It sounds like Hollywood isn't it? Yes it is actually true, partly. Kollywood is the Tamil film industry or also known as the Chennai film industry. The name Kollywood comes from Kodambakkam, (area in Chennai) where Films are produced and Hollywood. It is the second biggest film industry compared to Bollywood (Hindi) in India. But if you ask me, Kollywood can be both entertaining and experimental, where the latter is gaining popularity and people here seem to like it, whereas Bollywood aims for entertainment mostly with the exception of a few really good movies. This is just my thought :)
The previous post for J where I had mentioned about Karunanidhi and Jayalalitha were formerly active in Kollywood as screenwriter and actress respectively.
Kollywood has seen a great number of genuinely good and realistic movies. It may not have the cutting edge technology as much as Hollywood has, but it mainly scores in the drama section. However a lot different genres have explored such as thriller, comedy, horror etc;
In 2010, an attempt was made to produce a real action movie with all computer graphics work. It turned out to be the one of the most grossing Indian films. That was Rajinikanth's Endhiran. May be you would have heard about it. It was all over the news and it broke many records. Though the movie did not have that impressive graphics (I have seen far greater ones like Transformers) but it took Indian cinema to new heights.
The people are crazy about cinema and each actor has his own fan base. And the funny thing is, rival actors would be friends but their followers keep fighting over which actor is best. Online debates would happen. It is real fun to view these fights as a silent spectator. Kollywood is gaining international attention slowly.