Public financial support to national film production is typically conditional on very subjective artistic and socio-cultural criteria and objectives. Yet the question remains as to whether state subsidies actually help films at the box office. The results of this study suggests that the public grant regime was clearly not able to assure the development of the industry as intended, since in an overwhelming number of cases, production losses exceeded subsidy. Specific institutional and political features characterizing the Italian system are also contended to compound problems.