A PENZANCE cinema could be under threat of closure within the next five years because it cannot afford the switchover to digital technology.

The Savoy is among an estimated 300 small independents facing a financial struggle to convert from 35mm polyester film to digital.

Geoff Greaves, director of Merlin Cinemas, which runs The Savoy and eight other cinemas based mainly in Cornwall and Devon, said switchover costs of £80,000 per cinema screen were impossible to meet in the current financial climate.

"These costs are totally uneconomical for small sites. But this is not the time to panic. We're still several years away from not being able to produce 35mm film which gives us breathing space to find a way to finance the transition and keep even the smaller sites open."

The switchover is expected to cost the industry more than £50 million.

The UK Film Council estimates that only the big multiplexes will be able to buy the digital projectors and servers required.

The switchover means that 35mm film canisters delivered to projection rooms will be replaced by computer downloads.

And the fact that digital film is less expensive to make and can be encrypted to stop pirating has given Hollywood motivation to go completely digital.

"The problem will be when the big operators go totally digital then the film distributor will have less reason to produce 35mm copies for the independent sections.

"There needs to be some compromise from those who stand to gain most out of the digital revolution. They could pass some of their savings on to us," said Mr Greaves.

Phil Clapp, of the Cinema Exhibitors Association, told The Cornishman he had faith that the industry would recognise the importance of the independents.

"There's a mutual interest on the part of the industry to get their films out to as many cinemas as possible. And there's no doubt that Merlin Cinemas is a strong business which is exactly the kind of businesses the industry will want to help through the transition."