Global recession shakes Tamil film sector

 

Of late money flow from companies for new film production is decreasing day by day, says the vice president of South Indian Film Chamber of Commerce

CHENNAI: The once bustling Kollywood, the South Indian film industry, is bracing for hard times as the global economic meltdown chokes financing for new film production and producers are saddled with rising costs.

Industry players' are pessimistic, worry that shrinking funds from financiers would clip production by at least by 40 per cent this year, despite a healthy 2008 upward trend.

"The number of films produced had shown a steady increase, up from 132 in 2007 to 162 in 2008, due to corporate companies entering into production. But of late money flow into the production market is decreasing day by day," M. Balasubramaniam, vice president of South Indian Film Chamber of Commerce said.

During good times, Indian corporate giants like Pyramid Saimira Ltd, Moser Naer, Zee TV, Eros International and GV Films had invested millions of dollars into film production, a lucrative industry worth over RM20 billion in India.

"These corporate companies have pumped crores (millions) of rupees and made the production cost to increase manifolds and less funds will severely hit production of movies in the current year. We expect production to fall at least 40 per cent," he noted.

India prides as the second largest film industry in the world, after Hollywood, with nearly 800 movies churned out annually, including from Bollywood and Kollywood.

The highly entertaining movies, often glossed with romance and sizzling dances, are sold worldwide, with top Indian actors earning mega bucks for their roles.

S. Sivashakthi Pandian, Tamil Producers Council secretary said artistes and technicians working in the industry earned fat salaries due to corporate funding, but this is likely to turn sour this year, as investors trim their budgets.

"Those (actors) who were getting two crores rupees (RM1.54 million) are now paid five crores rupees (RM3.85 million) or more. We cannot match this now as individual producers. Global recession has shaken the Tamil Industry and Indian film industry as whole.

"The initial indication is that it will take at least a year or more to recover from the slowdown," he added. - Bernama