It’s been 18 months since the Digital Cinema Initiative (think “studios”) put forth the digital-cinema standards. A lot has been accomplished in the past year and a half. About ten-percent (10%) of all US screens have been equipped with the necessary hardware (hard drive storage, computer server, and projectors). Many more – perhaps a third of all screens – will go digital in the next couple of years.
The promise for indie filmmakers is great. Hope is high. Digital cinema should give indie filmmakers a meaningful shot at self-distribution. The initial transfer from digital to film can easily reach $50,000. I can cost an additional $2,500 for a single 35mm film print. That price goes down the more prints you produce.
Digital cinema, the thinking goes, should substantially cut costs.
Encoding a digital project into the DCI standard is relatively inexpensive. I’ve received quotes from post houses as low as $2,500. You should budget $7,500 for most non-CGI intensive projects. This is in addition to your normal post costs.
The cost of delivering the digital cinema package (DCP) to each theater gets a little more complex with options including satellite communications, telephonic-ISDN downloads, and physical delivery of hard drives. Budget $600 per theatre for delivery. Although one company – I can’t mention their name or price for contractual reasons – is substantially cheaper. They also seem to be very together technically.
Clearly there are some substantial cost savings by going digital. Not to mention the savings in production costs. (Based upon my personal experience as an indie filmmaker, shooting a digital format instead of film can save 30% on a low budget shoot.)
The problem, however, has never really been a technical one. The final DCI specs offered only a surprise or two (such as the use of Jpeg2000 as the compression format). The real problem was: who’s going to pay for all the new gee-whiz hardware. It costs approximately $100,000 to equip a single screen.
And this is the problem for indie filmmakers.
For a time it looked like the studios might finance the digital rollout. For legal and financial reasons the corporate chieftains that rule the Hollywood studios said, “No.” The theaters were never really interested in footing the bill for converting existing theaters. So the industry looked to vendor financing. The companies installing the new equipment would provide financing.
How? These companies would install the new equipment at no cost to the theater, then charge the studios a fee for each digital screen they used. Essentially the vendors would rent their equipment to the studios on a per-screen basis. That makes sense since it is the studios that reap the lion share of the benefit from digital distribution.
Unfortunately, this means that indie filmmakers who are seeking independent distribution will also be faced with this per screen charge. This charge will vary from circuit to circuit and vendor to vendor. The charge itself is not unreasonable. Someone has to foot the bill and the vendors are taking the financial risk. Again for legal reasons I can’t be more specific about these charges.
The great hope that digital distribution would bring some measure of parity to theatrical distribution has pretty much gone from the digital promise to the big lie. Hopefully, with initiatives like AMC’s Select program, theater owners and technology vendors will provide a little relief for independent filmmakers. Don’t hold your breath.