Category Archives: Digital Cinema

AccessIT Signs VPF Deal With Overture Films

Posted by J. Sperling Reich | September 10, 2008 10:23 pm

When it comes to virtual print fees all the talk lately has been about which studios have signed with Digital Cinema Implementation Partners, however there are other integrators signing distributors to VPF deals. For instance, AccessIT announced on Wednesday that they had reached a ten year VPF agreement with Overture Films to show the indie distributors films in digital cinema equipped theatres that were a part of the the integrator’s Phase 1 rollout.

The two companies are far from strangers, as Overture already uses AccessIT’s distribution software and satellite delivery services. As well, the mini-major had been distributing its films through AccessIT’s digital cinema network on a per film basis, including such titles as “Mad Money”, “Henry Pool Is Here”, “Sunshine Cleaning” and the indie hit “The Visitor”. Overture, which was founded in 2006 by former studio execs Chris McGurk and Danny Rosett, only began releasing films this year.

Releasing films through a digital cinema network outside of a VPF agreement can often be costly because integrators usually charge a premium VPF to distributors without an ongoing deal. Read More »

Popularity: 63% [?]

Posted in Digital Cinema, Integrators
Tagged as AccessIT, Chris McGurk, Danny Rosett, Kyle Davies, Overture Films

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Universal and Disney Close To VPF Deal With DCIP

Posted by J. Sperling Reich | September 8, 2008 10:06 pm

And then there were four. Four studios that is. Or so says the Wall Street Journal which broke a story today reporting that Universal Pictures and Walt Disney Company have reached a virtual print fee deal with Digital Cinema Implementation Partners, the joint venture formed by North American exhibitors Regal Entertainment, Cinemark and AMC Entertainment to finance, install and maintain digital cinema equipment in their theatres. The three chains, which represent a combined screen count of around 15,000, would like to start rolling out digital cinema as soon as the fourth quarter of this year, in time for the flood of 3D movies studios have slated for release next year.

Previously, DCIP had reached a VPF deal with Twentieth Century Fox, though the studio has never confirmed the news. The signing of four studios is a crucial milestone which DCIP must cross in order to secure the USD $1 billion in financing the company has lined up from J.P. Morgan Chase to pay for all the expensive digital cinema equipment required to outfit theatres. The Wall Street Journal had reported that Paramount Pictures had also signed a VPF agreement with DCIP, which had been rumored in the press but never officially announced. Indeed, by the end of the day Variety had taken the air out of the Wall Street Journal’s big scoop by confirming that Paramount Pictures had not yet signed with DCIP. Read More »

Popularity: 77% [?]

Posted in Digital Cinema, Integrators
Tagged as AMC Entertainment, Cinemark, Dan Fellman, Michael Karagosian, Paramount Pictures, Regal Entertainment, Scott Sherr, Sony Pictures, Universal Pictures, Variety, Virtual Print Fee, Wall Street Journal, Walt Disney Company, Warner Bros

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How digital cinema can make a difference (unleash your archive!)

Posted by Patrick von Sychowski | August 27, 2008 5:09 am

UKFC logo The always readable Andreas Fuchs has an excelent piece in the latest issue of Film Journal International on the difference that the UK Film Council’s Digital Screen Network has made. It was never intended to help the Hollywood blockbusters, though arguably it got the ball rolling in UK for digital cinema, but the benefits have been tangible where they were intended. From the article:

Last year, “The Summer of British Film” used the Digital Screen Network to bring back classic British films. Seven films from Goldfinger to Withnail & I were shown digitally in 136 cinemas each Tuesday over a period of as many weeks. “We tied in with the BBC’s ‘British Film Forever’ series of documentaries, which looked at seven different film genres the preceding Saturday,” Stolz explains. “Each program genre under discussion was then illustrated [with] a classic British film in cinemas.” This initiative was “a great success and demonstrated the possibilities of digital programming, attracting cinema audiences of over 62,000. We received extremely enthusiastic responses from members of the public who were delighted to see these classic films back on the big screen. This summer we are supporting two distributors in releasing classics from the legendary British filmmaker David Lean.”

Although any one of Sir David’s films certainly more than matters, it was Warner Bros. which had already opened its vaults on that particular note. From mid-May onwards, the first “Movies That Matter” festival brought 15 marvelous titles for one-week engagements into 30 Vue Cinemas across the U.K. (www.warnermtm.co.uk). Starting in Casablanca and bloody well ending for Bonnie and Clyde, with highlights like The Wizard of Oz in between and East of Eden and North by Northwest further pointing in the right directions, the press notes promised them all to be “remastered to flawless, crystal-clear 2K-resolution digital cinema, the highest quality standard in cinemas today.”

