With record attendance and a strong program, EDCF’s annual convention in Italy this February showcased optimistic market figures—alongside the challenges and opportunities of a deep technological transformation in the cinema industry.
At the end of February, the EDCF welcomed the cinema industry to northern Italy—specifically the Milan/Bergamo area—for its annual convention. Organized in cooperation with ANEC, the Italian cinema association, this year’s event brought together a record number of key stakeholders from the European cinema industry. Cinema operators, service providers, manufacturers, producers, distributors, and researchers gathered to discuss the present and future of cinema technology.
The first day of the convention took place at the ARCADIA Cinema in Stezzano, near Bergamo. EDCF President Cathy Huis in’t Veld-Esser and Simone Gialdini (ANEC) warmly welcomed attendees, setting the stage for this year’s special guest, Tim Richards, CEO of Vue.
In his keynote, Richards highlighted the resilience and transformation of the cinema industry. He reflected on its pre-pandemic success, the severe impact of COVID-19, and subsequent challenges, including the Hollywood strikes that disrupted production. Despite these setbacks, he expressed optimism about the future, pointing to a renewed commitment from major studios to theatrical releases.
Tim Richards: „Primary challenge is not demand but supply“
Richards emphasized that the industry’s primary challenge is not demand but supply, noting record-breaking box office performances across multiple genres. He also praised Italy’s strong film production recovery and outlined Vue’s strategic focus on refurbishing cinemas and acquiring new locations in anticipation of an upcoming surge in content.
Technological innovation remains central to Vue’s strategy. AI-driven booking optimization is increasing the availability of foreign-language films and maximizing screen utilization. Meanwhile, Vue has expanded its digital marketing efforts and enhanced the customer experience through flexible booking options and digital refunds. The company has also introduced premium seating and the new “Vue Your Way” concept, designed to streamline the customer journey through self-service and automation.
Richards concluded with an optimistic outlook, expressing confidence that the coming years will usher in a new era for cinema.
David Hancock (Omdia) echoed this optimism in his market update, emphasizing the evolving state of the cinema industry and its future prospects. While theatrical exclusivity remains intact, the release window has shortened. Movies continue to be a powerful format, but the industry faces challenges, including inconsistent content supply and lower consumer frequency. Cinema attendance has yet to return to pre-pandemic levels, but rather than dwelling on the past, the focus must be on rebuilding from the current position.
Looking ahead, 2025 and 2026 are projected to be significantly stronger years for cinema compared to 2024. High-quality films still capture public interest, reaffirming the value of the theatrical experience for both audiences and the industry. While major distributors continue to support theatrical releases, a key concern remains—many potential viewers are unaware of upcoming film slates, and some titles struggle to generate excitement.
Additionally, shifts in consumer behavior raise important questions about the future. Are these changes temporary, or do they signal a need for a fundamental transformation in both the types of films being produced and the overall cinema experience? The industry must adapt to these evolving dynamics to sustain long-term growth.
Loyal communities for local films
A panel discussion on the current state of the European cinema industry, moderated by Guillaume Branders, featured insights from Tim Richards (Vue), Jaime Tarrazon (FEZE, UNIC), and Laura Fumagalli (Arcadia).
Jaime Tarrazon highlighted that 2023 had been a weak year for most markets, though certain countries, including France, the UK, Albania, Greece, Lithuania, Poland, Bulgaria, and Slovakia, managed to maintain or even slightly increase their cinema attendance. This success was largely driven by strong local movie releases, with France in particular reaching audience levels not seen since the 1960s. He emphasized that a steady supply of films is crucial for cinemas and expressed optimism for the coming years, noting that studios are set to bring back more quality films in 2024, with 2025 and 2026 looking particularly promising.
Laura Fumagalli provided insights into the Italian market. She explained that, in order to address gaps when major movie releases were unavailable, Arcadia had to get creative with its programming. One such initiative was the “Cinema and Science” series, featuring astrophysicist Luca Perri in discussions about the scientific aspects of films. Additionally, Arcadia organized high-cultural events such as masterclasses with professors, film critics, and other experts prior to the re-release of classic films. A notable highlight was the screening of The Brutalist in 70mm in Melzo.
Tim Richards addressed the ongoing challenge of an inconsistent supply of films. He pointed out that in Italy, studios traditionally avoided releasing films in the summer due to the assumption that audiences would not watch them. However, recent years have disproven this notion, leading to an increase in summer releases. Before the pandemic, film releases were distributed more evenly throughout the year, whereas now there are significant gaps in content. He also noted that the number of films released directly affects box office performance.
