EU funding for cinema digitisation

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The European Commission has announced a new strategy to support the digitisation of European cinemas in a document entitled Communication on Opportunities and Challenges for European Cinema in the Digital Era. The strategy foresees the launch of a €4 million digitisation scheme at the end of 2010 that will target cinemas that screen mostly European films. The scheme will be run as part of the MEDIA Programme and will grant support directly to cinemas by co-financing a clearly identified set of digital equipment costs. MEDIA support can be combined with national support, but priority will be given to cinemas/countries that cannot benefit from virtual print fee (VPF) models or from national support schemes.

The Commission also highlights the importance of other options of financial support, including state aid and the European Regional Development Fund (ERDF), citing various examples of regions using these schemes to finance arthouse cinemas.

Androulla Vassiliou, Commissioner for Education and Culture, said: “The digital revolution has transformed the way the film industry produces, distributes and screens films. These changes also create great opportunities for European cinema. Digital technology can reduce distribution costs and potentially increase the number and diversity of European films being screened worldwide. I hope we will soon see the benefits of digital technology in all European cinemas, including the independent and arthouse screens that characterise Europe’s unique cinema network.”

As well as addressing financial issues, the Commission strategy seeks to:

  • Invest in research, equipment and professional training to boost the preservation of film
  • Make the digital transition period as short as possible to avoid the cost of producing both 35mm and digital versions of films and a dual distribution/exhibition system
  • Preserve and enhance the diversity of European programming in digitised cinemas
  • Seize the opportunities offered by standardisation.

For the full text of the Communication visit the European Commission’s website.