Cinemas in provincial centres could be doomed if a proposed parallel importing policy becomes law, the industry warns.
The president of the Motion Picture Exhibitors' Association, Mark Christensen, said the Commerce Ministry apparently had a proposal for a three-month window between the time a film had its first cinema release worldwide and when it could be parallel imported to New Zealand in DVD or video.
Mr Christensen said in Nelson on Friday that such a proposal, if adopted by the Government, would sound the death knell for cinemas outside the main metropolitan centres.
Not only would provincial centres no longer be viable for cinema exhibition, but DVD and video sales would suffer, as would film-making in New Zealand itself, he said.
At present, New Zealand does not impose a specified period between the time a film has its international release for screening in cinemas and when it can be parallel imported in DVD or videotape.
Labour Party election campaign policy was to introduce a two-year window so DVD or video parallel imports could not undermine cinemas, Mr Christensen said, although this policy became "up to two years" in the speech from the throne.
A window was needed, he explained, because New Zealand distributors mostly provide "rejuvenated used prints" when releasing films to provincial areas and main centres.
It took three to six months to get such prints, which cost one-tenth the price of new film prints, he said.
If there were to be only a three-month window on DVD and video parallel imports, films could be available in those formats before, or simultaneously with, the release of the film to New Zealand cinemas.
The cinema industries in most countries had self-imposed windows of three to six months on DVD or video release on films from the date of their release in cinemas, Mr Christensen said.
If a three-month policy is adopted, New Zealand film distributors will have two choices: go on as they have been, knowing many films could be undercut by DVD and video release, or pay 10 times more for new film prints, but buy only a limited number for distribution to key cinemas in the five metropolitan areas.
"In either event, provincial cinemas will no longer be viable," Mr Christensen said.
"The three-month policy would sound their death knell."
Cinema operators around the country had only recently learned of this ministry three-month window proposal and were alarmed by it, he said.
"I can't understand it. Labour policy is to encourage film-making but Labour is considering a policy which would undermine film exhibition, which is what pays for film-making. It's a contradiction."
Mr Christensen said the exhibitors' association had made a submission to the ministry and he had recently written to the Prime Minister, Helen Clark, and the Commerce Minister, Paul Swain.
The exhibitors association wants a one-year window.
A representative of the Commerce Minister said Mr Swain and other ministers were still examining the issue and no decision had been made.
- NZPA
Parallel imports 'doom' cinemas
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