Friday, January 30, 2009

Sandy Climan, Hollywood's 3D Man

http://www.businessweek.com/innovate/content/jan2009/id20090128_979054.htm

 

As head of 3ality, he's helping to bring a new generation of 3D to the big screen and, perhaps soon, to TV, too

Sanford R. "Sandy" Climan spent more than a decade as one of Hollywood's most powerful dealmakers. A top lieutenant to superagent Michael Ovitz, Climan represented such stars as Robert De Niro, Robert Redford, and Kevin Costner while brokering deals for Sony (SNE), Mastushita, and Seagram to buy Hollywood studios. These days he has a new role: bringing 3D movies, television shows, and live events to the masses on movie screens and, perhaps soon, on TV sets from which characters will seemingly pop off the screen and into your living room.

Older readers might recall 3D from the 1950s, when moviegoers donned dorky green-and-red cardboard specs for a Saturday matinee. And younger readers undoubtedly know 3D from IMAX theaters. Climan hopes to go further. The 52-year-old chief executive of 3ality Digital and his crew of 40 or so employees have developed a patent-pending system of turning films shot on two-dimensional cameras into 3D flicks using equipment including a rig that puts two cameras together—one to shoot for each eye—and then synchronizes them perfectly so their images appear to come off the screen.

So far, 3ality has produced a 3D concert movie by the band U2 and in early January shot a 3D college football game, the FedEx (FDX) BCS National Championship, that partner Cindedigm Digital Cinema (CIDM) beamed to more than 80 theaters.

By this time next year theaters will be cluttered with 3D flicks. Movie houses are hustling to install new digital projectors so they can boost revenue by charging the higher ticket prices that 3D features command. Film studios, which get about half of what theaters collect from showing their productions, see larger dollar signs, too, from 3D. Among the coming attractions: DreamWorks Animation's (DWA) Monsters vs. Aliens and Avatar, a sci-fi flick from Titanic director James Cameron. Meantime, Walt Disney (DIS) and DreamWorks have committed to making all their animated flicks in 3D, while Steven Spielberg and Lord of the Rings director Peter Jackson are collaborating on a 3D Tintin.

Climan figures 3D won't be limited to theaters. His Burbank (Calif.) company has filmed a 60-second 3D commercial for PepsiCo's (PEP) SoBe Lifewater that will appear during the Feb. 1 Super Bowl. They've also used 3ality's technology to convert an episode of the NBC show Chuck into 3D, which will air the next day. In both cases, folks at home will need special cardboard blue-and-amber 3D glasses that are being made available at Kmart (S), Target (TGT) and several grocery chains. DreamWorks is also showing a 3D trailer of its Monsters vs. Aliens during the NFL championship. "Once you see a picture in 3D, you never want to go back," says Climan, "whether it's in a movie theater or your home theater."

Although 3D goes back to the early years of film, 3ality's movies and video employ technology that might finally bring 3D into the mainstream. Thanks to computerized digital timing, new 3D films can be broken down to the millisecond, eliminating jumps or pauses that caused previous generations of 3D movies, which were shown on two projectors at once, to fall out of sync and produce laughable or sometimes even nauseating effects. (3ality's gear uses Intel (INTC) microprocessors, which explains why the chipmaker has joined with Pepsi in sponsoring the giveaway glasses for the 3D ad.)

Since leaving Ovitz and his Creative Artists Agency behind in 1999, Climan has become a full-fledged entertainment entrepreneur. A Harvard MBA—Climan also has a master's degree in health policy and management from Harvard—he started Entertainment Media Ventures, which owns a significant piece of Legacy Sports, a sports talent agency. The Los Angeles venture is also an entertainment consultant for Harrah's Entertainment (HET) and has arranged long-term gigs for Elton John and Jerry Seinfeld at Harrah's Las Vegas casinos.

But it's 3ality where Climan sees the brightest prospects. The company, he says, intends to offer its services to any studio that wants to show its own products. Although he's generally mum on potential deals, he says he's talking with Fox and Sony, which have already partnered with 3ality on the football game broadcast. At the same time, 3ality will produce content itself, as it did in its test with U2, which turned into a theatrical concert movie that grossed $20 million last year. The mantra for now, he says, is for Hollywood to create enough content for viewers in movie theaters and, when the price comes down, on TV.

And how soon might 3D come to people's homes? LG, Sony, Philips (PHG), and Samsung all showed off 3D sets at the Consumer Electronics Show in Las Vegas in January. Though none is yet on the market, the sets will be able to show 3D movies that studios are currently putting on high-definition Blu-ray discs, he says. For now folks will still have to wear those glasses, although sunglass designers are making them less clunky and maybe even a little cool. And down the road—how far even Climan isn't willing to venture—consumer-electronics companies will offer sets that won't require 3D glasses at all. That's when the picture will, well, pop.

Grover is Los Angeles bureau chief for BusinessWeek.

 

Hollywood Finds Headaches in Its Big Bet on 3-D

http://www.nytimes.com/2009/01/12/business/media/12film.html?_r=1&goback=%2Ehom

 

By BROOKS BARNES

Published: January 11, 2009

LOS ANGELES — The imminent full-bore return to 3-D filmmaking, upon which the movie industry is placing many of its hopes, is in danger of becoming Hollywood’s latest flub.Skip to next paragraph

Some of the mightiest forces in film — Jeffrey Katzenberg, James Cameron, John Lasseter — think the multiplex masses will soon demand that all movies be shown in newly available digital 3-D. Mr. Katzenberg, in particular, has pushed the format, trotting the globe to herald the technology as a transformative moment for cinema akin to the introduction of sound.

