Geertsen says European industry should pay its share for digital revolution

Robert Mitchell in Amsterdam 26 Jun 2006 15:47

As the 15th Cinema Expo International got underway in Amsterdam today Anders Geertsen, director of distribution at the Danish Film Institute and director of the commercial module at the European Digital Cinema Forum, delivered a call to arms to the European industry.

Delivering the convention's first keynote address on the subject of digital cinema - a topic which will dominate the event this year - in a session titled 'Tackling Digital Cinema Head On: Its Impact On The Landscape of European Exhibition and Distribution' he objected to the term "roll-out".

"It conveys a notion someone will do it for us," said Geertsen. "It is utterly stupid."

He explained that Europe and Hollywood must work together to devise a European Virtual Print Fee (VPF) model, a system which sees distributors paying a set fee per new film released digitally towards the cost of digital installation incurred by exhibitors, a system already working well in the US.

He emphasised, however, that although 67% of market share in Europe comes from US product while local product, European product and titles from the rest of the world each represent 11% of the market, that European distributors must pay their share.

"We must get European producers, distributors and studios on board. A European VPF model will only work if all take part," he said. "It makes no sense for US distributors to foot the bill alone."

He warned that if the European industry did not partake fully in such a scheme then they might find their own films shut out from their own country's cinemas.

He also called for smaller exhibitors to form consortiums to negotiate deals on their behalf to avoid being shut out. Explaining that on average in Europe 12% of theatres generate 60% of the box office and half the theatres (77% of the screens) generate 90% of the box office, he warned that single-screen exhibitors could be in danger.

"When 90% of box office can be gained from digital screens the majors will most likely stop supplying 35mm prints to those without digital equipment," he said. "And those cinemas will go bankrupt."

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