Tuesday, July 29, 2008

Digital cinema the Norwegian way: immediately and for everyone. The project backed by the Norwegian Government presented at a seminar in Kristiansand

http://www.mediasalles.it/dgt_online/index.htm

 

Small but fast. This is how the Norwegian market’s shift to digital might be defined, according to the information emerging from the international seminar organized at Kristiansand by Norgesfilm and by Nordic Digital Alliance. In a country of four and a half million inhabitants, who buy around 12 million tickets a year in their 230 cinemas, most of which are owned by the municipalities, the digital adventure had already begun in 2001, with advertising on the big screen shifting to the electronic format. The adventure continued with the launch of two trials, run in 2006, based on a total of 33 fixed digital projection systems and one mobile one. These experiments were conducted on the one hand by Nordic – Norway’s Digital Operability in Cinema – a consortium in which the participants were, amongst others, the University of Trondheim and Unique Digital, the company responsible for digitalisation of advertising – and, on the other hand, NDA – Nordic Digital Alliance. The latter organization counts amongst its owners Arts Alliance Media, based in London but with a Norwegian founder – Thomas Hoegh –, and the cinema in Kristiansand, one of the big 7 on the Norwegian market. Today in Norway digital screens have reached a total of 40 (two of which have Sony 4K technology) out of an overall 440, thanks also to the private initiative of the cinemas in Bergen (4 screens) and Lillehammer, with a projector financed by the national film library. But the Norwegian recipe for digital would not be complete without a basic ingredient, which is Film&Kino, the organization that brings together the Country’s municipal cinemas and collects, on behalf of the Government, the tax on cinema tickets (about 2.5% of ticket price) and on DVDs, which brings in approximately 10 million euros a year, destined for the Norwegian Cinema & Film Fund.

Film&Kino has had free rein in using the “extra money” deriving from savings on the use of this annual income, which today amounts to a little over 15 million euros. This figure provides the basis for financing a digital transition that is meant to be not only quick but also complete. “The Norwegian Government,” Lene Løken, director of Film&Kino points out, “believes it should guarantee wide opportunities for access to cinema-going for all citizens, including those who live in areas where the cinemas would not be able to find a commercial balance, if left at the mercy of the market. Therefore, in a country like ours, where around fifty screens generate 90% of the box-office, public institutions have set themselves the objective of ensuring that the digital transition will involve all 440 of the present screens, creating benefits for the smaller theatres and giving them new opportunities,”

The economic model that has been identified to cover the total cost of the operation, estimated at around 50 million euros, was described by Jørgen Stensland, director of the Film&Kino consultants: “The investment by Film&Kino and the cinemas, which will amount to around 33 million euros, will cover 60% of total expenditure. The remaining 40% will be generated by distribution on the basis of the VPF agreements that we are negotiating with the studios, if we reach an agreement. Film&Kino will act as the credit institutes’ guarantor for the whole operation. We foresee costs being amortized in six years, although as a precaution contracts will be signed for eight. Theatres can choose how to pay their share in a variety of ways: everything up front, for example, or by a leasing agreement of up to six years. Special contracts will be signed with cinemas that are already equipped, as long as they have equipment that meets DCI specifications.” The Norwegians thus have clear ideas on digital: all, “no-one excepted”, will have to meet the objective and it’s quality DCI 2K for all of them, including travelling cinemas. “Using this strategy set up by public intervention,” continues Stensland, “we are facing up to an ambitious challenge: to obtain from the digital transition only the advantages it promises. On the basis of what we are learning from the two trials, which are being regularly monitored by an independent body, we foresee that the winners will be high-budget films and art-house movies. A larger number of popular movies and more quality titles will be available more quickly, even in small cinemas, which will improve their financial balances. And there will be more opportunities for European films.”

Projects for the distant future? “Practical short-term prospects: we calculate between 12 and 16 months to roll-out,” is Stensland’s reply. “We are a small market and wish to proceed all together and have projectors and servers before the suppliers are flooded with demands for huge quantities from bigger markets and companies. And we also have the advantage of having a single body to guide the transition and manage the different phases.” So digital the Norwegian way: immediately and for everyone.

 

XDC Announces VPF Agreements with 6 Studios

http://www.mediasalles.it/dgt_online/index.htm

XDC is the Belgium-based company created by the EVS group and operating in several European countries to act as integrator in the cinemas’ transition to digital technology, by proposing solutions that aim on the one hand to boost the availability of digital content and on the other to finance technological innovations. Many will recall the proposal made some years ago: the installation of an electronic or digital system on the basis of a sort of a monthly fee to be paid by the exhibitor.

XDC has recently started a new phase: at the closure of the Cannes Festival, the company announced that a non-exclusive agreement, along the lines of the Virtual Print Fee, had been reached with four studios to finance the adoption of DCI compliant digital systems on 8,000 European screens. A similar announcement followed a month later, concerning the agreement with Sony Pictures and Universal.

The six major US distributors agree on the one hand to make their digital content available for the European market and, on the other, to allow XDC a contribution proportional to the amount they will save by distributing their films in digital format instead of on 35mm.

Thanks to this mechanism, the cost of the digital transition would be shared approximately two thirds by distributors and one third by exhibitors.

We talk about this to Fabrice Testa, Vice President Sales & Business Development at XDC.

Let us consider your agreement from the point of view of European exhibitors interested in shifting to digital: how could their theatres become part of the “happy few”, that is the 8,000 screens (out of 30,000 operating in Europe) that are your objective?

According to the VPF model experimented in the United States, the studios’ contribution will be paid directly to XDC, which will act as intermediary, initially bearing the costs of purchasing the digital projection systems. The contribution will be calculated on the basis of the quantity of product from each major projected by every individual screen. Very pragmatically, I would therefore encourage those interested in taking part in the scheme to contact us: evaluations will be made case by case, in relation to the number of cinemas and screens to be converted to the new technology, their seating capacity and the number of tickets sold, as well as the market share represented by the films of each of the majors in question, of course. In principle, any theatre could “generate” this type of contribution, whatever the number of mainstream movies it projects: however, we have to be certain that the costs of the operation will be covered within the period of time established (10 years).

This confirms the opinion of those who believe that VPF is not the “universal panacea” for what is one of the major impediments to the digitalization of cinemas, i.e. how to redress the balance of costs between distribution and exhibition. What will happen to theatres that do not meet the VPF requisites?

It is clear that cinemas whose programming is based mainly on domestic or local films or in any case on those not distributed by the majors will hardly be able to benefit from the scheme. This is another reason why XDC has foreseen a leasing formula that will make it less of a financial burden for the cinemas themselves to purchase the equipment, whilst at the same time ensuring XDC’s technical assistance.

 

Monday, July 28, 2008

Will 3-D Sportscasting Save the Movie Theater?

http://www.wired.com/print/entertainment/hollywood/news/2008/07/portfolio_0724

 

By Kevin Maney, Portfolio.com  07.24.08

News from Portfolio.com

 

Dallas Mavericks owner Mark Cuban gave a presentation to the FCC about the future of digital media, and his number one point -- obviously a little self-serving, but it wouldn't be Cuban if it wasn't -- was that people will be able to go to a movie theater and watch a major sporting event in 3-D.

 

Crazy talk? Not at all. We're going to see a lot of experiments in this realm over the next couple of years. As I wrote about in Portfolio, movie theaters are increasingly installing expensive equipment that will let them show digital 3-D films. Theaters will be looking for ways to make extra money on that investment.

 

Meanwhile, Pace Technologies has been developing live-action 3-D cameras chiefly for Hollywood. Pace cameras were used to shoot Journey to the Center of the Earth, and right now are shooting James Cameron's upcoming 3-D movie, Avatar. As it turns out, the cameras can also shoot live events in 3-D.

 

Earlier this year, I visited Pace and saw a demo -- and it truly is a different experience from seeing a game on 2-D television. It's not like seeing it live, either, but something different and interesting. As the Pace folks explained, for instance, they discovered that constant cutting to different shots -- a TV staple -- isn't necessary in 3-D. It seems better to let the camera take in the full-court action. Viewers feel a little like they're watching from halfway up the arena seats.

 

Cuban experimented with showing a Mavericks playoff game in a theater, and the NBA tried a closed-circuit 3-D broadcast of the 2007 All-Star game, showing it to only 600 people in a Las Vegas theater.

 

But there are high hopes in both sports and the theater industry around this. Imagine the local theater showing the Super Bowl in 3-D, or the World Cup soccer finals.

