Drive-in theaters that have not yet converted to digital may want to consider a brand new proposal from Scrabble Ventures, the company announced at a special event it held today in Philadelphia for drive-in owners.
Scrabble, based in Cypress, CA, has eliminated many of the previous expenses associated with leasing of Christie digital projection equipment, including connectivity and installation fees.
Now, the upfront costs, including deposit payment, installation, and all equipment necessary, including audio processing and screen automation (for ease of use and quick arrangement of the evening's program) usually do not exceed $10,000 per screen ALL IN.
"This is the lowest cost entry point for a drive-in to make a digital conversion than available anywhere else," said Scrabble's CEO Ranjit Thakur from Philadelphia.
The monthly lease payment during the five-year term range from roughly $678 per screen (up to 70 feet in length), and $863 per screen (exceeding 100 feet in length).
The five-year lease never charges interest, includes full warranty coverage on the equipment, and allows the drive-in to opt out at any time without being required to make any of the remaining payments. At the end of the term, the drive-in has the option of either purchasing the equipment outright by making a small balloon payment, or returning the equipment to Scrabble and receiving the full deposit back, minus a $1,000 administrative fee.
No financial pre-qualifications are required to enter into the deal, available to all drive-in operators that complete the documentation and pay the deposit by June 16, 2014, Thakur said.
Drive-ins need to look at the added flexibility and increased revenue streams available through digital projection over 35 mm film, Thakur noted. The studios are also anticipated to soon no longer make available the newest films to drive-in theaters that have not yet converted to digital projection.