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Danish cinemas to benefit from DFI support package

June 14, 2011

The Danish Film Institute (DFI) has published final details of its government-led support for cinemas upgrading to digital. The incentives are primarily aimed at facilitating the digital transition in non-urban areas (or non VPF screens). However, it has also provided an element of financial support for a wider range of cinemas based on a subsidy system for screening local films in digital format. There are two separate initiatives, both effective from August 2011.

The first initiative will provide a single grant of up to DDK 200,000 (Euro 26,810) for cinemas in non-urban areas that also have a predominantly European film repertoire. The second initiative, aimed at those that do not qualify under the former, is based on a subsidy system (effectively VPF-style payments) for each local film screened in digital format. The subsidy is set at DKK 2,500 (Euro 335) per film up to a maximum DKK 200,000 (Euro 26,810) per cinema.

 

 

Initiatives are primarily targeted at helping smaller rural cinemas make the transition to digital through a one-off grant, but by targeting cinemas which screen larger numbers of local film product, the DFI has also managed to retain some element of full market support.  However, each cinema would need to screen 80 local films in digital format in order to receive the maximum allowance or equal the maximum single grant allowance. The initiatives, bound by the new Film Accord 2011-2014, are aimed at encouraging the circulation of Danish as well as European films in digital format. Danish films accounted for 22.0 per cent of the total box office in 2010, up from 14.9 per cent the previous year.

The initiatives effectively plug some of the financial deficit for cinemas not part of a VPF network and therefore at risk from being left behind in the digital transition. DFI's response follows a commercial deal between Denmark Digital, a group of independent circuits, and Arts Alliance Media to its VPF-backed digital cinema programme (including satellite distribution) in 2010. Deal at the time mentioned it would also try and secure support from local distributors as well as Studio VPF payments. There are approximately 400 screens in Denmark and the AAM VPF deal covers 15 per cent or 60 screens alone. The Danish market is already relatively advanced with 35 per cent of total screens upgraded to digital by end Q1 2011. The DFI deal provides the missing link to facilitate transition of the entire Danish sector without leaving behind the smaller rural players. There is no total allowance given for the entire programme, but in theory it could reach over Eur 10m if each screen were to recoup its maximum allowance.

 

Tags:

Countries: Denmark
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