MORRISTOWN, N.J. - Building on the strong relationship Cinedigm Digital Cinema Corp. (NASDAQ:CIDM) and Overture Films have shared since Overture's inception in 2007, the companies announced today an agreement through which Overture will support Cinedigm's Phase Two Digital Cinema Deployment Plan. The ten-year agreement commits Overture to release its feature movies in digital cinema format and to pay virtual print fees (VPFs) to Cinedigm when those features run on Cinedigm exhibitor partners' digital screens.
Cinedigm's Phase Two Digital Cinema Deployment Plan is designed to aid in the deployment of as many as 10,000 digital screens nationwide. Overture signed a similar agreement to participate in Cinedigm's Phase One Deployment Program and is a customer of both Cinedigm's distribution software and its satellite delivery services.
"Cinedigm continues to be a great partner for Overture Films in our effort to take advantage of the growing demand for digital features," said Kyle Davies, Executive Vice-President, Theatrical Distribution at Overture. "Digital cinema represents the industry's future. Overture is proud to work closely with Cinedigm to help make that future a reality."
"This agreement reinforces Overture's commitment to digital cinema," said Chuck Goldwater, President of Cinedigm's Media Services Group. "Overture has become a major player in the industry highlighted by movies from ambitious, creative moviemakers. It naturally follows that the Overture would continue to play a leadership role in the digital era."
To date, Cinedigm has contracted for and completed the rollout of nearly 4,000 systems in forty-one states with exhibitors including Atlas Cinemas, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Dickinson Theatres, Emagine, Galaxy Cinema, Georgia Theatre Company, Great Escape Theatres, Marquee Cinemas, Krikorian Premiere Theatres, MJR Theatres, Neighborhood Cinema Group, Premiere Cinema Corp., Rave Motion Pictures, Showplace Cinemas, UltraStar Cinemas, and Cinedigm's own Pavilion Digital Showcase Theatre. Its Phase Two plan aims to provide networked, turnkey Digital Cinema systems, in conformance with DCI specifications, for up to an additional 10,000 screens.