|Cinedigm Announces Agreement With R/C Theatres for Phase 2 Deployment Program |
First Exhibitor-Buyer Contract Based on Just Completed NATO Cinema Buying Group Agreement
MORRISTOWN, NJ, Dec 22, 2009 (MARKETWIRE via COMTEX) -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced R/C Theatres, a Maryland-based cinema chain, has signed an agreement to participate in Cinedigm's Phase 2 digital cinema deployment program. R/C Theatres is the first of many National Association of Theatre Owners (NATO) Cinema Buying Group (CBG) members expected to commit to this program. The CBG represents more than 600 members that collectively have over 6,000 screens. R/C selected Cinedigm's Exhibitor-Buyer financing plan, which means the exhibitor will purchase its own equipment and Cinedigm will administer the systems under its Virtual Print Fee agreements with all major studios for a ten-year term for 68 screens at 6 locations.
In Phase 2, Cinedigm has created an Exhibitor-Buyer financing option for exhibitors. When exhibitors participate, they select and purchase their own equipment and Cinedigm manages the reporting, billing and collection of VPFs from movie distributors, receiving a fee for doing so. R/C will install Cinedigm-certified fully-networked digital cinema systems. Cinedigm and the CBG also have system supply and service agreements with Barco and NEC.
John Fithian, President of the National Association of Theatre Owners (NATO), commented, "Wayne Anderson, the former Managing Director of the CBG, and the CBG team who selected Cinedigm as its integrator had confidence in Cinedigm's technology, equipment vendor relationships and ability to bring appropriate financing options to the table. Wayne's tireless work with Cinedigm on behalf of all the CBG members makes it fitting that R/C Theatres is the first of many CBG members to move forward."
"The CBG was established to enable independent exhibitors across the U.S. and Canada to survive and thrive in the digital age," said J. Wayne Anderson, former Managing Director of the buying group. "R/C Theatres and the CBG, in partnership with Cinedigm, today begin an historic transition to provide high-quality digital cinema to the patrons of independent and small-town cinemas in North America."
Bill Campbell, current Managing Director of the CBG, said, "CBG, Cinedigm and our equipment partners have developed several options for our members, including exhibitor-financed, vendor-financed and integrator-financed programs. Beginning with Wayne's leadership and continuing today, the CBG and Cinedigm encourage all CBG members to be proactive in securing their place in the digital future of our industry."
David Phillips, COO-CFO of R/C Theatres, " We are excited to be the first circuit to sign up for the CBG Cinedigm Phase 2 digital cinema self-finance agreement. R/C has had the good fortune to be involved in so many aspects of the industry conversion due to the hard work, dedication and insight of its now retired Chairman and CEO, Wayne Anderson. To finally be at the end point of all that hard work is like coming to the end of filming and editing a movie. All the work has been done and now it's time to screen the final product -- digitally of course!"
"Since the CBG selected us as the integrator partner for its members, the Cinedigm team has been working diligently to develop agreements that worked for all parties," said Bud Mayo, Chairman and CEO of Cinedigm. "This process for Exhibitor-Buyers was completed at the end of October and we're very excited that R/C Theatres will be the first to move forward in converting its theatres to digital cinema."
"R/C's decision to invest in digital cinema is a testament to their commitment of bringing the highest quality presentation and the diversity of alternative content programming to their audiences. Cinedigm is proud to be working with R/C to help them continue to fulfill that commitment," said Chuck Goldwater, President of Cinedigm's Media Services Group. "At the same time, we are at work with many more CBG members and look forward to adding them to our Phase 2 program as well."
Cinedigm's Digital Cinema division is the industry-leading deployment program for Digital Cinema that facilitates the funding, installation support and administration for the company's studio-supported Digital Cinema rollout plans. In April 2008, the CBG, a buying program of the National Association of Theatre Owners (NATO) for small and independent theatre operators, announced the selection of Cinedigm as the digital cinema integrator of choice for the CBG's 600+ members in the United States and Canada.
To date, Cinedigm has contracted for and completed the rollout of nearly 4,000 systems in forty-one states with exhibitors including Atlas Theatres, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Dickinson Theatres, Emagine, Galaxy Cinema, Georgia Theatre Company, Great Escape Theatres, Marquee Cinemas, Krikorian Premiere Theatres, MJR Theatres, Neighborhood Cinema Group, Premiere Cinema Corp., Rave Motion Picture Theatres, Showplace Cinemas, UltraStar, and Cinedigm's own Pavilion Digital Showcase Theatre.
Its Phase 2 plan for up to an additional 10,000 screens will provide networked, turnkey Digital Cinema systems in conformance with DCI specifications.
Cinedigm is the leader in providing the services, experience, technology and content critical to transforming movie theaters into digital and networked entertainment centers. The Company is a technology and services integrator that works with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country. Cinedigm's digital cinema deployment organization, software, unique combined satellite and hard drive digital movie delivery network; pre-show in-theater advertising services; and distribution platform for alternative content such as CineLive(R) 3-D and 2-D sports and concerts, thematic programming and independent movies provide a complete suite of services required to enable the digital theater conversion. www.cinedigm.com [CIDM-G]
About R/C Theatres
R/C Theatres is based in Maryland and has theatres in MD, PA, VA, NC and FL.
Cinedigm Digital Cinema Corp.
410 526 4774