NATO: Studios Should Foot Digital Bill

After suffering years of financial bruises from building multiplexes, exhibitors believe they must not be required to pay for installing digital cinema equipment, which mainly benefits studios by slashing print costs. That was made clear Tuesday, February 7, 2000 by incoming National Association of Theatre Owners (NATO) President John Fithian. ""Exhibitors have just undertaken the most expensive build-out of new theaters in the history of the industry,"" Fithian said during his state-of-the-industry speech at ShoWest 2000. With bottom lines strained, theater owners are ill-equipped to assume new, costly technological transitions. ""The core financial fact is that the studios stand to save more than $800 million in domestic print costs alone. It should come as no surprise that some pressure is building in Hollywood for the transition. Those who stand to save will have to pay."" Fithian gave The Hollywood Reporter the specifics earlier in the day, saying NATO will call for studios to pay 100 percent of transition costs involving digital equipment. His comments before several hundred exhibitors and distributors were more diplomatic.Source: The Hollywood Reporter