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News stories about how these larger theater companies are spending millions if not 100's of millions of dollars on digital equipment. Without telling the reporters how they will get the money back in the form of VPFs and labor savings in the booths.

www.kspr.com/news/local/kspr-springfield...1030,0,4086542.story

As bad as the lie that exhibitors have allowed to perpetuate about the studios taking 90% of the movie ticket grosses.

In reading this article, it is apparent this is a new build theatre.
New theatres aren't eligible for VPFs...or, at least very few of them are...and I'd suspect a chain that small doesn't have enough "pull" to get VPFs for new builds. So, why would the story mention it if they aren't getting them?

Elin TW

Elin TW wrote:
Have you ever seen any story like this where you know 100% that they are receiving a VPF mentioned that the studios are paying for it? Plus no mention of booth labor savings.

This chain has 30+ locations and who knows if they are getting VPFs or not at this new location. This location has been in the works since 2007 and very well could have been in the deal they signed. Would not be surprised if they did or did not. This should be a $2 million ticket grossing theater. This area has seen population growth in the past 10 years of over 40%.

there are vpf's for new builds that some companies are offering. I think there are at least 5 operators offering VPF now?

Film-Tech, Sony, Christie, GDC, CBG/Cinidigm

Just found out from a good source that most certainly this location is getting a VPF. The difference is that the recoupable amount for a new build is $25,000 less than a conversion.

rufusjack wrote:
How did you find this out? Those agreements are confidential so is either making it up or breaking a confidentiality agreement. Further, the amount of new builds being handed out are VERY VERY VERY small. They are based only on the number of existing builds. Basically, the new builds are allocated as a very small percentage of existing signed up. In looking at a previous press release, B&B signed with Cinedigm. The release references only existing theatres. If I were them, I'd be pushing the idea of getting new builds as well. I'd say B&B is too small to get a new build included since Cinedigm only has a few to hand out since so many CBG members are sitting on the sidelines.

I do see your point, however, about it not being mentioned elsewhere either, but, quite frankly, why would they? They did have to get the money for the loan, they are responsible for paying it back, and often there are quick references to a "rebate". Generally, it'd take too much time to explain VPF in print and the general public doesn't really care. If/When I convert, I won't mention it...I'll just say I'm all digital.

Elin

There are not a lot of new builds in this business. Just spoke to a nationally well known architect about a project we would like to do and I asked him about that. We have had only 2 in Missouri the last two years and both were by B&B.

Keep in mind as well, you do not have to be CBG to us Cinedigm. And only 88 companies are using CBG.