Richards also discussed the growing presence of foreign-language films, revealing that 46% of Vue’s programming consists of such titles, and this figure is increasing. While American audiences tend to be reluctant to watch films in other languages, European viewers are generally more open to them. He explained that Vue is using AI-driven insights to better understand audience preferences, allowing them to cater to specific communities, such as Turkish and Asian moviegoers, by offering films that resonate with their cultural backgrounds. This approach helps smaller films find their audiences.
Finally, Richards shared a challenge that arose when screening Oppenheimer in 70mm. Finding a projectionist skilled in handling the format proved difficult, as modern cinemas have become highly automated, with most operators simply pressing a button rather than working with traditional projection systems.
Overall, the discussion highlighted both the difficulties and opportunities in the European cinema industry. While 2023 has been a weak year overall, certain markets have managed to sustain attendance through strong local content and innovative programming. The industry is looking forward to 2024 and 2025 with optimism, as studios are set to increase their film output and distribution strategies continue to evolve.
Updates from ICTA and SMPTE
The EDCF convention also featured presentations from other important industry associations, such as ICTA and SMPTE, who shared updates on their current and future activities.
In her presentation for ICTA, Cathy Huis in’t Veld-Esser highlighted the strong collaboration between EDCF and ICTA, emphasizing how their programs complement each other. At the Berlin Film Festival, for example, Jan Runge and Patrick von Sychowski, with input from UNIC, delivered a session focused on independent cinemas. ICTA is also experiencing significant growth, with a new CEO and a rapidly expanding membership. Exciting developments include the launch of the Cinema Systems Summit at CinemaCon, in partnership with ISDCF and the Cinema Foundation. Additionally, ICTA is introducing Cinetrain, an online training course designed for technical workers in the cinema industry. A European mentoring pilot program is also in the works, along with key upcoming events such as the Barcelona Seminar Series and an event at the local cinema conference in Baden-Baden, Germany.
CJ Flynn provided an update on SMPTE’s ongoing work related to audio, highlighting the evolving of modern cinema soundtracks and the challenges in assessing audio quality. He noted that the perception of sound remains highly subjective, making it difficult to establish universal standards. The current focus is on developing more effective methods to measure what audiences actually hear in cinemas. Key objectives include defining reliable metrics, creating practical testing procedures, and establishing pass/fail criteria for various audio characteristics. Given the diversity of cinema auditoriums, Flynn emphasized the need for industry collaboration to validate the data and ensure that the proposed standards are applicable across different theater environments. He called for support from industry stakeholders to contribute to testing and refining these measurement approaches.
LED screens demand new approaches to design and business
The panel discussion on Direct View LED screens, moderated by Robert Sigfusson, featured insights from Jan Harmsen (Kinopolis), Juan Garcia (Odeon), and Alain Chamaillard (Samsung). The conversation revolved around the growing presence of LED technology in cinemas, its advantages, challenges, and potential for the future.
Alain Chamaillard emphasized that while LED screens will not replace traditional projectors and screens, they are here to stay as part of cinema’s technological evolution. He acknowledged that the technology is still in its early stages and remains expensive but encouraged exhibitors to experiment with LED. He also pointed out that younger audiences, accustomed to watching content on tablets and other screens, might prefer LED over traditional projection.
Juan Garcia expressed that the cinema industry is lagging in adopting this technology for customers. Simply replacing a projector with an LED screen does not add value on its own; instead, cinema operators must rethink how they utilize their auditoriums. He suggested that LED screens open new possibilities beyond regular film screenings, allowing venues to host various events, including conferences, gaming, and corporate gatherings. To make LED a viable investment, cinemas need a clear business strategy that maximizes the auditorium’s potential and revenue streams.
Jan Harmsen reinforced the importance of alternative content and events, noting that LED technology enables different kinds of experiences, such as keeping the lights on during certain presentations. However, he stressed that LED should be integrated into a broader Premium Large Format (PLF) concept rather than being treated as a standalone feature. Choosing the right auditorium for an LED installation is crucial, as not every space is suitable. Harmsen also proposed involving architects to rethink auditorium designs creatively, rather than approaching LED purely from a technical standpoint.
The panelists acknowledged the high cost of LED screens and the current lack of sufficient content to justify their full potential. Nevertheless, the technology is gradually gaining traction in Europe. One notable example is the new Pathé cinema in Paris, which incorporated LED technology in a historically significant venue. Alain Chamaillard explained that when Pathé first installed an LED screen in 2018, they quickly realized its capabilities extended beyond traditional cinema screenings. The venue now hosts alternative content, gaming events, sports broadcasts, and corporate functions, demonstrating that LED is a flexible tool that can support a more diverse business model.
