TAILIEUCHUNG - ASSESSING STATE AID FOR FILMS AND OTHER AUDIOVISUAL WORKS – UNIC POSITION

Digital cinema resolution is measured in units of “K,” which stands for 1024 horizontal pixels. In the early years of the DCI Specification, the dominant resolution was 2048 pixels horizontal x 1080 vertical, known as 2K. But 2K represents only 7% more pixels than 1920 x 1080 HDTV. Fortunately, a more future-oriented, higher-resolution option was also written into the DCI Specification: 4K. At 4096 pixels horizontal x 2160 vertical, this is exactly four times as many pixels as 2K, and greater than four times the pixel count of HDTV. . | UNIC Position State Aid Review 2012 Complementary Comment to Initial Position of September 30th 2011 UNIC Union Internationale des Cinemas International Union of Cinemas European Commission State Aid Unit stateaidgreffe@ Ref. UNIC_2012_05 ASSESSING STATE AID FOR FILMS AND OTHER AUDIOVISUAL WORKS - UNIC POSITION The Union Internationale des Cinémas UNIC is pleased to participate in the EC Consultation regarding the current review of rules on state aid to films and other audiovisual works. This position paper is a complementary comment in addition to UNIC s previous response submitted on September 30th 2011. The scope of the Cinema Communication should not cover aid to cinemas. UNIC believes that it would be more beneficial to continue to examine aid to cinemas on a case-by-case or country by country basis for the following reasons There is a limited amount of evidence as regards past EC decisions pertaining to state aid for theatrical exhibition. It would therefore be too difficult and too arbitrary to develop criteria that would allow the inclusion of aid for a diverse range of cinemas across all EU Member States in the Cinema Communication. A major share of EU cinemas will have digitally converted their theatres by the time the new Cinema Communication would apply making rules concerning digital roll-out obsolete. Finally most state support to the digital transition only complements virtual-print-fee arrangements - the market-based financing mechanism adopted by distribution colleagues across much of Europe as a way to help cinemas purchase digital equipment. There is so far little evidence that aid to cinemas in general distorts or threatens to distort the internal market. Because of the above reasons we believe that the Cinema Communication should not include criteria that determine on which basis aid to cinemas should be granted. Union Internationale des Cinémas International Union of Cinemas UNIC Av. des Arts 10-11 boĩte 17 1210 Brussels

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