Variety
19th November 2007
French chain to convert to digital
Georges Raymond pacts with Arts Alliance
By Archie Thomas
LONDON — Digital services outfit Arts Alliance Media has signed a multi-million dollar virtual print fee pact with Gallic exhib Circuit George Raymond, which will see 400 digital screens rolled out across France.
Move reps the first time AAM has struck a VPF deal with an exhibitor and marks an acceleration of the digital revolution in Europe.
VPF is a means of financing the conversion of theaters to digital. Both distrib and exhib contribute over time toward the cost of digital projection equipment, which is paid for up front by the service provider. The VPF model has proved its worth in North America, with more than 3,700 digital screens installed to date.
AAM has long-term digital cinema deployment agreements in place with 20th Century Fox, Universal Pictures International and Paramount Pictures International.
Deal will see all CGR’s screens — mostly multiplexes in midsize towns — given a digital makeover with a target set of completing 200 screens by the end of next year.
Work gets under way straight away with CGR hoping to have seven digital screens up and running by this Christmas, partly to facilitate screening of festive 3-D releases.
Under the deal AAM will procure, service and maintain all digital systems deployed.
Exact financial info was not released but an AAM spokesperson revealed: “I can give you an idea of the scale — the cost of installing one digital cinema projection system is approximately £50,000 ($103,000). To get the equipment paid off, plus interest on any financing, means that this deal has a value in excess of £20 million ($41 million).”