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Author Topic: Economics of DCI subrun
Peter Castle
Expert Film Handler

Posts: 220
From: Wollongong University, NSW ,Australia
Registered: Oct 2003


 - posted 10-10-2009 11:48 PM      Profile for Peter Castle   Email Peter Castle   Send New Private Message       Edit/Delete Post 
I've been wondering what costs are involved for distributors when subrun cinemas go DCI.

As we screen 5 to 6 weeks after release, we get 35mm prints coming off multiplexes so there's no cost to the distributor. I presume the print handlers (Deluxe here in Australia) charge the distributors the same for a subrun as a first run for print handling.

When it comes to DCI, I suppose a hard-drive containing the movie is prepared (by the exchange?) for either first run or subrun, so there's a cost involved here to the distributor for both.

Does this mean there's extra costs for distributors for DCI subrun?

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99


 - posted 10-11-2009 08:08 AM      Profile for Mark Gulbrandsen   Email Mark Gulbrandsen   Send New Private Message       Edit/Delete Post 
They won't be preparing a drive specially for you as the drives with the films yoyu'll be playing sub run already exist. Here in the US and probably most other countries they circulate drives seperately with just previews and other pertinent headers on them so getting trailers is not generally an issue.

Monte's theater chain has a 3-D sub run house that does really well but I'll let him chime in with all the details.

Mark

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 10-11-2009 11:38 AM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
Yea..now we got two locations doing discount prices with each having a digital house.

Our first install (NEC 1600C units for both of them with "Real Dumb)" 3D) took awhile for the crowd to accept it until we brought in "Monsters and Aliens", then it exploded due to the fact that opposition is charging $3.50 on top of their regular $9.50 price which steals $13.00 out of your wallet to see a 3D movie on evening price.

Now, with us being a $2.00 house, we only do a $2.00 upcharge and folks likes the idea of only shelling out $4.00 to see a 3D movie.

Now, it doesn't sound like much money being made in the boxoffice, but concessions sales went through the roof, and as theatre owners know that in all due actuality, theatres are actually in the food selling business since that is what they are actually selling and not selling movies since we're just playing movies for someone else and taking a cut of the gate.

When we converted the 2nd location from first run to discount, it was totally slow until 3 weeks later that we added the NEC unit. Then, those numbers took a decent leap after the first week.

Doing digital has caught the eye of another discount theatre in the area and heard that they're thinking about it as well.

You might say, we started a trend of sorts where doing digital conversions for discount DOES work in certain markets - people are hunting for value and you better find ways to give it to them in any way mean and form..

P.M. me if any more questions or details..

-Monte

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Tony Ratcliff
Expert Film Handler

Posts: 216
From: Madison, IN, USA
Registered: Mar 2002


 - posted 10-12-2009 04:40 PM      Profile for Tony Ratcliff   Email Tony Ratcliff   Send New Private Message       Edit/Delete Post 
Monte,

This is very interesting. I didn't know any subs had converted yet.

When do you project your break-even point will be for the purchase of the equipment?

I've been considering it, but the numbers haven't worked out yet to justify the cost. Probably your attendance is much, much higher than mine.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 10-12-2009 06:23 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
Hi Tony - what is our advantage is that we have no competition in the discount market for a good 25 mile radius and have a good customer base since 2001 when the plex was reopened from being closed for almost a year as a discount from when it was under the Cineplex Odeon banner when it opened in 1989.

Plus, our market populous is well over 100k people in the neighboring counties - mainly immigrant, poor to middle class - people who really go after the cheap deals in movie entertainment.

Granted, it was a risk to take - to install a digital in a discount (who would EVER thing of such a thing since adding digital is a sudden expense that a discount plex REALLY doesn't need to have) plex since it opened so poorly for the first three weeks,

But, now with all of these family based 3D movies coming over the horizon along with the $4.00 admit price, it's really caused a stir for people, once again, to wait until we get it and get in on the cheaper price.

As for the turnaround, I really can't answer that since it really depends on the market where one wants, or thinks on, to try this concept.

It's a 50/50 risk, no doubt about that.

Good luck - Monte

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Peter Castle
Expert Film Handler

Posts: 220
From: Wollongong University, NSW ,Australia
Registered: Oct 2003


 - posted 12-17-2009 03:51 AM      Profile for Peter Castle   Email Peter Castle   Send New Private Message       Edit/Delete Post 
OK. Here's a new twist on digital availability for sub-runs.
Asked for a digital print of film and was told they no longer could supply any more digital copies of this film because they couldn't afford to buy any more keys.

