small annual expenditures in maintenance and replacement parts. On the other hand, exhibitors felt they would be lucky to get 10 years of service from a digital projector, after which there would have to be a refresh in capital expenditure. Meanwhile, distributors would realize significant savings by eliminating the high cost of film prints with corresponding shipping costs, and instead distributing digital files either by satellite or hard drive.

The Virtual Print Fee was designed to better balance savings and expenditures for both