Early 2000s: Level playing field

In the early 2000s, Tamil film industry was a level playing field with a number of companies – big and small, established and newcomers – competing with each other in film production and distribution businesses.

This included established players like AVM Productions (Gemini, Sivaji), R. B. Choudary’s Super Good Films (Aanandham, Thirupaachi), K. Balachander’s Kavithalayaa Productions (Saamy), Kamal Haasan’s Raaj Kamal Films (Hey Ram, Nala Damayanthi), A. M. Ratnam’s Sri Surya Movies (Kushi, Boys, Gilli) – later renamed to Shri Sai Raam Creation, Rama Narayanan’s Thenandal Studio Limited (Nageswari, Kottai Mariamman), Sathya Jyothi Films (Parthiban Kanavu) and Kalaipuli S. Thanu’s V Creations (Kandukondain Kandukondain, Kaakha Kaakha) and newcomers to the business like Mani Ratnam’s Madras Talkies (Alaipayuthey, Aayutha Ezhuthu), V. Ravichandran’s Oscar Films – later renamed to Aascar Films (Poovellam Un Vasam, Ramana, Anniyan, Dasavathaaram), S. S. Chakravarthy’s NIC Arts (Vaali, Mugavaree, Citizen, Villian), Lakshmi Movie Makers (Bagavathi, Anbe Sivam), Evergreen Movie International (Pithamagan) and Kalpathi family-owned AGS Entertainment (Thiruttu Payale) to name a few.

Over the subsequent years, a majority of these studios shut shop or drastically reduced the scale of their investment into film business following financial losses, changes to the business model and entry of new studios with deep pockets like Sun Pictures and Lyca Productions that have the ability to bounce back after failures.

Between 1998 and 2002, R. B. Choudary’s Super Good Films released five Tamil films per year on an average and delivered successful films like Sollamale (1998), Thulladha Manamum Thullum (1999), Maayi (2000), Aanandham (2001) and Punnagai Desam (2002). Since 2003, the studio released just 11 Tamil films to date of which only Thirupaachi (2005) and Jilla (2014) were successful.

Kavithalayaa Productions have not released any feature films since the failure of Rajinikanth-Pasupathy starrer Kuselan (2008) and Arjun-starrer Thiruvannamalai (2008).

Basking in the success of 2007 blockbuster Sivaji, AVM Studios invested in Suriya-starrer Ayan and Vijay-starrer Vettaikaaran in 2009. This was followed by Mudhal Idam (2011) – the studio’s 175th production – which remains its last theatrical release to date.

2008 – 2011: Reign of DMK-affiliated film studios

The decline of the established studios coincided with the return of Dravida Munnetra Kazhagam (DMK) party, led by former screenwriter M. Karunanidhi, to power in the state of Tamil Nadu in 2006 after a hiatus of five years. The DMK-affiliated Sun Group, one of Asia’s largest TV networks, forayed into film production and distribution business in 2008 under the banner Sun Pictures and announced its first venture Enthiran, starring Rajinikanth and Aishwarya Rai Bachchan, directed by S. Shankar (Indian, Jeans). Made with a budget of ₹140 crores (£14 million), the science-fiction action-thriller was the most expensive Indian film at that time. Enthiran released in 2010 to positive reviews and grossed around ₹290 crores (£29 million) worldwide. The film also gained nationwide attention for its superior special effects and production design (when compared to other Indian films at that time) and its success in Hindi-speaking states opened up the massive North Indian market for South Indian films and paved the path for subsequent big-budget South Indian films like Baahubali (2015), Baahubali 2 (2017) and 2.0 (2018) to release all over India and emerge successful.

Apart from Enthiran (2010), Sun Pictures also distributed 20 films between 2008 and 2011 including profitable ventures like Padikathavan (2009), Ayan (2009), Singam (2010), Aadukalam (2011) and Mankatha (2011).

