Government quietly boosts PBS subsidies by 60% to €9.2m a year

The Government has quietly agreed to raise state subsidies to the public broadcaster (PBS) by about 60 per cent, committing up to €9.2 million a year in taxpayer funding despite falling audiences and growing questions over transparency and political influence.

Under a new public service obligation (PSO) agreement signed retroactively in June last year, the government will provide a total of €46 million to Public Broadcasting Services between 2024 and 2029, according to parliamentary documents tabled recently.

The agreement covers the operation of the national broadcaster’s television, radio and online platforms, including TVM and Radio Malta.

The deal, which was not publicly announced at the time, was disclosed only after parliamentary questions by opposition MP Graziella Attard Previ – a former Xandir Malta (TVM) announcer.

It represents an increase of almost €20 million compared with the previous five-year agreement signed in 2021.

PBS has long relied on state support to remain financially afloat, reporting recurring losses and operating at a deficit that would otherwise render it insolvent. Government funding under the new agreement will range between €8.6 and €10 million annually.

The increase comes as traditional broadcasters face structural decline.

TVM, while still the most-watched television station in Malta, has seen viewership erode steadily as audiences migrate to subscription streaming services such as Netflix and other digital platforms.

The trend mirrors a broader global shift away from linear television, with audiences in many markets halving over the past decade.

Despite this, PBS continues to dominate Malta’s broadcasting landscape, in part because it competes with low-quality privately owned stations owned by political parties and because state subsidies help it absorb massive losses.

Critics argue that the level of state support distorts the market while insulating PBS from commercial pressures.

While PBS was always considered the mouthpiece of the government of the day, successive Labour administrations tightened control over PBS during the past years, with critics referring to the broadcaster as an extension of the ruling party’s media arm – ONE TV.

News output increasingly resembles a notice board of government activity, while flagship current affairs programmes have been replaced with lighter and more mediocre formats presented by figures seen as politically aligned or Labour stooges.

The latest addition is a programme conducted by a DJ who made a name for siding with Labour politicians in his podcasts, Ricky Caruana.

Questions have also been raised about accountability.

While the PSO agreement requires PBS to maintain separate accounts for public funding and submit them for annual scrutiny, requests for detailed information – including presenter contracts and programme costs – have been repeatedly refused.

Freedom of information requests by The Shift have been denied, and Malta’s National Audit Office has failed to conduct a comprehensive audit in recent years.

Some broadcasting experts have warned that the scale and structure of the state funding, together with other hidden handouts given to the broadcaster or to private programme producers, could place PBS in breach of EU state aid rules, which limit public support that distorts competition unless strict public service criteria and oversight are met.