The panel also addressed early challenges with audio compatibility. Initially, sound quality was a significant issue with LED screens, but Juan Garcia stated that this is no longer a problem, as modern installations, such as those with Dolby Atmos, work well. However, audio setup for medium and smaller screens has been more complicated, particularly with side channels affecting audience perception. Jan Harmsen noted that their initial setup failed, but after adjusting the speaker configuration, the experience improved. He remarked that the human brain naturally adapts to new audio conditions over time. Alain Chamaillard added that exhibitors need to work with knowledgeable cinema integrators to ensure proper sound design, which would eliminate most of these concerns.
In conclusion, the panelists agreed that while Direct View LED technology is still developing, it offers exciting opportunities for cinemas willing to innovate. The high cost and current content limitations remain challenges, with HDR content for cinema being a particular issue. Distributors need to be pushed to supply more HDR content to fully leverage the capabilities of LED screens. However, with careful planning and integration, LED screens could significantly expand the scope of what cinemas can offer beyond traditional movie screenings.
HDR in cinema: Between technical realities and audience expectations
The panel discussion on HDR cinema, led by David Hancock, featured insights from Bas van Heek (Barco), Brian Claypool (Christie), and Friedrich Deininger (Dolby). The conversation explored the relevance of HDR in Premium Large Format (PLF) cinemas, the challenges of adoption, and the role of content in driving the technology forward.
Brian Claypool emphasized that HDR is integral to many PLF formats, but audiences still need education to fully understand its benefits. From a projection standpoint, he noted that Dolby and Christie are partners in advancing HDR, and he sees only two key technical specifications defining HDR in cinema: Dolby Cinema and the DCI standard. The main challenge lies in content creation. While IMAX and Dolby Cinema have successfully mastered and distributed HDR content, there is no universal standard beyond the DCI specification. Studios, reluctant to produce multiple versions of a film, often avoid investing in additional HDR mastering. Claypool argued that instead of focusing solely on technical specifications such as brightness levels, the industry should prioritize economically feasible solutions that enhance the audience experience while remaining accessible to exhibitors.
Friedrich Deininger explained that HDR, particularly with a contrast ratio of 1,000,000:1, closely mimics the range of light and dark the human eye can perceive without adjustment. Dolby achieves this effect through dual modulation, which enhances details in both highlights and shadows. However, the biggest challenge is encouraging filmmakers to fully utilize HDR technology. According to Deininger, true HDR storytelling is not just about contrast and color but about the nuances between black, white, and gray, which allow cinematographers to craft more visually rich and immersive experiences.
Bas van Heek added that Higher Dynamic Range could be another way to define HDR. He suggested that while the DCI specifications provide a strong foundation for content standardization, the focus should not be solely on technology but rather on the tools available to filmmakers. Educating both content creators and audiences is essential to making HDR a success in cinemas. Interestingly, he noted that HDR in cinema has largely evolved from home entertainment standards, where HDR grading was initially developed. This has proven to be sufficient for theatrical exhibition, reinforcing the idea that HDR content should be adaptable across different formats. He also stressed that offering choice and flexibility in HDR formats is key to wider adoption.
Overall, the panelists agreed that HDR has the potential to transform the cinema experience, but its success depends on filmmaker engagement, economic feasibility for exhibitors, and audience awareness. While technical advances continue, the real challenge is ensuring that studios see value in producing HDR content and that cinemas can implement it in a sustainable way.
Complexities of content distribution: Communication is key
At the following panel discussion moderated by Julian Pinn, industry experts from Disney, Deluxe, Gofilex, and MPS delved into the technical challenges of Hollywood’s 2025 release requirements, with Avatar 3 taking center stage.
Reflecting on Avatar 2, Disney’s Scott Taylor highlighted the immense logistical complexity of its release, which involved over 1,000 unique versions—600+ in the EMEA region alone—making it one of the most demanding film rollouts ever. With Avatar 3 set for December 2025, the same level of complexity is expected, with quality control workflows anticipated to be under “high pressure.”
Paul Huis in’t Veld from Gofilex detailed the staggering data requirements for Avatar 2 in the Netherlands alone: 264 versions, 88TB of data, and 55 petabytes of total content delivery. Communication delays in Avatar 2’s release were noted as a key challenge, one that Disney, Deluxe, and MPS aim to improve for Avatar 3.
Alberto Tognazzi from Deluxe emphasized that expectations for Avatar 3 are so high that other studios are steering clear of a December release, freeing up distribution channels. One major logistical concern is ensuring that cinemas have enough 3D glasses, as confirmed by MPS’s Andy Lampard.
