Rich Fiscus
11 Mar 2008 0:47
Hoping to jump start the move to convert U.S. movie theaters to digital technology, the major Hollywood studios appear close to a deal that would help subsidize the estimated $70,000 - $75,000 cost of converting a single theater from traditional film to a digital screen. The deal would require studios to pay a "virtual print fee" each time one of their movies plays in a theater owned by Regal Entertainment, Cinemark Holdings, or AMC Entertainment.
So far fewer than 5,000 screens around the country have been converted to digital. The largest theater chains, including the three that would be covered by this agreement, have been unwilling, and they say unable, to pay for the conversion themselves.
Once the arrangement is finalized, the three chains intend to begin a process that will result in all their screens being digital in about three years, for which Digital Cinema Implementation Partners (a company jointly owned by the three chains) intends to finance with a $1.1 billion line of credit. Studio fees would be used to help with payments.