The deal is being financed by AHL and has built in flexibility to convert up to 450 screens over a two year period. Under AAM’s Virtual Print Fee (VPF) agreements, AHL will see the majority of the initial cost recouped by payments from distributors who use the digital systems. AAM will administer the VPF agreements with distributors and will also provide its theatre and library management systems to participating Cinestar sites.
David Seargeant, Chief Executive Officer of AHL, said “Digital is so important for the future of the cinema business. After a long search for solutions for the German cinema market we believe Arts Alliance Media is best placed to assist CineStar in the conversion of selected cinema sites to full digital over the coming years.”
“We are excited to be working with AAM on our conversion to digital,” commented Oliver Fock of the CineStar Group. “Leveraging AAM’s deals with the Hollywood Studios, we will now jointly approach local distributors in Germany to work with us in this transition.”
Howard Kiedaisch, Chief Executive Officer of Arts Alliance Media, said “We’re thrilled to be entering the German market with CineStar. They’re the most successful and innovative exhibitor in Germany and we look forward to a long and exciting partnership with them.”
“Being selected by CineStar is another vote of confidence in our VPF model and our service capability and we’re excited to be able to offer the same to other exhibitors throughout Europe,” added Fiona Deans, AAM Chief Operating Officer.
The deal with CineStar is Arts Alliance Media’s first foray into the German digital cinema market, and adds to the company’s roster of leading exhibitors in multiple territories throughout Europe.