 

I'd go.

 

Friday, July 25, 2008

DCIP Reaches VPF Agreement With Fox

http://celluloidjunkie.com/

July 25th, 2008

After industrywide speculation and concern over the absence of any news about virtual print fee (VPF) agreements being signed by Digital Cinema Implementation Partnershttp://i.ixnp.com/images/v3.42.0.2/t.gif (DCIP) the company finally announced their first deal which rumor has it is with Twentieth Century Fox. The news was reported by Reutershttp://i.ixnp.com/images/v3.42.0.2/t.gif and has not yet been made official by DCIP, however the company’s CEO, Travis Reid was quoted as saying:

“A party has signed a deal and we think it won’t be long until we have multiple studios.”

There are no details yet about the terms of the deal, nor any confirmation that it is with Fox, though during a conference call on Thursday Regal Entertainment’s CEO confirmed that a VPF agreement had been reached with at least one studio:

“We can’t disclose which studio, but we consider it to be a major milestone. It is always difficult in getting someone to be willing to be the first.”

Paramount is also rumored to be close to announcing a deal with DCIP, as is Walt Disney Studios.

DCIP was formed by North America’s three largest exhibitors - AMC Entertainment, Cinemark and Regal Entertainment - to manage and finance the rollout of digital cinema equipment and technology within each circuit. With 14,000 screens between them it is easy to see why the industry eagerly awaited news that the studios had come to some form of agreement with DCIP to subsidize the cost of installing digital cinema equipment. Due to the large size of the rollout, such a deal was viewed as a bellwether for the types of VPF deals other exhibitors would be able to get. Recent VPF deals announced by other integrators such as AccessIT in the United States and XDC in Europe did little quell everyone’s anticipation over news from DCIP.

No doubt even DCIP was getting a little anxious over the lack of progress on their VPF agreements they were able to make public. The company was founded in February of 2007 by the three theater chains and had hoped to wrap up their negotiations with studios over VPFs by the end of last year. As almost anyone working in or following the industry now knows, the studios began playing hardball with integrators such as DCIP on the contractual terms of the VPF agreements, haggling over every last detail including usage fees for alternative content and the length of the deal. XDC’s VPF with Hollywood studios is reportedly only USD $850 per film, per run.

And there’s one main reason that the rollout of digital cinema has stalled at around 5,000 screens in North America (out of 37,000); rolling stock prints range from USD $1,200 to $1,500 so even with VPFs the the distributors save heaps of money, whereas exhibitors are forced to pay for expensive digital cinema equipment they claim won’t save them any money or increase their revenue. That the standards for this equipment are still being determined by SMPTE and DCI hasn’t helped matters either.

However, in 2009 Hollywood studios plan to release upwards of 11 movies in digital 3D which will require the equipment to be installed on a broader scale. Presently the number of screens equipped for digital 3D in North America hovers around 1,300, making it difficult to release two such films into the market at the same time. News of the DCIP deal may be a relief for a few studio executives have otherwise to struggle to find enough digital screens to place their 3D releases on. Studios have actually begun to push some of their 3D releases back into 2010 to make certain they will have enough screens to put them on.

The thinking within the industry is that once DCIP starts announcing VPF agreements the rollout of digital cinema should ramp up soon thereafter. Michael Lewis, chief executive of 3D systems provider RealD, told Reuters:

“When the DCIP deal drops, then digital cinema is really on its way.”

Here’s to hoping Mr. Lewis is also fortune teller.

NATO's CBG Selects AccessIT To Digitize 8,000 Screens

http://boxoffice.com/blogs/chad/2008/04/natos-cbg-selects-accessit-to-1.php

 

posted April 2, 2008 12:31 PM

 

Despite all the capital letters in the headline, it's the number that stands out.

 

The National Association of Theatre Owners' Cinema Buying Group has selected AccessIT to digitize more than 8,000 screens on behalf of its 600-plus independent exhibitors.

 

As NATO Vice President and General Counsel Kendrick Macdowell put it this morning, "If you are following digital cinema, you know this is a big deal."

 

“The strength of our industry," Macdowell said, "is in its diversity. We’ve got big circuits that do a fine job servicing our patrons, and we’ve got hundreds of small independents that do a fine job servicing our patrons, and there’s a role for each in this industry. And it was very important to us that the independents not be left behind in the digital transition.”

 

AccessIT Chairman and CEO Bud Mayo told Boxoffice that the digital integrator plans to incorporate a significant number of the independents into its previously announced Phase Two rollout of 10,000 screens starting this summer, and will likely get to the rest in a custom-tailored "Phase Two-and-a-Half."

 

Mayo said that AccessIT will be "sitting down with each one of those CBG members, both individually and collectively, with the folks from NATO at our side, to work through a deal and fit them into our Phase Two program where appropriate or into, in fact, a very distinct program for those theatres like sub-run houses and drive-ins and other categories that may not fit squarely into the model we created in Phase Two or previously in Phase One but still can be supported. And still can have an opportunity to work through it."

 

According to Mayo, CBG members will likely account for a significant percentage of those 10,000 Phase Two screens.

 

“I would say that there’s a good chance that at least half of them could be represented by CBG—hopefully more," he said. "They’re good, solid theatres—good operations and good locations—and we’re very interested in all of them.”

 

Thursday, July 24, 2008

Ymagis gains Studio backing for European d-cinema

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080704-CJ/view.html#6.0

 

Author/s - Charlotte Jones

 

Published: 04-Jul-08

Ymagis, the pan-European digital cinema initiative established in 2007, has secured support from three major Hollywood Studios for its targeted deployment of 5,500 d-cinema systems. Paramount, Disney and Fox have signed non-exclusive agreements to support Ymagis' roll-out through the supply of digital content to projection systems in approximately ten territories, including France, Benelux, Italy, Germany and Spain. Ymagis is also reported to be in advanced negotiations with other US and European distributors. There were, however, no details given surrounding any element of financial support, but Ymagis has stated it will provide an alternative business model, in order to promote and maintain the cultural diversity of European cinema markets and one that can be tailored to meet individual exhibitor requirements.

 

Our take...

The Ymagis model is based on the premise that market conditions vary according to territory, city and even the type of cinema operator. As a result, the latest solution will offer European exhibitors a viable alternative to the two other rival facilitators who have gained studio support for European deployment, both based on the virtual print fee (VPF) mechanism, namely Arts Alliance Media and XDC, the latter recently signed up all six major Studios. It also reflects the fact, and perhaps for the first time, that the Studios are not married exclusively to VPF financing agreements. The recent pacts show the Studios are now keen to encourage the spread of digital exhibition in mainland Europe, not least to equip and upgrade sufficient screens for the plethora of 3D movies slated for 2009. The signing of two major European exhibitors for circuit-wide conversions should also act as a catalyst for further large-scale deals, rather than the ad-hoc deployments which have typified European digital progress so far. According to our forecasts, total d-cinema screens in Europe will reach over 11,600 by 2012, up from around 870 at end 2007. Together the combined roll-out target of the three d-cinema facilitators (AAM, XDC and Ymagis) equates to 20,500 screens, or around 72 per cent of the screen base in Western Europe.

XDC signs four Studios to European d-cinema deployment deal

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080523-DH/view.html#

 

Author/s  -  David Hancock

 

Published: 23-May-08

European digital cinema facilitator XDC has signed four studios to its digital cinema rollout plan, under which those studios will contribute temporarily to financing the roll-out and commit to providing their content on a non-exclusive basis to cinemas signed up through XDC. Agreements are valid for 8,000 screens across Europe, including UK, and puts in context XDC's announcement last month that it has signed a marketing, installation and training deal with UK company Sound Associates. Studios involved are Warner Bros, Paramount Pictures, Twentieth Century-Fox and Walt Disney. According to XDC, agreements with the other two studios, Sony Pictures and Universal Pictures, should be signed shortly. The installations under roll-out will be 3D ready. XDC has also recently established an alternative content venture called DDCinema, in common with all the major d-cinema deployment providers. Unlike in USA, screen advertising has not yet become an integral part of the digital cinema plan although CEO of XDC is a one-time senior executive of Europeran screen advertising group Screenvision. XDC expects the DCI-standard deployment to begin within next 12 months.

 

Our take...

