1. The Digital Roll-out in Europe by Elisabetta Brunella, Secretary General, MEDIA Salles DGT 2011 Helsinki - Tallinn Promotion Information Training

2. Promotion Information Training Worldwide digitisation: digital screens increasing everywhere as at 01 January of each year 2006 20072008200920102011 Africa + Middle East AF1332775300 Asia and Pacific AS2073547861,4583,4698,000 Europe EU2055278971,5354,68410,346 Latin America LA162126484851,600 North America NA1731,9574,5765,6608,85415,000 TOTAL 6022,8626,2888,72817,56735,246

3. Promotion Information Training Focus on Europe: Digital cinema sites and screens as at 01 January of each year 20042005200620072008200920102011 Digital screens 30 55 205 527 897 1,5354,68410,346 Digital sites 27 45 149 358 550 8212,3664,120 Degree of penetration as at 01 Jan 2011 Screens 29% - Sites 33%

4. Focus on Europe 2009: a record year for digitalisation Screens equipped with DLP Cinema or SXRD technology more than tripled from 1,535 to 4,684 Growth rate in 2009: + 205% Promotion Information Training

5. Promotion Information Training Digital cinema sites and screens in Europe (2004-2010)

6. Promotion Information Training Focus on Europe: 2009 changed the “geography” of digital cinemas % of total digital screens: France became the leading market % of digital screens in Europe January 2008January 2010June 2010 United Kingdom32%14%15% France7%20%19%

7. Promotion Information Training Focus on Europe: Digital cinema sites and screens Growth continued in 2010 Jan 2010 Jan 2011 % variation Digital screens 4,68410,346+121% Digital sites 2,3664,120+74%

8. Promotion Information Training The Development of Digital Screens

9. Promotion Information Training The Development of Digital Screens

10. Promotion Information Training Country 01 January 201001 January 2011 01 January 2011 – 3D % D 5661,248 89.8% E 252758 77.3% F 9041,887 74.5% I 434912 92.3% RU 351941 99.6% UK 6671,408 77.9% Total 3,1747,154

11. Promotion Information Training The main digital markets in Europe (by number of screens) as at 1 st Jan 2011

12. Promotion Information Training The average number of screens per site: a very important indicator! The European average continues to increase 20042005200620072008200920102011 Average number of screens per site in Europe 1.11.21.41.51.61.92.02.5

13. Promotion Information Training Average no. of screens per site as at 1 st Jan 2011

14. Promotion Information Training Average number of screens per site: a very important indicator! In 2010 in some countries it decreased to raise again in 2011: 2008200920102011 Belgium4.85.85.36.8 Ireland3.04.22.52.7

15. Promotion Information Training Why has the average number of digital screens per site started to decrease? The 3D effect: if digital projectors are used to show 3D movies only, not all the screens in a cinema need to be digitally equipped.

16. Promotion Information Training The boom of 3D screens: 8,409 at 1st Jan 2011 3D screens Total digital screens % of penetration of digital screens 30 June 20091,4082,60254% 01 January 20103,467 4,684 74% 01 January 20118,40910,34681%

17. Promotion Information Training 3D screens in Western Europe as at 1st Jan 2011

18. Promotion Information Training 3D screens in Central - Eastern Europe and Mediterranean Rim as at 1st Jan 2011

19. Promotion Information Training 2010 highlights -The “rush” to 3D has continued; - Hollywood output was the main driver; (e.g. up to 4 new 3D releases over a two-week period in the UK) - the number of 3D screens increased both because of “new comers” and existing players equipping more screens with 3D

20. Promotion Information Training 2010 highlights European producers started to take advantage of the new booming 3D technology -Streetdance: first European live action film made in 3D released in the UK in May: huge success -Other 3D movies from Europe: -Océans, Moomins and the Comet Chase, Sammy’s Avonturen, Winx Club: Magic Adventure, Amphibious 3D, Konferenz der Tiere

21. 3D: a passing phenomenon? “3D is a language. In the near future it will invigorate the documentary, giving it body and volume.” Wim Wenders, Interview by Hans Ulrich Obrist, Biennale Architettura 2010 Promotion Information Training

22. Promotion Information Training 2010 highlights The 3D rush was product driven and commercially driven The growth was limited by the number of projectors and other equipment rolling off the production lines Large cinema chains have increased their share in the D Cinema offer: the 10 top players account for 36% of digital screens (24% twelve months earlier)

23. Promotion Information Training Top players Exhibition companies with at least 100 digital screens

24. Promotion Information Training Top players: different strategies

25. Promotion Information Training 2010 highlights Many schemes evolved to increase the number of digital screens available throughout Europe - more VPF agreements (integrators) - joint initiatives by small/medium sized exh. (UK) - joint initiatives by exhibitors and distributors (Italy) - public funding (the case of Malopolska, PL)

26. Promotion Information Training 18,500 digital screens between the end of 2011 and the beginning of 2012

27. Cinema Digitisation: what for? “Today there are enormous opportunities for creation. My dream is that in this century communication tools will increasingly be in the hands of the people rather than in those of the old powers.” Wim Wenders, Interview by Hans Ulrich Obrist, Biennale Architettura 2010 Promotion Information Training

28. Promotion Information Training To know more on digitisation: - pick up your copy of the DiGiTalk - stay in touch on our website www.mediasalles.it visit the DGT online informer section (publishing the Dailies on this course) visit the European Cinema Yearbook at http://www.mediasalles.it/publicaz.htmhttp://www.mediasalles.it/publicaz.htm -collaborate to the survey just launched by MEDIA Salles and the European Audiovisual Observatory