Cinema Exhibitor's Association Annual Report 2011

Cinema Exhibitor's Association Annual Report 2011

Why have attendances in increased?

 Recently the figures for cinema attendance has increased because of technological developments such as 3D which has managed to attract audiences by marketing 3D as a feature that would enhance audiences viewing experience.

Television shows are also screened in cinemas which also attracts audiences.

What is the DFP And VFP?

 DFP - Digital Funding Partnership was established by the CEA to support small and media sized cinema operators seeking to switch from traditional film reel to digital.

VFP - Virtual Print Free refers to a subsidy paid by a film distributor for the purchase of digital cinema projection equipment for use by a film exhibitor or cinema in the presentation of newly released films.

What may happen to those who don't use the DFP?

 By the end of 2012 those who do not use the DPF may not be able to receive new films and may go bankrupt as a result. This is because of how distributing digital films are cheaper this is why distributors are switching to digital.

What problems face 'alternative content?

BBFC must rate the alternative content that is shown in cinemas which costs money; this serves as a deterrent for cinemas

Maintaining the model

Today's business practices are built around existing and historical practices

This needs to remain as the predominant methodology for at least 8/10 years to allow cinemas the time to recoup their outlay and take full ownership  of the equipment

new practices e.g. early VOD, restricted copies ,may challenge the model and make life very difficult for a number of cinemas over the period

Extra notes

Financial - converting film cinema screens to digital

• Cost - 50k per screen + finance of other costs
• Major distributors unwilling to accept lower standard
•  No or minimal public support
• Current funding mechanism - VPF is complex and difficult for small individual operators to enter
• General Banking and Economic environment

VPF explained

• Sum of money paid to a cinema when a film is played on a DPF supported system on the release of a film.
• If a cinema plays enough first run films over the funding period, say 10 years, then it covers off about 75/80% of the equipment and finance costs.
• A good proportion for major commercial operators
•  

 DPF

 

• By collecting all the indie cinemas to raise the funds together they can all enter the VPF - All cinemas benefit.

Technical and Logistical

• Competition for equipment and technical expertise for psychical installations
• Space and Facilities required in projection Booth
• Training and mindset - some people don't like digital films
• Loading and playing content
• Unlock Keys for encrypted content
• A new way to operate - you have to train those use to 35mm to use the hard drive