Sadly the UKFC’s example has not been adopted very widely. With the exception of the anyways exceptional Norway, only Canada and Australia has adopted something similar, though these went arguably wrong by going for lower end e-cinema networks.

Popularity: 59% [?]

Posted in Analysis, Digital Cinema
Tagged as British Film Forever, Digital Screen Network, Movies That Matter, re-releases, UK Film Council, Warner Bros

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DCIP Reaches VPF Agreement With Fox

Posted by J. Sperling Reich | July 25, 2008 5:42 pm

After industrywide speculation and concern over the absence of any news about virtual print fee (VPF) agreements being signed by Digital Cinema Implementation Partners (DCIP) the company finally announced their first deal which rumor has it is with Twentieth Century Fox. The news was reported by Reuters and has not yet been made official by DCIP, however the company’s CEO, Travis Reid was quoted as saying:

“A party has signed a deal and we think it won’t be long until we have multiple studios.”

There are no details yet about the terms of the deal, nor any confirmation that it is with Fox, though during a conference call on Thursday Regal Entertainment’s CEO confirmed that a VPF agreement had been reached with at least one studio:

“We can’t disclose which studio, but we consider it to be a major milestone. It is always difficult in getting someone to be willing to be the first.”

Paramount is also rumored to be close to announcing a deal with DCIP, as is Walt Disney Studios.

DCIP was formed by North America’s three largest exhibitors - AMC Entertainment, Cinemark and Regal Entertainment - to manage and finance the rollout of digital cinema equipment and technology within each circuit. With 14,000 screens between them it is easy to see why the industry eagerly awaited news that the studios had come to some form of agreement with DCIP to subsidize the cost of installing digital cinema equipment. Due to the large size of the rollout, such a deal was viewed as a bellwether for the types of VPF deals other exhibitors would be able to get. Recent VPF deals announced by other integrators such as AccessIT in the United States and XDC in Europe did little quell everyone’s anticipation over news from DCIP.

No doubt even DCIP was getting a little anxious over the lack of progress on their VPF agreements they were able to make public. The company was founded in February of 2007 by the three theater chains and had hoped to wrap up their negotiations with studios over VPFs by the end of last year. As almost anyone working in or following the industry now knows, the studios began playing hardball with integrators such as DCIP on the contractual terms of the VPF agreements, haggling over every last detail including usage fees for alternative content and the length of the deal. XDC’s VPF with Hollywood studios is reportedly only USD $850 per film, per run.

And there’s one main reason that the rollout of digital cinema has stalled at around 5,000 screens in North America (out of 37,000); rolling stock prints range from USD $1,200 to $1,500 so even with VPFs the the distributors save heaps of money, whereas exhibitors are forced to pay for expensive digital cinema equipment they claim won’t save them any money or increase their revenue. That the standards for this equipment are still being determined by SMPTE and DCI hasn’t helped matters either.

However, in 2009 Hollywood studios plan to release upwards of 11 movies in digital 3D which will require the equipment to be installed on a broader scale. Presently the number of screens equipped for digital 3D in North America hovers around 1,300, making it difficult to release two such films into the market at the same time. News of the DCIP deal may be a relief for a few studio executives have otherwise to struggle to find enough digital screens to place their 3D releases on. Studios have actually begun to push some of their 3D releases back into 2010 to make certain they will have enough screens to put them on.

The thinking within the industry is that once DCIP starts announcing VPF agreements the rollout of digital cinema should ramp up soon thereafter. Michael Lewis, chief executive of 3D systems provider RealD, told Reuters:

“When the DCIP deal drops, then digital cinema is really on its way.”

Here’s to hoping Mr. Lewis is also fortune teller.

Popularity: 73% [?]

Posted in Digital Cinema, Integrators
Tagged as AMC Entertainment, Cinemark, DCIP, Michael Lewis, Mike Campbell, RealD, Regal Entertainment, Travis Reid, Virtual Print Fee

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NATO and Warner Bros. Duke It Out

Posted by J. Sperling Reich | July 15, 2008 3:44 pm

Even before the ink was dry on last Thursday’s Los Angeles Times article about the struggle Hollywood studios face in finding enough digitally equipped screens to distribute 3-D movies, The Hollywood Reporter published a story that had key industry executives debating who is to blame for the slow rollout of digital cinema. Representing distributors was Dan Fellman, Warner Bros.’ president of domestic distribution, while exhibitors were repped by John Fithian, the president of the National Association of Theatre Owner. The article has the two exchanging verbal barbs, each blaming the other side for the lack of digital cinema installations.

