Film Echo
June 2007
Milestones For Roll Out
The British company Arts Alliance Media (AAM) which is specialised in the digitalisation of cinemas has reached an agreement with the Hollywood studios, Twentieth Century Fox and Universal Pictures International on a business model for the deployment of digital cinema in Europe. The freshly sealed agreement applies to approximately 7,000 cinema screens in Great Britain and Ireland, Germany, Austria, Switzerland, France, Spain, Italy, Scandinavia and the Benelux countries.
According to this non-exclusive contract, Fox and Universal will digitally deliver their films to cinemas throughout Europe which Arts Alliance Media will equip with the corresponding DCI compliant digital projection systems. "In this business model, the studios take on the majority of the costs“, explained Gemma Richardson, Head of Marketing at Arts Alliance Media. According to this model, the actual digital conversion will be carried out by national cinema technology companies. “We have been in negotiations with the relevant companies in Germany for some time”. Chris Koppelmeier, consultant for the digital roll out in Germany said in an initial statement: "This is a positive and important step on the way to the digital roll out which is certain to get things moving. It shows that long term and constructive agreements with US studios are also possible for Europe and that the studios want them. This is encouragement and endorsement for the goal of the roll out throughout Germany and should inspire all those involved to actively cooperate.”
Following this starting shot for the digital rollout in Europe, it is expected that the first agreements with German cinema operators will follow in the foreseeable future. There was a similar situation in the USA a year and a half ago. Since then, AccessIT has adapted approximately 2,700 screens to digital.
In addition to the already concluded contracts with Fox and Universal, Arts Alliance Media is also negotiating with other studios like Buena Vista International and Paramount Pictures International. In this business model which is based on a so-called Virtual Print Fee (VPF) the distributors and the cinema operators share the cost for the digital conversion for the digital projection system and the server. "This arrangement represents the very first significant plan to finance and roll out DCI compliant digital projection systems across Europe," said Julian Levin (Executive Vice President, Digital and Non-Theatrical Sales and Distribution at Twentieth Century Fox). The studio aims to supply its films digitally in future. Digital projection has a range of advantages compared to 35mm film with regard to image quality, distribution/exhibition efficiency including 3-D exhibition. “We are delighted to have closed this arrangement with our colleagues at Arts Alliance Media who have the experience and technical expertise to manage this process."
Duncan Clark, Executive Vice President of Universal Pictures International, also welcomed this strategic step. “The digital world is the future, and we as a studio want to help form this future. We look forward to supplying our movies to this new digital platform in order to provide the audience with an enhanced cinematic experience.”
This is a milestone agreement, emphasized Howard Kiedaisch, Chief Executive Officer of AAM, as the European cinema operators now have a viable commercial model to adapt their screens for the digital rollout. „We will be announcing further signings with other studios and independent distributors shortly“.
This agreement clears the obstacles out of the way of the digital roll out in Europe, said Fiona Deans (Head of digital cinema at AAM).
Birgit Heidsiek