This support structure may surprise some, but it seems perfectly reasonable for MEDIA to focus on the side costs of conversion for cinemas that are not able to get into a VPF scheme. These costs are often ignored but can amount to a sizeable sum, and by doing this, MEDIA can stretch its relatively limited resources for this scheme as far as possible. The aim is to fund around 200 screens a year for the three years of the scheme (2011 to 2013). Servers and projectors have fallen significantly in price over the past two years, whereas this is not true of associated costs.

The costs of conversion to digital cinema vary widely, from almost nothing to thousands of Euros. Generally, these costs are up to the exhibitor to fund out of their own pocket, but this ignores the fact that the highest costs of the conversion are likely to be related to the adaptation of old cinemas and their projection rooms, especially those that are limited in space. This is often true for traditional, independent cinemas, which are likely to be the primary applicants for MEDIA funding.

The funding stream is also necessary for MEDIA involvement, as the cinemas that may struggle to convert will often be those that do show European films. Therefore, given MEDIA's objectives of assisting the European audiovisual economy and the circulation of European films, the possible closure of cinemas would be detrimental to these objectives. The funding criteria include the stipulation of a 50 per cent minimum European programming in past year.

On the issue of standards and what can be included, the guidelines keep open the possibility of support for less than full non-DCI compliance in some areas although they do state that programme supports "the side costs linked to the purchase of digital projectors meeting the content security requirements for Digital Cinema Initiative (DCI) compliance to be installed in a cinema complying with all the eligibility criteria.". This is consistent with previous communications.

Disclosure: This funding scheme was informed by a study into digital cinema costs undertaken by a consortium led by IHS Screen Digest, in partnership with European Digital Cinema Forum (EDCF) and German consultancy Peacefulfish.