Beyond glasses, sound was also a major discussion point. Standardization across the supply chain remains a pressing issue, with questions on whether SMPTE or ACE could help streamline data formats. Lampard pointed to the FLMX format as a useful tool that still requires updates. Paul Huis in’t veld raised concerns about the “hassle of data” and the costs associated with storing unnecessary 3D files when some cinemas may only require 2D.
Ultimately, the panel highlighted James Cameron’s commitment to ensuring every cinema—large or small—receives the appropriate version of his films, so they can screen it at the highest possible technical quality. Scott Taylor concluded by emphasizing the need for exhibitors to participate in an upcoming survey and, most importantly, to update their cinema data (e.g. auditorium details, technical capabilities) in the two new online portals. Doing so will help to better manage the multiple versions of major releases—such as Avatar—and guarantee each theater can screen these films exactly as intended.
Technology Update: Audio and AI
Julian Pinn’s update on cinema audio highlighted the crucial role of sound in conveying emotional depth in films. He expressed enthusiasm about presenting in a cinema equipped with Dolby Atmos and Meyer Sound. Pinn provided an overview of over a century of audiovisual innovations and demonstrated real-life sound loudness examples. He also visualized the human auditory system’s capabilities and emphasized the importance of maintaining audio standards between studios and cinemas. However, he noted a growing issue: an increasing amount of content is not mixed specifically for cinema. While 5.1 is the minimum standard, 54% of content is still delivered in simple left-right (LR) stereo.
AI in cinema was a key topic of discussion, with Patrick von Sychowski describing it as “probably the most important invention since electricity.” His presentation explored three fundamental questions: Where is AI in Hollywood? How will AI impact cinema? What is the future?
The impact of AI was evident in last year’s Hollywood strikes, where writers and actors protested uncertainties surrounding AI’s role in content creation. Directors and teamsters did not strike, as their jobs are not as easily replaced by AI. Set designers, meanwhile, secured an agreement ensuring they won’t be forced to generate prompts for virtual set creation.
Despite the controversy, AI is already widely used in Hollywood—though many remain reluctant to admit it. A major concern is the ethical and legal debate over generative AI, which some critics label as “large copyright theft models.” Regulations are emerging to prevent AI from being trained on copyrighted material without permission. Lionsgate, however, has struck a deal with Midjourney, allowing the studio’s content to be used for AI training in exchange for future rights to the resulting models. Similar agreements may soon follow across the industry.
AI’s influence extends beyond production. It is already being used for film programming and marketing, including AB testing for newsletters, AI-assisted versioning and redubbing for localized content, low-budget filmmaking, where AI-generated visuals and scripts are becoming more common, deepfake technology, which raises concerns about fraud and misinformation.
Looking ahead, AI’s capabilities will only expand. Dario Amodei, CEO of Anthropic (inventor of Claude AI), in a recent discussion in Davos, has even suggested that within a few years, robots could surpass humans in nearly every task. While such predictions remain speculative, the rapid advancement of AI ensures that Hollywood—and the entire film industry—must adapt to its transformative potential.
AI: Ally or Adversary? Navigating its potentials for the cinema industry
The following interactive plenary session, led by Guillaume Branders, David Hancock, Julian Pinn, Patrick von Sychowski, and Cathy Huis in’t Veld-Esser, also fostered an engaging dialogue on the role of artificial intelligence (AI) in shaping the future of the cinema industry. Audience participation played a key role in exploring both the opportunities and challenges AI presents.
Guillaume Branders questioned how AI could be applied practically, not only in programming but in other aspects of the industry. Cathy Huis in’t Veld-Esser noted that the role of AI will continue to expand. Julian Pinn raised concerns about AI’s reliability, pointing out that models like ChatGPT sometimes generate false or misleading information. Guillaume Branders echoed this by warning about the risks of fabricated case studies and misinformation. David Hancock emphasized the necessity of high-quality data, stating that the most successful players in the industry secure valuable data through strategic partnerships.
Patrick von Sychowski reflected on the rapid advancement of AI, noting that its capabilities have evolved significantly within just a year, prompting both excitement and caution. Guillaume Branders highlighted a positive aspect of AI, explaining how it enables small producers, such as those in Belgium, to distribute films in multiple versions with greater efficiency. Shifting the discussion towards audience preferences, David Hancock questioned whether the industry had truly learned from past experiences with 3D, emphasizing that, ultimately, audiences are drawn to high-quality films regardless of technological advancements.
The day concluded with a final wrap-up by EDCF President Cathy Huis in’t Veld-Esser, followed by a social dinner and networking event, providing attendees with a chance to connect and exchange ideas in a more relaxed setting.
