04/02/2009

Europe Distribution (ED) has expressed its concern about the ongoing digital switch within the film market, reflecting on its challenges and on the potential results of current digital equipment in European cinemas.

According to the network of over 60 independent European distributors, the dominant business models proposed in Europe are strongly influenced by the Virtual Print Fee Model (VPF), implemented by the US Majors, which does not necessarily suit the needs of independent distributors and exhibitors. "There are at this point no viable VPF financial models," announced the ED in a press release.

More suitable to multiplexes in big urban areas and designed for larger releases, the VPF model might generate a cost increase, detrimentally impact the circulation of films and compromise the diversity of independent exhibition, distribution and production structures. There is a further risk that this model would lead to a dominant market position, which would then require market regulation.

Despite the difficulty of creating a pan-European model for financing digital equipment for European screens, ED is willing to use its position to facilitate contacts and the exchange of good practises, acting as a spokesperson for the local European authorities.