Cinedigm Digital Cinema Corp (NASDAQ:CIDM) on installation spree
Northern, WI 04/08/2013 (gdpinsider) –Cinedigm Digital Cinema Corp (NASDAQ:CIDM) (Closed: $1.48%) has sealed deals with over 100 drive-in theatres and will be installing digital projectors there. The objective of this move is to help owners compete with the multiplexes that have sprung-up everywhere. In a statement, the company and the National Association of Theatre Owners said that the conversions from the 25 mm film are slated to be completed by the beginning of summer which is when major films such as “Star Trek” and “Iron Man 3” will be releasing.
Typically, digital conversion costs close to $70,000 and which has posed to be a major hurdle for drive-in’s which are hard up for cash. These classic open air theatres operate for just a few months a year and air movies on one or two screens. Under the new agreements that have been signed with a third of the balance drive-in’s the studio owners will be helped in screen and projector loan-repayment, by studios. Indoor cinema chains had been helped with a switch with a plan very similar to this one. Chris McGurk, the Chief Executive Officer said that the company is focusing on the smaller exhibitors who have fewer screens.
Change for the better
He said that they are very classically American and that it would be an utter shame if Cinedigm was unable to help them. In 1958 there were 4,063 drive-in cinemas in the United States and this number has now shrunk to 357, according to the United Drive-in Theatre Owners Association website. The funding program will be promoted in Las Vegas at the annual trade show for cinema operators, CinemaCon. The company also distributes independent movies for home video and theatres.