The Big Picture - Making the Case for HD, Again

By Nick DagerNovember 15, 2007 Issue #116 Five years ago, in our premiere issue, I wrote the following: “To think that digital cinema is merely about replacing the approximately 37,000 movie projectors currently installed in North America is to seriously underestimate the size and scope of the change that is currently taking place.” As we begin our sixth year chronicling the global development of digital cinema, that still holds true. The recent ShowEast convention highlighted the growing importance of alternative content in theatres. HD will be a critical part of the future for filmmakers and exhibitors alike. The economics on both sides of the equation demand it. In that first issue I went on to write: “Obviously the theatrical market is a major part of this story if only because virtually everyone in production considers success in Hollywood to be the benchmark of success in this industry. But while the transition of movie theatres from film to digital projection is extremely important it is only the tip of the iceberg. Digital cinema is already having a huge impact today. Think of the opportunities.” One of the highlights of ShowEast 2007 was a seminar entitled “Now Showing: Alternative Content in Your Theatre.” In that session Mark de Quervain, sales and marketing director, Vue Entertainment said his company has had success presenting live rock concerts in 40 theatres across the UK, Spain and Sweden, charging $30-$40 for tickets. Pricing is an issue and varies by band, he said, and dealing in alternative content is a lot of hard work but “it is worth it.” The key challenge is building an audience. De Quervain is convinced that alternative content is a positive for exhibitors because, he believes, it drives new customers to theatres and, theoretically at least, they will be more likely to come back to see movies. “The [alternative content] business model is still fragile,” he said, and will take shape over time. But he emphasized that “we are, and always will be, about the movies.” Kurt Hall, president and CEO of National CineMedia, also spoke. He said there are real alternative content opportunities for exhibitors in the States as well. Hall lamented the fact that there is currently no recognized name for alternative content other than alternative content. “Some labeled it ODS for ‘other digital s—t’ but nothing has stuck and I’m awfully glad that one didn’t,” he said. For Hall the big challenge with alternative content is “changing consumer behavior.” He noted correctly that Hollywood does most of the marketing for feature film releases but with alternative content that support does not exist. People are used to coming to a movie theatre on weekends to see a movie but getting a significant number of people into a theatre at off times for content they may not know is difficult. Like de Quervain, Hall speaks from experience and National CineMedia has had one of the most widely known success stories in alternative content with its presentations of New York’s Metropolitan Opera. Last year the opera was shown six times in theatres and sold more than 200,000 tickets at $18 each. There will be even more presentations this year and most have already been pre-sold but Hall cautioned that the Metropolitan Opera is “the exception and not the rule.” De Quervain, Hall and other speakers showed clips from the events they’re held this year and seminar attendees remarked positively about the quality of the content. What needs to be emphasized is the fact that all of those clips – and the vast majority of alternative content presentations all around the world to date were shown in HD. Hollywood is quickly moving to a 2K-4K-production workflow and feature films of the future will in all likelihood only be distributed in certified DCI-compliant packages. But showing alternative content on a 2K or higher projection system will not dramatically increase the audience coming to see it. And it obviously adds to the expense for producers and exhibitors alike. Outside Hollywood the production community is quickly moving to an HD production workflow and that will not change for many years to come. Most of the alternative content that exhibitors can take advantage of now and in the foreseeable future will be in HD. Hall concluded his remarks by saying that the theatre of the future must become “a multi-purpose entertainment center.” That is true. What Hall did not say is that the theatre of the future must accommodate multiple formats. The future of alternative content is HD. Editor’s Note A funny thing happened on my way to the special 3D program that was held the second morning of ShowEast: I was told I couldn’t attend. I was told this even though I was fully registered for the show and had valid, recognized press credentials. The program was entitled “The Future of 3D in the Digital Age” and the three speakers were John Fithian, president and CEO of the National Association of Theatre Owners, Chris Johnson, vice president, Classic Cinemas, and Jeffrey Katzenberg, the head of DreamWorks Animation. Since 3D is one of the hottest topics in our industry and the panel was an impressive one, I felt that the 40,000-plus professionals who read Digital Cinema Report each month would have a legitimate interest in knowing what was said. Mitchell Neuhauser, executive director of Nielsen Business Media, eventually allowed me to attend the seminar some fifteen minutes late and my report on what took place there can be found elsewhere in this issue. But this is far from an isolated incident and in no way do I feel I was singled out. The people who run the company that manages ShowEast and several other related trade shows have a history of treating the press as if we don’t belong at their events. This is simply not acceptable and it needs to change. http://www.digitalcinemareport.com/thebigpicture_116.html