There are number of interesting and highly significant layers to this announcement. In itself this is highly significant as it ends the deadlock in rolling out d-cinema in Europe. When only Arts Alliance was in the market with a studio-backed VPF deal, which the XDC one is a variation of, they may have suffered from being alone and this gave exhibitors an excuse not to take it up. In a way, the strength of the AAM plan was irrelevant as a lack of choice signalled to exhibitors that the decision wasn't imminent and there was no comparable offer. The market as a whole is strengthened by this announcement, which brings the number of screens eventually under a studio-backed deal to 15,000, or slightly over half of Western European screens.

It is also significant that both providers are credible players, with Arts Alliance having cut its teeth with the UKFC Digital Screen Network and XDC a long-time provider of digital cinema within Europe. This is also the first signed deployment deal for Warner Bros International. This agreement may still not solve the issue of marginal screens, which is still the area of most interest to governments and supra-national organsiations around Europe.

There are also interesting signs of divergence with the language and terms being employed between the USA and Europe. The XDC agreement does not reference specifically a VPF deal, but talks about a contribution to the financing of d-cinema rollout. This also occurred during the Arts Alliance deal and suggests that XDC has estimated that the negative perceptions of the word VPF in Europe outweigh the clarity of the shorthand. However, the VPF is simply a mechanism to contribute directly to a digital switchover and in a way is immaterial. What is important is that both XDC and Arts Alliance have studio-backed deployment deals (SBDs?) and that guarantees content for exhibitors. Secondly, the deal is considered 'temporary' and not a long-term deal. This is in contrast to the US deals still being done (such as Lionsgate's recent announcement of a 10 year VPF agreed with AccessIT) and suggests that the studios are playing a different game in Europe with regard to the length of their commitment.

Imax scoops two large deals for new digital system

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080328-CJ/view.html#

 

Author/s  Charlotte Jones

 

Published: 28-Mar-08

Imax has concluded two large deals for its forthcoming digital projection system, shortly after signing the largest deal in the company's history, namely 100 screens with AMC over a three year period starting 2008. In the US market, Regal Cinemas has secured an order for 31 digital Imax projection systems in 20 major cinema markets, bringing the total number of Imax theatres in Regal venues to 52 by end 2010. Under terms of the joint venture agreement, Imax and Regal will share both the cost and the revenues, but no further details of the split were available. The first theatres will be installed by November 2008, in time for the release of the next movie in the Harry Potter franchise.

 

In a separate deal, Imax has agreed for Giencourt Investments S.A, a member of the RACIMEC International Group, to purchase and install 35 digital projection systems across Central and South America over the next six years. The deal in Latin America is the second largest for Imax, following the 100 screen deal with AMC, and reflects the potential of cinema markets across the region. As part of the deal RACIMEC will provide an initial deposit with guarantees for future payment and opening dates of new theatres. In 2005, RACIMEC also signed a deal for three Imax systems in Chile and Venezuela.

 

Our take...

The recent deals are testament to the advantages of the forthcoming digital projection system, which Imax has since revealed will comprise two DLP Cinema projectors, instead of the two Sony 4K machines as previously stated. The digital system lowers initial capital costs for the equipment, as well as drastically lowering average print costs, in turn making it a far more attractive option for Studio releases. Last but not least, some high profile 3D releases are also expected to make it on to Imax screens including the specially prepared slate from Dreamworks Animation. Imax has around 300 commercial cinema screens worldwide, of which 60 per cent are housed in North America. The two recent deals with AMC and Regal will bring the total screen base to over 300 in North America alone.

Circuits encouraged by 3D box office results

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080722-CJ1/view.html#1.3

 

Author/s - Charlotte Jones, Screen Digest

 

Published: 22-Jul-08

Canada's largest exhibitor has become the latest in a number of cinema circuits to secure a large-scale order for RealD's stereoscopic theatrical presentation system. Cineplex Entertainment has agreed to install a minimum of 175 3D screens by end 2009, a 13 per cent proportion to its total 1,332 screen base. The deal, like many of the recent agreements in support of the RealD system, following major circuits Regal, Cinemark and Cinepolis, is contingent upon the deployment of the underlying d-cinema equipment.

 

The announcements have also coincided with box office results from the latest digital 3D release, Journey to the Centre of the Earth in July. Out of a total US opening weekend box office of $21.0m, the 3D versions accounted for the majority 57 per cent of revenues, from just 30 per cent of screens (approx 3,200 screens in 2,811 theatres) . As the dominant stereoscopic system in the US, 954 RealD screens generated 55 per cent of the box office for a per-screen average of $12,118 or 2.9 times higher than the $4,116 respective average for the standard 2D version.

 

Our take...

The results show that the existing 3D to 2D ratio (in the region of three times the per-screen-average) has still been maintained, despite this being the widest digital 3D release so far. Cineplex had previously stated that it would join the roll-out initiative spearheaded by DCIP in North America, lead by the three largest US circuits namely, Regal, AMC and Cinemark. The latest deal also shows that three of the four circuits behind DCIP have now expressed an intention to upgrade a substantial portion of screens to 3D, once the prospective d-cinema systems are deployed. The announcements are intended to drive the now lengthy financial negotiations, on how to fund d-cinema to a close, so that these orders can be fulfilled in time for the plethora of 3D titles in 2009.

AccessIT to deliver live 3D broadcasts

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080606-CJ/view.html#

 

Author/s -  Charlotte Jones

 

Published: 06-Jun-08

Leading d-cinema network AccessIT will bring live alternative programming to cinemas through its CineLive SM product starting 2008. AccessIT will initially introduce the technology, which will offer the live broadcast of events into cinemas in both 2D and 3D, in 50 sites in the US, with a later roll-out to 150 sites by end 2008. The CineLive concept was developed with International Datacasting Corporation and Sensio Technologies including an exclusive license agreement with AccessIT for the US market. The first installations will be deployed on AccessIT's satellite equipped, d-cinema screens from Phase 1 of its deployment initiative, comprising 3,700 screens, but will also expand (both its satellite network and CineLive product) to the second scheduled deployment phase on around 10,000 screens. The distribution of live 2D and 3D music and sports events will be handled by its alternative content division, The Bigger Picture.

 

Our take...

So far live 3D broadcasts have been limited to trial screenings, including several broadcasts of NBA games on large screens in the US, while In Europe, there have also been several screenings of live 3D sports broadcasts, including the Six Nations Rugby game between Scotland and England, a joint venture between BBC Sport and the3DFirm, a consortium comprising 3D specialists Inition and rental and post-production company Axis Films. More recently, Orange in collaboration with the International Tennis Federation, broadcast matches from the French Open Tennis in live 3D this month (June). However, there will, at least initially, be very few screens that are fully equipped to receive a live 3D broadcast, (requires a digital system, digital 3D upgrade and satellite dish) and therefore a limited release width for such content in a cinema environment. However, additional investment in the infrastructure that enables both live 2D and 3D transmissions underlines the growing interest surrounding the nascent alternative content market and potential incremental revenues that can be generated from d-cinema systems in a regular multiplex environment.

Opera coming to cinemas in 3D

http://www.screendigest.com/online_services/intelligence/cinema/updates/ci-080708-CJ/view.html#4.0

 

Author/s  Charlotte Jones

 

Published: 08-Jul-08

Opera, already the most popular type of alternative content programming in UK cinemas, will now be recorded stereoscopically for theatrical projection later this year (2008). The UK's Royal Opera House will record select performances from the 2008/2009 season in 3D for distribution to cinemas in the UK and Europe. The news is an addition to the earlier deal to distribute Royal Opera House content with Arts Alliance Media, the UK and European digital content distribution company and technical distribution specialist Arquiva. A total of 16 live and recorded opera and ballet performances, including six in 3D, will now be made available to participating cinemas, which currently includes leading European circuit Odeon/UCI. Stereoscopic capture of the performances will be managed by Pace 3D.

 

Our take...

The offering represents some of the first cultural events to be both recorded and distributed stereoscopically in cinemas, although release width will be limited due to the requirements of having both a digital and 3D system installed. Opera is now the most frequent type of alternative content programming screened in UK cinemas, including four major Opera brands; Glyndebourne, the New York Metropolitan Opera, Royal Opera House and La Scala. Opera events already carry a price premium a number of times above regular movie tickets (average of £16.00 for an opera cinema ticket in 2008) and 3D versions will almost certainly include an additional surcharge, as do 3D movie screenings, but this is unlikely to dissuade consumers looking for a premium opera experience in a convenient location. In terms of a live 3D element for alternative content broadcasts, there have been several trial screenings of live 3D sports on large-venue screens in the US and Europe, with commercial broadcasts expected to follow in due course. Nonetheless, live 3D streaming raises several issues including higher production costs and larger bandwidth requirements for distribution.

