Press release from Cinedigm
Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in digital cinema, today announced a long-term VPF deployment agreement with Hollywood Theaters. The agreement will enable the conversion of certain Hollywood Theaters locations to digital cinema under the terms of Cinedigm's long-term agreements with all the major studios, as well as ongoing interim agreements with over one hundred independent distributors.
This Cinedigm-financed conversion will deploy 212 Cinedigm-Certified™ screens, with installation expected to be completed in the Fall. The theaters have chosen to utilize powerful digital projector systems from NEC Display Solutions.
Moving Image Technologies (MIT) is the project's reseller, and will provide installation, warranty and technical services as well as support from its state-of-the-art network operations center.
The transition from 35mm film projection, which has been used for 110 years, to digital projection systems is a worldwide motion picture industry effort and the costs to deploy this new technology are covered primarily through the payment of virtual print fees (VPF) from studios to implementation companies. Cinedigm's Digital Cinema division facilitates funding, installation and operations support, along with ongoing VPF administration, for the company's digital cinema rollout plans. Cinedigm has signed long-term VPF agreements with all the major studios and interim agreements with over one hundred independent distributors.
"Converting to digital has been a tremendously challenging proposition," said Clyde Cornell, SVP/COO of Hollywood Theaters. "We are pleased that, together with NEC Display and MIT, Cinedigm has created a program for Hollywood Theaters that allows us to convert to digital projection in a remarkably cost-effective way."
"Hollywood has been very diligent in evaluating their digital cinema options, and we're thrilled we were able to create a custom solution that works for them," said Gary Loffredo, Cinedigm's President of Digital Cinema Services. "We look forward to sharing the benefits of digital cinema with Clyde and his team at Hollywood Theaters."
"Hollywood is taking a huge leap with its conversion to digital cinema, and we're grateful to be part of the initiative," said Jim Reisteter, General Manager of Digital Cinema at NEC Display.
Cinedigm and NEC Display have partnered to help exhibitors convert more than 2,000 screens to digital projection. NEC digital cinema projectors are Digital Cinema Initiatives (DCI) compliant and High Frame Rate upgradable, which allow exhibitors to capitalize on current and future growth opportunities.
Cinedigm offers a new business model to exhibitors by enabling theaters to present engaging alternative programming including live 2D and 3D sporting events and concerts, short films, cartoons, live Q&A's, as well as branded entertainment. Recent releases by Cinedigm include the first ever live 3D broadcast of a UFC bout on February 4, 2012, the ground-breaking, worldwide LIVE 3D broadcast of the FIFA World Cup Championship, the BCS Championship in LIVE 3D, the Dave Matthews Band 3D concerts, and the sold out 3D PHISH concerts. Cinedigm has also released the KIDTOONS series for the past eight years, a weekly family friendly matinee series that runs in over 150 theaters across the country.
In its combined Phase One and Phase Two digital cinema deployment program, Cinedigm has:
• Signed 10,877 screens overall
• Installed 9,777 digital screens
• Signed digital screens deals with 227 exhibitors
Cinedigm digital theaters are fully networked, turnkey systems — simple and cost-efficient to operate.