Distribution of Film Prints May Soon End in North America

The end of celluloid film distribution in North America may come as soon as the end of this year, as the transition from film to digital continues. Michael Karagosian, president of MKPE Consulting, said that by the end of last year, 75 percent of worldwide cinema screens had already made the digital transition. This is expected to be an important topic this week at the annual CinemaCon convention in Las Vegas.

“At Showest, the predecessor to CinemaCon, in 2011, National Association of Theatre Owners president John Fithian predicted that the domestic distribution of movies on celluloid could cease before the end of 2013,” notes The Hollywood Reporter. “Fithian reported that Fox had already notified exhibitors of its intent to end film distribution in the U.S. within two years.”

Fithian also reports that 85 percent of screens in North America and 67 percent in Europe are currently digital.

“Studios welcomed the change, since it will ultimately be less expensive for them to distribute films digitally rather than have to ship cans of film around the country,” explains THR. “Exhibitors, initially wary because of concerns about the expense of converting their auditoriums, ultimately came aboard once the studios agreed to virtual print fees that have helped subsidize the costs of the transition.”

Companies such as Fujifilm, Kodak, Deluxe and Technicolor have been preparing for the transition.

But some production companies and theater owners still rely on film prints for their livelihood and perhaps, as some believe, film will remain as a niche market. Direction in the U.K. reflects this. “Deluxe-owned Company 3 and London film lab iDailies are striking a deal that supports 35mm projects currently in production or in pre-production in the U.K., including Kenneth Branagh’s ‘Cinderella’ for Disney,” notes the article.

“The initiative is good news for the group known as Directors UK — members including Ken Loach, Stephen Frears, Lynne Ramsey and Paul Greengrass — which has lobbied Deluxe, Technicolor and studios including Warner Bros. to maintain a 35mm processing presence on home soil.”

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