The Cinema Exhibitor's Association - Annual Report 2011

Why have attendances increased?
Cinema attendance was high in 2011 for one main reason - films were very good that year. The cinema benefited from releases of films such as The Inbetweeners Movie, Harry Potter:The Deathly Hallows Part 2, and The King's Speech. These were all hugely successful films which also encouraged group outings; be it for the nostalgia of a bygone monarch, the mutual enjoyment of a crude teen television series or the end of a series many had followed for years.
The update of Orange Wednesdays offering 2 for 1 cinema tickets on Wednesdays meant that 7.5 million free admissions had occurred as price conscious customers looked for cheaper forms of entertainment.
Technological developments such as 3D meant that many people were enticed to the cinema; the success of Avatar and Toy Story 3 meant that many people decided to give 3D a chance when going to the cinema, in the hope that they would be watching the 'next big thing' in 3D cinema.

What is the DFP and the VPF?
DFP stands for Digital Funding Partnership; it is a partnership which offers to help secure finance to allow small and medium sized UK cinema operators to purchase digital cinema equipment to help them keep up with modern times and not fall behind their massive competitors.
It comes from the recognition that many operators simply cannot afford to make the change from physical film to digital projection on their own.
For many small and medium sized cinema operators, the DFP is the only way to help secure this funding.
VPF, on the other hands, stands for Virtual Print Fee, which is the name given to a type of subsidy paid by a film distributor towards the purchase of digital cinema projection equipment for use by the operators in order to present their films.

What may happen to those who don't use the DFP?
The funding of the DFP is very helpful to many small and medium sized UK cinema operators such as Merlin Cinemas. Digital projection equipment is very expensive and takes up a lot of room in a projection room too; this could lead to them having to carry out building work in order to facilitate the equipment. It is these expensive costs which the DFP can help to manage.
There is not really an option when it comes to switching to digital projection; in the long run it is far cheaper for the operator as the device a film is stored on costs only about £150, compared to a £1500 set of film reels which requires a skilled projectionist too.
Also, films distributed in this way are slowly being phased out, meaning that the small cinemas would be unable to show certain films.

What problems face 'alternative content'?
In 2012, the Cinema Exhibitor's Association (CEA) recognised an issue that had arisen in relation to the fees charged by the BBFC for the classification of 'alternative content' events. These are events such as live theatre, ballet and sporting events. There is some evidence available that shows that producers of this content were deliberately choosing not to show their events in the UK because of the incredible burden facing them in terms of BBFC classification fees.