Actor and politician Udhayanidhi Stalin, heir apparent to the DMK party, launched his own production company Red Giant Movies in 2008 and produced a string of commercially-successful films like Vijay-starrer Kuruvi (2008), Suriya-starrer Aadhavan (2009) and Kamal Haasan-starrer Manmadan Ambu (2010). The company also started film distribution business with Vinnaithaandi Varuvaayaa (2010).

Also in 2008, Dayanidhi Azhagiri – another family member of the ruling DMK party – launched a new film production and distribution company called Cloud Nine Movies. The company produced three profitable films in 2010 and 2011 – Thamizh Padam (2010), Thoonga Nagaram (2011) and Mankatha (2011), and distributed 8 films including Vaaranam Aayiram (2008) and Azhagarsamiyin Kudhirai (2011).

The DMK-affiliated trio of Sun Pictures, Red Giant Movies and Cloud Nine Movies dominated the Tamil film industry between 2008 and 2011 by holding a stake in the production or distribution of the majority of big releases during this period.

2012 – 2018: Arrival of Lyca Productions

In the 2011 Tamil Nadu assembly elections, the DMK party lost power to its main political rival AIADMK led by former actress J. Jayalalithaa, defying all pre-election predictions. The business prospects of the DMK-affiliated companies expectedly deteriorated following the election loss.

Udhayanidhi Stalin continued to produce films starring himself (Oru Kal Oru Kannadi, Idhu Kathirvelan Kadhal, Nannbenda, Gethu, Kanne Kalaimaane) through his Red Giant Movies, however Dayanidhi Azhagiri’s Cloud Nine Movies put a hold on its film production and distribution businesses. Sun Pictures, which distributed 20 films between 2008 and 2011, drastically reduced its investment in the business and distributed only 3 films between 2012 and 2015 with only Muni 3: Kanchana 2 (2015) emerging successful.

Following the end of DMK’s monopoly on the Tamil film industry, a number of conglomerates like Lyca Productions (Kaththi) – owned by British enterpreneur Allirajah Subaskaran, Fox Star Studios (Engaeyum Eppothum, Raja Rani, Mundaasupatti) and Reliance Entertainment (Irudhi Suttru) started investing in Tamil cinema.

Upon successfully fighting off resistance against the release of its debut film Vijay-starrer Kaththi (2014), Lyca Productions significantly upped its investment in the Tamil film industry from 2015 and bankrolled successful films including 2.0 (2018) – the most expensive Indian film to date with a budget of 575 crore Indian Rupees (£57.5 million), Kolamavu Kokila (2018), Chekka Chivantha Vaanam (2018) and Vada Chennai (2018). The studio also ventured into distribution business with Naanum Rowdy Dhaan (2015).

Other studios had mixed results during this period. Aascar Films’ last three releases – I (2015), Bhooloham (2015) and Viswaroopam 2 (2018) – were impacted by production delays and took around 3 – 5 years each to be made.

Producer A. M. Ratnam, upon renaming his Sri Surya Movies Entertainment to Shri Sai Raam Creation, delivered successive blockbusters with Ajith Kumar – Arrambam (2013), Yennai Arindhaal (2015) and Vedalam (2015). The studio’s last Tamil release was Karuppan (2017).

Actor Vishal established his own company Vishal Film Factory in 2013 and produced films starring himself including Pandiya Naadu (2013), Aambala (2015) and Thupparivaalan (2017).

2018 – 2020: Reemergence of Sun Pictures and increased investment from Lyca Productions

Following a 8-year hiatus after Enthiran (2010), Sun Pictures staged a remarkable comeback with Vijay-starrer Sarkar (2018). The reemergence of Sun Pictures into film business coincided with the untimely death of AIADMK leader and Tamil Nadu Chief Minister J. Jayalalithaa in December 2016, infighting within the ruling AIADMK party and opinion polls predicting the return of DMK to power in the next assembly elections in 2021.