The Reporter makes it seem as if Fithian was responding to statements Fellman made at a public forum, however they don’t say whether Fellman’s quotes come from any specific event or speech or simply an interview they conducted. It was the pending release of Warner Bros.’ 3-D flick “Journey to the Center of the Earth” that brought the issue to a head, which is why the distribution exec opened with:

“3-D is the future, so why is exhibition dragging its feet? I’m pleased ‘Journey’ will be the biggest digital 3-D release to date. But it is disconcerting that since November, the 3-D screen count has only gone up. . .”

Fellman’s quote is abruptly cut off by The Reporter - presumably a typo. Fithian was quick to answer however, in saying:

“It is particularly ironic and frustrating that a senior executive from Warner Bros. would accuse exhibition of ‘dragging its feet’ on 3-D when Warners has been the absolutely slowest of all major studios to come to the table with support for the d-cinema rollout. If Warners believes there are an insufficient number of 3-D screens in the marketplace today, they have no one to blame but themselves and they know it.”

What Fithian is referring to is Warner Bros. reluctance to enter into virtual print fee (VPF) agreements that provide an exhibitor a subsidy for the installation of digital cinema equipment. In essence, the studio will pay a fee for every screen one of their movies play on and that fee will go toward the purchase of D-cinema equipment. System integrators such as Digital Cinema Integration Partners and Access Integrated Technologies have been trying for some time to negotiate a VPF deal with studios and Warner has proven one of the few holdouts. The studio has only signed one agreement with XDC for rollouts in Europe. Because that deal pegs the VPF at USD $850, many in the industry have argued that Warners was simply trying to remove doubt they were serious about digital cinema by signing the cheapest contract they could find.

Whatever Warner Bros. reasoning for shying away from VPF deals, Fellman believes the studio has firmly supported D-cinema:

“Warner Bros. has released more films digitally than any other studio, without question. Our discussion is with exhibition, circuit by circuit, and John has never attended one business session at which any Warner exec was present. . . We are continuing to serve every digital theater that request a (digital) print. We stand by our record.”

Despite Warners’ track record, Fithian definitely faults the major studios with holding hope the world-wide digital cinema roll out:

“Exhibition stands ready to provide our patrons in the U.S. and around the world with wider access to exciting 3-D technologies as soon as all of our partners in distribution come to agreement on the level of support they will provide for the underlying digital cinema infrastructure. You cannot have 3-D without D-cinema. And we cannot have digital cinema by ‘negotiating’ through the media.”

Negotiating?! Seems more like they are arguing to me. Though that could well pass for negotiating in Hollywood.

Popularity: 26% [?]

Posted in Digital Cinema
Tagged as Dan Fellman, John Fithian, NATO, Warner Bros

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XDC Nabs Those Elusive VPF Deals - Including WB

Posted by Patrick von Sychowski | May 23, 2008 4:45 am

XDC in Cannes 2008

There will be champagne rather than rose wine or Belgian beer being poured, toasted and drunk tonight in Cannes as XDC announces that they have secured VPF deals with four of the Hollywood studio, including the one that has eluded others, namely with Warner Bros. From Forbes.com:

Broadcast equipment manufacturer EVS said its unit XDC has signed agreements with Warner Bros. Entertainment Inc., Paramount Pictures Corp., Twentieth Century Fox Film Corp. and The Walt Disney Studios to invest up to 600 million euros in the deployment of up to 8,000 digital cinema installations in Europe.

The roll-out period under the agreement - which will see more than 65 percent of the value of projectors, servers, applications and services being co-financed — will last for a maximum of 5 years, with each digitised screen co-financed over a period of maximum 10 years.

The group also said agreements with two other studios, Universal Pictures and Sony Pictures are in a very advanced stage and are expected to close shortly.

Popularity: 29% [?]

Posted in Digital Cinema
Tagged as Arts Alliance Media, DCIP, Veronika Kwan-Rubinek, Vritual Print Fees, Warner Bros, XDC

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AccessIT Wins Cinema Buying Group Bid

Posted by J. Sperling Reich | April 2, 2008 8:53 pm

After months of industry speculation, the Cinema Buying Group (CBG) has finally announced which digital cinema integrator they will be going with to help roll out the emerging technology to its more than 600 members in the United States and Canada. The buying program put together by the National Association of Theatre Owners (NATO) for small and independent theatre operators announced that AccessIT was their choice to provide digital cinema equipment and service to more than 8,000 screens.

