This is topic Digital Upgrade Suprise Costs! in forum Ground Level at Film-Tech Forum ARCHIVE.


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Posted by Rick Deleau (Member # 4212) on 05-20-2009, 08:44 PM:
 
Digital upgrade very expensive!!

I just spent alot of money upgrading one of my 5 screens to Digital with 3D capability, only to find that one of the Film Companies won’t supply me with a digital print unless all my screens are Digital. ( they might change their mind if they release a 3D movie.) So far Paramount has been the most accommodating with this transformation. With Paramount they are prepared to assist with the upgrade costs, providing some criteria is met. Disney on the other hand seems to be true to its form, Not only NOT contributing to the upgrade expense, that will save them money in film costs, shipping, handling, and maintaining, but because I am licensed with Real D I have to pay Real D a royalty, and in order to generate revenue from the Real D format, I have to upcharge the admission, and sure enough Disney sends me a letter saying they want a percentage of that upcharge. Before you make the transition to Digital beware of the Film Companies billing practices for Digital and Digital 3D. I am already into it up to my bankers eyeballs. This transition is going to get very expensive very quickly.

If the Film Companies would follow Paramounts lead for the next 8-10 years, perhaps this transition would be well on its way.
 

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Posted by John T. Hendrickson, Jr (Member # 849) on 05-20-2009, 09:08 PM:
 
As the kidnapper said in Taken: "Good Luck!"

I'm amused about VPF's. Last February I was hearing that other studios were going to follow Paramount's lead and that some important announcements were going to be made at Show West. If we were all holding our breath, we'd be dead by now.

And don't get too excited about Paramount's lead, either. There are a number of pitfalls in the VPF contract, as explained in other threads.

Bottom line: The Studios want you to go digital and 3D, because at the end of the day exhibitors will be stuck with the bill. Hello NATO! Are you listening?
 

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Posted by David Zylstra (Member # 4230) on 05-21-2009, 12:07 AM:
 
The sharing of the upcharge was no surprise to us - we knew from previous experience that anything "bundled" with the ticket price is contractually bound to be split with the studios.

Don't forget right now with RealD the studios are giving you the glasses for free - you may eventually have to start paying for those too.

Your next surprise will come when you have to pay for upgrades to make your projector 100% DCI compliant (unless you have a commitment from your dealer to get you the upgrades for free).
 

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Posted by Julio Roberto (Member # 4976) on 05-21-2009, 12:15 AM:
 
Or when they start demanding 7+ fl illumination for 3D screens ...

I honestly don't understand the distributors. All they have to do is pass on the savings on prints to exhibitors for 10 years. After that, it's a free lunch for them.

Exhibitors still will be stuck with expensive to maintain equipment down the road that's not any better than the perfectly good 35mm setup they have now.

But no. Distributors want to eat the free lunch now.

Good luck with that. Everybody I've talked to around here says that, IF they make a SINGLE screen digital for 3D, they will make all the studios not paying VPF send a backup 35mm print as well if they want it projected. Screw them. If the print is already paid for, they want it there. If they are not going to supply a print, they want the savings passed on. At very least, temporarily.
 

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Posted by Victor Liorentas (Member # 5272) on 05-21-2009, 12:32 AM:
 
In 10 years , will anyone have money to upgrade again... to 70mm
maybe?
 

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Posted by Peter Castle (Member # 1997) on 05-21-2009, 07:30 AM:
 
OK. Here's a suggestion.

Suppose your cinema uses Dolby 3D or XPand shutter glasses.
You sell a ticket to your 3d presentation at normal prices.
You then rent out the glasses at the upgrade price difference.
(If a customer has their own glasses, then they could save the cost of the rental - and the cinema would not have any security issues.) A customer can, if they want, watch the film without the glasses.

What could the distributor do? (I would feel that any attempt to access that money by the distributor would be looked at as illegal, while restricting access to product would be also.)

Any thoughts?
 

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Posted by John Hawkinson (Member # 1135) on 05-21-2009, 08:54 AM:
 
Well, obviously they could either (1) decline to make product available to you (2) sue you. Perhaps they would not prevail in a lawsuit (certainly it's not clear), but I don't think you want to get into a legal battle with The Mouse.

--jhawk
 

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Posted by Julio Roberto (Member # 4976) on 05-21-2009, 08:58 AM:
 
Works for me.

A customer will be doing a similar thing.

Glasses will be a separate item. Distributors don't have to pay for them nor will they receive any compensation for glasses' rent or sale.

Still, tickets will be raised by just €1 regardless to keep distributors happy (.50€ goes to them) and to help cover the cost of the 3D equipment (bright lamps, digital projectors, screen, etc).

But revenue from the glasses will be separate, optional, and not shared with anyone not involved with the glasses themselves.

There is nothing illegal or shady about it and if they either don't want to make material available or sue it's their loss for sure. A countersuit would not look good to them in a competition tribunal.
 

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Posted by Martin McCaffery (Member # 37) on 05-21-2009, 09:35 AM:
 

quote: Julio Roberto

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I honestly don't understand the distributors. All they have to do is pass on the savings on prints to exhibitors for 10 years. After that, it's a free lunch for them.

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The odds of any of the people currently employed by the distributor being around in 10 years approaches zero. Why would you think they would be thinking that far ahead?
 

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Posted by Monte L Fullmer (Member # 2797) on 05-21-2009, 04:34 PM:
 
Rick, did you have to shoot your both BO and CONC prices up for any compensation of this install outside of "RealDumb's" lease requirements?
 

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Posted by Rick Deleau (Member # 4212) on 05-21-2009, 07:25 PM:
 
Hi Monte

I left everythig alone. NO PRICE HIKE,,, I just added a seperate charge to cover the real D licence.

Its just that the whole Digital thing could be so great for every one!!!
 

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Posted by Mark Gulbrandsen (Member # 72) on 05-21-2009, 10:07 PM:
 

quote: Rick Deleau

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real D licence

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