Couple Of Interesting Videos: "Beowulf 3D: a case study" And "The digital stereoscopic cinema: the 21st Century"

http://marketsaw.blogspot.com/2008/06/couple-of-interesting-videos-beowulf-3d.html

 

Thanks to Andrew over at Stereoscopic.org for these very interesting videos taken during their recent Stereoscopic Displays and Applications XIX Conference:

 

First up is Rob Engle, Sony Pictures Imageworks who talks about creative and technical challenges encountered during the production of "Beowulf 3D" (note the 3D sections have been blanked out at the request of Sony):

 

And we also have Lenny Lipton of REAL D talking about today's technology changes in the motion picture industry as it pertains to 3D:

 

Survey sees payoff on 3-D - Study analyzed more than 4,000 U.S. theaters

http://www.hollywoodreporter.com/hr/content_display/film/news/e3ib2bc0d26dbbcd6009ecac9e902e52d51

 

By Carolyn Giardina

 

June 23, 2008, 12:00 AM ET

Theaters that exhibited the November 2007 release "Beowulf" in 3-D saw a 65% sales increase in total boxoffice over comparable theaters that exhibited it in 2-D, according to a new study from the Nielsen Co.'s Nielsen PreView.

 

Nielsen PreView's 3-D study analyzed more than 4,000 U.S. theaters -- some with 3-D and others without -- that housed at least four screens. These sites were considered comparable theaters in that they had a proven track record in the action/adventure genre.

 

Besides the edge in boxoffice sales, theaters that chose to exhibit "Beowulf" in 3-D on more than one screen saw their sales climb even higher to 100% versus what was expected.

 

In part, the results reflect a premium ticket price for 3-D. "People are willing to pay this higher price for a better theater experience," said Dan O'Toole, new product director at Nielsen Ventures.

 

"With all the upcoming hype around 3-D, we wanted to take a hard look and see if there is truly a consumer appetite for 3-D," said Ann Marie Dumais, senior vp at Nielsen PreView. "Our new research approach contrasted theaters in such a way to demonstrate consumers, when given a choice, will choose 3-D."

 

A related Nielsen study found that while consumers have an appetite for 3-D films, they often lack general awareness and education about what 3-D is and where to find it. In a recent Nielsen moviegoer survey, 48% were unaware their movie was available in 3-D. "We are talking about are they aware that a given movie is offered in both formats, what that looks like and where to find it," Dumais said.

 

There are currently a little more than 1,000 3-D-ready digital cinema screens in North America. At least 10 3-D titles are expected to open in 2009.

 

The Hollywood Reporter is part of The Nielsen Company.

65% to 100% Sales Increase For "Beowulf" 3D Screens Over 2D!

http://marketsaw.blogspot.com/2008_06_01_archive.html

 

Monday, June 23, 2008

 

VERY interesting survey stats appearing now over at THR highlighting just how good a lift 3D gives to theaters over their 2D counterparts. They surveyed more than 4,000 U.S. theaters with 4+ screens and some with 3D, some without.

 

"...the November 2007 release "Beowulf" in 3-D saw a 65% sales increase in total boxoffice over comparable theaters that exhibited it in 2-D, according to a new study from the Nielsen Co.'s Nielsen PreView."

 

"Besides the edge in boxoffice sales, theaters that chose to exhibit "Beowulf" in 3-D on more than one screen saw their sales climb even higher to 100% versus what was expected."

 

"With all the upcoming hype around 3-D, we wanted to take a hard look and see if there is truly a consumer appetite for 3-D," said Ann Marie Dumais, senior vp at Nielsen PreView. "Our new research approach contrasted theaters in such a way to demonstrate consumers, when given a choice, will choose 3-D."

 

"A related Nielsen study found that while consumers have an appetite for 3-D films, they often lack general awareness and education about what 3-D is and where to find it. In a recent Nielsen moviegoer survey, 48% were unaware their movie was available in 3-D. "We are talking about are they aware that a given movie is offered in both formats, what that looks like and where to find it," Dumais said."

 

Well now - that's where MarketSaw comes into play guys! Spread the word! Apparently there are hordes of folks who need to be enlightened about 3D and just what is coming down the pipe... :-)

 

Wednesday, July 23, 2008

'Journey 3D' to be released in, erhh, 2D

http://celluloidjunkie.com/?paged=3

 

March 25th, 2008

One of the consequences of the absorption of New Line into Time Warner is that some new distribution strategies are being put into place. And someone at WB obviously feels that ‘Journey 3D‘ (aka ‘Journey To The Centre Of The Earth 3D’) will perform better at the box office if it is also released in 2D. Or so I’m told by someone with good connections at New Line.

 

Now there are those who have a point when they say that the ‘Hannah Montana’ 3D concert film would have made money even if it was shot on PixelVision, because of the built in audience. But does anyone think that ‘U2 3D‘ would have been less of a flop if it had also been available as ‘U2 2D’?

 

As for ‘Journey 3D’ the main 3D selling point is, as you might have guessed from the title, the fact that it is stereoscopic. As this review from Comingsoon.net of its screening at ShoWest tells you:

 

David Tuckerman, the President of New Line Theatrical Distribution, came out to introduce the movie, and told the audience that it was still planned for a July 11 release, although it will be distributed through Warner Bros. as per the new Time Warner plan. Director Eric Brevig then came out and said a few words and introduced two of the film’s stars, Brendan Fraser and newcomer Anita Briem, who said a few brief words before the movie started with very cool 3D versions of the New Line and Walden Media logos.

 

 

[T]he 3D does take some getting used to, maybe since they do a few too many gimmicky Uncle Floyd type shots of things flying at the camera, as well as a couple of 3D enhanced jump scares that actually did have me jumping a few times. Once the trio enters the underground world, the movie sometimes looks a bit too green screen with its CG, possibly a factor of the 3D, but Brevig and his FX team have done an amazing job building this fantastic underground world with scenes that often leave you truly wowed. The CG creatures aren’t the greatest in terms of design or execution, particularly the piranha-like fish creatures they face, and it’s surprising how primitive they are considering Brevig’s background, but there’s still a great sense of danger, adventure and most of all, fun, throughout the movie, which did make it an enjoyable experience. The end credits are also very cool, utilizing the 3D CG to create a neat recap of some of the film’s best moments.

 

For those of us who sat through the film at ShoWest, I’d say that this review is far too charitable. The characters are one dimensional, the dialogue hackneyed, the plot contrived and the action scenes derivative. Yours truly sat there the whole time thinking of how much greater it could have been of a real talent like Peter Jackson or Steven Spielberg had directed it, as opposed to some VFX hack making his directorial debut.

 

The one redeeming aspect was the 3D of what came across as the bastard offspring of a tired theme park ride crossed with a un-original platform computer game. And now this 3D aspect is going to be removed.

 

It makes the intro 3D spiel to the film preview come across as that much more ironic, as reported in The Salt Lake Tribune:

 

“It’s a force that cannot be ignored,” actor Brendan Fraser told reporters during ShoWest, the convention of movie-theater operators earlier this month in Las Vegas.

 

Fraser was promoting his summer movie, “Journey to the Center of the Earth 3D,” an update of the Jules Verne story that bills itself as the first-ever live-action film shot in digital 3D.

 

Fraser said his movie is “really kind of a beta of where cinema is headed.”

 

Or not, as it turns out to be the case.

 

When this film flops, as I’m convinced it will, don’t expect anyone at New Line to shed any tears over WB’s improved distribution strategy.

 

Besides, 2008 will remain the placeholder year for digital 3D, which will not come into its own until 2009, when the likes of James Cameron, Steven Spielberg, Peter Jackson and Pixar get behind it.

 

One screen per multiplex, or, How is AAM converting CGR to digital cinema?

http://celluloidjunkie.com/?paged=2

 

April 25th, 2008

 

A press release from Arts Alliance Media (AAM) about their deployment with France CGR Cinémas is more interesting for what it reveals unintentionally than what it tries to trumpet. The headline of the press release is ‘CGR Cinemas and Arts Alliance Media Install the First All-Digital Multiplex in France at La Rochelle’, but it is the subtitle that hints at what’s more interesting about it: ‘Initial phase of CGR digital cinema rollout complete’.

