Fithian slams Arts Alliance's VPF plan

No one goes to the ICTA seminar expecting fireworks, but that's what we got this Sunday morning.

The normally sedate technology seminar tried something different when it invited the heads of NATO and UNIC. Having first talked about windows and piracy (sorry, 'movie theft'), we soon got on to everyone's favourite topic - digital cinema.

Without mentioning Arts Alliance Media by name - he is much to smart for that - John Fithian slammed the VPF business plan that was set to be unveiled the following day by AAM. I don't know if he had heard them trailer the announcement at the RAAM conference the previous week but he didn't need to as the details were all over the trades. Here is what the Hollywood Report wrote:

"At CineExpo we will be announcing that we have a VPF deal for Europe," AAM's Fiona Deans told delegates at the RAAM Digital Cinema conference in London on Thursday. "It might not be what everyone wants, but we think it is a fantastic opportunity for cinemas to digitize with distributors contributing."

It certainly wasn't what Fithian wanted to hear. Here is what he said at the ICTA event.

"Just because someone announces a deal with a couple of studios for a handful of territories doesn't make it right and doesn't mean it is happening."

He went on to characterized it as an 'attempt to fragment the market' and even called it 'bullshit' (yes, really).

What he must have particularly objected to was the following bit from AAM:

In a bid to encourage early adoption, Deans warned that the VPF deal wasn't "for an unlimited number of screens."

"We have a fixed number of screens that we can roll out to," she said. "And once those screens are signed up, we will have to go back to the studios and see whether they want to keep contributing at that level. This is obviously an incentive for people to start talking to us sooner rather than later."

Fithian was not swayed by this argument, calling for exhibitors to 'look at the fundamental economics of the deal.' He drove home the point by saying that "third-party integrators who go around and threaten to 'come and get it now because it will run out soon' have flawed economics." His words, not mine.

Fiona may just be echoing what some studios have been saying but it is not impressing the most important representative of the cinema industry. And what NATO believes, UNIC and European exhibitors are not likely to argue with it. Let's not forget that it was Fithian who helped kill off the premature original Technicolor digital cinema plan (PDF) in 2001.

It will be interesting to see how AAM will respon to this at tomorrow's Cinema Expo panel. I for one am expecting more fireworks.