancy.

Talking about the impact, Dhananjayan says, “It will certainly take a few more months for the industry to become stable. Big films shouldn’t focus on overseas release for now and instead release in the domestic market. Though there will be a minor deficit, there won’t be a huge loss.”

Amid the uncertainty over footfall in theatres across Tamil Nadu, the head of TN Theatre Owners’ Association, Tirupur Subramaniam, strikes a positive note. “People may have resorted to over-the-top (OTT) streaming platforms during the lockdown. However, I am sure they will come to theatres once the situation gets stable because every film has its own theatrical experience,” he says.

On the downside of the business past month, he says: “I have been cleaning my theatres, maintaining the equipment and paying power bill for nothing. I will have to pay for my staff as well.” He also says that theatres in TN suffered a loss of Rs 90 crore this week. “Vijay’s Master is one big film that is postponed. We’ve incurred a loss of Rs 90 crore in the opening weekend.” 

A popular multiplex chain has announced an alternative seating arrangement post lockdown. Ruban Mathivanan, Managing Director of GK Cinema says, “I can speak for myself and I can say that this will not work out. People will use washrooms and also I cannot control anybody once they have booked the tickets and are inside the movie theatre. Running a big film with 50 per cent occupancy will still incur a loss to a theatre. People in other districts have to reach Chennai, settle down in their jobs, run their family and come back to normalcy.

It will take another six months for a theatre owner to witness decent footfall.” Distributors overseas say the theatre owners in Dubai, Malaysia, and Singapore have asked them not to bring out any Tamil films. MS Kalai, who distributed Walter in Malaysia, says, “The film was lifted from theatres two days after its release.

People here are into Netflix and aren’t desperate to watch in theatres. The DTH service provider here, Astro, airs new films a week or two after its release.”

Deepa Iyer, the Managing Director of Kleem Entertainment, who predominantly distributes films in the UAE and the US, calls the situation ‘a disaster’.

The stars are spending a good time with their family, taking a break from the gruelling shooting schedules, especially in the scorching summer heat. However, the lives of daily wagers in the film industry, who work round-the-clock to bring film projects to life, are at stake. With all film shoots cancelled due to the shutdown, their lives have become a struggle every day.

R Krishnan, a 53-year-old light man whose most recent project was a Tamil soap, is among those bearing the brunt. A diabetic, he used to buy medicines with the wages paid at the end of each day’s work. But he has not been able to do so for nearly a month. “For about 25 days  (since shootings were called off), I had no money left after spending all I had on food. If the lockdown is extended till next month, I don’t think we can survive,” he rues. 

Jeeva, a sound operator,is facing the risk of the meagre savings, which he raised over the 28 years he spent in the industry, being eroded. “I won’t have anything left if I pay house rent and buy food for my family of four for the next three months. I hope shootings resume and our lives return to normalcy.”

Director RV Udayakumar, general secretary, Film Employees Federation of South India (FEFSI) says they are distributing rice bags and also the money that is organised through fund collection drive. “There are young assistant directors who can’t cook for themselves. We are preparing food and taking turns to distribute it every day,” he says.

This crisis has made them consider setting up a remuneration system so that FEFSI members do not run short of cash when there are no shoots, adds Udayakumar.