 

The fact that an entire multiplex has been converted to digital is unremarkable. Not only are there scores of such multiplexes in the US, but AAM itself was involved in setting up an all-digital multiplex for Odeon in UK, and they are also not doing without 35mm projectors, as was the case with Vue in the UK. And yet that seems to be the key point of this press release:

 

Circuit George Raymond (CGR Cinémas), one of France’s largest cinema chains and Arts Alliance Media (AAM), Europe’s leading specialist in digital cinema technology, content and deployment have announced the installation of France’s first fully digital 12-plex cinema at La Rochelle. This is a significant milestone for the French motion picture industry and further proves the viability of the Virtual Print Fee (VPF) business model for Europe’s widespread transition to digital cinema.

 

But the more interesting fact is burried in the third paragraph:

 

To date, a total of 19 screens have been equipped with DCI-compliant 2K digital projection systems within 8 different CGR multiplexes across France in the cities of La Rochelle, Blagnac, Brignais, La Meziere, Lattes, Niort, Villenave d’Ornon and Torcy. At the La Rochelle site – the first one to be fully equipped in digital - a one-month extensive test and analysis phase has now begun, which will allow CGR and AAM to assess network interactivity software and data reliability solutions. To enable a smooth transition to digital, the 35mm projection systems remain in place, so each screen can play 35mm or digital prints, as needed.

 

So 19 screens in total, of which 12 are found in La Rochelle, leaves seven screens for the other seven CGR multiplexes, i.e. just one screen per multiplex.

 

From an operations perspective this is self defeating. AAM should know this from the UK Film Council’s Digital Screen Network experience, where the installation of just one screen per multiplex has led to inability to move any film playing in digital, restricting programming to dropping that film or ordering a 35mm print for a smaller screen. So the move only makes sense from the perspective of testing. This is mentioned further down in the press release:

 

Sébastien Bruel, CGR’s Technical Director said “We have worked closely with Alexandre Brouillat of AAM, and with CDS, our integrator partner, in order to design and install a technical infrastructure that supports and enhances our processes, from the delivery of content to the projection: it meets our highest expectations. This flagship installation will allow us to validate our network strategy, make sure our security requirements are met and set up our new operational processes before the next installations.” (italics added)

 

That explains the 12+screen, but not the other single installations. Moreover, AAM already has considerable experience from the DSN, as well as its UK Odeon installation and also dabbling in Norway. So why do they just put in one screen per multiplex, meaning that they will have to return to equip all other screens at a future point. The only explanation is that it does allow for digital 3D as well as showing opera and other forms of alternative content. Echoing the press release is a Variety article:

 

“This will open new perspectives to our group in terms of 3-D and alternative content, as well as faster and more flexible programming and increased efficiency,” enthused Jocelyn Bouyssy, CEO, CGR Cinemas.

 

So a single or two digital screens in a multiplex would be good for showing 3D films and alternative content, which AAM is actively inserting itself into,

 

Either way, the press release promises 100 screens by July 2008, equivalent to a quarter of the circuits screens. Perhaps by then AAM will also have announced more cinema partners - at the current rate of announcement it will take them more than seven years to reach their goal of 7,000 screens - and also Warner Bros or some European distributors as VPF signatories to its plans. Expect some deals to be held back for RAAM and/or Cinema Expo.

 

Regal's 1,500 screen deal with RealD for 3D comes with BIG caveat

http://celluloidjunkie.com/?paged=2

 

May 21st, 2008

 

 Regal likes 3D and is showing it in a big way by promising to install no less than 1,500 of its screens with RealD’s technology, meaning that more than one in ten of all its auditoria would be stereoscopically enabled. But this big hangs on a bigger IF that most of the press seem to skip over. Here is how a fairly long article on the Financial Times starts of:

 

Regal Entertainment, one of the largest US cinema chains, has struck a deal to install new technology that will sharply lift the number of screens capable of showing 3-D films and give Hollywood studios a more profitable outlet for their new releases.

 

Regal has signed an agreement with RealD, which makes 3-D projection technology, to install more than 1,500 3-D screens. The deal will lift the number of 3-D screens operated by RealD to more than 3,500.

 

With cinemas able to charge higher ticket prices for 3-D titles, Hollywood studios are clamouring to release their films in the new technology. DreamWorks Animation will release all of its films in 3-D starting next year with Monsters vs Aliens . Walt Disney will also release 3-D films in 2009, as will Universal Pictures with James Cameron’s Avatar .

 

But what the FT confines to the fine print at the bottom of the article, Carolyn Giardina has the nous to highlight in the first paragraph of THR.com’s article about the deal:

 

Regal Entertainment Group and RealD have inked a deal to install 1,500 RealD 3-D systems in Regal theaters in the domestic market. Consummation, however, is contingent upon digital cinema deployment arrangements.

 

In order to have digital 3-D, a theater first requires a digital cinema installation. Digital cinema deployment deals generally rely on a virtual print fee model through which studios contribute an agreed fee per screen, per movie to offset exhibitors’ installation costs. However, many of these deals remain at an impasse.

 

So if DCIP does not get the VPF deal in place there will be no 1,500 RealD screens. And that is still a very big ‘if’. The $1bn+ deal that was supposed to have concluded by late 2007 now looks likely to miss the Q2 2008 deadline. As Pamela McClintock notes in Variety:

 

At one point, the consortium — Digital Cinema Implementation Partners — wanted all the major studios to agree. Now, it appears that the consortium is prepared to move ahead with only three of the studios aboard: Walt Disney, Paramount (which distributes DreamWorks Animation titles) and Fox. Insiders said they expect Sony and Universal to follow suit eventually, while Warner Bros. and DCIP are said to be far apart on terms.

 

Disney has been the pioneer in digital 3-D, although it is Katzenberg who has become the public ambassador of the fight to convert more.

 

This would be one studio less than even AccessIT’s second VPF deal. Once again it seems that Warner Bros is sitting this one out, have so far signed no VPF deal with either AccessIT, DCIP or Arts Alliance.

 

Moreover, no one is asking the question about how the 1,500 3D screens will get rolled out, particularly if it is to happen in time for the Monster/Avatar 3D movies of 2009. The preferred way to convert cinemas is a whole multiplex at a time, which is how Christie/AIX tackled Carmike, with swarms of engineers and installers settling on multiplexes in one town like locusts, finishing the job and moving on to the next one.

 

But 3D installs will be sprinkled a handful of screens (two or three per Regal multiplex by my estimate) in each site. So if the digital cinema and 3D install it s to go hand-in-hand then installers will have to return to convert all the non-3D digitla screens at a later point, which is neither cost effective or efficient, much like Arts Alliance is has converted CGR in France to-date. Remember that the upgrade of the entire DCIP circuit (Regal, AMC and Cineark is going to take at least three years if not longer.

 

Digital 3D will be a long time coming yet, it would seem.

 

UPDATE: Some of the best analysis comes once again from Screen Digest courtesy of analyst  Charlotte Jones:

 

Once the DCIP model is finalised, Regal could start conversion at (previously announced) rate of about 200 screens per month. There are now just 10 months before the release of Dreamworks Animation’s first 3D effort, Monsters vs Aliens in March 2009 and assuming roll-out began next month, this would give Regal, around 2,000 basic d-cinema screens of which an unspecified proportion would be 3D-enabled by this calendar benchmark. This scenario would be on top of the 134 3D screens Regal had deployed at end first quarter 2008.

While we do not believe that 3D’s incremental production costs, are a substantial issue for the US Studios, a slower take up then the 4,170 digital 3D screens we are predicting in the US market by end 2009, could result in a reduction of the premium revenues attainable from 3D screens or a further rescheduling of titles. The deal has been reported on a revenue-sharing basis with RealD, whereby initial capital costs are lowered or removed, in return for a share of premium revenues. In this respect, maintaining higher ticket pricing for 3D screenings will be essential to this arrangement.

 

It looks that, as with the fate of HD DVD vs. Blu Ray, the fate of DCIP, digital cinema and digital 3D currently rests with Warner Bros.

XDC nabs those elusive VPF deals - including WB

http://celluloidjunkie.com/?paged=2

 

May 23rd, 2008

 

There will be champagne rather than rose wine or Belgian beer being poured, toasted and drunk tonight in Cannes as XDC announces that they have secured VPF deals with four of the Hollywood studio, including the one that has eluded others, namely with Warner Bros. From Forbes.com:

 

Broadcast equipment manufacturer EVS said its unit XDC has signed agreements with Warner Bros. Entertainment Inc., Paramount Pictures Corp., Twentieth Century Fox Film Corp. and The Walt Disney Studios to invest up to 600 million euros in the deployment of up to 8,000 digital cinema installations in Europe.

