Local Reality TV producers claim millions in subsidies meant to attract foreign films to Malta

A state-backed scheme intended to entice international film productions to Malta has been increasingly exploited by domestic television producers to fund a slew of commercial reality programmes, new parliamentary disclosures reveal.

The scheme, administered by Film Commissioner Johann Grech under the auspices of Culture Minister Owen Bonnici, has so far already seen some €4.2 million in public funds allocated to 15 locally produced shows — including Love Island, Big Brother, and The X Factor — the majority of which are broadcast on Malta’s already publicly-funded national broadcaster, PBS.

While the scheme was originally conceived to incentivise foreign filmmakers, it has morphed into a substantial source of revenue for a handful of local production companies.

Parliamentary questions by Nationalist Party MP Julie Zahra have prompted the release of new figures, which show that the largest beneficiary of this generous rebate regime is Greatt Company Ltd, which is in line to receive some €2.8 million in public funds.

Greatt is responsible for a range of reality formats adapted for Maltese audiences, including The Masked Singer, and Malta’s Got Talent. The company has also been closely linked to several direct orders and public tenders, notably those associated with the Mediterranean Film Festival, a costly flagship event overseen by the Film Commission.

Close behind is Media Exclusive Ltd, the production house behind Love Island, which counts presenters Ben Camille and Christian Gravina among its directors.

Under the terms of the scheme, qualifying productions may claim up to 40% of their production costs. In the case of Big Brother Malta, producers reported expenses of €2.5 million for the inaugural series — potentially entitling them to a rebate of €760,000, pending the outcome of a government audit.

PBS already receives an annual grant of approximately €6 million to support non-commercial, public interest broadcasting, such as children’s educational content and documentaries — areas where commercial advertising is scarce. Yet it is increasingly hosting commercial shows that bring in added revenue.

Nonetheless, authorities have for years tolerated the cross-subsidisation of entertainment programming on the national broadcaster, despite persistent concerns over compliance with EU state aid rules. The arrangement may amount to unlawful double funding, as the programmes in question benefit both from the national broadcaster’s public subsidy and the Film Commission’s rebate scheme — a configuration ostensibly incompatible with EU regulations.

For now, however, local production houses continue to reap the benefits of a system originally designed to place Malta on the map as a filming location for international blockbusters — but which has instead, critics say, turned into a “state-sponsored bonanza” for populist television.