The text on this page was automatically translated and hence may differ from the original. No rights can be derived from this translation.
Within two years, a large part of the Dutch cinemas will be digitized. This concerns a total of 571 screens. This digital ambition has been alive within the sector for some time, but now that the Ministry of Education, Culture and Science (OCW) has decided to contribute financially, digitization will start in the short term. The organization CinemaDigitaal.nl will shape the digitization process.
Dialogic has developed the business plan for CinemaDigitaal.nl. They also collaborated on the grant application that resulted in the government's contribution to the project last week.
Many films were already digitally produced, but their screening in Dutch cinemas was often still analog. Films are transferred to a classic 35mm tape before being distributed to cinemas. This is actually a waste: 35mm tapes are much more expensive than digital formats, and the availability of 35mm content is limited to recent films. Digitization can therefore save money and provide the opportunity to broaden the offering. For example, opera and theatre recordings, classic films, and live sports events can be viewed in the cinema.
Until recently, it was difficult for cinemas to digitize. Screening digital films requires a digital projector, which is too expensive for many cinemas to purchase. Moreover, the cost savings from digitization primarily benefit film distributors rather than cinemas. To overcome this classic example of market failure, the business plan applies the VPF model (Virtual Print Fee). The core of this model is that the film distributor pays the cinema a fee for each film that no longer needs to be delivered on 35mm tape. The cinema uses this fee to pay off its digital projector. What sets the Dutch plan apart is that not only major cinemas are participating, but also smaller arthouse cinemas. This is made possible by the government's contribution, as well as through some solidarity within the sector.
For more information about Dialogic's contribution to this project, please contact Reg Brennenraedts or Stein Smeets.