Digital cinema technologies have largely replaced film projection over the past two decades. In the UK, 98% of screens are now digital due to investments from cinemas and support from organizations like the UK Film Council. The transition has benefited filmmakers through lower distribution costs and audiences through consistent high picture quality. Challenges remain for independent cinemas that cannot afford the upfront costs for digital projectors, but models like the Virtual Print Fee help share financing between cinemas and distributors. While 3D films saw initial popularity, 2D remains preferred due to lower ticket prices and viewing comfort. Overall, digitization has expanded programming options and access to content.

1. Digitisation in Cinema

2. Digital Cinema Technology
Digital cinema technologies have completely
transformed the way films are made, edited,
distributed and projected.
The digital revolution began in 1999 when the first
public screenings of digitally projected
mainstream blockbusters were shown in specially
selected cinemas around the world. Digital film
has continued to grow from then and now, digital
cinema is firmly part of the UK’s film culture.

3. Digital Cinema in the UK
In the UK, digital projection is now the norm -
98% of screens are now digital and many film
distributors release their films only in digital
format. The Digital Cinema Initiatives (DCOI)
have confirmed that digital cinema format has
replaced conventional 35mm film projection as
the principal format used in professional film
distribution and exhibition, a contrast to the
majority of the rest of the world.

4. Investing in Digital Technology
Investing in cinema projectors that project films in a digital
format is seen by many cinemas as an investment for the
future, as digitisation in film continues to move forward and
more films are shot and distributed in a digital format. This
is an easy transition for big-name cinemas with big budgets
because they can afford the capital cost of the projector,
but is more of an issue for small, independent cinemas who
can’t afford the capital cost of even one of these projectors,
despite the profits that could be made if they had one.
To help solve this problem, the UK Film Council (2006-2011)
staged a publically funded intervention, where 230 digital
screens and projectors were installed in both commercial
and independent cinemas. However, no advancements
have been made since then with public sector funding, as
none has been available.

5. The Virtual Print Fee (VPF) Model
However, the Virtual Print Free (VPF) model has been developed as
a mechanism for sharing the financing of digital equipment. The
model brings funding from the distributors to cover the capital cost
of the projector, bearing in mind that the digitisation makes the
distribution process cheaper because with digital, print costs
especially are substantially reduced as a cinema-ready copy of a
standard feature film costs as little as £50 compared to £500 - £2500
for a 35mm print.
A VPF agreement is usually made between the cinema, distributor
and an equipment supplier. It’s the exhibitors who lease the digital
equipment from the supplier, who then receives an agreed fee from
the distributor – the virtual print fee – every time the cinema books
a film on its release date. Over the term of the agreement, it is
hoped that the collective fees, added to the cinema’s rental fees,
will amount to the capital costs of the equipment.

6. Distributing Digital Film
Digital access to film has challenged traditional film
distribution systems. A trend of releasing the film on
several different platforms on the same, or similar,
date(s) has been started by smaller budget
independent films, and this trend is set to continue.
This trend has been made possible by digitisation,
which allows the film to be transformed into files
supported by different platforms very easily and
efficiently. This method of distribution goes against the
standard method of releasing the film in the cinema,
then on DVD and video on demand (VOD) around 16
weeks later.

7. New Choices
Film audiences now have more of a choice about
where they consume film, thanks to the creation
of VOD. It’s a market that continues to increase as
people become more comfortable with staying at
home and streaming films over the Internet,
rather than going out to watch or buy them. It’s
likely that with these new platforms, film could
make a wider cultural contribution, encouraging a
renewed interest in film generally, which would
be brilliant for the film industry overall. Although,
it’s said that VOD is killing cinema and the DVD
market, reducing income in that sector of the film
industry.

8. A New Digital Technology - 3D Film
Although initially successful, it can be said that 3D cinema
hasn’t retained its success. According to the BFI Statistical
Yearbook, in 2013 43% of digital screens in the UK were 3D-
capable and UK film distributors continued to increase the
number of 3D films released. However, studies and surveys
have shown that when families are placed with the choice
of seeing a film in 2D at regular price, or a film in 3D at
premium price when they visit their local cinema, they’re
split 40/60 in favour of 2D film. This is likely to be because of
the cost, but also the hassle of watching 3D film, including
the necessity of wearing 3D glasses. The handling of the
glasses can also be problematic for the cinema, as they can
be expensive to provide and some young children, in
particular, don’t like to wear them.

