Hundreds of rallyists from the film fraternity converged outside the state Secretariat to declare their solidarity with the government.

"As you all know that piracy has become a big problem for the film industry. In the last two to three months, the government and the state police have taken strict action against the piracy business. So, we think the film industry can survive now. The audience is returning to the cinema halls. Through this rally, we want to show our strength and support to the government. We want the government to continue its actions against piracy," said Syamaprasad, a film director.

Recently, the Kerala Film Chamber of Commerce had also extended full cooperation to the state government in conducting raids against CD-Video piracy that was responsible reportedly, for the closure of some 500 cinemas in the state.

The result of the raids has raised revenue collection at cinema outlets considerably.

Malayalam cinema, or movies in Malayalam language, forms a significant component of the Cinema of India, both as a form of art and as mass medium. Though not as widely popular as Bollywood, during the past half century, Malayalam cinema has produced some significant works in the field of Indian cinema.

The first Malayalam movie was released in 1928. It was a silent film titled Vigathakumaran, produced and directed by a businessman, J. C. Daniel who had no prior film experience. However, this film was a commercial failure. The second film Marthanda Varma, produced in 1933 was based on a novel by C. V. Raman Pillai. But it was never released due to some legal issues.

Balan released in 1938 was the first talkie in Malayalam. Its screenplay and songs were written by Muthukulam Raghavan Pillai and directed by S Nottani. It was produced at Chennai.

Most critics and audiences consider the period from (late 1980s to early 1990s) as the golden age of Malayalam cinema. The Malayalam cinema of this short but beautiful period is a culmination of the malayali ethos and south Indian life. It is characterised by detailed screenplays, excellently directed by master-directors, dealing with everyday life with a lucid narration of plot intermingling with humor and melancholy. This was aided by brilliant cinematography and lighting. After the early 1990s the quality of Malayalam cinema declined. Partly due to the arrival of satellite digital television and film piracy and partly due to the changing interests of the audience. The movies in current period is largely comedies primarily aiming at large scale entertainment.

About 40 Malayalam films were made in 2006.