What is the VPF (Virtual Print Fee) Model?

The big question over digital cinema is who is going to pay for it? One proposed solution is what is known as the Virtual Print Fee model – which involves both exhibitors and distributors contributing towards the cost of the equipment.

 

The way it works is:
 

• A third party pays up front for the digital equipment.

• Distributors and exhibitors pay over time to recoup the cost.
• Exhibitors sign up to agreed service & maintenance commitments, as well as paying a ‘usage fee’ to cover cost of lease.
• Distributors save money every time a digital (rather than 35mm) print is shipped, therefore;
• Every time a digital print is shipped, distributors pay a Virtual Print Fee towards recoupment of equipment. Approximately 80% of costs will be paid for by Hollywood studios.

• When cost is recouped, the cinema will own the equipment.

 

 

For more information on the VPF model, and how it works, click here to read our FAQ document.

For more details on how Arts Alliance Media can help with financing digital equipment, please contact us.