GDC inks VPF financing deal with Shochiku’s Distribution Division
Tokyo (July 13, 2011) – GDC Technology (“GDC”), a world leading digital cinema solution provider, is pleased to announce today that it has signed a Virtual Print Fee (VPF) agreement with the Distribution Division of Shochiku Co., Ltd, a Japanese entertainment icon and one of the top film producers in the country. Under this non-exclusive VPF agreement, Shochiku will pay VPFs for any exhibitors signed up with GDC and its partners. The VPF payment will be stretched out for a maximum of 10 years or until all costs are recouped. The agreement only applies to equipment installations before 31st March, 2014, and is limited to Japan only.
Synonymous with movie production in Japan, Shochiku is both a pillar of the Japanese film industry through its studio ownership and production activities, and a major distributor of Japanese and imported
motion pictures. “We are pleased to enter partnership with GDC in providing a cost-effective and viable digital rollout solution for exhibitors in Japan under the VPF arrangement,” said Koji Matsukura, GM of Shochiku Distribution Division. “Leveraging on our in-depth understanding of the Japanese market and
GDC’s vast experience in structuring VPF deals with Hollywood studios and exhibitors, we are confident that our VPF program is one that best suits the needs of exhibitors here.”
“The VPF agreement with Shochiku is of special significance to us as it is among our first VPF deals with Japanese distributors,” said Dr. Man-Nang Chong, founder and CEO of GDC Technology. “Exhibitors in Japan can expect to take advantage of the cost recoupment model offered by our VPF scheme to recover a substantial portion of their capital outlays in digital conversion. It will only be a matter of time
before such benefits are fully recognized by Japanese exhibitors and we are optimistic many more will take up our VPF offer in the coming months.”
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About GDC Technology (www.gdc-tech.com)
GDC Technology (“GDC”) is a subsidiary of the Hong Kong publicly listed company – Global Digital Creations Holdings Limited. GDC is one of the leading solution providers for digital cinema, media delivery and display markets. GDC has successfully delivered and installed over 1000 operating digital cinema servers worldwide, including Austria, Africa, China, Germany, Hong Kong, India, Indonesia, Korea, Singapore, Slovakia, Slovenia, Spain, Switzerland, Taiwan, Thailand, the Netherlands, the Philippines, the US and UK. More than 500 feature titles have been released digitally on GDC’s Digital Cinema Servers.
About Shochiku Co., Ltd. (www.shochiku.com)
Founded in 1895, Shochiku Co., Ltd. now operates 33 movie theatres and 317 screens, including its affiliates and joint ventures, establishing itself as a leading motion picture producer, distributor, and
exhibitor in Japan. Shochiku, which has always been a pioneer, produced the first color motion picture in Japan and was the creator of the world’s longest-running feature film series. It has also become a symbol of enduring tradition as the exclusive promoter of the Kabuki Theater in Japan.