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Digital switch threatens theatre

New projection equipment is industry standard
Kyle Wells

Patricia Theatre, the longest continuously operating cinema in Canada, is at a point of crisis. Its owners are struggling to come up with money to upgrade to digital projection, which is soon to become the industry standard.

All distribution of movies will switch to digital format sometime mid-2012, said theatre manager, Ann Nelson. Nelson said she is not sure of the exact date because details are still up in the air and the conversion will be gradual. Most likely it will occur when all of the major cinema chains are outfitted for digital, which is anticipated to be complete by July, she said.

The Patricia, which has been in operation since 1913 and in its current location since 1928, projects all of its movies on film. They are projected onto the screen by way of two large film projectors that sit on original bases from the earliest days of the theatre’s operation. With the advent of digital projection, theatres, over the past few years, have begun to make the switch, which requires entirely different equipment.

This year film studios will stop distributing movies on film. This is due to the proliferation of the new technology and because it is cheaper to ship small digital film formats than it is large, multiple reels of film. If the Patricia does not make the upgrades to digital in time for the switch then it will no longer be able to screen movies.

“I think it would mean more than [people] recognize,” said Nelson, adding that people would lose “not just the nostalgia, the sentimentality around the place that it has historically played in the fabric of the community. It would get old real fast just relying on Netflix or on illegal downloads, it really would.”

There are some incentives offered by distributors to soften the financial blow of making the conversion, but even with that help Nelson said the conversion will cost about $75,000, which includes leasing the 3D equipment. This would pay for all the equipment, warranty, taxes, freight and installation, which includes renovations necessary to install the equipment.

“It just is nauseatingly large, it really is,” said Nelson. “The options for the theatre are get the equipment or close.”

There are many positive outcomes that will come from the conversion to digital. First of all the sound will improve, not because of new speakers but because of a new server that will allow the theatre to use its full speaker system, which is not currently possible. The conversion, along with a new screen, will make projecting 3D films possible. A video scaler will allow the theatre to project from digital discs and satellite feeds, meaning that the theatre will potentially be able to broadcast sporting and other events, depending on copyrights. The theatre would also be able to show older movies, which are not available in 35-millimetre film.

Shipping and freight costs will all decrease significantly because film will no longer be shipped. This means the art film series the theatre offers will become financially viable and that operational costs of the theatre in general will go down. Movies will also be able to be shown closer to their release dates because the theatre will no longer have to scramble to secure one of a limited number of film copies. Digital movies are cheap and easy to copy and distribute and will therefore be more readily available. Also, there would be no more need for a projectionist as everything is automated, again reducing costs.

The theatre is technically owned by First Credit Union, meaning the building and the equipment. Nelson and her son Brian operate the theatre as Patricia Entertainment Company Ltd., in accordance with the agreement with the bank.

Nelson said the credit union is in a tough position because while it would like to keep the cinema alive, the finances of the business are such that it’s not financially responsible of it to give the business such a large loan. She said it has not completely abandoned the business and is, along with Nelson, trying to figure out a way to make this work.

“They’re trying to be as creative as they can be but I don’t know what the outcome is going to be,” she said.

Nelson wants to make clear that even though the theatre is a private business, this isn’t a cash grab. Nelson and her son have owned the theatre for about nine years and she puts her monthly pension cheque into the theatre just to keep it going. Her son takes on other work in order to survive. Nelson said that neither have drawn a paycheque from operating the theatre yet.

The ultimate goal is, and always has been, according to Nelson, for the Patricia to become a community owned and operated institution, such as a non-profit society. This would give the community more input into the cinema’s operation and would also make the theatre eligible for grants, which it currently is not. This is also desirable from the point of view of the bank and would open up more options for financing.

Friends of the Historic Patricia Theatre is the current non-profit society associated with the theatre. This society fundraises for the theatre, through concerts primarily, and raised the money for various infrastructure upgrades such as a new chimney, the flagpole and the costs associated with installing the seats which the theatre got for free from the Orpheum in Vancouver. The society has raised about $10,000 in the past five years and is not in a financial position to take control of the theatre operations at this time.

Leaving the conversion to the last minute, as they wait to find out the exact details, could leave the theatre in a tough situation, said Nelson. If they are not ready and the conversion happens the theatre will not be able to show any movies until they make the upgrades. Given the tight financial situation of the theatre this could result in its closure.

“Do we want to be scrambling with everybody else at the last second, trying to figure out how to do it or if we can do it and when to do it,” asked Nelson, “or do we need to start being a little forward thinking about all of this?”

Nelson said she is open for any and all ideas on how to overcome this obstacle. In an ideal world she said an interest-free loan from an individual or group of people would be great, but as she is already paying off debt to the credit union she cannot assure prompt repayment. Fundraising is also always welcomed, said Nelson, along with any other ideas that people may have to resolve this situation.

Anyone with any ideas is welcome to contact Nelson at 604.483.9346 or by email [email protected]. Any money raised can go directly to First Credit Union or the society. The society can be contacted by email at [email protected].