The Case for Open Distribution

http://digitalcinemareport.com/thebigpicture_131.html

 

The Case for Open Distribution

By Nick Dager

July 1, 2008 | Issue #131

 

A recent press release from Digital Projection International highlighted the news that the company is supplying the projectors for all of the 1,000 digital screens in UFO Moviez’s digital cinema network in Mumbai, India. While that is admittedly a significant announcement for DPI, I think it represents an even more significant development for the global digital cinema marketplace. My reasoning? The projectors are all 720P HD, which means that – for now, and by choice – the largest digital theatre chain in the largest city in the world will not be showing first run Hollywood movies digitally.

 

This news is ironic because DPI was one of the pioneering digital cinema projector companies and, in fact, secured one of the original licenses from Texas Instruments to manufacture DCI-compliant 2K DLP projectors. But, as is often the case with pioneers, DPI struggled when the digital cinema roll out failed to develop as soon and as quickly as many people thought it would. Eventually DPI gave up its license and concentrated its efforts on other markets.

 

That irony is not lost on DPI president Mike Levi. “It is true, we moved away from the DLP Cinema license a few years ago,” he says. “However, in markets where Hollywood content does not dominate we are finding that license is not vital for success. We are involved in a number of projects where our 3-chip DLP displays (enhanced with specific color correction, control interface and other capabilities appropriate for cinema use) are very well suited - if not preferred - to what are typically bigger, more power hungry and costlier DLP cinema displays.”

 

Hollywood content accounts for roughly only six percent of the content shown in movie theatres in India. In a very real sense, Indian exhibitors do not need Hollywood to succeed.

 

“In the case of the UFO Moviez project,” Levi says. “The majority of the units deployed up to this point have been 720p.  This platform was selected by the customer as being appropriate for the content, venues and first stage business plan.”  

 

The projector in the deal is the Morpheus 7000 HDi, which has the following features:

 

· Low power consumption, low lamp replacement cost and long lamp life

· Exclusive server to projector security handshake

· 7000 ANSI lumens

· COLORMAX P7 colorimetry as developed for Hollywood

· WHY-I software for remote operation and diagnostics

· All metal construction and HEPA filtration

· Factory calibrated for 100 percent uniform performance regardless of venue

· Light weight (less than 25Kg) for mufti-screen flexibility

· DCI compliant notch filter for Xenon DCI color mode

· Six axis convergence to less than 0.75 of a pixel

· High performance prism

· RGB formatter switching

· Securely retained lenses offering throw ratios for every theatre

· Security protected to be inoperable without the correct server

 

Prior to the UFO initiative, previous attempts to digitalize the Indian cinema experience had been unsuccessful primarily due to underestimation of the time and financial resources needed to build such a large comprehensive network. UFO Moviez sought to develop an accurate project scope by creating technical partnerships that linked similar minded companies with the relevant experience to make it happen. This team included Digital Projection International, DG2L, 3i, Hughes Escorts and Famous Studios.

 

UFO Moviez executive director Sanjay Gaikwad says, “We identified Digital Projection International after detailed research, trials and discussions. The unique selling point of DPI is their dedicated and unrivalled focus on DLP projection systems. Their projectors are highly evolved, technically rugged and designed for consistency. Simply put, they produce the extremely high-quality images that the very discerning Indian market demands. It is our faith in digital cinema and the technology of our partners that enable us to take such an aggressive financial approach.”

 

DPI’s International sales and marketing director Nick Cottiss says, “The UFO Moviez management and sales teams have been organized, focused and motivated for success since our first contact over three years ago. In the initial press release launched at the signing of our agreement, I commented that ‘every stage, from the financial to the technical, has been fully planned and organized. If planning, enthusiasm and attention to detail are the routes to success, then their innate abilities, working in conjunction with DPI’s product know-how and image quality, will surely deliver UFO Moviez many successful years to come.’ In light of these sentiments expressed in our initial partnership, I am very pleased that the potential we saw over three years ago has turned from concept to a proven success that continues to steadily grow.”

 

Enthralled with the development, Rajesh Mishra, CEO, UFO Moviez, says "When we started the project of digitization, we had nothing but complete faith in our endeavor and the next demand of entertainment industry in India. Today after completing two years and 1000 cinemas installation, I am proud of our dream which has not only changed the cinema viewing experience but has given manifold dimensions to the film industry on the whole. In less than two years, UFO Moviez has become the world’s largest satellite based digital cinema chain with over 1000 theatres receiving all movies first day, first show. I want to thank each member of UFO family, including industry torchbearers and viewers, who accepted us with open arms. Crossing 1000 cinema installation is just the beginning of the revolution to come.”

 

Digital Cinema heralds a new era for the cinema industry. According to a PriceWater Cooper report, the Indian film entertainment industry is poised to grow from the present size of Rs 9600 crore to Rs 17,500 crore by 2011, implying a 16 percent cumulative annual growth over the next five years. The advanced technology that UFO Moviez brings with it is helping the Indian film industry in all the spheres including film production, film exhibition and marketing.

 

UFO is expecting to earn revenues from the advertising market by offering reliability through digital screening of ad-films, says Mishra. With digital projection, stringent monitoring of content comes in, guaranteeing the screening of the ad through constant verification of log codes.

 

This transparency would secure a reliable source of income for both the advertiser and theatre owner, expanding the market of audiovisual advertising to theatre halls. Currently, the bulk of audiovisual advertising goes to television.

 

Cinema advertising would be more effective, because it is not in your face and does not appear in between the program, as it does on television, says Mishra. “Also, it is catering to a captive audience, who is more receptive. And even if the theatre’s occupancy is half full, a sizable population can be reached.”