Odeon signs fifth studio and triggers digital rollout - SCreen Digest Commentary

http://www.screendigest.com/news/odeon-signs-fifth-studio-and-triggers-digital-rollout/view.html?start_ser=ci

 

Published: 05 May 10

Odeon & UCI Cinemas has agreed a Virtual Print Fee (VPF) deal with Universal Pictures International (UPI), becoming the fifth studio to do so. The deal is for Universal to provide digital copies of films to Odeon & UCI Cinemas, and to pay a VPF on first screening in a site. This provides the underpinning for Odeon's financing model for funding its digital cinema rollout, along with an exhibitor contribution. The total investment in the digital switch being made by Odeon is around £70m, of which half is earmarked for the UK. The rollout begins immediately, building on 154 already installed (mainly 3D) digital screens in the UK, and is expected to be completed by 2012. The pre-existing digital screens will be brought into the VPF agreement.

 

This move is significant in that it represents a trigger point for finance to be released and Odeon's long-awaited digital rollout to begin. Odeon is Europe's largest cinema circuit, operating 1,802 screens in 202 sites in seven European territories, and this is Europe's DCIP (Digital Cinema Implementation Partners). It acts as a symbol to the rest of the market that conditions are once again suitable for the digital conversion after a credit-crunch inspired hiatus. This deal also follows on from the recent volte-face by UGC in France, meaning that we are beginning to see the largest exhibitors go digital, and it is likely that others will follow soon. The size of Odeon in several markets (it represents nearly around a quarter of UK screens) brings the tipping point that much closer once it digitises.