Film-Tech Forum ARCHIVE: Drive Ins & VPFs

This is topic Drive Ins & VPFs in forum Digital Cinema Forum at Film-Tech Forum ARCHIVE.

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Posted by Mike Frese (Member # 4361) on 08-03-2012, 10:14 AM:

Do many drive-ins have the availability to recieve VPFs? Read an article yesterday about drive-ins and the digital conversion. Not one mention of VPFs. (which is normal for most articles)

So do not drive-ins have access to the VPF programs?

Posted by Ron Funderburg (Member # 4561) on 08-03-2012, 10:17 AM:

You must have 5.1 sound to be eligible for a VFP so no Drive In's don't have VFP's.

Posted by Barry Floyd (Member # 385) on 08-03-2012, 10:42 AM:

There is a group from UDITOA right now working on getting some exemptions for drive-ins for things like 5.1 sound, masking, etc. that is not possible for drive-ins to do.

As for me... Right now as we're looking at the conversion costs, we are NOT planning on taking the VPF's. From my understanding, when you're on a VPF program the studio has signed an agreement with your 3rd party integrator (Cinedigm, Film-Tech, GDC, etc.) that commits them to paying a fixed amount per print for every film you book of theirs. Sounds like a fantastic deal and a great way to get part of your conversion costs covered. However... I think it's going to be a double edged sword when it comes to booking prints in the spring and the fall for drive-ins.

I know what my theatre can do in the summer months and we can come really close to competing with some of the multiplexes as far as grosses go during the months of May, June, July. But... I also know what my theatre can do during the months of March, April, August, September, October and November. Like most drive-ins we literally make 2/3rd's of our income in the months of May, June & July... with the other months making up the rest. There are many times in the spring and the fall where our grosses are low enough that we'll end up paying the studio minimum instead of the actual negotiated percentage on film rental. I know that, our booker knows that, and most of all - the studios know that. In a scenario where the studio contracted VPF payment to your integrator ends up being more than the minimum film rental the studio expects you to return to them.... the studio will simply say no to the booking in the first place. I don't know how things went at your place last year - but the ENTIRE months of bills for November and December were paid by the sparkly vampires of Breaking Dawn. I would hate to think what would have happened if we were denied a print of Breaking Dawn because a studio rep somewhere thought we'd only return the minimum film rental.

On another note, I have heard that the GDC VPF program is a little more lenient than the others go as far as requirements from the exhibitor.

Posted by Ron Funderburg (Member # 4561) on 08-03-2012, 11:12 AM:

The real problem with the VFP the studio can mandate upgrades at time to keep you DCI compliant. I would think anyone that can do without the VFP might be smarter. Who knows it certainly makes it nice to have money back from a film studio!

Posted by Brad Miller (Member # 2) on 08-03-2012, 03:09 PM:

When it comes to VPF programs (specifically from a drive-in), get EVERYTHING in writing and make sure the verbage is solid and can't be interpreted differently. Do NOT listen to empty promises from the VPF reps and accept that as fact.

Also make sure the contract can't change.

There have been lots of people promised VPFs (including drive-ins) who signed up and purchased specific equipment because it was mandated by the VPF and then "oops, oh I'm sorry looks like you can't get them after all". Others have had their contracts changed on them because the contract signed permitted changes in the future. Others have collected VPFs for a little while, then they got dumped flat out and no more checks. (I'm not going to name names, but this has never happened when getting VPFs through Film-Tech or Cinedigm.)

Remember the sign-up deadline date is September 30th. There is a little bit of time afterwards to actually get your equipment installed on ALL of the programs (despite what one VPF program may claim about another), but after September 30th you're on your own.

Also remember most people are procrastinators. With less than 2 months left, there is no room for arguing the contracts. At this point, the contract you are handed is either acceptable to you, or it isn't. Negotiating at this point will only leave you empty handed because there simply isn't enough time due to so many people waiting until the last minute. Every day you wait from this point, the worse off you will be. If you have any interest in collecting VPFs, get on it NOW and make your decision immediately.

Not to be a downer, but I personally don't think UDITOA will be successful at getting the studios to admit drive-ins into the VPF arrangement. Where is the incentive from the studios? There isn't.

Regardless, the info here still applies to indoor theaters.

Posted by Ron Funderburg (Member # 4561) on 08-03-2012, 03:12 PM:

Brad I thought the VFP program had been extended for one more year?

Posted by Brad Miller (Member # 2) on 08-03-2012, 03:13 PM:

Installation dates have been extended. You still have to sign up and have a contract finalized by September 30th.

Posted by Ron Funderburg (Member # 4561) on 08-03-2012, 03:19 PM:

Thanks that puts a bit more pressure on my friends.

Posted by Louis Bornwasser (Member # 3063) on 08-03-2012, 03:27 PM:

Politically there isn't enough clout to get drive ins covered. It would take decades to get enough money, especially if you only get paid in the Summer. Waivers (sound/foot lamberts/masking) are unlikely to be granted and politically the indoors would feel they should be compensated if waivers are given. NATO=big circuit. Louis

Posted by William F Green (Member # 3192) on 08-04-2012, 09:28 AM:

I think as I've said here before, we were offered a VPF deal here in the UK via a third party and I just did not 'like' some of the clauses. So we decided to go it alone with a bank loan to buy used equipment outright with no VPF. Time will tell if we made the right choice I suppose.