MORRISTOWN, NJ -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced Times Square Cinema, a Texas six-pled, has signed an agreement to deploy digital projection systems as part of Cinedigm's 10,000 screen Phase 2 digital cinema deployment program. Cinedigm is working with many small exhibitors using a newly completed contract template developed for the National Association of Theatre Owners (NATO) Cinema Buying Group (CBG) members. The CBG represents more than 600 members of various sizes that collectively have over 6,000 screens. Times Square Cinema selected Cinedigm's Exhibitor-Buyer financing plan, which means the exhibitor will purchase its own digital cinema systems and Cinedigm will administer and manage the systems under its Virtual Print Fee agreements with all the major studios for up to a ten-year term.
In Phase 2, Cinedigm has created an Exhibitor-Buyer financing option for exhibitors. When exhibitors participate, they select and purchase Cinedigm-certified fully-networked digital cinema systems and Cinedigm manages the reporting, billing and collection of VPFs from movie distributors, receiving a fee for doing so. Cinedigm and the CBG have system supply and service arrangements with Barco, Christie, NEC, and Sonic Equipment Company. Times Square Cinema has selected Sonic Equipment Company based in Iola, Kansas as their Service Provider.
"We are very excited to be outfitting our theatre with digital cinema on all screens," said Howard Charba, owner of Times Square Cinema. "Cinedigm and the CBG have worked together to ensure that even the smallest independent exhibitors can transition to digital cinema, bring new and innovative programming to our customers, and compete with the larger chains."
"Times Square Cinema is an excellent example of a company that is served by our CBG Exhibitor-Buyer Agreement. It enables them to invest in their own business in order to compete in a changing market. We're delighted to have Times Square join the Phase 2 plan," said Bud Mayo, Chairman and CEO of Cinedigm.
Chuck Goldwater, President of Cinedigm's Media Services Group, said, "Times Square Cinema has been ahead of the curve in beginning a transition to digital cinema that makes sense for an independent cinema. Cinedigm is proud to provide our Phase 2 plan which will enable Times Square to enhance even further their capability to bring the best quality programming including alternative content options to their audiences."
Cinedigm provides the industry-leading deployment program for Digital Cinema that facilitates the funding, installation support and administration for the company's studio-supported Digital Cinema rollout plans. In April 2008, the CBG, a buying program of the National Association of Theatre Owners (NATO) for small and independent theatre operators, announced the selection of Cinedigm as the digital cinema integrator of choice for the CBG's 600+ members in the United States and Canada.
To date, Cinedigm has contracted for and completed the rollout of more than 4,500 systems in forty-one states with exhibitors including Atlas Theatres, Allen Theatres, B&B 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 Picture Theatres, R/C Theatres, Showplace Cinemas, UltraStar, and Cinedigm's own Pavilion Digital Showcase Theatre.