Progress At Last, European D-Cinema Rollout - As of June 2008

Source: Journal

Date: 9 August 2008

Author: Bill Mead

 

Until recently, the European digital rollout was similar to watching a glacier in motion. At times, there seems to be no forward movement. Only when viewed over time and from a distance was there anyapparent progress. However, in the past year, we have seen announcements from two major European-based digital-cinema providers that they are now able to offer exhibitors Hollywood-sup-ported incentives covering up to 15,000 screens. These new business plans provide the European market with a solid foundation for future growth. Last fall, London-based Arts Alliance Media (AAM) was the first tooffer European exhibitors a funding package that includes incentive for up to 7,000 screens from four major Hollywood distributors. With the studio deal in hand, AAM has been busy expanding their foot-print outside the U.K. with the November 2007 announcement of a400-screen commitment from CGR Cinemas in France and also in Norway working with the country-wide changeover. Belgium-based XDC, Europe’s first digital-cinema provider, announced this past May that it has also secured incentives from Warner Bros., Paramount, 20th Century Fox and Walt Disney Studios covering up to 8,000 screens. XDC also announced it expects to com-plete similar negotiations with Sony and Universal in the near future. Serge Plasch, XDC’s CEO said: “We are very happy to announce these milestone agreements which offer European exhibitors a viable busi-ness model to convert their screens to digital cinema. The support of Warner Bros., Paramount, Fox and Disney is a key factor for XDC and will allow us to keep our momentum in Europe, where XDC along with over 120 staunch pioneer customers have shown that commer-cial digital cinema works.”The new XDC plan, along with the ongoing AAM plan, provides the long-needed boost to get digital cinema moving in the European market. Both plans offer studio incentives that will lower initial costs for the exhibitors, include integration and support services, and pro-vide exhibitors with a flow of digital titles and exciting new content. Currently, there are slightly more than 900 DCI-capable systems installed in European screens. (See table below.) During the past year, France, Belgium, Norway and Russia have increased their number ofDCI-capable systems. In a few other countries such as Spain, Portugal, Italy and Greece, exhibitors have added 3D-enabled systems on a screen-by-screen basis primarily to play those titles available in3D. Until the studio incentives are in place, exhibitors in these mar-kets seem willing only to convert selected screens when immediate box-office returns are expected.

 

UK

In the spring of 2007, AAM completed the U.K. Film Council digital-cinema rollout of 240 screens. In addition to managing the UKFC’s Digital Screen Network, AAM has been completing trials with Odeon Cinemas at their nine-screen multiplex at Surrey Quays and has upped its offering to its exhibition partners. AAM is currently show-ing the La Scala opera series in the U.K. and in Norway—a series ofs even operas from La Scala and also Venice and Florence at 29 sites across the U.K. and seven screens in Norway.AAM also just signed a deal with Opus Arte (the production company of the Royal Opera House) to show their content in cinemas across Europe starting in September 2008. The schedule has yet to be final-ized, but will include both live and recorded content from the Royal Opera House, and also other opera houses across Europe. The season will have both opera and ballet. This will be the first time ballet will be shown in cinemas In the fall of 2007, Real D finalized an agreement with Odeon Cinemas (now including UCI) to install up to 500 of their 3D cinema systems in theatres across Europe. So far, approximately half of Odeon’s estimated 50 digital screens have been equipped with Real D3D systems. Odeon expects to continue their digital rollout over the next two years with plans to equip approximately one-third of Odeon’s screens with Real D 3D systems.

 

France

In November 2007, AAM announced a commitment from CGR to install digital in all of CGR’s 400 screens over the next few years. France currently has around 65 digital systems installed, with around20 being the result of last fall’s announced deal between AAM and CGR theatres. CGR has also committed to use DLP Cinema projectors from Christie and servers from Doremi. Recently, AAM installed France’s first all-digital multiplex with 12screens at CGR’s La Rochelle Multiplex. Additionally, AAM has com-pleted single-screen installations at CGR sites in the cities of Blagnac, Brignais, La Meziere, Lattes, Niort, Villenave d’Ornon and Torcy.Gwendal Auffret, AAM’s managing director of digital cinema, said,“La Rochelle is a benchmark for the digital-cinema transition in France and in Europe. Thanks to CGR, the French cinema industry has now a great opportunity to witness and understand the operations ofa fully digital cinema. We look forward to the next phase of our roll-out with such a great, innovative partner.” AAM’s target is to get the first 100 CGR systems installed by the end of 2008. Here is an article from Film Journal International USA which outlines the position as of June 2008 on the progressin Europe for the D Cinema Rollout Progress At Last by Bill Mead, Digital Cinema Editor

