Vue backs all-digital cinema in U.K.

5:00 AM PST 10/25/2007 by Stuart Kemp, AP

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LONDON -- Vue Entertainment, the U.K.'s third-largest exhibition company, has pumped £5 million ($10 million) into Europe's first new all-digital cinema, the company said Wednesday.

The theater, equipped with digital projectors, digital sound and Digital 3D equipment, is scheduled to throw open its doors Dec. 14 in Hull, England.

"We believe this development paves the way for the future of cinema by encouraging film distribution and studios into providing more films in digital format," Vue Entertainment CEO Tim Richards said. "The installation of a 10 Terabyte computer server allows over 100 movies to be stored at any one time, providing the opportunity to offer a wide and varied choice of movies."

Vue also plans to show alternative content covering music, sport and comedy in addition to movies at the 10-screen multiplex, Richards said.

The move comes less than a week after Vue said it would invest £6.5 million ($13 million) in a duo of new multiplex sites in the U.K. (HR 10/18).

The cinema operator will dish out £4 million ($8 million) for a site in Kent, England, and another £2.5 million ($5 million) for one in Stirling, Scotland -- both with digital cinema capabilities.
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