First European Exhibitor Goes Fully Digital: CGR Signs with Arts Alliance Media

"Circuit George Raymond (“CGR Cinémas”), one of France’s largest cinema chains and Arts Alliance Media (“AAM”), Europe’s leading provider of digital distribution services, have reached an exclusive agreement for the deployment of digital cinema in 100% of the circuit’s 400 screens, throughout France. The rollout is scheduled to begin in the first quarter of 2008, with a target of 200 screens during the first year.

This agreement signifies the highly anticipated start of a widespread commercial rollout initiative across Europe which will enable exhibitors, distributors and the entertainment industry at large to reap the substantial benefits of digital cinema: consistently high quality non-degradable prints, new programming opportunities - alternative content and premium ticket shows, notably 3-D films and live satellite events (opera, concerts, sports, etc), as well as vastly reduced print production and logistics costs.

Under the conditions of the agreement, AAM will create a fully integrated DCI-compliant digital cinema network within the CGR Cinémas infrastructure. The agreement requires AAM to procure, service and maintain all digital cinema systems deployed, including projectors and servers, central storage servers and a Theatre Management System.

CGR Cinémas is a leading and expanding cinema chain in France. The company is well known for the success of its multiplexes in many mid-size cities across the country, for the efficiency of its cost management and for its profitability. By becoming the first European cinema chain to join the AAM initiative and go fully digital, CGR Cinémas is demonstrating that it is an innovative company, ready to embrace new technology to deliver the best possible quality cinema experience.

This agreement between CGR Cinémas and AAM shows that the VPF-based business model has now been fully adapted to meet the particular requirements of the European exhibition market. The VPF business model is a means of financing the conversion to digital cinema, where both distributor and exhibitor contribute over time towards the total cost of the digital projection and server equipment, funded up front by the rollout entity (AAM). The VPF model has been proven in North America, with over 3,700 digital screens installed to date.

AAM is the only studio-backed digital cinema rollout entity in Europe. In June 2007, AAM signed Europe’s first long term digital cinema deployment agreements with Twentieth Century Fox and Universal Pictures International for the conversion of close to 7000 screens, and in October, Paramount Pictures International also committed to supporting AAM’s digital cinema rollout in Europe. AAM is in active negotiations with European distributors and other Hollywood studios for further deals, and announcements are expected shortly

AAM completed the UK Film Council digital cinema rollout of 240 screens, known as the Digital Screen Network, on April 30th, 2007. The company is also participating in two digital cinema trials, one in the UK at the Odeon Surrey Quays multiplex, since February 2007, and the other in Norway, in various cinemas across the country, since April 2006. To date, AAM’s in-house digital lab has encoded over 200 digital cinema titles and shipped over 3600 digital prints."

Source: DCinemaToday