Digital Distribution: Key facts • Digital technology reduces distribution costs • One film print costs the distributor ~£2,000. • One digital ‘print’ (burnt to an encrypted harddrive) costs ~£50 • An arthouse/ specialist film (e.g. Tell No One) will usually have 20-40 prints; a mainstream ‘saturation’ blanket release (e.g. Avatar) will have 400+ prints. These prints are paid for by the distributor, but the charges are passed on to the cinemas. • Because it is so much cheaper, digital distribution means lower budget films can afford wider releases • Digital does not degrade in quality (it can not pick up scratches or hairs, or be damaged by light or other environmental factors) • Digital is lighter/ easier to transport and smaller/ easier to store • Digital has higher sound quality • Digital has higher picture quality • A digital projector can be used to show ‘alternative content’ such as live satellite streams of concerts/ theatre/ ballet/ opera/ sports/ other events such as director’s Q&As from other cinemas; gaming through the cinema screen; etc • Alternative content provided 0.2% of cinema revenues in 2006; in 2009 it provided 4.9% of all cinema revenue • Chain cinemas have invested heavily in the equipment needed to use digital distribution. This has cut the costs at these cinemas. Cinema City converted to 3 digital screens in December 2009
Digital Screen Network: Key Facts • Digital Screen Network is funded by the National Lottery. • It has paid for 240 digital projectors in 210 cinemas. • A digital projector costs between £50,000-60,000 • Cinema City would have found it almost impossible to raise this money otherwise • Exhibitors/ cinemas who receive money are required to show more ‘specialised’ films • Cinema City has to show a quota of ‘specialised’ films to retain the funding. The Digital Screen Network scheme is therefore encouraging the exhibition of independent/ non-mainstream films. • A ‘Specialised’ film is defined by the UK Film Council as: o Foreign language with subtitles o Documentaries o Archive/classic films o A film which is of a difficult-to-categorise genre, or has a complex hook or USP o An innovative film (has an innovative cinematic style) • In 2009 63% of films released in the UK were ‘specialised films’, and they took only 15% of the box office takings • A digital copy of a film costs around 1/40th of a copy on 35mm film, so digital distribution means lower budget films can afford wider releases. Therefore digital distribution will benefit smaller budget film-makers. • Digital Screen Network was expected to increase the number of screenings of specialised films by 165,000 more screenings per year, reaching 30 million people • Cinema City installed the Digital Screen Network projector in December 2009, meaning that all 3 screens at the cinema have digital projectors. Similar funds/ schemes exist across Europe: • Europa Cinemas offer grants to cinemas who show a quota of European films • In September 2010 it was announced that the European Union is running a similar scheme as part of its strategy to boost the European film industry In 2008, 167 American films took around 65% of the market share in European cinemas; 726 European films took around 35%. The EU scheme is attempting to grab a bigger market share for European films by reducing distribution costs.
3D Cinema: Key Facts • 2003= 1 3D feature film released; 2010= 24 3D feature films; 2011= 40 3D feature films scheduled • In 2008 there were 69 3D screens in the UK (22.3% of all digital screens). At the end of 2009 there were 449 (70% of all digital screens). Cinema City was not one of these. • In 2009, 3D films accounted for 16% of all UK box office revenues (£176 million). Cinema City earned £0 from 3D films. • Older blockbuster films are now being ‘remastered’ in 3D for re-release • Toy Story 3 took £166m in the UK. • Toy Story 3 quickly went to near the top of the chart of Cinema City’s highest earners of all time • A 3D projector costs £50k-70k • In Norwich, Vue and Odeon both have 3D screens. Hollywood Cinema does not. • Some say 3D is the future of cinema Others say it is a novelty and a gimmick. Others say it complements and goes alongside 2D but will never replace it, but it offers audiences something different.