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INTRODUCTION The digitalization is a source of savings and a real progress for theatrical cinema

C.I.N. (Collectif des Indépendants pour le Numérique) Think tank for digital matters France 2008 Europa Distribution in Estoril November 2008. INTRODUCTION The digitalization is a source of savings and a real progress for theatrical cinema Professionals must control the d-cinema rollout

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INTRODUCTION The digitalization is a source of savings and a real progress for theatrical cinema

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  1. C.I.N.(Collectif des Indépendants pour le Numérique)Think tank for digital mattersFrance 2008 Europa Distribution in Estoril November 2008

  2. INTRODUCTION • The digitalization is a source of savings and a real progress for theatrical cinema • Professionals must control the d-cinema rollout • To reach this evolution, is the third part model the only model available?

  3. 1.A reflection shared by all categories of professionals - Members of CIN: • Producers : APC (Association des Producteurs de Cinéma), SPI (Syndicat des Producteurs Indépendants) • Distributors : DIRE (Distributeurs Indépendants Réunis Européens), SDI (Syndicat des Distributeurs Indépendants) • Exhibitors : AFCAE (Association Française des Cinémas d’Art et d’Essai), GNCR (Groupement National des Cinémas de Recherche), SCARE (Syndicat des Cinémas d’Art, de Répertoire et d’Essai), SECCS (Syndicat de l’Exploitation Cinématographique du Centre Sud) - Europa Distribution, Europa Cinémas, UPF (Union des Producteurs de Films), ACID (Agence pour le Cinéma Indépendant et sa Diffusion) , SRF (Société des Réalisateurs de Films), ADRC (Agence pour le Développement Régional du Cinéma) , IFCIC (Institut pour le Financement du Cinéma et des Industries Culturelles)… - An open place of dialogue, where everyone can compare its point of view and interests

  4. Development of a fair economic model - To balance the constraints and the interests of each professional branch: • Involvement of production • Costs and savings from digital distribution • Costs and savings for digital exhibition - To avoid any disparity through the French territory between exhibitors - Respect of the diversity of exhibition

  5. To save money : - Avoiding additional costs due to a third part profit. • Gathering the savings in a mutual system. • Seeking all technical solutions for reducing costs

  6. 2. Goals • Evaluate the cost of the digital display and assessing resources for financing it • Considering the expectations of independent exhibitors • Informing the exhibitors of technical constraints • Assessing a financing based on the specificities of the programming

  7. The transition to digital screening should not lead to a decrease of diversity - The number of films and number of prints per film may increase hugely: strong will of the C.I.N. to preserve the current diversity. • Writing of a « Charter » and commitments • Re-establishing rental contracts reciprocal commitments, full transparency • Rewarding virtuous behaviors (distribution and exhibition) - The savings on prints by distributors should not increase inequality between promotion budgets

  8. To build tools for helping every partner • Writing of technical specifications • Overall evaluation of investments(Material / Peripherals / insurance and maintenance – between 60.000€ and 100.000€/screen (current prices). • Negotiations with integrators, who would commit on prices for a large number of theaters • Seeking of financing and guarantees • Talks with banks • Acquaintances with the “IFCIC” (Institut pour leFinancement du Cinéma et des Industries Culturelles), in order to guarantee a part of the loans and to draw up a reliable financing plan • Seeking of additional financing beside local territories and regions

  9. 3. The economic model • A common model…

  10. … that must be adapted to the means and resources of the different kinds of exhibitors (private / public, single screen / multiplex…) • Conditions for public national and local support: • The subsidy must be aimed at every kind of exhibitor • Subsidies must be adjusted according to objective specifications • Respect of diversity commitments • The digital contributions will be pooled and shared in a common fund. They contribute to the refund of all the loans taken out, during a predicted period (about ten years)

  11. Issues and debates • Which method for digital contributions? • The Virtual Print Fee cannot be ignored. • Its amount will be the result of our analysis • Is the VPF model adapted to every kind of exhibitor? • Other methods: % of the receipts, box office… • Who will collect the digital contributions? • How the CIN can be a functional tool? • What is its role? • Different tools : • Negotiation tool of the amount of the digital contributions? • Creation of a pooling of exhibitors, to handle the display?

  12. Urgency and caution • The pressure of the « third part model » is significant and can lead to a feeling of urgency. • But we have to be careful: avoiding technical booms, that would lead to a deterioration of diversity, and avoiding financial solution that would detract the diversity of exhibitors. • Public support (CNC, State, local) is essential to reach these objectives.

  13. Thank you for your attention! Anne Pouliquen D.I.R.E. French Union of Independent Distributors Founder member of C.I.N. Contact: info@distributeurs-independants.org

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