More films in cinemas due to digitalisation, says survey

The digital canvass battle in cinema is still some time away. For now, moviegoers are benefiting, according to research.

About two years ago, the digitisation of the Dutch cinema business was completed. All cinemas and film houses have been projecting digitally since 2012. In the projection booth, the disappearance of 35mm equipment meant a landslide.

For the public, it went so gritty that we hardly dwell on it now.

Fortunately, there is the Film Research Foundation which explored what effects digitalisation has had on operations and supply.

Initially, there were two opposing expectations. The optimistic view was that digitisation would lead to a wider and more diverse range of films.

In contrast, some expressed fears that a battle for the canvases would break out, as a digital film could be released with a large number of copies at little extra cost. The more specialised and artistic titles would then be squeezed out of the market. On the contrary, this would be a dilution of supply.

Now, two years may still be a bit short to make firm statements, but the Film Research Foundation report suggests that the optimists have been proved right (for now). The number of screenings per theater (cinema and film houses) has increased by 16%, and more titles were released by independent distributors in particular. These premiered over 20% more films in 2012 than in 2010. Dutch and European films in particular benefited from this, according to the research report. Incidentally, this number fell slightly again in 2013.

There was also an increase (34%) in the number of titles released in the period 2001-2010, so the current increase may be a combined effect. Another indicator, such as the (steadily declining) share of the top 20 in total receipts, does not yet show a clear break in the trend.

This does not dismiss the pessimistic expectation. The researchers note that digitisation has not yet led to a substantial change in business practices. This has to do with the fact that distributors pay a so-called Virtual Print Fee (VPF) for each copy. By doing so, they contribute to the large investment cinemas have had to make for the digital conversion. Premiering a film with a large number of copies in many theatres still entails significant additional costs due to that VPF. But when the equipment is paid off and the VPF expires, things will change. That could be as early as three years or so from now. Then the digital battle can still begin.

The full research report can be downloaded from the website of the Film Research Foundation.