A major crisis is brewing in Kollywood. As discussed earlier in this column, demonetisation has caused havoc at the Tamil Nadu box-office. And now, the passing away of former Chief Minister Jayalalithaa has caused a void in the industry. Rajinikanth’s tweet says it all – ‘Not just Tamil Nadu, but the whole of India lost a brave daughter. May her soul rest in peace.’
Many in the industry feel that Jayalalithaa will be the last in the long line of chief ministers who had a link with Tamil cinema. The new CM of Tamil Nadu, O. Panneerselvam, has no known connection with the industry. The dozens of Dravidian politicians who hailed from the Tamil film world, like M. Karunanidhi, MGR, and Jayalalithaa, always ensured they had a grip over the film business. The Government has had a say in the running of cinema theatres, governing rules and regulations, and ticket pricing.
Karunanidhi’s government exempted films with a Tamil title from entertainment tax (which was 15 per cent of the total ticket price in Chennai). And when Jayalalithaa came to power in 2011, she modified it further. The then government doubled the entertainment tax to 30 per cent in Chennai, and exempted only films with Tamil titles and a U-censor certificate from taxes. So a Tamil film producer had to first get his film censored by the CBFC with a U-certificate and later apply to the eight-member committee set up by the State Government to view the film and decide whether it was eligible for tax exemption. Udhayanidhi Stalin, grandson of Karunanidhi, has been fighting a long-drawn legal battle with the TN Government over his films being denied tax exemption. Recently, he contested the issue in court and won a ruling in his favour.
It was during MGR’s regime that shows were regulated and theatres in the State could play only four shows on working days. The reason was to prevent students from missing classes. Subsequent regimes introduced laws such as 10 per cent of the total capacity of a theatre should sell tickets at a government-notified rate (Rs.10 in Chennai) in the front rows. The tickets rates (Rs. 120), fixed by the DMK way back in 2007, are yet to be revised. Hopefully, by the end of this month, the OPS government would implement the Madras High Court order “to take a realistic and rational decision on movie ticket pricing in Tamil Nadu.”
Unlike other States, the political leadership in Tamil Nadu loves to lord over its superstars, and those who go against the system are treated badly, and at times, their big-budget films are released with much difficulty. Who can forget the trouble caused by lesser-known political outfits, who delayed the release of Kamal Haasan’s Vishwaroopam and Vijay’s Thalaivaa in the State?
Today, cutting across political parties, everybody seems to have a Kollywood connection via production, distribution, or exhibition. And before demonetisation hit the industry hard, a lot of unaccounted money found its way into film production. Now, the question being asked in Kollywood is, will the new rulers allow the industry to function on their own terms and treat it just as any another industry?
A prominent member of the Tamil Film Producers Council says, “We want freedom from political favouritism and interference in the day-to-day making, distribution, and exhibition of films. It will result in a more professional approach. There is no real threat to mainstream political parties from the industry as long as stars don’t form new political parties and hijack vote banks. Looks like Amma will be the last actor-turned-politician who will rule the State.”
But good news is around the corner. The OPS government is likely to accept GST (Goods and Service Tax), which would be implemented soon by the Modi government. With GST, the entertainment tax component will now be rationalised to 18 per cent across the State, and the Government’s tax exemption policy will have to be scrapped. The State government will also have to implement the High Court order regarding new ticket rates by the end of this month.
Meanwhile, the Tamil box-office continues to be at an all-time low, due to the demonetisation storm. Single screens across Tamil Nadu, that don’t have card payment facilities, have suffered with abysmal ticket sales. At the same time, the rush to release new films continues, though veteran producers are being cautious. For them, it is a wait-and-watch situation and they will analyse the unfolding political situation in the State before making the next move.
