(From left) G. Solomon, J. Levin, M. Christiansen and G. K. Macdowell
Las Vegas is a city known for its many spectacles; bright lights, showgirls, casinos, fancy restaurants and prize fights are all just some of the attractions. So, it should come as no surprise that ShoWest, the annual gathering of motion picture exhibitors and distributors in Las Vegas, decided to add to the city’s attractions with their own version of a prize fight. On Wednesday, the convention held a lunchtime panel discussion titled “Show Me The Money! Does Digital Self-Financing During A Credit Crisis Offer Hope?”. One might ordinarily expect a panel discussion on financing to be incredibly dry, though whenever you mix senior level studio executives with independent theatre owners and raise the topic of the stalled digital cinema rollout, you are bound to see some sparks fly.
No doubt the ShoWest panel was put together in the wake of Paramount Pictures’ direct-to-exhibitor virtual print fee announcement. Indeed, Mark Christiansen, Paramount’s Executive Vice President of Operations was one of the panel members. He was joined by Julian Levin, EVP of Digital Exhibition and Non-Theatrical Sales & Exhibition at Twentieth Century Fox, Bill Campbell, Managing Director of the Cinema Buying Group, George Solomon, Southern Theatres CEO and Andrew Sriubas, a Managing Director of JP Morgan Investment Bank. Moderating the brouhaha was the general counsel for the National Association of Theatre Owners, G. Kendrick Macdowell.
Christiansen started off by explaining that Paramount had a lot of exhibitors asking if they could install digital cinema equipment on their own, rather than rely on integrators to do so. Paramount was able to capitalize on their existing relationship with theatre owners to put the direct-to-exhibitor virtual print fee agreement together. Since the 21-page document was made public in January, the industry has been combing over it in search of any detail that might be missing. Christiansen doesn’t think they’ll find much. Read More »
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Paramount's Mark Christiansen
Since January 22nd, when we first posted our story on Paramount’s direct-to-exhibitor virtual print fee agreement, we have received quite a bit of correspondence on the topic. Some typed out their thoughts in the comments section of the post, (and thank you for that). Many of your emails asked questions about the agreement that we were simply unable to answer as we did not have enough information. So, we felt it would be best to turn to the most qualified person to answer some of these questions; Mark Christiansen, Paramount’s executive vice president for motion picture distribution.
We compiled all of your questions into an email and sent it off to Mr. Christiansen. He was kind enough not only to respond, but also to let us post the VPF agreement for your review. At the time of his response in February, Mr. Christiansen said the feedback he was receiving about the deal was entirely positive and he was happy to report that between 10 and 12 exhibitors had already made commitments to sign the agreement. He understandably declined to state exactly which exhibitors given that details were still being worked out.
You might think some of Mr. Christiansen’s responses are rather brief, though please keep in mind he was answering these questions via email. When necessary we’ll provide our own interpretation of his responses, which are noted as such. Please do not mistake this for Mr. Christiansen’s own opinions or responses.
Celluloid Junkie: Why did Paramount wait until now to put together a VPF they can offer direct to exhibitors? Why not last year or earlier?
Mark Christiansen: DCI compliance testing was not available. We wanted to have a testable specification in place before going directly to exhibitors.
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On the eve of the National Association of Theatre Owners’ meeting with equipment vendors to review digital cinema requirements on Friday, Paramount Pictures has thrown the exhibition industry a curve ball in the hopes of resuscitating the stalled rollout of the technology. Rather than work solely through integrators such as Digital Cinema Implementation Partners (DCIP) and Cinedigm (formerly AccessIT), Paramount has become the first Hollywood studio to offer North American exhibitors financial assistance for digital cinema installations.
What’s significant about Paramount’s announcement is that previously studios have refused to cut deals to reimburse exhibitors for digital cinema installations directly with exhibitors for fear of future anti-trust litigation. Instead, they relied on digital cinema systems integrators to provide a buffer between themselves and theatre owners. But, with the digital cinema rollout at a near stand still, Paramount seems to be throwing caution to the winds.
Paramount has a vested interest in seeing digital cinema take off, specifically to increase the number of 3-D capable projection systems. This March the studio will be releasing Dreamworks Animations’ “Monsters vs. Aliens” in 3-D and presently the United States and Canada only have about 1,200 screens properly equipped with 3-D systems. Paramount has been promoting the film heavily for nearly a year at industry trade shows and will be airing a 3-D commercial for the movie during the upcoming Super Bowl telecast.
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