Kodak ends sponsorship of Oscars’ home

While preparations for this year’s Oscars ceremony are well underway in Hollywood, its home since 2002 - the Kodak Theatre – will soon no longer be a part of the film industry’s night of nights.

While the venue next to the famous Grauman’s Chinese Theatre remains, Eastman Kodak has ended its $74 million 20-year naming rights deal.

The company that owns the theatre – the CIM Group – objected to the decision, but a court ruled in favour of Kodak on Wednesday.

CIM will be permitted to keep the Kodak name on the theatre facade for this year’s proceedings, which will take place on 26 February.

“Kodak is a company that has been transforming,” Kodak spokesman Christopher Veronda told ABC News. “It was part of the bankruptcy court proceedings. We are taking a number of actions to reduce the cost that we undertook.”

Kodak was, and arguably still is, the perfect match for the Academy Awards but in recent years has struggled to keep up with evolving technology trends.

The company filed for chapter 11 bankruptcy in January and has been forced to make cuts, of which the naming rights are one, in order to get back on its feet. This month, a business statement released by the company announced it had “plans to phase out its dedicated capture devices business – comprising digital cameras, pocket video cameras and digital picture frames.”

Successfully opting out of the sponsorship agreement will save Kodak approximately $3 million annually.

A new deal for the venue requires the approval of the Academy of Motion Picture Arts and Sciences and whether or not the Oscars will remain at the theatre itself is undecided.

In December, the Academy threw its options open through a clause in its 20-year deal with the CIM Group that allows it to consider other venues before it commits to the final 10 years of the contract.

Seven of the nine films nominated for this year’s best picture were shot on Kodak film.