Coronavirus Outbreak: Kollywood faces unprecedented economic, social challenges once lockdown lifts
Once private finances dry up in Kollywood, the number of film productions will reduce drastically, with no guarantee of a theatrical release.


Vijay in Master. Image from Twitter[/caption]To add to their woes, big tentpole Hollywood and Bollywood films will be fighting over the same release dates in an already overcrowded market. As it stands, the global box office has already taken a hit and lost revenue is estimated to climb to $15 to 20 billion, for April and May. If the crisis continues beyond May, it will be catastrophic.JSK Films' Satish Kumar, who is also a member of various film associations, points out, “Our industry was anyway on shaky grounds over the last few months due to an earlier economic crisis. The financiers had virtually stopped funding new films and now with the threat and spread of COVID 19, all financiers will clamp down further. Our associations has requested the financiers to waive off interest during the lockdown period. Unless all the heroes and technicians cut down their salaries by a minimum 30 percent, the industry will not be able to survive.”The industry bigwigs are waiting for the lockdown to be lifted, before making any grandiose announcements. All promotional campaigns for the proposed summer releases have also stopped. A spokesperson of Tamil Film Producers Council (TFPC) says, “Even if the lockdown is lifted, which I doubt, the government won’t open up the entertainment industry immediately due to various COVID19 related issues. We can think of a realistic date only sometime in June or July and it's going to take months to stabilise.”The Multiplex Association of India has appealed to all landlords and mall owners across the country to waive of rent and CAM for all multiplex operators during the period of closure ordered by the government. This is going to lead to more complications and delay when the government opens up the entertainment sector after the lockdown. PVR Chief Executive Officer Gautam Dutta has said that whenever the theatres reopen they will have to practice social distancing within the cinema by removing one seat between three seats and also sanitising the theatre after every show. Datta made it very clear: “We have to assure our patrons that cinema is as safe an option as anything else to bring back the audiences to the cinemas.”The buzz is that the top give Kollywood superstars will continue to get work with top producers or they will make their own movies. The idea is that their astronomical salaries, which make 50 to 60 percent of the budget, will be pruned. The mid or lower level actors will find the going tough as they themselves will not be able to attract audiences. Most industry analysts are predicting a 30 to 40 percent fall in box-office collections for big-hero films, while the rest may have to fight for a theatrical release. OTT platforms aren't showing an interest in buying the rights of small and medium films.A big fall out of the lockdown is that Tamil film financiers will be slow in releasing money for films going forward. A top financier says on the condition of anonymity, “ We have more than Rs 500 Crores locked in the market and our primary aim will be to recover at least our principal amount, as producers associations are putting pressure to waive off the interest during the lockdown.” Once private finances dry up, the number of film productions will reduce drastically, with no guarantee of a theatrical release. Subramaniam, of Chennai’s iconic single screen Kasi Theatres says, “What guarantee do we have that audiences will come back to theatres, especially when so much is happening in the OTT space?”

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