Norway – on the brink of a digital roll out An overview Presentation Oslo 03.05.10 Jorgen...
-
Upload
timothy-barrett -
Category
Documents
-
view
221 -
download
0
Transcript of Norway – on the brink of a digital roll out An overview Presentation Oslo 03.05.10 Jorgen...
Norway – on the brink of a digital roll out
An overview
Presentation Oslo 03.05.10Jorgen Stensland
Director of ConsultantsFilm & Kino
Norways Cinemas
• 4,5 million people, annual admissions about 12 million.
• 230 Cinemas/420 screens & ambulatory cinema.• 50 Cinemas have 90% of the business.• Unique cinema structure cinemas/culture houses
nationwide.• Political authorities agree that people should be
offered culture where they live• Digitalization will benefit smaller cinemas and give
them new opportunities
FILM&KINO
• Hybrid organization. Owned by the Norwegian Local municipalities
• Interest organization for the Cinema and Video industries
• Collects a tax on behalf of the government: The Norwegian Cinema and Film Fund. Tax on cinema tickets and DVD.
• Approximatly 80 mill NOK yearly (10.4 mill Euro)
Pilotprojects tested
• Technical issues, how the projects use formal testing and routines for interoperability, automatization, functionality and moving of equipment.
• Organizational issues: How the bigger cinemas in the region can help the smaller ones. (support, advisory work)
• Digitizing multiplexes to understand and evaluate how a theatre will function with most screens digitized in regard to content and revenue
Digital Roll-out
• Total roll-out costs are estimated at 400 mill NOK (50,6 mill Euros).
• 40 % of the roll-out costs will come from VPF-agreements.
• Total contribution from Film & Kino and the cinemas will be about 60% of total costs.
• Film & Kino will contribute with 100 mill NOK.• Film & Kino are guarantors of the whole
agreement in regard to a financial institution.
7
Overall model structure (simplified)Film & KinoDistributors
Exhibitors(cinemas)
SystemIntegrators(equipment suppliers)
Financial institutionVPF invoice/payment
• Master leasing agreement
• Lease payments
• Payment for extra equipment
Technical and commercial advisory board(Representatives from distributors, F&K, system integrators and theatres)
Project organizationSupporting roll-out process and information sharing
• Selection of system integrat-ors through public bid
• Master agreement for standard digitization packages
• Payment NOC/service
• Reporting
• Net payment/ contribution
• Reporting
Payment for digital system
Benefits after Roll-out
• Increase in premieres and early access to popular films (average time in small cinemas to get a copy of a new film in Norway is 45 days)
• Easier and Cheaper distribution• Alternative Content.• Better quality on the shows. ”Only first runs”• Increased business! Lillesand Cinema (NDA) had an
increase in business of 26% 2006 with only a few digital premieres.
• Not only for cultural purposes. Local cinemas generate business for restaurants, shops, cafes etc. A study in Bergen (population 350 000) stipulates this to 100 mill NOK a year (13 mill Euro)
Successfactors for total rollout
• Political support on governmental, and local levels (and European).
• Financial support through the political level.
• One project leader must plan and control the process.
• Joint venture: All participants in the business chain must cooperate.