Technology Tasks- The Cinema Exhibitors Association Annual Report 2011

Why have cinema attendances increased?

The cinema going Summer could have been seen to kick off from May with the success of so many good films being released such as, Thor, Fast and Furious Five and Pirates of the Carribean: on Stranger Tides. This was then repeated in the following months by The Hangover Part 2, X-Men First Class, Transformers: Dark of the Moon and the unexpected success of Bridesmaids. 

"Considering that the first two months of the previous year had benefited 

from the extraordinary box office of Avatar, the increased level of cinema 

admissions during the same period in 2011 was all the more remarkable, 

with the UK film The King’s Speech enjoying exceptional success and going 

on to become the second largest film of the year. The months immediately 

following however saw a significant tailing off in audiences as they 

responded to good weather and a generally downbeat slate of films. " 

- The cinema Exhibitors' Association Annual Report

Many major titles came out in 2011, including the much anticipated final installment of the Harry Potter series- Harry Potter and the Deathly Hallows Part 2. 

Also the increase in technology has made a huge effect on the cinema. Also cinemas can now screen Tv shows like Strictly Come Dancing Final. 3D is making a huge effect on the amount of people attending cinemas.

What id DFP and the VPF?
DFP- Digital Funding Partnership
Established by the CEA to support small and medium sized cinema operators seeking to digitise. A cooperative of some 400 screens covering all types of independently owned cinemas  Collectively and in aggregate have sufficient first run programming to enter into VFP deals on the same basis as major circuits. DFP acts as a quasi circuit as has a fully financed deal with a third party where by that part will receive sufficient VFPs to pay back all relevant costs. The strategic beauty is that all cinemas benefit and none lose.
Scheme supported and backed by all studios, major UK circuits, BFI and Minister of Culture. 


VPF- Virtual Print Free
Based funding agreement with XDC Digital Cinema. The cost of a screen is around 50k plus finance and other costs. Major distributors are unwilling to accept any lower standard because they don't want any bad press on the film.  A sum of money is paid to a cinema when a film is played on a VPF supported system on the release date of the film. So if a cinema plays enough first run films over the funding period, say 10 years , then it covers off about 75/80% of the equipment and finance costs. A good proposition for major, commercial operators e.g. a national circuit.

What might happen to those who don't use the DFP?
If small or medium sized cinemas do not have the money to convert to fully digital by 2012 they will not be able to receive the new films. 
Training and mind set issues 

Competition for equipment and technical expertise for physical installations. Space and facilities required in projection booths [Air con] 

Loading and playing  out content

Security, unlock keys for encrypted content

Basically a complete new way of operating

What problems face 'alternative' content?
One of the problems that alternative content faces is that the audience could find it odd to the idea of using a cinema for other purposes such as screening of concerts and sports. Also it is expensive to rent screen rooms for the public and not many people want to pay a lot of money. Also you have to pay to have it classified and then pay for the screen usage which people are reluctant to do.