 

The roll-out period under the agreement - which will see more than 65 percent of the value of projectors, servers, applications and services being co-financed — will last for a maximum of 5 years, with each digitised screen co-financed over a period of maximum 10 years.

 

The group also said agreements with two other studios, Universal Pictures and Sony Pictures are in a very advanced stage and are expected to close shortly.

 

Let us remember how the score card amongst intgrators stacks upso far:

 

- DCIP has come to an agreement with three studios for VPF deals so far (Fox, Disney and Paramount)

 

- AccessIT has signed four studios for its Phase 2 deployment (Fox, Paramount, Universal and Disney),

 

- Arts Alliance has signed five studios (Fox, Universal, Paramount, Sony Pictures and Disney) thoughtwo of these (Disney and Sony Pictures) are believed to have enforced major caveats and opt-outs in their VPH contracts.

 

None of these have signed up Warner Bros, with whom XDC has had a good relationship for many years and are now the first to get on board. It would not surprise me if Warner Bros will now come to some sort of VPF agreement with these other third party operators. Not surprisingly WB gets the first quote in the XDC press release:

 

Veronika Kwan-Rubinek, President, International Distribution for Warner Bros. Pictures commented: “Warner Bros. has established a strong working relationship with XDC over the last few years, supplying more digital releases in Europe than any other studio. This is the first digital cinema deployment agreement for Warner Bros. Pictures International, and I’m pleased to be crossing this milestone with a company as experienced and committed as XDC.”

 

Serge (third from the left in the picture) might not have been in his job a very long time, but he has helped close something that had been dragging on for a long time, but credit goes primarily I believe to the people who have been working behind the scenes for years (you know who you are).

 

Having been dismissed by many as the digital cinema company that changes business models more often than underwear, XDC might yet get the last laugh by becoming the first in Europe to sign up all six Hollywood studios. They will certainly provide competition to Arts Alliance, which is good for any business. Though even then XDC will face the same problems as other third party integrators face, only more so because it is Europe.

RealD and Cinepolis see Latin America in 3D

http://celluloidjunkie.com/

 

July 18th, 2008

 

 Mexican exhibitor Cinepolis has big 3D plans for the whole of Latin america. Its deal with RealD envisions 500 screens to be converted in the next few years. From the press release:

 

The rollout of these 500 RealD 3D screens has already begun with six new screens installed for the release of Journey to the Center of the Earth, and will continue through 2010. The partnership makes RealD the exclusive choice of Cinepolis for digital 3D and creates a strong platform in the market for the upcoming slate of over thirty major studio 3D releases in 2009 and 2010.

 

 The press release then goes on to quote Jeffrey Katzenberg and Disney before remembering to sample the opinions of the two companies that made the deal happen, showing you where the TRUE power of 3D lies today (content, content and, yes, more content). THR.com’s take is that:

 

Cinepolis and RealD are co-financing the venture, though Cinepolis declined to disclose financial details when contacted Thursday.

 

The deal provides a major platform for 3-D cinema in Latin America as Cinepolis continues to expand in the region. Cinepolis rival Cinemark also has a partnership with RealD.

 

and

 

Cinepolis, owned by the Ramirez family, currently has more than 1,800 screens. In recent years, as Mexico’s exhibition market has grown more saturated, the exhibitor has expanded into Guatemala, Panama, El Salvador, Costa Rica, Honduras and Colombia. Moving forward, Cinepolis is eyeing Brazil’s underserved exhibition market.

 

So at the present screen count, one out of every 3.6 screens will be 3D. This is clearly a bit too high, so it is likely to come about when Cinepolis has increased its footprint across Latin America. It must also mean that the screens will embrace digital cinema in 2D first, though whether Cinepolis will finance this itself or with a third party provider is nit clear. This means that the deal might not be contingent on something like the delayed DCIP deal holding up Regal and Cinemark’s 3D plans.

IMAX Goes Big In Australia With Hoyts

http://celluloidjunkie.com/

 

July 14th, 2008

IMAX has announced a joint venture with Hoyts Cinemas, one of Australia’s largest exhibitors, to build four theatres featuring IMAX Digital technology. The theatres will be built in Sydney, Perth and Melbourne with the first three opening in November of 2008 for the release of “Harry Potter and the Half Blood Prince”. The deal, which will double the number of IMAX theatres in Australia, is the first international joint venture in IMAX’s history.

 

The agreement has IMAX and Hoyts splitting the profits from the four new theatres as well as the cost of building them. The latter is not insignificant as both companies have not had an easy go of it financially over the past several years. In 2006, IMAX made their second unsuccessful attempt to find a buyer and was rumored to be near bankrupt. Their stock price, which in 1999 reached a high of $49 plummeted to below $4.00 in 2007 when the company revealed it was responding to a Securities and Exchange Commission accounting investigation and that year over year revenue was off.

 

As for Hoyts, after two years of poor performance revenue-wise, Pacific Equity Partners bought the theatre chain in the third quarter of 2007 for AUD $440 million from James Packer’s Publishing & Broadcasting and West Australian Newspapers. In a press release statement Hoyts CEO, Delfin Fernandez, was not shy about highlighting the financial benefits of the venture. Besides offering incremental revenue from increased attendance, Fernandez said:

 

“. . . IMAX Digital projection system eliminates the need for film prints, which significantly lowers operating costs and enables us to offer our customers a wider range of IMAX content.”

 

In an effort to stay relevant during a time when the industry is trending toward digital cinema IMAX launched IMAX Digital System in June. The projection system provides the same large format visuals that IMAX built it’s reputation on in both 2D and 3D. Despite their financial woes, over the last seven months the company has been busy signing contracts with exhibitors for upwards of 180 systems, 50 of which will be installed before the end of the year. Last December, IMAX signed a deal similar to the Hoyts agreement with AMC Entertainment that will have 100 new IMAX Digital theatres opening in 33 markets across the United States over the next three years. Like the Hoyts deal, the AMC pact doubles the number of IMAX screens in the territory. Then in March, IMAX entered into an agreement with Regal Entertainment Group to build 31 new theaters in 20 U.S. markets by the end of 2010.

 

You might be asking yourself where the cash poor IMAX will be getting all of the dough for such rollouts, though back in May the company lined up financing through Wachovia Capital Finance Corporation as well as an USD $18 million investment from their largest shareholder.

 

One of the benefits for Hoyts in doing a deal with IMAX is that the chain will be able to deploy some form of digital cinema equipment at time when the company has halted such rollouts to wait out the virtual print fee (VPF) battle between Australian exhibitors and Hollywood studios. Because Australian theatres are usually alloted recycled prints, the studios have shown little interest in giving exhibitors in the territory a worthwhile VPF.

 

The first three IMAX theatres will be installed at Sydney’s Entertainment Quarter 12, the Carousel 16 in Perth and the Highpoint 17 in Melbourne. The fourth theatre will be built next year in Melbourne.

 

All Digital, All the Time

http://blog.manice.org/labels/serveurs.html

 

By Bill Mead, Film Journal International

 

This ShoWest 2008 marks approximately two years since the first serious rollout of DCI-capable digital-cinema systems in the U.S. Enough time has passed for us to look back at a few of the deployments to see what issues have been raised, how they have been resolved and, in general, how exhibitors are using the systems. We talked to a number of exhibitors and system integrators who have installed “all-digital” multiplexes and have come up with several views on how their deployments are going.

 

UltraStar Cinemas of Carlsbad, CA, made an early jump into digital in the fall of 2005 with the commitment to equip their entire 114 screens with digital projection through the AccessIT/Christie deployment plan. John Ellison, co-founder of UltraStar, has been a proponent of digital since 2002 when he was the first in California to install six 1.3K pre-DCI Boeing Digital Cinema systems for Star Wars: Episode I.

 

Ellison, a true believer in the power of marketing cinema amenities, was the first in the area to use THX certification and saw digital cinema as the next high-value attraction. As a result, in 2001 UltraStar developed their own “Pure Digital Cinema” marketing campaign to increase audience awareness. With the 2002 Star Wars release, Ellison found that his cinemas that were equipped and marketed as digital were earning up to twice the box office of his 35mm houses. Focused on maximizing his investment, and with marketing support from DLP Cinema and equipment vendors, Ellison was able to create a premium attraction that continues to pay off.

