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Digital Cinema in SwedenDigiTraining Plus, Helsinki 2010Digital Cinema in SwedenDigiTraining Plus, Helsinki 2010

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• 9 million inhabitants.

• Most people live in the southern part of Sweden.

• Stockholm – the capital of Sweden -1,9 million inhabitants

• Not a lot of people but manycinema screens

• 9 million inhabitants.

• Most people live in the southern part of Sweden.

• Stockholm – the capital of Sweden -1,9 million inhabitants

• Not a lot of people but manycinema screens

SwedenSweden

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Cinemas in SwedenCinemas in Sweden

400 screens (multi complexes) in the cities – private owned

Around 450 screens in small towns and villages – most of them owned by non profit organizations, some private

Film market shares • 54 % US film• 33 % Swedish film • 13 % European /other

400 screens (multi complexes) in the cities – private owned

Around 450 screens in small towns and villages – most of them owned by non profit organizations, some private

Film market shares • 54 % US film• 33 % Swedish film • 13 % European /other

17.4 million cinema visitors 2009

Cinemas 500Screens 850

17.4 million cinema visitors 2009

Cinemas 500Screens 850

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Today SF Bio and Svenska Bio control 80 % of the Swedish cinema market.Today SF Bio and Svenska Bio control 80 % of the Swedish cinema market.

Cinemas owned by non profit organizations, municipals and small private owners: 20 % of the marketCinemas owned by non profit organizations, municipals and small private owners: 20 % of the market

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Digital Cinema in SwedenDigital Cinema in Sweden

In 2002 Folkets Hus & Parker started up the first E- Cinema chain in Sweden – about 70 screens (I,4K)

Commissioned by the Government the Swedish Film Institute made a development plan for digital cinema rollout in Sweden (In 2006 & up date -07)

Focus was on the cinemas in medium-sized and small towns, Art House cinemas and their ability tosurvive the transition to digital

Not much happened …or

In 2002 Folkets Hus & Parker started up the first E- Cinema chain in Sweden – about 70 screens (I,4K)

Commissioned by the Government the Swedish Film Institute made a development plan for digital cinema rollout in Sweden (In 2006 & up date -07)

Focus was on the cinemas in medium-sized and small towns, Art House cinemas and their ability tosurvive the transition to digital

Not much happened …or

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Climate change in 2007Climate change in 2007

A new government – a new political agenda

Astoria Cinemas - the second largest cinema chain in Sweden -went out of business. SF Bio & Svenska Bio took over the cinemas

The government said: We wait and see and hope that the cinema market can handle the transition to digital by itself

A new government – a new political agenda

Astoria Cinemas - the second largest cinema chain in Sweden -went out of business. SF Bio & Svenska Bio took over the cinemas

The government said: We wait and see and hope that the cinema market can handle the transition to digital by itself

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Digital remarksThe Swedish Film Institute'sposition:

Digital remarksThe Swedish Film Institute'sposition:

• Cinemas outside the major cities need financial help from the government and local authorities

• Cinemas in the cities need to have an agreement about financialsupport from the distributors (VPF?)

• We have to develop a more cost effective D-cinema solution (2K>)

• We have to develop new business models

• We have to start the transition to digital as soon as possible – to build a digital infrastructure for culture & film all over Sweden

• Cinemas outside the major cities need financial help from the government and local authorities

• Cinemas in the cities need to have an agreement about financialsupport from the distributors (VPF?)

• We have to develop a more cost effective D-cinema solution (2K>)

• We have to develop new business models

• We have to start the transition to digital as soon as possible – to build a digital infrastructure for culture & film all over Sweden

No cinema should be left behindNo cinema should be left behind

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2K Cinema screens 2009a rapid growth from 5 to 34 - a start?

2K Cinema screens 2009a rapid growth from 5 to 34 - a start?

Something new happened in 2009

• Folkets Hus & Parker, SF Bio, some small private owners and a few municipal owned cinemas equipped screens in 2K - by themselves

• It was five 2K screens in the beginning of the year. 34 in the end of 2009

• 25 screens was also 3D screens

Something new happened in 2009

• Folkets Hus & Parker, SF Bio, some small private owners and a few municipal owned cinemas equipped screens in 2K - by themselves

• It was five 2K screens in the beginning of the year. 34 in the end of 2009

• 25 screens was also 3D screens

3D, the driving force 3D, the driving force

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Digital projectSwedish Film Institute 2009 -2011Digital projectSwedish Film Institute 2009 -2011

Funding from the Film agreementSFI:s total cost: 1,2 million EUR

• We equip 28 selected screens (2K) spread all over the country – all kinds of owners and cinemas

• We support digital distribution of Swedish film

The Swedish Film Institute is financing:

• 60 % of the cost for 2K equipment (not 3D). Up to 40 000 EUR per screen

• Digital prints of Swedish film and Art House film

Funding from the Film agreementSFI:s total cost: 1,2 million EUR

• We equip 28 selected screens (2K) spread all over the country – all kinds of owners and cinemas

• We support digital distribution of Swedish film

The Swedish Film Institute is financing:

• 60 % of the cost for 2K equipment (not 3D). Up to 40 000 EUR per screen

• Digital prints of Swedish film and Art House film

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• Finance 40 % of the cost for 2K equipment – by themselves or by other part.

