The Cinema Exhibitors' Association (CEA) today started to explore the possibility of collective negotiation with studios and distributors for the funding required to move to digital cinema.

The UK Film Council-funded Digital Screen Network has equipped 238 screens across the UK and some operators such as Odeon, UCIand Cineworld have installed theirown digital projection equipment.

However, the main stumbling block to further roll-out is funding.

As the cost of purchase and installation of digital equipment is likely to remain prohibitively high for some exhibitors, the CEA is looking at whether a group of companies could drive a better deal.

The CEA hope to gain an idea of the potential size and nature of those who might be interested.

CEA's Chief Executive Phil Clapp said, 'It seems sensible to explore whether some form of mutually beneficial negotiation might be feasible. Once we have a clearer idea of those with an in principle interest in taking part, we will be better-placed to decide on next steps.

'It might be that the CEA leads on this going forward, or it might be for example that some other exhibitor or grouping of exhibitors takes the lead. The important thing is that we begin a structured dialogue on how we might find a sustainable and market-driven solution which allows as many as possible of those who wish to, to convert.'

The closing date for responses is 1 July 2009.

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