US digital cinema outfit Avica has unveiled plans tobuild a digital exhibition network on 515 screens across Ireland, both Northand South.

Avica has launched a new subsidiary, Digital Cinema Ltd(Ireland) (DCL), backed by Euros 40m in venture capital, to install thenetwork.

Avica claims that "Ireland will be the world's firstdigital nation" as a result of its investment.

The announcement comes one month after the UK FilmCouncil revealed plans to install a UK digital circuit of 250 screens over thenext 18 months (ScreenDaily.com, 26 February).

Kevin Cummins, Avica's head of operations in Ireland,told ScreenDaily.com: "After looking at three different territoriesIreland was selected as the right place to prove the concept and the businessmodel, for reasons of size, English language, and the fact that Irishexhibitors are very open to the idea."

The cost of on-site installation in Ireland will be borneby Avica/DCL. The move is an important one as it instantly resolves the impassethat has held back the launch of digital exhibition networks so far - whetherthe exhibitor or distributor pays for the equipment.

The Avica announcement said that the digital network"will have no effect upon existing business arrangements between exhibitors anddistributors, while delivering the inherent advantages of digital presentationsystems, such as enhanced security, aesthetic improvements and easiermanagement."

However, Cummins would not elaborate on the businessmodel of the network. "We are lookingat an entirely new model of payment which I'm not in a position to speak aboutjust yet. We will be making a further announcement in May when ten sites willbecome fully operational."

He added that Avica has agreement in principle with theAmerican studios and major distributors to test this new model in Ireland.

Each film will be supplied by distributors on a 100gbhard drive and delivered by DCL via satellite to multiple exhibitors, therebyreducing print manufacturing and delivery costs. According to Cummins thismethod of delivery will also incorporate advertising and live feeds of sportingand other events.

Kevin Anderson of Ireland's largest cinema operators, theWard Anderson group, is quoted in the Avica press release saying: "DCL offeredus the only solution that both supports Hollywood standards for digital cinemawhile providing an economically attractive option for independent distributorsand exhibitors."

The Avica announcement was greeted with some surprise inthe Irish distribution trade where nobody has heard of an agreement with thecompany to supply forthcoming titles on the digital platform.

When asked for comment by ScreenDaily.com, BrendanMcCaul of BVI (Ireland) said, "Disney does embrace the new digital technologybut I'm not aware that a deal has been done with Disney to supply product. Ican't comment on it until I see something tangible on the proposed businessmodel."

Other sources in the trade said it is possible that dealsmay have been struck in LA with Avica, but that there would be issues of cost,at least in the short to medium term, because of the need to parallel supplydigital and 35mm copies of films to multiplex sites with only one or twocinemas converted to the new delivery system.