Film-Tech Forum ARCHIVE: Fox Intl To Stop 35mm Print Distribution In Hong Kong-Macau: Digital Only After Jan.

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Posted by System Notices (Member # 2357) on 08-08-2011, 06:59 AM:

Link to story

quote:
Twentieth Century Fox International will cease the distribution of 35mm film prints to theaters in Hong Kong and Macau effective January 1st, 2012. After that date all Fox feature film content in cinemas will be provided exclusively through DCI-compliant digital media formats. Through December 31, 2011 Fox will provide its films in both 35mm print and DCI-compliant digital formats to the region.

“We anticipate that by the end of 2011, exhibitors in Hong Kong and Macau will have converted more than 95% of their cinema screens to DCI-compliant digital cinema projection technology,” Sunder Kimatrai, SVP and Asia-Pacific Regional Managing Director for Twentieth Century Fox International said in a statement issued Monday. “As a logical result of the transition to digital cinema, we feel the time is right to phase out the supply of our films in 35mm analogue formats. The entire Asia-Pacific region has been rapidly deploying digital cinema systems and over the next two years we expect to be announcing additional markets where supply of 35mm will be phased out.”

Julian Levin, Executive Vice President Digital Exhibition and Non-Theatrical Sales added, “Fox thanks Hong Kong and Macau exhibitors and key digital cinema integrators for their continued efforts and investments to convert cinema screens to digital projection technology. Fox has entered numerous digital cinema deployment agreements in Hong Kong/Macau and throughout the Asia-Pacific region, and we will continue to support DCI-compliant digital cinema conversion efforts in all major markets. The future of the cinema business is in digital technology, particularly as a basis for providing to consumers the extra value of 3D cinema. We encourage exhibitors in all countries to sign with their local integrator or to speak with Fox directly about their digital cinema conversion plans.”

Twentieth Century Fox International is a unit of Fox Filmed Entertainment, a segment of News Corporation.

Posted by Peter Howard (Member # 3491) on 08-08-2011, 07:42 AM:

Subtext from that press release:

"you might not be happy with our VPF deal, but either convert or we'll put you out of business"

Have to say, i'm surprised at the announcement. If the chatter about audiences picking the difference between digital and 35mm onscreen and voting with their feet is actually true, I think the market would have eventually forced conversion without Fox pulling the plug - espcially in a place like Hong Kong where the market is compressed into one small area and audiences have a choice where to go.

Fox moving like this shows they're not happy with the time it's taking for conversion to be completed, so they've picked the most complete market conversion-wise to flex their muscle and send out a not-so-subtle warning to exhibitors in other markets.

I think it will be harder to make this call in much larger markets for some time yet.

Posted by Steve Guttag (Member # 268) on 08-08-2011, 09:41 AM:

Peter...I don't think ANYONE thought it would take 100% conversion before "the plug was pulled." They are making the switch at 95%...that is a REALLY high number. Most are figuring it will be 80-90% before film would stop.

There comes a point where you are expending tremendous resources to support a very small market.

The interesting discussion going on is in the US...if at the end of 2012 we are only 60% or so converted (a far cry from 80-90%) but the revenue generation is 80-90% converted (those that have converted being the larger generators of revenue for the studios)...would the studios turn their back on 40% of the industry in this market? Some say yes, some say no.

-Steve

Posted by Brad Miller (Member # 2) on 08-08-2011, 01:15 PM:

Yes they would Steve. It's about the money, not the quantity of theaters that sell 20 tickets a day. The studios couldn't care less about those guys. All the studios care about is getting their money back from theatrical as fast as they can, then get it immediately into pay per view at home so they can make more money from the people fed up with the movie-going experience while the initial marketing budget is still in full force.

Posted by Monte L Fullmer (Member # 2797) on 08-08-2011, 04:30 PM:

...would that then fall into the VOD thing?

True, studios don't really care about the skimpy monies that they get from small venues, in fact they would love to see the 3 buck/discount houses disappear since right now, the studios are just doing these people a favor..