Film-Tech Forum ARCHIVE: VPFs and the 85% rule

This is topic VPFs and the 85% rule in forum Ground Level at Film-Tech Forum ARCHIVE.

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Posted by Mike Frese (Member # 4361) on 05-02-2011, 08:52 AM:

So the dilemma for today: Book a 3 week movie off the break or book a movie from a smaller studio???

A year from now, with the trends of getting more on the break having been increasing the past 12 months for me; I might have a chance at being above that 85% guideline to qualify for VPFs as a first-run theater. So what movie do I book for this week? I do not believe this major studio 3 week movie will do more than $2-300 more than smaller independent studio movie(s) available.

For every movie you play off-break, you will need to play 6 on the break to make up for it!

Or is this really just a pie in the sky for me to chase after?

Your thoughts?

Posted by Mike Blakesley (Member # 26) on 05-02-2011, 10:43 AM:

If you're in a small town there's nothing coming out this week that's worth 3 weeks. (Even in a big town, is "Thor" going to be anything in week 3?)

We're going with 'off-break' movies until Pirates.

While I'd love to play more films on the break, we're much better off picking the blockbusters, and filling in around them with off-break titles. Sad as that is. I'd be more than happy to play a brand new, 60%-ish movie almost every single week....if only we could play them for one or two weeks. With the studios moving to shorten the windows, maybe that will happen...but I'm not holding my breath.

Posted by Mike Frese (Member # 4361) on 05-02-2011, 11:04 AM:

Mike,

We are in totally opposite situations. I pull from a population on 85,000 people as one of two first run theaters. So I have to be 1st-run as much as possible. We played 5 movies on 4 screens this past weekend and all of them were acquired on the break. Our customers will not wait 3-4 weeks for me to play a movie they are interested in when they can see it at the 8-plex in the area.

For that reason we do horribly on move-over except the occasional legs movie like True Grit or Blind Side. Water For Elephants is what I am talking about. $700 over two weeks would be good. What if I can qualify for 1st run status in the future?

Remember you get punished by the 85% rule when you play a movie off-break.

Posted by Monte L Fullmer (Member # 2797) on 05-04-2011, 02:46 AM:

quote: Mike Blakesley
(Even in a big town, is "Thor" going to be anything in week 3?)

...and I'm wondering on "FF5" is gonna be anything good after week 3...

It's been kind of a trend to see films drop 50% and below after the 1st week. Patrons soak up the seats on that first wknd then the film does the major crash trick afterwards.

Thus, I can see why Mike waits til after the break for he can't afford to lose that huge of a percentage on the majority of his films.

What's even more dumber is when a smaller 1st run plex in a large market area open up films three weeks after the break and expect to do business.

-Monte

Posted by Louis Bornwasser (Member # 3063) on 05-04-2011, 06:20 AM:

For most of my customers the VPF is a tantalizing unreality. Best to finance yourself, take the tax rebates (capitolization) youself and DON'T SIGN ANY CONTRACTS.

No vpf for you, or for many others. Louis

Posted by Mike Croaro (Member # 3123) on 05-24-2011, 07:13 PM:

The VPF and 85& rule are new to me (I've been out of the business for 12 years).

Can someone explain.

Mike

Posted by Mike Blakesley (Member # 26) on 05-24-2011, 08:17 PM:

VPF = Virtual Print Fee, an amount paid to an exhibitor by the film company to help finance the digital conversion. Depending on the exhibitor, the amount can vary from around $800 down to around $200, but exhibitors are under strict rules not to divulge any of the amounts or terms of their contracts.

85% rule = Cinedigm, the integrator helping the members of Cinema Buying Group (and others) convert, requires a cinema to play 85% of its titles "on the break" to be eligible for their financing program. Other integrators might have similar rules.

Posted by Mike Croaro (Member # 3123) on 05-26-2011, 10:17 AM:

Mike,

Thanks for the information.

Mike