Ind-E-Focus

Cinedigm Digital Cinema Corp's new distribution deal, could help to increase the distribution of independent films in North America. With the costs of producing high quality digital films being a fraction of the cost of standard film, low budget independent production companies across the globe could take advantage of this new route to audiences in North American territories.

Morristown, N.J.-based Cinedigm Digital Cinema Corp. said Tuesday it had agreed to distribute up to 15 movies from Olympus Pictures LLC through 2015 at a cost below what studios typically demand.

Santa Monica, Calif.-based Olympus agreed to pay for most of the advertising and the cost of digital file transfers, by hard drive or satellite, in exchange for a larger share of the box office gross than is standard industry practice. "It's akin to self-distribution," said Olympus Chief Executive Dean Vanech. "It allows us to control our destiny better."

Cinedigm has been rolling out digital projectors in theaters nationwide, funded by payments from major movie studios. It can increase its reach from a few screens to 5,800 quickly in the case of a home run like Fox Searchlight-released "Slumdog Millionaire," said its chief executive, Bud Mayo. But its larger goal will be to fill a niche that major studios are neglecting with their recent decisions to pull back from the independent film market, he said. "What we're really aiming at is a lot of singles," Mayo said. "That's a market that's underserved by the majors."

The first picture to be released under the deal will be "The Narrows," which debuted at the Toronto Film Festival last year. It is expected to be shown in 15 to 20 major U.S. markets in June. (Source: Business week - Cinedigm touts distribution deal with indie By RYAN NAKASHIMA)