Smaller cinemas are struggling
By ED MEZA
BERLIN -- More than 52% of theatrical screens in Europe have been converted to digital, up from just 4% three years ago, yet single-screen cinemas are still struggling.
According to a report by the Council of Europe's European Audiovisual Observatory and Media Salles, part of the EU's Media Program, some 18,500 digital screens had been installed in Europe by the end of last year.
While the initial phase of large-scale digital conversion during 2009 and 2010 was largely driven by 3D installations, it was 2D screens that for the first time propelled the rollout in 2011.
This second major phase of the digital roll-out, according to the report, is now driven primarily by full conversions of larger circuits under virtual print fee schemes with the major studios, and by public initiatives, ranging from legislation (such as in France), and publicly funded industry-wide conversion schemes (as seen in Norway and the Netherlands) to direct public-funding programs.
Not all theaters have been able to convert, however. The study shows that small cinemas and exhibitors have significant problems converting to digital. By the end of 2010 only 11% of single-screen cinemas had installed a digital screen, compared to 89% of multiplexes.
Small cinemas form a characteristic part of the European cinema landscape, with single-screen cinemas alone accounting for almost 60% of all European theaters.
"Though presumably not vital for overall box office results, these smaller cinemas play an important social and cultural role in many communities. The fact that these screens have not yet converted highlights the fact that commercial financing models cannot cover all European cinemas, causing a funding gap for between 15% and 20% of European screens," the report said.
Nevertheless, the high penetration rates in various European markets means the end of 35mm distribution is rapidly approaching. Distribs in Belgium, Luxembourg and Norway (which became the first country worldwide to go fully digital in 2011), were expected to end 35mm distribution as early as 2011 and 2012. A total of 11 territories had converted at least 50% of their screens by mid-2011, including France and the U.K., Europe's two leading markets.
The report warns that Europe's theatrical landscape could suffer major upheaval as a result of the fast-moving digital rollout.
"Once large distributors switch to digital distribution in such major markets, demand for film stock will drop significantly, putting pressure on 35mm economics on a pan-European level. This could cause financial strain for those distributors and exhibitors still depending on it."
Bigger companies are set to benefit more than smaller players from the transition to digital, leading to a "fundamental change in the fragmented European theatrical landscape" and posing "a challenge to the European independent sector, characterized as it is by a large number of small exhibitors and distributors."
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According to a report by the Council of Europe's European Audiovisual Observatory and Media Salles, part of the EU's Media Program, some 18,500 digital screens had been installed in Europe by the end of last year.
While the initial phase of large-scale digital conversion during 2009 and 2010 was largely driven by 3D installations, it was 2D screens that for the first time propelled the rollout in 2011.
This second major phase of the digital roll-out, according to the report, is now driven primarily by full conversions of larger circuits under virtual print fee schemes with the major studios, and by public initiatives, ranging from legislation (such as in France), and publicly funded industry-wide conversion schemes (as seen in Norway and the Netherlands) to direct public-funding programs.
Not all theaters have been able to convert, however. The study shows that small cinemas and exhibitors have significant problems converting to digital. By the end of 2010 only 11% of single-screen cinemas had installed a digital screen, compared to 89% of multiplexes.
Small cinemas form a characteristic part of the European cinema landscape, with single-screen cinemas alone accounting for almost 60% of all European theaters.
"Though presumably not vital for overall box office results, these smaller cinemas play an important social and cultural role in many communities. The fact that these screens have not yet converted highlights the fact that commercial financing models cannot cover all European cinemas, causing a funding gap for between 15% and 20% of European screens," the report said.
Nevertheless, the high penetration rates in various European markets means the end of 35mm distribution is rapidly approaching. Distribs in Belgium, Luxembourg and Norway (which became the first country worldwide to go fully digital in 2011), were expected to end 35mm distribution as early as 2011 and 2012. A total of 11 territories had converted at least 50% of their screens by mid-2011, including France and the U.K., Europe's two leading markets.
The report warns that Europe's theatrical landscape could suffer major upheaval as a result of the fast-moving digital rollout.
"Once large distributors switch to digital distribution in such major markets, demand for film stock will drop significantly, putting pressure on 35mm economics on a pan-European level. This could cause financial strain for those distributors and exhibitors still depending on it."
Bigger companies are set to benefit more than smaller players from the transition to digital, leading to a "fundamental change in the fragmented European theatrical landscape" and posing "a challenge to the European independent sector, characterized as it is by a large number of small exhibitors and distributors."
Thank you Variety.
Have a great day ☼
In order to avoid all the SCAMS, we decide not to publish all the info of the recruter in the job postings. You'll find the Daily Password in our Monthly Newsletter. You can Subscribe to our Newsletter here Thanks. A. www.chicas-productions.com
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