The state fund covers 30 to 50% of the total cost of digital equipment for one cinema with a limit of 2.5 milion CZK (100 million euro). Since most traditional screening halls are still owned by towns and public institutions the rest of the cost is generally covered by the municipalities. This means the digitalization almost 100% covered by public funding. There are now more than 500 screening halls in Czech republic with 142 DCI equipped halls (www.digitalnikino.cz).
"Multiplexes have a 70 percent market share so operating a traditional cinemas is not really a profitable business. With 24 multiplexes and top Czech and international titles usually released in about thirty 35mm prints, traditional cinemas were usually waiting for a print for four or five weeks until the plexes were saturated. By the time they receive the print the audience was already decreasing," said Přesmysl Šoba, chairman of State Fund for Support of Czech Cinema.
Šoba is also director of Teplice´s Dům kultury and local cinema (www.dkteplice.cz). He said that the digitalisation means a revolution for smaller players. "You can have the most awaited film just after a premier, even in a small town or a village like Trhové Sviny. This stops cinemas from closing down."
The fifth round of state support is planned for the beginning of 2012.