By March 31, all PVR Cinemas? screens will be equipped with 2K digital systems. Mumbai-based Scrabble Entertainment, which is India?s first and only DCI-compliant deploying entity in India, is working round the clock to convert all of PVR?s 162 operational screens across India with an investment of R66 crore. The Digital Cinema Initiative (DCI) is a standard backed by top seven Hollywood studios, who want theatres to adopt DCI technology for better viewing. According to Ranjit Thakur, CEO, Scrabble Entertainment, they could fund the deal mainly because of its partnership with UFO Moviez, the biggest digital player in the country, which promotes its own proprietary digital initiative, and has now acquired a majority stake in Scrabble. As the Indian exhibition space gets rapidly digitised, thanks mainly to the efforts of UFO Moviez, films are getting wide releases and launching with over a thousand prints. Now, Hollywood, too, can release wider because of the Scrabble-PVR venture. Excerpts from an interview with FE:

Are film prints on the wane in India?

In 12-18 months, we are going to see only digital releases. The use of print is on the decline. The recent UTV hit Paan Singh Tomar had a 100% digital release. There?s an obvious commercial angle to it. If films get a wide release by launching with thousands of prints, the industry benefits hugely in the opening weekend, especially if it does well. Now only 20-25% prints are being made, the rest is digital.

But you have had a rather difficult journey…

When we made a business plan way back in 2007 we were not sure of the market size. Due to affordability reasons?we don?t follow a rent model, DCI-compliant players have to own the system? we decided to be present in the top 10 cities at first. But then the Hollywood market has grown. It has become a big player in the Indian market; most of the top studios are releasing at least 15-odd films each and dubbing it in Hindi, Tamil and Telugu. We realised we could grow as well and not confine ourselves to the metros and sub-metros. So, we redrafted our business model. If the equipment costs R30 lakh, the exhibitor needs to pay only R5 lakh upfront, the rest is payable over 60 months without interest.

Besides PVR, do you think other players are also opting for your new business model?

Yes, with PVR taking the lead, we expect to sign up with other exhibitors too. By the end of the calendar year, we hope to add 700-800 screens. It is encouraging to see a leading theatre chain go digital. Being one of the biggest theatre chains in India, this partnership is a major step for India going completely digital by 2014.

You are now offering a price advantage. What else is drawing people to your technology?

People now want value for their money. They don?t mind paying a little extra for a better viewing experience. I think Avatar showed the way. The value, flexibility and quality that 2K digital provide is drawing customers and our redrafted business model is helping too.

The good buzz on Hollywood films must be encouraging too…

Yes. Even a few years ago, Hollywood films had a small market. But last year, films like Tintin, MI4 did exceedingly well. Titanic on 3D will release in 130 properties, something which was unheard of even a few years ago. The Hollywood box office has seen a huge high in the country.

What are some of the other things you are planning to do to grow the market?

We are looking at a satellite model of delivery. And also we hope that more exhibitors opt for digital technology for their screens.