The cinema digitisation scheme announced in the Budget was launched this afternoon, with Parliamentary Secretary for Culture Jose Herrera declaring with a grin that it had “saved cinemas” in Malta.

A total of €500,000 will be allocated to cinemas over two years to help them make the upgrades necessary to show movies in digital format.

Dr Herrera said the help was needed because Malta’s small market meant cinemas could not afford to fund the necessary upgrades alone.

Soon all major Hollywood studios will cease to release films in the old 35mm format, making the need to upgrade all the more urgent.

The scheme was introduced in consultation with local cinema operators.

As part of the agreement, beneficiaries will make 1,000 free tickets per upgraded screen available to schools annually.

A total of 350 free tickets per screen will be given to institutions caring for vulnerable people.

Ticket prices will be capped at €2.50 per child for schools and €3 for senior citizens in groups of not less than 20 organised by local councils.

A €50 fee from each film that arrives in Malta will go to a Creative Trust Fund and used to fund creative projects locally.

Finance Minister Edward Scicluna said the scheme would have indirect financial benefits by fuelling the leisure and creative industries, and improving the cultural product of the country.