AG Kino Statement On Film Rental
The national German network of art house cinema theatre AG Kino – Gilde e.V. (300 screens, member of the CICAE), opened a debate in Germany about the revision of the work basis between exhibitors and distributors, asking for a lowering of the medium rate for the renting fees to 39% for cinemas, as in other European countries (the average rate in Germany is at the moment 47% and could exceed the 50% in the first release weeks).
The AG Kino’s Board estimates that the passage to digital radically changed the structure and the partition of the costs for the market players, without having re-examined the distribution model. Adding to the investments in the digital infrastructures, cinemas had to face also the service contracts, beyond the increase of the managing and energy costs and the renting fees. Upon Ag Kino, the cinema theatres, which remain at the first place of the cinema exhibition’s chain, have to deal with a constant need of modernisation, from which distributors take advantage without taking any risk. The distributors made serious savings thanks to the abandon of the 35mm’s production, and many projectors are not financed anymore by the VPF (Virtual Print Fee) system. With such a model, AG Kino can’t accept that even with a rise of the entry fees over the 50%, which is used by the exhibitors to finance the costs described above, will finally be shared with the same percentage with the distributors.
On the last point, Ag Kino draws up a list of urgent points to improve in the daily relation between the same market players, as the quality of the DCPs and the delivery logistics.