Brussels, 07/03/2011 (Agence Europe) - The European Commission announced on Friday 4 March that it had closed an antitrust investigation on the digitisation of European cinemas after several major Hollywood film studios revised contract provisions relating to the financing and installation of digital projection equipment in cinemas. The Commission had concerns that the original provisions might hinder small film distributors from getting access to digital cinemas which could be in breach of the EU rules that prohibit restrictive business practices. The revised provisions facilitate the release of independent and art house films in the new state-of-the-art cinemas.
“I am pleased that Hollywood studios considered our legitimate concerns and modified the contracts so that cinemagoers can watch both Hollywood blockbusters but also small budget and art house films with the latest state-of-the-art technology”, said Commission Vice-President with responsibility for Competition Policy Joaquín Almunia.
Cinemas, like television, are switching to digital technology which, along with cost savings and the ability to maintain consistent high quality over time, provides better image and sound quality. It is estimated that over 18,000 screens - about 50% of all European screens - will be digital by the end of 2012. (L.C./transl.rt)