
Penn Cinema, Lancaster County's second largest movie theater is beginning a $2 million expansion that will add 500 new seats and digital projectors. The cost will be $100,000 per screen for equipment and installation. Read the news story
here.
This transfer to digital is part of a larger industry trend of theaters going digital. The implications are enormous for independent filmmakers. In the past, independent filmmakers who wanted to release their films theatrically, had to overcome enormous financial obstacles. If the movie was shot on video, the transfer to film cost around $30,000. Film prints cost about $1,500 each for a feature film. Do the math. If you wanted to release a film in 100 theaters, the transfer and print costs would be about $180,000! And that was just to
release the film. Don't forget that marketing costs had to be added on top of that. Considering that most independent filmmakers spend most of their life savings on the actual production costs, a theatrical release was out of the question - that is, of course, unless a major Hollywood studio decided to foot the bill.
All this may be changing. With hundreds (perhaps thousands) of theaters going digital, a theatrical release might just be within the grasp of eager independents. With no film transfer costs and the cheap cost of digital video duplication, a theatrical release is quite feasible. Consider our earlier cost estimate to release a movie in 100 theaters. In the digital scenario, a film could be released in 100 theaters for less than $500, leaving the other $179,500 for marketing costs.
"What's the point of all this info?" you ask. "Is SEM Distribution planning to release a movie in digital theaters?"
That would be telling, wouldn't it?