Wall Street financing massive digital conversion program
Wall Street will raise over $1 billion to help fund the conversion of 20,000 movie screens to digital projection in a deal announced Wednesday.
Blackstone Group LP and JPMorgan Chase & Co are arranging financing for Regal Entertainment Group, Cinemark Holdings Inc and AMC Entertainment Inc to install 3D digital projection for up to 20,000 movie screens.
The three theater chains have reached agreements with Lionsgate, Paramount, 20th Century Fox, Walt Disney and Universal Pictures where the studios will pay a “virtual print fee” each time a digital movie is shown. The fee will be used to pay off the cost of the equipment.
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