Select Committee on Culture, Media and Sport Minutes of Evidence


Supplementary memorandum submitted by the Cinema Exhibitors' Association

  When I attended the evidence session on 10 June I was greatly disappointed that those giving evidence continued to provide misleading information concerning the amount paid by exhibition to distribution for the licence in copyright to show a film in a cinema.

  One of the problems that this Association has encountered over the years is that when distribution speak of a share of the box office that is paid over to them, they nearly always quote the percentage as part of the gross box office which, of course, inlcudes a charge for VAT at 17.5%. The only totally independent calculation of the percentage paid that is available publicly is contained in Dodona 11, where it states that the average film rental paid by exhibition in the UK in 2002 as 40% of net box office, `Film in the UK 2002' just published by the Film Council does not provide a comparative figure nor does `Global Film' published by Screen Finance and Variety Deal Memo.

  I attach an extract from Dodona 11.


 
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