Gozo’s only cinema is considering showing commercial films again following the Budget announcement of a scheme to help fund the industry’s conversion from film to digital.
“It’s a business decision that will be taken once the assistance from the Government is fully confirmed. It does look positive,” said a spokesman for Victoria’s Citadel Cinema.
“This has given a lifeline to the cinema industry in Gozo.”
The Citadel stopped screening movies except for private events at the end of March as Hollywood studios accelerated their push to have all titles released worldwide solely in digital format.
Last April, the spokesman told Times of Malta it would cost around €100,000 install the necessary equipment for its two screens and the cinema was unable to fund it.
The Citadel has remained open to screen the Gozo 360˚ show, which provides tourists with insight into the island’s history and culture.
€250,000
- to be allocated to cinemas by the end of this year
Cinemas in Malta were also facing up to the prospect of downsizing or closing if they were unable to obtain funding to help them digitise. They have roundly welcomed last week’s Budget.
A total of €250,000 will be allocated to cinemas by the end of this year to help them make the upgrades necessary. A further €250,000 will be available next year.
“Cinema digitisation is an immediate need and exhibitors cannot afford any further delays in the digitisation process,” said a spokesman for the Parliamentary Secretariat for Culture.
All local cinemas will be eligible to apply.
Cash will be awarded on a per-screen basis according to the size of the company. Small enterprises will be eligible for 50 per cent of the cost, while large enterprises can get 30 per cent. Payments will be split over two years.
Beneficiaries will be bound by a five-year agreement to address a number of commitments related to film literacy, pricing and the screenings of European and Maltese films. However, no official quota will be imposed for the number they must show, the Government said.
Hollywood studios are at the forefront of the push to have all movies released solely in digital format as it will save them having to physically print and ship 35mm film to theatres and distributors.
In most countries, cinema chains and collectives can apply for a subsidy from movie studios and distributors to replace 35mm projectors with digital equipment.
Known as a Virtual Print Fee (VPF), this financing mechanism was designed to share out the savings made from distributing digital prints instead of film prints.
But Maltese cinemas had been denied access to VPF because Hollywood studios and distributors felt the potential returns did not outweigh the risks due to Malta’s size.