When CBG initially sent out their request for proposal back in the first half of 2007 it quickly sent digital cinema integrators and equipment suppliers into a frenzy. Of the ten vendors that submitted initial proposals, CBG slimmed the list down to four finalists by November of last year; AccessIT, Digiserv, Kodak and Technicolor. Another round of information gathering occurred before CBG made their decision public earlier today.

Popularity: 36% [?]

Posted in Digital Cinema, Integrators
Tagged as AccessIT, Cinema Buying Group, Julian Levin, NATO, Wayne Anderson

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Arts Alliance To Get Disney’s Digital Titles

Posted by Patrick von Sychowski | February 11, 2008 4:20 am

Disney has lent some support to Arts Alliance Media’s European virtual print fee proposal to convert 7,000 screens across Europe, though the press release reads like there some reservations and that the deal is not as clear cut in terms of support as previous deals. Take the last sentence of the first paragraph:

Under the terms of the agreement, Disney will supply European exhibitors with its feature films in digital format and will make provisional contributions towards the digital cinema hardware costs of AAM-deployed DCI-compliant screens. [italics added]

So AAM’s digital screens will get Disney Digital titles (including the all-important Disney Digital 3D ones), but the payments for screening these are ‘provisional contributions’. That must means that no final agreement on payment has been concluded. Similar working arrangements were signed in the US by AccessIT as well as Technicolor with a number of studios, so it is not unheard of, but it is not good for market certainty in the longer term. What guarantees are there in place that Disney will not halt the payments in 12 months time? Only the AAM and Disney lawyers have an inkling.

Popularity: 22% [?]

Posted in Digital Cinema, Integrators
Tagged as Arts Alliance Media, Disney, Virtual Print Fees, Warner Bros, XDC

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Sony Is Officially Fourth Euro VPF Studio

Posted by Patrick von Sychowski | December 7, 2007 2:43 am

As revealed in this blog some time ago, Sony Pictures International (SPI) is the fourth Hollywood studio to sign up to Arts Alliance Media’s European virtual print fee (VPF) based digital cinema deployment deal, that has so far found one cinema taker in France. The write up in the Hollywood Reporter is cagey on which territories will be part of this deal:

Under the agreement, SPRI has pledged to supply its films “to certain European countries” in digital format to AAM-deployed, DCI-compliant digital-cinema screens. Territories include “those in Western Europe,” SPRI said.

The releasing arm also has pledged “to make financial contributions in order to promote digital cinema.”

SPRI’s move comes after the November decision by French exhibition chain CGR Cinemas to sign with AAM to convert all its 400 screens to digital.

Popularity: 31% [?]

Posted in Digital Cinema, Integrators
Tagged as Arts Alliance Media, Digital Cinema, Sony Pictures International, Virtual Print Fee

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Barco/GDC China Network To Grow Significantly

Posted by Patrick von Sychowski | December 4, 2007 10:48 pm

Mentioned in passing in the Hollywood Reporter’s round-up of Day 1 of CineAsia, the big news appears to have been the Chinese digital cinema network powered by Barco (projectors) and GDC (servers) from 7,00 to 2,000. In a questionably headlined article (’CineAsia hosts digital revolution‘ - what, no ‘CineAsia - Digital Great Leap Forward’ or ‘Death to Counter-revolutionary 35mm prints!’??) the most interesting piece of news is buried down in the sixth paragraph:

Later, China Film Digital Cinema Circuit Co. said it has extended a deal with Barco and Singapore-based GDC Technology to bring more digital screens to China. Beijing-based China Film Digital has already installed 400 of a planned 700-screen rollout, but it said it will raise the total number of digital screens to about 2,000, CineAsia founder Bob Sunshine said.

Earlier in the article the focus was that having shot themselves in the foot by moving the trade show from Bangkok to Beijing, CineAsia has re-discovered its mojo since the Sunshines moved it to Asian gambling capital Macau. GDC had been trumpeting 1,000 DSR servers installed world-wide, though the inclusion of territories like India, Germany and the Netherlands means that they must be counting e-cinema servers as well for the likes of Mukta-Adlabs (currently disused) and CinemaNet Europe (definitely not DCI compliant). Also that day Dolby showed of their digital 3D solution and 20th Century Fox no doubt beat the digital cinema drum loud and clear.

On Wednesday the talk will be about real estate, concessions, and more digital 3D with a no-surprise appearance of Jeffrey Katzenberg of Dreamworks Animation. Mr Katzenberg is a big believer in the potential of digital 3D and will leave no corner of the Earth un-traveled to in order for that gospel to be spread.

Popularity: 33% [?]

Posted in Countries, Digital Cinema, Equipment Vendors, Trade Shows
Tagged as Barco, China, China Film Digital Cinema Circuit Co., CineAsia, GDC Technology

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