About the CBG
A few years ago, several smaller theatre owners who served on the Independent Theatre
Owners Committee of NATO came together to form the Cinema Buying Group LLC, which
at the time was designed to obtain group discounts on theatre supplies. A few months
ago, the governing documents of CBG were enhanced to facilitate acquiring digital
cinema equipment and service. On October 26, 2006, CBG members voted to dissolve
the separate for-profit entity and to reconstitute as a program within the National
Association of Theatre Owners. As described in the CBG-NATO Participant Agreement:
Purpose
CBG-NATO has been formed to enhance the ability of its Participants to obtain cost-justified
discounts and more favorable payment terms with respect to their purchases of goods
and services used in their operation of motion picture theatres and to assist industry
manufacturers and suppliers in promoting their goods and services and in obtaining
accurate information regarding product performance in the industry.
Separate Program Within NATO
CBG-NATO is a buying program for independent theatre owners and operators, and subject
only to such NATO oversight as trade association law and fiduciary duties dictate.
CBG-NATO is financially self-supporting and has a separate dedicated bank account.
The program has a separate website, and its principal place of business is determined
by the location of its managing director. CBG-NATO’s managing director reports to
the chair and vice-chair of NATO’s Independent Theatre Owners Committee.
Cost of Membership
Currently the annual membership fee is $150 for NATO members and $250 for non-NATO
members. Fees will be prorated for applicants joining part way through the year.
Potential
Because CBG lacked full-time direction, and had been managed by generous but very
busy volunteers, it never grew to its full potential. Nonetheless, the new structure
of the group can serve as the foundation for a digital cinema buying group. This
new digital cinema buying group, however, will no longer merely confer certain benefits
on its members. It may mean the difference between independent theatres existing
at all in the new digital world. It is critical, therefore, that the digital cinema
buying group expand its membership base as quickly as possible.
The negotiating and buying power of this group is only as strong as its membership
base. The group needs to represent several thousand screens to be truly effective.
We need you to join the Cinema Buying Group now. The documents governing the Cinema
Buying Group-NATO program are included with this letter for your review. I want
to draw your attention especially to section 6(g) of the CBG-NATO Participant Agreement,
entitled “Special Provisions for the Acquisition of Digital Equipment and Service.”
These provisions spell out in detail what we need, as a committed group of independent
theatre owners, in negotiating a favorable digital cinema equipment and service
deal.
We cannot give you all the answers at this stage—indeed, you, as a new member, may
well contribute to answers—nor can we issue any guarantees or assurances. But we
know that independent exhibitors will substantially improve our opportunities in
the digital world if we work together.