Christie Digital has signed first exhibitor to its recently announced VPF scheme in North America with Landmark Cinemas of Canada. The deal comprises a rapid conversion of over 100 screens to digital over the next six month period. Equipment used will be Christie projectors including models CP2200 and CP2300 projectors, which will be installed by King Cinema services. Landmark Cinemas had previously ordered Christie projectors for installation in six multiplexes back in May 2010 and for the opening of several new venues in 2011. Landmark now has a total of 33 sites with 111 screens across Canada.
Analysis
The signing of Canada's largest independent circuit is significant due to the fact it is very representative of the type of exhibitor that Christie was targeting for its VPF scheme. At year end 2011, around 35 per cent of screens in the US will not have been converted to digital (according to IHS Screen Digest forecasts) and together they account for a significant market share, once all the smaller or mid-sized family or privately owned circuits are accounted for. The launch of the Christie VPF scheme (with full studio support) has come at a pivotal time as most key circuits are already in process of conversion and most with a target date for end 2012. Therefore, the onus is on remaining circuits to tap into this now very rapid upgrade phase before VPF deals come to an end.
The move comes as Sony has also refined its VPF programme in North America to include more flexible financing options for exhibitors, also in order to tap into the now remaining minority 35mm screens. Changes to its model include a lower upfront cost solution, which was formerly in the range of 10 per cent of the total d-cinema system cost. In doing so, this solution is likely to appeal to those smaller circuits still yet to proceed with conversion or those with less capital upfront. It also offers exhibitor self-finance or lease options. Sony's VPF programme is for 10 years. Sony had previously allocated a total of 3,000 screens under its VPF scheme for North America, of which it is now actively targeting the approximately 1,500 remaining screen bookings.
In addition, 3D theatrical equipment provider Masterimage has also recently launched a new financial model. The system is based on a five year financing option for its 3D theatrical system with advantage of no ongoing royalty payments. The model is in addition to its traditional outright purchase solution. Again, incentive is to push for market share of both existing digital screens as well as target the now minority 35mm film screens in to switching.
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