AAM, CGR in Digital Cinema Distribution Deal

PARIS, November 19: French cinema chain Circuit George Raymond (CGR) and Arts Alliance Media (AAM) have reached an exclusive agreement for the deployment of digital cinema in 100 percent of CGR’s 400 screens throughout France.

The rollout is scheduled to begin in the first quarter of 2008, with a target of 200 screens during the first year. Under the conditions of the agreement, AAM will create a fully integrated DCI-compliant digital cinema network within the CGR’a infrastructure. The agreement requires AAM to procure, service and maintain all digital cinema systems deployed, including projectors and servers, central storage servers and a theatre management system.

This virtual print fee (VPF) agreement signifies the start of a widespread commercial rollout initiative across Europe targeted at exhibitors, distributors and the entertainment industry. CGR  is the first European cinema chain to join the AAM initiative and go fully digital. The VPF business model is a means of financing the conversion to digital cinema, where both distributor and exhibitor contribute over time towards the total cost of the digital projection and server equipment, funded up front by the rollout entity (AAM). In North America, more than 3,700 digital screens have been installed to date.

AAM is the only studio-backed digital cinema rollout entity in Europe. In June 2007, AAM signed Europe’s first long-term digital cinema deployment agreements with Twentieth Century Fox and Universal Pictures International for the conversion of close to 7000 screens, and in October, Paramount Pictures International also committed to supporting AAM’s digital cinema rollout in Europe. AAM is in active negotiations with European distributors and other Hollywood studios for further deals. Further announcements are expected shortly.

AAM’s CEO Howard Kiedaisch, said: “This agreement is an epic milestone for the industry, for AAM and for audiences Europe-wide. CGR is clearly a visionary leader in the European exhibition community and they are seizing the enormous opportunities that digital cinema offers to strengthen and sustain their business, as well as to revolutionize the movie-going experience.”

—By Irene Lew