 

UltraStar completed its digital installations in all its screens in early 2006, but still has a few side-by-side film projectors for the occasional title not available in digital, but this is becoming rare. Ellison says, “In 2007, only two or three titles were not available to us in digital.” UltraStar has also added 3D and has six locations equipped with the Real D system. Looking back, Ellison declares, “I could not be more pleased with the way things have turned out. The AccessIT and Christie people have been excellent in making sure our transition to digital has been as smooth and painless as possible.”

 

Premiere Theaters, an independent ten-screen multiplex in Melbourne, FL, has also completely converted to digital. Getting started by converting a single screen to digital 3D with Disney's Chicken Little in the fall of 2005, Premiere's president Rob Kurrus quickly realized that he needed to transition the multiplex to fully digital as quickly as possible. Kurrus says, "It's all about enhancing the customer experience and we saw that digital, with its higher quality and flexibility, was the way to go."

 

After researching the various plans being offered, Kurrus selected the Dolby plan and their servers along with Barco projectors. Over a six-month period in mid-2006, Kurrus added digital systems until all his screens were equipped. Along with the original Real D 3D system, Kurrus has also recently added two Dolby 3D systems. "In hindsight, we probably left too many 35mm projectors in place, as we've found we really don't need them. Based on our experience, you only need 35mm in a few—at the most one-third—of the screens," Kurrus notes.

 

Kurrus admits the transition was not without its issues, particularly when he only had a few digital screens and had to move shows between auditoriums. During the transition, there were times when box-office revenues suffered because Premiere was not able to keep some popular titles in digital throughout the run. "There was a collective sigh of relief from the staff as the last Barco projector was installed," Kurrus recalls. "We have had virtually no problems getting our staff to understand the operation of the systems, as most our staff are fairly technically savvy. In fact, if anything, operating the 35mm projectors is a bigger challenge.”

 

Delivery of the security keys seemed to be an ongoing issue during the transition, but this smoothed out after a few months. An occasional problem still pops up. Most studios are still figuring out how to store and distribute digital content for repertoire titles. For example, after the digital run of one popular title, Premiere needed to bring back the title for a special-event showing. Although they still had the original digital file on the server, for some unknown reason the distributor could not reissue a valid key and had to send in a 35mm print for their event.

 

Rob Kurrus also feels a breakthrough in the simplification of their day-to-day screen operation came after Premiere installed the Dolby Library Server. Previously, titles had to be loaded into the individual players at each screen. The library server provides a single point for loading the titles used throughout the site. Shows can be scheduled, titles can be moved between screens, and the entire system monitored from a central point, or even remotely using a web browser.

 

Kurrus feels the remaining issues to be worked out are in the area of content and key delivery, and is looking forward to the day when all content arrives via satellite delivery and the keys are transparently loaded. He predicts, "Then the only reason to go into the booth will be to change the bulb.” Kurrus goes on to add, "The xenon bulb is the weakest link in the digital system. I would like to see some improvements there."

 

Megaplex Theatre of Sandy, UT, has converted 53 of its 69 screens at five sites to digital, with all digital projectors at its Gateway, Thanksgiving Point and Jordan Commons sites. Being in the Salt Lake City area, home of the Sundance Film Festival, Megaplex’s digital-cinema specialist Mike Renlund found that there is still a need for some 35mm equipment to accommodate titles from independent filmmakers, and he has converted several auditoriums to run both film and digital. Also, because of decreasing costs in mastering digital content, more and more independent filmmakers are making the switch to digital.

 

Renlund is pleased with the digital equipment and feels that most of the earlier transitional issues have been ironed out. “There were occasional problems in getting the right security keys,” Renlund notes. “Since we have both the Dolby 3D and Real D 3D systems, we initially had a few issues getting the right 3D files. Now that the distributors are supplying keys to all auditoriums, for the most part this seems to have been resolved.”

 

Megaplex has been aggressively using their new digital capability to attract new audiences by hosting business events, concerts and video-gaming events. For example, in conjunction with the Hannah Montana 3D release, Megaplex hosted a separate dress-up “Red Carpet Rock Star Event,” with a separate $15 ticket, that used the digital projectors to present live karaoke. Also, Megaplex has been using the digital auditoriums after hours to host X-Box Halo contests, according to Dave Bollard, Megaplex’s marketing manager. Megaplex has been able to fill auditoriums between midnight and 6 a.m. with teams competing between screens.

 

Malco Theaters of Memphis TN, also another early pioneer going back to the 2002 Star Wars deployment, has jumped into digital cinema in a big way. Partnered with Dolby as the system provider and server manufacturer, and with Barco projectors, Malco has approximately 60 digital systems installed of its expected 350-screen deployment. Mike Thomson, Malco’s VP of operations and technology, has been their driving force in making sure that each system is installed to deliver the best possible picture and sound.

 

Malco started by installing the new digital systems in its best-performing houses and intends to continue the upgrades at a manageable pace until all their screens are equipped. Thomson has developed an in-house technical staff of six who have been extensively trained by the manufactures in maintenance and operation of their equipment. Thomson admits that “digital is not as mature as film and still has a way to go. It’s not a cakewalk. However, we have a good operational record and have been able to deal with and learn from the issues as they come up.”

 

Malco has installed a few Dolby Digital 3D systems, and is impressed with the image quality of Dolby’s 3D process. Thomson likes the Dolby 3D system because of its conventional white screen and he feels their 3D image quality is the best in the market.

 

Thomson believes Malco’s success with digital is largely due to the strong relationships he has built with Dolby, Barco and other vendors and the investments made by Malco in developing the in-house staff to deal with installations, routine maintenance, and any unexpected issues. Thomson believes that the smaller exhibitors need to be prepared by either building up a strong in-house team, or working with service providers that can deliver the required support.

 

Rave Motion Pictures of Dallas, TX, has gone 100% digital in its 445 screens, with 37 equipped with Real D 3D. Rave partnered with AccessIT, using Christie projectors and Doremi servers in its digital rollout. At this point, Rave does not have any 35mm equipment and feels quite confident that there is enough mainstream content to support their exclusive “everything in digital” position.

 

Rave has also been an early adopter of 3D, with at least one Real D 3D installation in every complex. Of the 683 Hannah Montana play sites, Rave was able to capture almost five percent of the opening-weekend total box-office gross with its 28 3D screens. Jeremy Devine, VP of marketing, attributes the increase to an “intensive grassroots marketing campaign,” along with Disney’s phenomenal pre-release marketing to increase awareness of digital 3D. Devine has also been “shocked” by how successful the opera events have been, and is also experimenting with sporting events and other forms of alternative content. Rave has been attentive to scheduling the special events for afternoons and the relatively weak Tuesday and Wednesday nights. Overall, the success of Hannah Montana and other alternative content has affirmed Rave’s decision to be at the forefront of the digital and 3D rollout.

 

Brad Wardlow, Rave’s VP of operations, comments, “Rave made the digital transition over an 18-month period beginning in early 2005. We equipped in several ‘waves,’ initially starting with the higher-performing screens where we had booked the titles that we knew would be available in digital. By mid-2006, almost every title we were playing was available in the DCI format, so we decided to go ahead and replace the 35mm projectors on a site-wide basis. Having the building fully digital simplifies operation tremendously when compared to a split 35mm-digital site.

 

“We have certainly changed our staffing interview process since going digital,” Wardlow continues. “Previously, we would look for candidates that showed an aptitude for mechanical skills. Now, we focus on those that have an interest in computers and are familiar with software and menu-driven systems.” The next step in Rave’s digital implementation will be to integrate it with the box-office point-of-sale system, so there will be no need for manual show starts. This will eventually reduce staffing costs. Wardlow feels that while the digital projector’s operating costs may be higher than the conventional 35mm projector, the overall savings on a circuit-wide basis will be in the positive, after taking into consideration the savings in theatre operations.

 

In conclusion, all the exhibitors we spoke to were enthusiastic about their digital systems. All admitted they had been through a somewhat challenging learning process, but all said they had overcome any serious show-stopping issues, and felt they were delivering superior presentations. Common to all was the tremendous popularity of digital 3D, and all had developed innovative uses of alternative programming to raise attendance in off-hours. And finally, all seemed to emphasize the need to be prepared with either a well-trained in-house technical team or have a capable systems integrator working closely with them during the transition period."

