Prof. Giandomenico (Gianni) Celata

Media and ICT Economy

Multimedia Lab – Cattid, Sapienza Università di Roma

comment for public consultation C25/091. Is €100,000 per screen a fair estimate of the cost of installing digital projection equipment?

Yes, it’s a medium- cost. A lower cost is possible if the States decided to a date for a total switch-off trough digital cinema. In that case would be possible an agreements for a buying group. If so, is it affordable even with State aid? Of course, the expenditure for the States it’s absolutely lower than the expenditure for other industrial sectors (cars, etc etc..). Anyway, this expenditure isn’t in the field of competition between States. Because it is directed trough an internal economy without external influence in the competition between companies of different States.

2. Are there no commercial business models which could install digital projection equipment at least in the more profitable cinemas? No, absolutely not, if we think to the VPF Agreement or with a highest prices for the box office.

3. Would audiences find a wider choice of films at those cinemas receiving State aid for digital projection equipment? Yes, but not only with a wider choice of films, but also with a wide choice of alternative contents(music, sport, special events, etc etc…).

If not, what is the advantage to the taxpayer? The tax payer is, first of all, a citizen. The cinemas are spaces of vivibility, of social balance of a community. The cinemas has a social and civil function. All these items, turn down the direct and the non-direct cost of security that has an effect on the expenditure of the States and of the families.

4. It has been argued that, if they cannot afford the equipment, many cinemas could close when film distributors switch from 35mm to digital. How real is this threat and what is the timeframe? I stress the absolutely necessity of a common switch-off for the digital cinemas. In facts, the overlapping of the analogical and digital standards increases the cost for the production and distribution chain of films.

5. Would one-off State aid provide a sustainable and uniform solution for digital cinema? Absolutely not. In particular, would the cinemas which could not afford the equipment without State aid be able to meet the apparently higher running costs of digital projection equipment and replace it at the end of its useful life? Absolutely not.

6. Would cinemas be induced by the State aid to invest in one digital standard in preference to another? Absolutely not.

7. As a condition of the State aid, would cinemas have to ensure that films released in any open digital format could be screened on the supported equipment? Same as above.

8. In view of the limited number of cinema screens worldwide and the limited production capacity of projection equipment designed specifically for cinemas, would State aid for such equipment artificially inflate its price? See the answer at the point 1.

9. In connection with questions 4, 5 & 8, could State aid for digital cinema accelerate the closure of the least profitable cinemas? On the contrary, the state aid could help the least profitable cinemas to rescue a better level of revenue.