AAM VPF model
Virtual Print Fees are a way of financing the conversion to digital cinema.
The basic premise is that the equipment is purchased up front, either through AAM
financing, or an exhibitor’s own financing, and the cost is then recouped over time
through payments from distributors (who pay the majority of the cost) and exhibitors.
A Virtual Print Fee is a fee paid by a distributor to the third party – the idea behind
it is that the distributors save money by shipping digital, rather than 35mm, prints,
and so these savings are used to contribute towards the cost of the equipment.
By using Arts Alliance Media as your mediator between you and the studios,
you will benefit from our long term relationships with the major studios. We
ensure that you get the best VPF deal possible, and at the same time we will
carry out the VPF management through our sophisticated software.
Find out more by reading the VPF Q&A
The VPF model is essentially a way to transfer the savings made by distributors to pay for the exhibitor’s equipment |
The VPF Model |
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The VPF deal is a long term contract, where digital cinema equipment is
installed in a screen and financed over a number of years
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The rollout is financed either through AAM financing, or from the exhibitor
directly. All costs of the rollout are ring fenced and documented into a ‘recoupment
pool’ so everyone understands the true cost
 
Every time a new first run film is booked digitally,
the distributor pays a Virtual Print Fee which is used to pay off the recoupment pool.
Exhibitors also contribute to the recoupment pool via a rental fee or by paying the financing
costs on the equipment.
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After the investment has been paid of the exhibitor will either own the equipment, or are given the option
to continue renting depending on the structure of the agreement. |
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