Microspace: Cinema via satellite - Company says it can make its service more cost-effective

http://www.hollywoodreporter.com/hr/content_display/technology/news/e3ie627726a68e6407f2a4b34cf8e70af95

 

By Carolyn Giardina

 

Oct 14, 2008, 08:07 PM ET

Microspace Communications is aiming to change the economics of digital-cinema content delivery.

 

The company -- which offers d-cinema content distribution via its Velocity satellite system -- reported that with about 340 theaters, 3,500 screen installations and future commitments, it has reached the mass needed to make its delivery service more cost-effective than the more commonly used method of delivering content to theaters via hard drives.

 

Users essentially benefit from the economies of scale as the cost of using the satellite delivery system is the same whether a motion picture is sent to one screen or 500.

 

Microspace, a subsidiary of Capitol Broadcasting Co., recently inked deals with theater circuits including Allen Theatres, Mann Theatres, Marquee Cinemas and Ultrastar Cinemas.

 

"Our growth has extended a network that achieves the most cost-effective digital-cinema delivery method available," said Curt Tilly, manager of digital-cinema distribution at Microspace. "This is underscored by the partnerships we hold with eight major motion picture studios."