Philippines D-Cinema Alliance (DCA) has signed Virtual Print Fee (VPF) deals with four studios, and is in advanced talks with the two others, for supply of content in digital format to Philippine cinemas as well as contributing VPF payments for a number of years. At last data point (H1 2011), Philippines had 109 d-screens already installed, of which 104 were 3D-equipped, underlining the lack of progress on wider digitisation. DCA is targeting a minimum of 400 screens in 60 sites across the country, and there are 720 screens in the Philippines. The timescale for the rollout to be complete is within two years, starting in January 2012, and beginning in Metro Manila.
DCA is a company set up to digitise the Filipino cinema market and is a wholly-owned subsidiary of the country's leading cinema equipment integrator Array's Technology. The deals have been negotiated by US digital cinema technology specialist MKPE Consulting. DCA has chosen a Theatre Management System and a VPF and content management system from Norway's Unique Digital. DCA has also chosen to equip with Christe Solaria Series 2 projectors.
Analysis
This news opens up the way to similar deals in Asian territories that have struggled to digitise. While some parts of Asia are very advanced in digital penetration (S Korea, Hong Kong, China, Japan), there are a number of markets where progress has been slow due to the lack of specific VPF deals or integrators targeting them. This deal provides a potential blueprint and optimism for these countries that they can join in the global conversion to digital technology in cinemas.
The number of screens targeted by DCA is a minimum of 400 screens in 60 sites, which on top of the 109 screens already digitised, still leaves a substantial number of screens that may need to find another solution. There were 328 multiplex screens in 45 sites at end 2010, and a number of 2-4 screen sites, so the 400 number looks achievable. However, the 'digital shortfall' as developed by IHS Screen Digest is clearly at work in Asia too, and there will need to be another solution for the 200-300 screens that will remain outside of the VPF system (assuming they do).