Los Angeles - Five of Hollywood's major movie studios on Wednesday pledged to support a $1 billion effort to equip 20,000 U.S. movie theater screens with digital cinema projection systems. Digital Cinema Implementation Partners (DCIP), a joint venture that represents theater owners AMC Entertainment, Cinemark and Regal Cinemas signed the pact with Disney (NYSE: DIS), Fox (NYSE: NWS), Lionsgate, Paramount (NYSE: VIA) and Universal (NYSE: GE), which calls for the studios to pay a "virtual print" fee of about $1,000 per screen to help offset costs, the Associated Press reported.

Digital upgrades are estimated to cost around $70,00 per screen.

Variety noted that DCIP needed the studio commitments in order to access a $1 billion credit line for the upgrade secured earlier this year through JPMorgan Securities.

DCIP said it hoped to sign similar agreements with the other major studios and independent distribution companies.

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http://www.variety.com/article/VR1117993164.html