9. Impacts on those cinemas who don’t
move with digitation:
• Access to content will become increasingly limited as the
number of distributors who release films on 35mm, Blu-
ray or DVD decreases and 'alternative' programmes such
as 'live' opera and theatre, which demand digital quality
projection, will remain inaccessible.
• With fewer new 35mm prints being created, those that
are still available are likely to be in poor condition, which
may mean more staff hours repairing prints to acceptable
viewing standards. Classic and archive titles will
increasingly be available on digital formats (including Blu-
ray or DVD) rather than 35mm.
• The majority of audiences now come to expect digital
quality in film projection.

10. Key advantages of digital cinema:
• Programming - wider access to a broader range of content often much earlier, as the cost to the
distributor of producing multiple copies of a film is greatly reduced. It is also more economically viable
to distribute minority interest films and to provide subtitled or dubbed versions.
• Ability to screen alternative content – live cultural events such as opera, sport, music, exhibitions and
theatre – offers a good revenue stream, as ticket prices for this 'event' type cinema are 30-50% higher
than for traditional film. Some cinemas are reporting revenues 200% to 400% over regular film
screenings.
• Reducing long term operating costs - the technology is relatively easy to use and could impact on
many aspects of the cinema operation and economics, particularly staffing costs. 1 digital projector in a
projection box can simultaneously feed other auditoria so long as architectural design supports this.
• Supporting local filmmaking talent – digital is now the most common format adopted by students and
other filmmakers. A range of mediums including laptops and cameras can plug directly into digital
projectors for screenings of films not already within the traditional distribution arena.
• Maintaining a competitive edge – digital projection delivers high quality picture and sound which
audiences come to expect as standard. Cinema environments are important to audiences and they will
migrate to one they consider to offer a superior package although this is not limited purely to
projection quality. The picture and sound quality will always be as good as it was at the première. No
scratches, jumps, dirt or flicker to disturb the viewing experience.
• Localised advertising tailored to the particular audience will be possible
• Additional smaller auditoria become viable and provide greater choice for local audiences. A local
digital cinema – a digital mini-plex – may have one or two large auditoria (150 to 250 seats) and three or
four very small ones (30 to 50 seats). There are now many examples of this type of cinema in the UK
and the rest of Europe.
• Subtitled performances for deaf audiences are increasingly popular. New systems using digital
cinema projectors have overcome many of the previous problems with limited availability of prints
with these subtitles. The new approach involves projecting subtitles on to the screen and does not
require a special copy of the film. The flexibility of this approach opens up the potential for multi
language versions of films to suit a variety of local audiences.

11. Editing Film Using Digital Technology
In recent years there have been several advancements in
digital technology which have improved the standard of
film editing. For example, digital soundtracks have been
developed to add to film footage and enhance the audio
experience that cinema-goers receive, and CGI is now
available in post-production to add spectacular effects
which simply could not be created in real life, and they look
much more realistic than special effects ever have before! In
addition to this, most films produced nowadays are edited
and mastered using digital equipment which makes the
process faster when films have been filmed using digital
technology, saving film companies money in the process,
and allowing films to get into cinemas to be enjoyed by the
public faster.

12. Who gains from D-cinema?
Both the filmmakers and the audience benefit from digital cinema. Film distributors
in particular will benefit if there are substantial reductions in the costs of
duplicating film prints and transporting them to cinemas, which digitisation can
accommodate, especially as the UK is one of the most expensive markets in the
world to release a film in. FDA members spend approximately £125m a year on
prints which are duplicated in high-tech laboratories. A digitally produced or
converted film could be delivered far more quickly and reliably via disc (a much
smaller, cheaper physical medium than a 35mm print), or even a fibre optic cable or
satellite. Film projectionists also benefit from digitisation in film, as now films can
be stored on a laptop and projected from there, rather than having to carefully loaf
the fragile film into the projector. For cinemas themselves, digital equipment may
present diverse programming opportunities, such as concerts, sports events or
short films of local interest, and it may help them as venues to attract business
conferences and for cinema audiences, all these opportunities may result in wider
choice. Furthermore, the digital images on screen will be picture-perfect every
time. By contrast, the celluloid is run through a projector, making it susceptible to
more wear and tear which decreases viewing quality.