The VPF Model for Independents April 2008

2 AAM Services Installation & Maintenance Installation & Maintenance Content Services Content Services Cinema Financing Solutions Cinema Financing Solutions Alternative Content Alternative Content

Advantages of a third party rollout Install a critical mass of screens, so that digital distribution is cost effective for the distributor Guarantee equipment standards Purchasing power keeps digital cinema equipment costs down Ensure equipment reliabilty and uptime through adequate training, service and support Collect VPFs and other contributions from everyone using the equipment Transparent reporting (deployments, missed shows and cost recoupment) 3

Distributor obligations Make available a minimum % of films released in a digital format Provide digital copies wherever a film is booked into a a digitally-equipped screen Pay a VPF to AAM when a film is played in a digital format in a cinema installed by AAM 4

Advantages of Digital Lower cost prints Every cinema gets its own copy Content jukebox 5 Benefit under VPF later Successful films stay on Easier for cinemas to programme a range

Independent Distributors Circulate printsSecond run VPF rates 6 Limited booking patterns Per show, daily, weekly rates

Multiple third parties 7 Kinoplex Kinomundo Cineopolis Fab Films Technoluxe Content Services €VPF x6 €VPFx5 €VPF x4 The Edge of Insanity

8 Next steps To discuss AAM’s VPF model in more detail, please contact Fiona Deans – Isabelle Nerin –+33 (1)

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