Kollywood’s Big Reset: How The Tamil Film Producers Council is Trying To Offer Aid To The Producers In the Industry!
by Anushree Rauta (Equity Partner, Head, Media, Entertainment & Gaming Practice) and Shabbir Shamim (Senior Associate)
In recent years, India’s Media and Entertainment (M&E) industry has undergone a marked shift in consumption patterns, with audiences increasingly favouring digital over-the-top (OTT) platforms such as Netflix, Amazon Prime Video and YouTube. This transition has contributed to a steady decline in theatrical footfall and box-office revenues, even for certain star-studded films for the producers and film-makers. At the same time, revenues from OTT and satellite rights exploitation of film, which were once considered to be reliable source of income, have now become unpredictable due to constant change in acquisition strategies and variable market valuations. As a result, Indian filmmakers, producers and financiers are now facing challenges in ensuring financial recovery, thereby calling for the need for more stable and sustainable industry-wide practices, ensuring some relief to the producers and film-makers.
The Tamil Film Producers Council (TFPC), in its annual general meeting held on 09th November, 2025, has passed a historic resolution, aiding the Tamil-industry producers and film-makers. TFPC has passed a series of resolutions emphasising on the need of the hour to grant producers some relief, out of which some key highlights are as follows:
- Revenue-share model with Actors, Directors and Key Technicians:- Top actors, director and technicians are now urged to forego the practice of receiving their entire salaries upfront and instead join hands with the producers to share the profit and losses from the revenues of the Film.
- Longer Theatrical Run for Films:- TFPC has introduced a new window for theatrical runs of the film before the same can be released digitally / on OTT platforms.
- Films featuring prominent A-list celebrities must observe a window of atleast 8-weeks from theatrical release date;
- Mid-budget films must observe a window of atleast 6-weeks from theatrical release date;
- Small budget films can be released after a period of 4-weeks from the theatrical release date.
- Guaranteed Screens for Small-Budget Films:- A new Film Release Regulation committee is being set-up by TFPC in collaboration with Theatre Owners’ Association and Distributors’ Association with the aim to release atleast 250 small-budget and medium budget films.
- Priority to Theatrical Releases over OTT:- The council emphasised that the actors, directors and technicians should give priority to theatrical films over web-series and direct-to-digital releases, directing the respective unions to withhold work from those violating this resolution and advised theatre owners against screening their films.
- Action against YouTube channels crossing moral lines:- TFPC has also stated that it would work in co-operation with the South Indian Artistes’ Association and the Theatre Owners’ Association to take strong action against some YouTube channels that are allegedly crossing moral lines in their coverage under the pretext of film criticism.
- Gratitude towards Government:- The council has expressed gratitude towards the Tamil Nadu Government for concessions such as a streamlined single-window permission system for shooting at government locations, a reduced local service tax, and the allocation of land for film industry workers’ residences.
OUR OBSERVATIONS:
TFPC’s push for a structured profit-sharing model marks an unprecedented shift in the Tamil-film industry with the intent to effectively manage money, talent, and risk. Until now, the producers have been bearing the brunt of high remuneration of actors, fluctuating theatrical returns, and unpredictable OTT and satellite valuations. The council has requested stars like Rajinikanth, Kamal Haasan, Vijay, Ajith, Sivakarthikeyan, Dhanush, Suriya, Silambarasan TR, and Vishal to support the new regime for the betterment of the industry. By encouraging actors, directors, and top technicians to participate in both profits and losses, this new model aims to create a more balanced ecosystem.
However, the practical and successful implementation of these proposed reforms and policies hinges majorly on key stakeholders, including actors, directors, technicians, theatre owners, and distributors in the industry. Implementing these changes will be a challenge, requiring a unified commitment to prioritize theatrical releases and adhere to the new regulations. The TFPC’s efforts to encourage actors, directors, and technicians to give priority to theatrical films are commendable, but it will be crucial to ensure that these guidelines are followed without stifling creative freedom or limiting opportunities for talent to explore diverse platforms. The success of these reforms will depend on the industry’s ability to put aside individual interests and work towards a common goal – promoting Indian cinema and showcasing the country’s rich storytelling talent to the world.
While TFPC’s aim is to protect film-makers and promote smaller productions, the proposed actions to withhold work from non-compliant contributors and take actions against critics who allegedly cross a moral line raise questions about the implementation of these policies. TFPC must balance its goals with individual rights, ensuring that restrictions are reasonable, proportionate, and within the constitutional framework. The outcome will determine whether these reforms foster a more inclusive industry or create new challenges, setting a precedent for the delicate balance between industry interests and individual freedoms.