Any ideas?

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John Wilson
Film God

Posts: 5438
From: Sydney, Australia.
Registered: Dec 1999


 - posted 12-17-2009 03:59 AM      Profile for John Wilson   Email John Wilson   Send New Private Message       Edit/Delete Post 
It would seem they don't like you very much.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 12-25-2009 04:09 AM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
Yea, that's an odd one to hear... They don't "buy" keys since the keys are sent via email and you download them on a thumbdrive that you have in your posession to insert in the server.

Who told you tht wild one?

-Monte

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Jeremy Weigel
Phenomenal Film Handler

Posts: 1062
From: Edmond, OK, USA
Registered: Mar 2007


 - posted 12-26-2009 11:10 PM      Profile for Jeremy Weigel   Email Jeremy Weigel   Send New Private Message       Edit/Delete Post 
Who actually generates the keys? If its a third party, then they could be charging a service fee per key.

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Mark Hajducki
Jedi Master Film Handler

Posts: 500
From: Edinburgh, UK
Registered: May 2003


 - posted 12-28-2009 05:01 PM      Profile for Mark Hajducki   Email Mark Hajducki   Send New Private Message       Edit/Delete Post 
quote: Jeremy Weigel
Who actually generates the keys? If its a third party, then they could be charging a service fee per key.
In the UK it is usually an outside firm that deals with the keys/drives etc. so they may only have be contracted for a certain number of key issues, and it is cheaper to send a print.

quote: Mark Gulbrandsen
They won't be preparing a drive specially for you as the drives with the films yoyu'll be playing sub run already exist
Arts Alliance in the UK copy the film onto the drive before they send it out to the cinema (with few films on crossover).

This does reduce the number of drives that they need to own, and reduces the storage issues.

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John Hawkinson
Film God

Posts: 2273
From: Cambridge, MA, USA
Registered: Feb 2002


 - posted 12-28-2009 05:07 PM      Profile for John Hawkinson   Email John Hawkinson   Send New Private Message       Edit/Delete Post 
Err...as opposed to what? Sending out empty drives without the movie? [Confused]

Please tell me what I'm missing.

--jhawk

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Frank Angel
Film God

Posts: 5305
From: Brooklyn NY USA
Registered: Dec 1999


 - posted 12-28-2009 05:12 PM      Profile for Frank Angel   Author's Homepage   Email Frank Angel   Send New Private Message       Edit/Delete Post 
When distributors were in bed with big chains and didn't want to give product to smaller independents, their big lie was, "Sorry, we don't have an available print for you." Now that they can't use that total line of bs, it's "Sorry, we don't have any more keys for you." Same-o same-o.

No matter how they try to dress it up, their [bs] always smells the same.

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Monte L Fullmer
Film God

Posts: 8367
From: Nampa, Idaho, USA
Registered: Nov 2004


 - posted 12-28-2009 06:06 PM      Profile for Monte L Fullmer   Email Monte L Fullmer   Send New Private Message       Edit/Delete Post 
What's interesting is that this could almost point to the booker - is he strong enough, or does he have enough grab to ensure a DCI (or even a film) print to one of the cinemas that he's booking for?

For we all know that the studios have the final say in all of this even though they want their product on as many screens as possible, but will still protect their product.

Prob why booking for sub/discount would be tons easier since the product have already made the money for the studios and being well off the break.

Usually, if a .kdm file is needed to unlock a feature (or to allow the feature to continue for numerous weeks), we usually call up TECH or DELUXE for this if they haven't send one down via email during the first part of the week.

-Monte

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Mark Hajducki
Jedi Master Film Handler

Posts: 500
From: Edinburgh, UK
Registered: May 2003


 - posted 12-28-2009 06:10 PM      Profile for Mark Hajducki   Email Mark Hajducki   Send New Private Message       Edit/Delete Post 
quote: John Hawkinson
Err...as opposed to what? Sending out empty drives without the movie?
As opposed to circulating drives round many cinemas as the text I quoted suggested.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99


 - posted 12-28-2009 06:33 PM      Profile for Mark Gulbrandsen   Email Mark Gulbrandsen   Send New Private Message       Edit/Delete Post 
Yes, KDM's are generated by a third party... I don't remember the name of the company off hand but I believe it says on the actual KDM who generated it. You can easily open a KDM in Word Pad and read it. Generating a new KDM should not take more than a few hours though... at worst next day.

Mark

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