The virtual print fee mechanism is still on-going. As of right now, the only fully approved VPF program is that offered by Cinedigm (which was given approval to administer the program by the major studios several years ago). The VPF works like this: an exhibitor purchases a digital cinema projection system then over a period of time is given payments to defray some of the cost of the projection system. The payments are provided by the studios due to their savings from not having to make and distribute film prints. The VPF program is scheduled to end in 2012.Last week Christie Digital issued a notice stating that they too had gotten approval from the studios to participate in the VPF program. However, payments by the studios will not be made until Christie hits a threshold of 500 screens. GDC, another d-cinema equipment provider, also has a VPF mechanism that is up and running; however, Warner Bros. is not signed onto the GDC program. Those exhibitors opting for the GDC program will not receive any payments for playing Warner movies in digital format.
As of today, Strong/Ballantyne and their digital cinema partner, NEC do not have a VPF program.
Whether or not an exhibitor opts for the VPF scheme depends upon the financial aspects of the each exhibitor's particular situation and how long the studios will contiune to issue film prints. As of the end of last year, about one-third of U.S. cinema screens had converted to digital projection. Currently, there is no impetus for cinema owners to convert other than the VPF and in many cases the VPF scheme doesn't make economic sense, even with the backsided payments.
Best and Happy Movie Going!
Jim Lavorato
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