 

Norway

Norway has arguably the world’s most organized digital transition plan in progress, thanks to government support and coordination provided by Film&Kino, an industry organization owned by the local municipalities who are the primary owners and operators of the cin-emas and with close connections to Norway’s ministry of culture. Currently with 40 DCI-grade systems, Norway is completing its initial beta deployments with two competing consortiums that are provid-ing the systems integration and supplying the digital-cinema pack-ages (DCPs). Approximately half of the systems have been installed by the NORDIC (Norway's Digital Interoperability in Cinemas) consortium formed by Unique Digital—Norway’s largest cinema-advertising net-work, the Norwegian University of Science and Technology, andTelnor—the Norwegian telecommunications giant. Approximately 16systems have been installed by Nordic Digital Alliance, which is made up of several local partners and U.K.’s Arts Alliance Media. The current trials have used projectors from Christie, Barco, NEC and Sony and servers from Dolby, Doremi and Kodak. Seven of Norway’s40 systems have been equipped with XpanD’s (formerly NuVision) 3Dsystem. Film&Kino, along with technical support from one or both of the major Norwegian integrators, is planning to convert the entire country, with completion expected by late 2010. Film&Kino is cur-rently in discussions with the Hollywood studios to provide virtual rint fee (VPF) incentives to support the Norwegian rollout.

 

Russia

Russia has experienced a dramatic rebirth in its cinema industry, con-sidering that in the early 1990s there were virtually no commercial theatres open. The first modern multiplexes began in 1996. Since then, the number has grown to over 1,500 screens in operation. Digital cinema began with a single installation in late 2006, and as of May 2008 there were 47 commercial digital screens at 38 sites .Digital cinema in Russia is driven primarily by 3D. Since there has been no studio or government funding of systems, all have been pur-chased by the exhibitors, who have found that the popularity of 3Dtitles has supported a 70% price increase over the standard ticket. Approximately two-thirds of the screens are equipped with either the XpanD or the Dolby 3D systems. Nine digital screens in Russia are operated by independent exhibitors, while the remaining cinemas are operated by nationwide circuits. The largest exhibitor is Cinema Park with 14 digital screens, with at least one at each of its 11 multiplexes, including nine equipped with 3D.By mid-summer 2008, Cinema Park plans to have two digital screen sat each site, bringing their total to 22. The Russian installations have used DLP Cinema projectors from all the vendors and servers from both Dolby and Doremi .Growth in Russia is expected to continue with around 60 digital screens by mid-year and over 100 by the end of the year. Running in parallel to the increasing number of digital screens is an increasing flow of digital releases. So far, over 50 digital titles have been released in Russia, including six in 3D and 11 from Russian produc-tions. Nevafilm Digital is the local expert largely responsible for over-seeing digital-cinema mastering and managing the delivery of the security keys used in Russia.

 

Picking Up Speed

The new deployment plans go a long way in providing European exhibitors with the funding mechanisms they need to move forward with essential deployment of the base-level digital-cinema systems needed for the strong slate of digital 3D titles expected in 2009 and onwards. Now, with two major European digital-cinema providers offering their exhibitor partners attractive financial deals backed by Hollywood studios, the forecast is for a fairly rapid increase in digital screens in 2008 and 2009.

 

Digital cinema screens by country

Country                                Screens

United Kingdom               283

Germany                             153

France                                  131

Belgium                                85

Russia                                   46

Italy                                       43

Norway                                41

Spain                                     38

Ireland                                  36

Netherlands                       36

Austria                                  34

Portugal                               27

Poland                                  16

Luxembourg                      14

Switzerland                        13

Bulgaria                                8

Denmark                             4

Greece                                 4

South Africa                       4

Sweden                               4

Iceland                                 3

Finland                                 2

Turkey                                  2

Czech Republic                  1

Hungary                               1

TOTAL                                   1029

 

Screens Source: DCinemaToday.com.

Based on manufacturer-supplied data as of May 2008.