Cinema managers estimate the cost of the equipment needed to show films in digital format at between €40,000 and €60,000 per screen.

Cinemas are in “ongoing” discussions with the Government to obtain funding for the costly equipment needed to screen films in digital format.

A spokesman for the Culture Parliamentary Secretariat said: “The Government discussed various proposals and a final decision will be taken soon.”

Cinemas have provided the Government with the neces-sary data on audiences and screenings to help it make an informed decision.

Cinemas in Malta face an “invest, downsize or die” dilemma as Hollywood studios are expected to cease producing 35mm film prints for major markets by the end of this year.

Cinema managers estimated the cost of the equipment needed to show films in digital format at between €40,000 and €60,000 per screen.

In most countries, cinema chains and collectives can apply for a financial subsidy, known as a Virtual Print Fee (VPF), to replace 35mm projectors. This financing mechanism was designed to redistribute the savings realised by studios when distributing digital prints in place of film prints.

It is in everybody’s interest to ensure cinema attendance increases

But Hollywood studios have vetoed Maltese VPF applications due to the relatively small size of the local market.

Cinema managers who spoke to The Times warned they might have to downsize or close if they could not afford the new equipment for all their screens.

The Culture Parliamentary Secretariat said: “In principle, we agree that cinemas form part of our diverse cultural set up, so it is in everybody’s interest to ensure cinema attendance increases but cinemas demonstrate a stronger European direction in content.”