Continuing to provide full-service digital cinema
solutions for exhibitors of all sizes, Sony Electronics is offering a unique
new program for exhibitors to participate in the 4K digital cinema conversion.
The “Exhibitor Managed Financing Program” allows a theater to own their
installed digital cinema equipment and, through participation in Sony’s Virtual
Print Fee (VPF) program with major Hollywood studios, reduce their total cost
of ownership as they convert to digital technology.
Under
this new program, exhibitors will purchase equipment and extended warranty on
the projector from Sony directly, with Sony managing the back-end VPF billing
and collection process on their behalf.
Exhibitors will also enter into a long-term services agreement with Sony
for equipment maintenance.
“Sony
is committed to making our 4K Digital Cinema equipment available to exhibitors
of all sizes,” said Pat Leon, Senior Manager, Business Development. This new Exhibitor Managed Financing Program fills
a gap in the market. It enables small exhibitors
who, for strategic or financial reasons, wish to own the equipment outright to
give their customers the Sony 4K experience while simultaneously benefitting
from the lower total cost of ownership that a VPF program affords.”
The program includes Sony’s
4K Projector, a central storage server, a Theater Management System, and 10-year
equipment warranty as well as transportation, installation, and regularly
scheduled maintenance of the projector. As
usage fees are paid on the projector, Sony will bill and collect those usage
fees on behalf of the exhibitor and retain a percentage of the total usage fees
as compensation for Sony’s administrative services.
To
support this model, Sony has arranged non-exclusive relationships with
financiers, including GE Capital, to help exhibitors who are interested in
exploring new financing options. However, exhibitors are under no obligation to
use GE Capital. Exhibitors who have existing relationships with preferred
financing partners are able to maintain those while still
participating in this program.
NOTE: Exhibitors
have the right to seek financing from any
source, including GE Capital, and are under no obligation to use GE Capital. It
is recommended that prior to entering into any financing, an
exhibitor should determine, without reliance on GE Capital, its affiliates, or
any financing source, the economic risks and merits, as well as the legal, tax
and accounting characterizations and consequences of any financing and
independently determine whether such financing is appropriate for its needs.
The reference to GE Capital in these program materials is not, nor should it be
deemed as, a promise or guaranty that any such financing would be forthcoming;
such decision being solely and exclusively that of such financing source, in
the exercise of its independent discretion. 