 

 

Is 3D TV Ready for the Big Time?

http://fullres.blogspot.com/

 

By Rob Mead, Techradar

 

Pay a visit to Steven Spielberg's favourite cinema this summer and it won't be the latest blockbuster that catches your eye. Walk through the foyer at the Bridge Theater in Los Angeles and you'll be awe-struck at the sight of wall-mounted displays throwing out images in glorious 3D – and you won't need to wear googly glasses to see them.

 

The professional displays are the work of Philips 3D Solutions, which is currently rolling them out worldwide, appearing in airports, shopping malls, casinos and, of course, cinemas. The best thing is that the technology Philips uses is fairly straightforward, promising great things for the TVs we're used to having at home.

 

The Philips WOWvx (the wow-effect, plus Visual eXperience) uses a series of tiny lenticular lenses mounted in front of a regular high definition display. If lenticular sounds familiar then that's because it is – Philips WOWVx uses a similar technique to the animated 3D postcards you can find at tourist traps the world over. And you don't need to wear silly glasses to view those either.

 

2D-plus-Depth

Of course, having a lenticular lens in itself isn't enough – you also have to create a stereoscopic image to give the illusion of depth. Philips has two different formats for content creation – a standard version called 2D-plus-Depth, plus and an extended version it dubs Declipse (as in the opposite of eclipse).

 

2D-plus-Depth does exactly what it says on the tin. It takes a 2D image and then adds depth to give you a 3D representation. If a normal display has pixel information as 'x' and 'y' co-ordinates, then 2D-plus-Depth adds 'z' to describe how deep the image portrayed by that pixel should be.

 

The exciting thing for all of us, and for Hollywood, production studios and broadcasters, is that 2D-plus-Depth is backwards-compatible. Any movie, TV programme or music video you've ever watched can now be presented in 3D, adding a new whole dimension – literally – to your viewing experience.

 

Games may drive 3D

Bjorn Teuwsen, marketing and communications manager at Philips 3D Solutions, says the depth information can be added in post-production using the company's own BlueBox video production suite, which creates the 2D-plus-Depth format, that you'll eventually see as a single 3D entity on a compatible display.

 

You can avoid this step, of course, by using a stereoscopic camera to automatically film the different angles you need. That's something broadcasters and film studios are doing increasingly. You only have to look to forthcoming features like Toys Story 3 and Ice Age – Dawn Of The Dinosaurs, both of which are due in cinemas in 2009.

 

Declipse takes our perception of depth one stage further. It effectively splits the picture up into separate background and foreground layers that enable you to add true depth to an image – Philips calls it the 'look around' view. And it can again be added to existing 2D material.

 

3D graphics and games

One of the obvious drawbacks when it comes to creating 3D images from 2D originals is one of occlusion, which is when one object is situated in front of another, obscuring your view of the whole scene. Bjorn Teuwsen cites the example of a girl standing in a field with a forest behind her.

 

Looking at the 2D image you obviously won't know what was behind the girl, making a 3D image difficult to create, so Declipse steps in, depicts the background layer, and creates the missing picture information using specially-created algorithms. It works in a stereoscopic image because you're not having to create all of the missing information – you're not showing a 360-degree view here.

 

It is, of course, easier if the 3D image has been created in full already, as is done with computer-generated images like animation, graphics and video games. In that case, Declipse simply takes the existing 3D data – via plugins for programs like Autodesk Maya and 3D Studio Max – and uses that to show 3D on the display. Just imagine what your favourite video games would be like if you could really play them in three dimensions?

 

A 3D future

The obvious drawback with any of this right now is that you need content that's been specially created – either during the production process, or in post-production. That obviously means you can't watch regular TV in 3D, no matter how much you like the idea of a three-dimensional Fiona Bruce sitting in your lounge, while reading the news. However, Teuwsen does hold out some hope. Since creating 3D image from 2D is simply about data processing, it's only a matter of time before the technology can be packaged inside the video processors that make up ordinary TVs.

 

We may not have to wait too long. In January, at CES 2008, some of the biggest names in tech showed off prototype 3D TVs that could go on sale as early as 2009 or 2010. Business users, of course, can already pick up a range of WOWvx displays from Philips, with the 42-inch 3D display costing around €7,000 (£5,539).

 

"It's just one way to stand out, Bjorn Teuwsen says, "from the 3,000 advertising messages we receive every day."

 

Is 3D a vision too far?

Stereoscopic images have been around for 150 years or so, but the first moving 3D images appeared in cinemas during the 1950s as a way for Hollywood studios to compete against the rising threat of television. Of course then, as now, displaying a 3D image has required viewers to wear glasses (either stereoscopic, or those with red and green lenses), which are not only inconvenient, but can be uncomfortable too.

 

Part of the reason for that is that 3D images can induce dizziness, or nausea. This is due to cone transitions – the crossing over of one part of a stereoscopic image designed for one eye appearing in the other, causing blurriness and eye-strain.

 

Teuwsen says Philips has largely been able to minimise effects this with its 3D displays to the extent that it's now barely noticeable. After all feelings of nausea are the last things advertisers want you to feel when faced with a 3D representation of their produce.

 

RealD Cinema is a digital 3D stereoscopic projection technology which does not require two projectors

http://fullres.blogspot.com/

 

By Srivenkat Bulemoni, Filmmaking Techniques

 

RealD Cinema is a digital 3D stereoscopic projection technology which does not require two projectors, unlike some older 3D stereoscopic projection technology. A high-resolution digital projector using Texas Instruments' DLP Cinema technology is used.

 

Technology

The RealD 3-D system is based on the push-pull electro-optical modulator called the ZScreen invented by Lenny Lipton, an American inventor.

 

The technique that RealD uses is comparable to the traditional method of 3-D imaging which uses linearly polarized glasses. The traditional method works by projecting two differently linearly polarized images onto the same screen, polarized at +45° and -45° from the horizontal, which are then filtered by linearly polarized glasses worn by the audience. This type of 3-D imaging requires two projectors, and suffers from visible double-imaging if the head is tilted to the side which places the glasses at an inappropriate angle.

 

RealD however uses a single projector that alternately projects the right-eye frame and left-eye frame, and circularly polarizes these frames, clockwise for the right-eye and counterclockwise for the left-eye, using a liquid-crystal screen placed in front of the projector lens. Circularly polarized glasses make sure each eye sees only "its own" picture, even if the head is tilted. The very high framerate, which is 72 frames per second per eye, makes sure the image looks continuous. In RealD Cinema, each frame is projected three times to reduce flicker, as the source video is usually 24 frames per second. The result is a seamless 3-D picture that seems to extend behind and in front of the screen itself.

 

Films featured using Real D

The first film released using this format was 2005's Chicken Little. For this release, the computer-animated film was re-rendered in 3-D by Industrial Light and Magic and exhibited on RealD Cinema Systems using Dolby Digital Cinema servers.

 

The 3D version of Chicken Little has so far earned about 2.5 times as much per screen as the flat version. When the movie was first shown in 2005, fewer than 100 theaters around the US were equipped to show the movie in 3D. These statistics are difficult to correlate on their own given the many unknown factors involved.

 

Also, a stereoscopic 3D version of the film Monster House was released in approximately 200 theaters equipped for RealD Cinema. In October 2006 and again in October 2007 The Nightmare Before Christmas was re-released in this technique as well.

 

Meet the Robinsons was released March 30th, 2007, in both traditional "flat" and "3D" versions of the film. The film was converted to stereo by Digital Domain. Some estimate over 700 screens for the 3D release of the film. That would make this release the largest up to that date using the RealD system.

 

Beowulf, directed by Robert Zemeckis, released in November 2007 is another film that uses the RealD 3D technology. Beowulf opened on close to 900 RealD screens. RealD at that point had passed its stated milestone of 1,000 global RealD screens installed for the release of Beowulf.

 

Hannah Montana & Miley Cyrus: The Best of Both Worlds Concert was released on February 1st, 2008, and marks another in the Disney stable of 3D films. Hannah Montana & Miley Cyrus: Best of Both Worlds Concert was only shown on digital 3D screens, 97% of which are RealD 3D screens, and brought in $31 million in its opening weekend, virtually all of which was generated in RealD theaters. (Disney Digital 3D films do not exhibit in IMAX 3D theaters, which utilize an analog technology).

 

U2 3D, U2's concert film based on the Vertigo Tour, debuted in RealD in 2008. The film was exhibited in both IMAX 3D and RealD Cinema.