Theater Chains, Studios Close to $1 Billion Digital Agreement

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSCN_2FsyDLc

 

Theater Chains, Studios Close to $1 Billion Digital Agreement

 

By Michael White

 

Aug. 13 (Bloomberg) -- Theater companies are close to a $1 billion agreement with Hollywood studios to equip theaters to show digital movies, according to a group representing the exhibitors.

 

Digital Cinema Implementation Partners is negotiating with the studios and is working with JPMorgan Chase & Co. to finance the project, Travis Reid, the group's chairman and chief executive officer, said today in an interview.

 

Members Regal Entertainment Group, AMC Entertainment Holdings Inc. and Cinemark Holdings Inc. are trying to refit their more than 14,000 theaters in the U.S. and Canada. The cost of the conversion would be recouped from higher ticket prices exhibitors can charge for 3-D films.

 

``We believe we will execute agreements with all of the studios in a relatively short period of time,'' Reid said. He declined to be more specific.

 

The Financial Times reported earlier that the organization was close to agreements with several studios.

 

JPMorgan spokesman Joseph Evangelisti declined to comment.

 

Heidi Trotta, a spokeswoman for Walt Disney Co., didn't immediately return a call seeking comment. Chris Petrikin, spokesman for News Corp.'s Twentieth Century Fox, and Universal Pictures' Cindy Gardner declined to comment. Patti Rockenwagner, spokeswoman for Viacom Inc.'s Paramount Pictures, also didn't immediately return a call.

 

To contact the reporter on this story: Michael White in Los Angeles at mwhite8@bloomberg.net.

 

Last Updated: August 13, 2008 21:07 EDT