Following the success of Sarkar (2018), Sun Pictures produced three profitable films in 2019: Rajnikanth-starrer Petta, Raghava Lawrence’s Muni 4: Kanchana 3 and Sivakarthikeyan’s Namma Veettu Pillai, and also announced that the production house will be teaming up with Rajnikanth again for Annaatthe (2022).

Lyca Productions further increased its investment in Tamil films and produced Suriya-starrer Kaappaan (2019), Rajinikanth-starrer Darbar (2020) and Mafia: Chapter 1 (2020) whilst also bankrolling expensive upcoming films like Ponniyan Selvan (2022) – said to be made at a cost of ₹500 crores (£50 million) and Indian 2 (2022) costing ₹236 crores (£23.6 million).

Other established players from the 1990s and 2000s who were still active and successful in the Tamil film industry up until the 2020 pandemic are Rama Narayanan’s Thenandal Studio Limited (Mersal), Sathya Jyothi Films (Vivegam, Viswasam), Kalaipuli S. Thanu’s V Creations (Kabali, Asuran, Karnan) and Kalpathi family’s AGS Entertainment (Bigil).

2020 – 2021: Pandemic

The Covid-19 pandemic and subsequent lockdowns wreaked havoc across the world and impacted several industries including the film industry. Production was delayed for a number of Tamil films including Ajith Kumar-starrer Valimai, Sivakarthikeyan’s Doctor, Kamal Haasan – Shankar’s Indian 2 and Mani Ratnam’s Ponniyan Selvan.

Streaming services Netflix, Amazon Prime Video, Disney + Hotstar and ZEE5 hogged the limelight during this period and distributed several Tamil films on their platforms including Suriya-starrer Soorarai Pottru (Prime Video), Keerthy Suresh-starrer Penguin (Prime Video), anthologies Putham Pudhu Kaalai (Prime Video) and Paava Kadhaigal (Netflix), Ka Pae Ranasingam (Zee Plex), Jayam Ravi-starrer Bhoomi (Disney + Hotstar) and Arya’s Teddy (Disney + Hotstar).

In the period between January and April 2021 when cinemas reopened briefly, audiences flocked to the theatres in large numbers and demonstrated that there is still demand for theatrical releases at a time of uncertainty and confusion in the film industry on whether to wait for the pandemic to end and release films in cinemas or sell them to streaming companies. Vijay-starrer Master, STR-starrer Eeswaran, Dhanush-starrer Karnan and Karthi-starrer Sulthan emerged successful in this period before the second wave of coronavirus ravaged India and forced the country into another lockdown.

2021: DMK’s return to power, future of Lyca Productions and post-pandemic landscape

The DMK party returned to power in the state of Tamil Nadu after a gap of 10 years in April 2021. This will be a shot in the arm for Sun Pictures, who are currently financing Rajinikanth-starrer Annaatthe (2022), directed by Siva (Viswasam), and Suriya’s untitled film directed by Pandiraj (Pasanga). The studio has recently announced a new project with Vijay titled Beast (2022) that will be directed by Nelson Dilipkumar (Kolamavu Kokila).

Lyca Productions, on the other hand, are fighting a legal battle with director S. Shankar (2.0) who the studio accused of not finishing their project Indian 2 after they have already invested ₹170 crores (£17 million) on it. The director has signed up two films – Hindi remake of Anniyan (2005) with Ranveer Singh and an untitled film with Telugu actor Ram Charan (Magadheera).

Production on Lyca Productions’ another big-budget film Ponniyan Selvan (2022), directed by Mani Ratnam (Chekka Chivantha Vaanam), has been halted due to the pandemic and it is not known when filming will resume.

Apart from Sun Pictures, other DMK-affiliated film companies like Red Giant Movies and Cloud Nine Movies are yet to announce any new projects, however with India limping out of the second wave of the coronavirus and cinemas expected to reopen in August, it remains to be seen whether these companies make a comeback and whether or not the studios that were active and successful before the pandemic will continue to invest in films with the same vigour and emerge successful again after the lockdown restrictions are lifted later this year.