• 25 % of the screenings during one year must bee Swedish film

• Screen a minimum of 10 Swedish film titles under one year

• Make a development plan for marketing and activities - to increase the audience

• Finance 40 % of the cost for 2K equipment – by themselves or by other part.

• 25 % of the screenings during one year must bee Swedish film

• Screen a minimum of 10 Swedish film titles under one year

• Make a development plan for marketing and activities - to increase the audience

The Cinema owner mustThe Cinema owner must

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GoalsGoals

• To start a discussion with all players on the cinema market about digital distribution and screening. How to include all cinemas?

• Increase the number of new Swedish digital film titles to over 10 / year

• Develop cinema activities and new ways of running a cinema, targetingdifferent audiences

• Identify logistic and technical problems - and solve the problems

• Find a business model for a digital roll out - including all cinemas

• To start a discussion with all players on the cinema market about digital distribution and screening. How to include all cinemas?

• Increase the number of new Swedish digital film titles to over 10 / year

• Develop cinema activities and new ways of running a cinema, targetingdifferent audiences

• Identify logistic and technical problems - and solve the problems

• Find a business model for a digital roll out - including all cinemas

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AgendaAgenda

• Nov/Dec: 2009:Deadline for the cinemas applications.28 cinemas (out of 90) where selected from all over Sweden

• Jan/March 2010: Buying and installation of equipment

• April 2010-Dec 2011: 28 cinemas in the project up and running (+ 34 “other”) =at least 62 Digital 2K cinemas

• Dec 2011:Evaluation and conclusions

• Nov/Dec: 2009:Deadline for the cinemas applications.28 cinemas (out of 90) where selected from all over Sweden

• Jan/March 2010: Buying and installation of equipment

• April 2010-Dec 2011: 28 cinemas in the project up and running (+ 34 “other”) =at least 62 Digital 2K cinemas

• Dec 2011:Evaluation and conclusions

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Digital project 28 CinemasDigital project 28 Cinemas

• 12 screens in cities

• 9 in mid-sized towns

• 7 In small towns/villages

• 12 screens in cities

• 9 in mid-sized towns

• 7 In small towns/villages

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Digital 2K screens in SwedenDigital 2K screens in Sweden

10 screens –no funding_________62

10 screens –no funding_________62

28 ”Digital Project” screens supported by SFI28 ”Digital Project” screens supported by SFI

24 screens with 3D – no funding24 screens with 3D – no funding

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The futureThe future

We hope a special public investment fund can be be established soon (As in Norway and maybe in France)

A fund with contribution from distributors (VPF?), the government, local authorities and cinemas.

The fund should be used for a support of investment in D-screening technique (2K/JPEG2000) in all kind of cinemas. No cinema should be left behind

Also for investments in digital infrastructure, distribution networksand training

We hope a special public investment fund can be be established soon (As in Norway and maybe in France)

A fund with contribution from distributors (VPF?), the government, local authorities and cinemas.

The fund should be used for a support of investment in D-screening technique (2K/JPEG2000) in all kind of cinemas. No cinema should be left behind

Also for investments in digital infrastructure, distribution networksand training

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The cinema, a house for culture in the centre of the village

The cinema, a house for culture in the centre of the village

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It is not the strongest of the species that survive, nor the most intelligent, but the most responsiveto change.Charles Darwin

Digital Cinemaan infrastructure for Culture?Digital Cinemaan infrastructure for Culture?

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Develop the Cinemas! See the opportunities! Develop the Cinemas! See the opportunities!

Thank youThank you

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The cinemas have tobe better in:The cinemas have tobe better in:

• Picture quality • Sound• Comfort• More attractive & different films• Activities connected to the films• Advertising, marketing etc…

• Picture quality • Sound• Comfort• More attractive & different films• Activities connected to the films• Advertising, marketing etc…

Cinemas must have the very best quality compared to all other film windows

Cinemas must have the very best quality compared to all other film windows

Cinema – must bee something extra!Cinema – must bee something extra!

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65,47%

14,40%

2,58% 1,65% 1,23% 1,06% ,82% ,61% ,61% ,60%

10,96%

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10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

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SF BioSvenska Bio

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Cinema owners market shares 2009Cinema owners market shares 2009