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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