His bandwagon has plenty of passengers, at least in Hollywood. The Walt Disney Company alone has 15 three-dimensional movies in its pipeline. Twentieth Century Fox is betting an estimated $200 million on “Avatar,” a 3-D space adventure directed by Mr. Cameron and set for December release, his first nondocumentary film since 1997’s “Titanic,” still the biggest moneymaker in movie history, without counting inflation. All told, the movie factory has over 30 3-D pictures on the way.

But analysts are starting to warn that all of that product could find itself sitting on a loading dock with no place to go. Studios, thrilled by 3-D’s dual promises of higher profits and artistic advancement, have aggressively embraced the technology without waiting for movie theaters to get on board. And without those expensive upgrades to projection equipment at the multiplex, mass market 3-D releases are not tenable.

“It’s starting to look like there will be a lot of disappointed producers unable to realize the upside of these 3-D investments,” said Harold L. Vogel, a media analyst and the author of “Entertainment Industry Economics.” Filming in 3-D adds about $15 million to production costs, he said, but can send profit soaring because of premium ticket pricing.

Only about 1,300 of North America’s 40,000 or so movie screens support digital 3-D. (Imax adds 250.) Overseas, where films now generate up to 70 percent of their theatrical revenue, only a few hundred theaters can support the technology. It costs about $100,000 for each full upgrade.

Studios require about 3,000 screens in North America for most new releases. Popcorn movies like “Avatar” or “Monsters vs. Aliens,” a 3-D entry from DreamWorks Animation, typically open on more than 4,000 screens.

“The crunch has everybody scrambling,” said Chuck Viane, president for domestic distribution for Walt Disney Studios. “We had expected many more screens to be available by now, no doubt about it.”

Upgrades have lagged primarily because of industry infighting over who will shoulder the cost. Studios expected theaters to take the lead because digital equipment would allow them to raise prices — tickets to the new crop of 3-D movies run as high as $25 each — and lure consumers away from their big-screen living room TVs. Exhibitors, hurt by soaring real estate costs, wanted studios to pay for similar reasons.

Movie chains and four of the six major studios agreed in September on a plan to convert upward of 15,000 theaters using $1 billion in debt financing arranged through JPMorgan Chase. But the squabbling took too long: The financing plan came together just as the credit markets froze.

Studios and exhibitors say the upgrade plan is not in jeopardy.

“This is a long-term commitment and a long-term strategy,” Mr. Katzenberg, the chief of DreamWorks, said recently.

Meanwhile, the Digital Cinema Implementation Partners, a consortium of exhibitors and studios, is pursuing alternative financing to allow the plan to proceed in steps. “Rather than just being patient, we are aggressively exploring all options,” said Rich Manzione, the group’s vice president for strategic planning.

Other participants seem less optimistic. Will the credit markets thaw in the first quarter, as Mr. Katzenberg predicts? “Your guess is as good as mine,” said Mike Campbell, the chief executive of the Regal Entertainment Group, which owns the nation’s largest movie theater chain.

Meanwhile, the shortage of 3-D theaters is upsetting profit projections at various studios, with three-dimensional movies probably leaving millions of dollars on the table. When DreamWorks Animation releases “Monsters vs. Aliens” on March 27, it will have to settle for half the number of 3-D screens it wanted. While acknowledging the shortage, Mr. Katzenberg recently told analysts there were enough theaters available to “recover our upfront investment and make a profit.”

To get an idea of how much money is at stake, DreamWorks Animation recently estimated that one of its hit titles, released entirely in 3-D, would earn an additional $80 million in profit.

The shortage is sending mixed messages to moviegoers, many of whom are already skeptical of the claims about 3-D. Because of a shortage of outlets last summer, Warner Brothers had to scramble to change the marketing for “Journey to the Center of the Earth 3D” — dropping “3D” from the title — and offer a two-dimensional release in tandem. Lionsgate will have just 900 3-D theaters available for “My Bloody Valentine 3D” on Jan. 16, forcing the studio to show a standard version on about 1,600 screens.

The delay is also threatening to undercut one of the primary benefits for theaters — the ability to deliver an experience that consumers cannot replicate at home. But the home entertainment market is rapidly catching up, with companies developing 3-D options for the home.

RealD, a California company that is the lead provider of 3-D technology for theaters, last week demonstrated a similar product for televisions at the Consumer Electronics Show in Las Vegas.

Michael Lewis, the chief executive of RealD, said in an interview that he expected Americans to own 10 million 3-D-capable television sets within five years.

People who remember 3-D from the 1950s roll their eyes at Hollywood’s renewed fascination with the medium. They associate 3-D with cheesy films (“Creature From the Black Lagoon”), stiff cardboard glasses and jerky, stomach-turning camera movements.

This time, movie executives insist that everything has changed. Digital projectors deliver the images with perfect precision — eliminating headaches and nausea — while plastic glasses have replaced the cardboard.

Most important, say filmmakers, new equipment allows movies to be built in 3-D from the ground up, providing a more immersive and realistic viewing experience and not one based just on visual gimmicks.

 

Thursday, January 29, 2009

Why Paramount's Decision To Pay to Go Digital Is Good For FIlmmakers

http://normanhollyn.com/2009/01/23/why-paramounts-decision-to-pay-to-go-digital-is-good-for-filmmakers/

 

23 01 2009

MONSTERS VS ALIENS, and WE LIVE IN PUBLIC

Do you know what the acronyms DCIP and VPF mean? Hey, in a world where we’ve needed to learn what DSL means (or at least what it does) what’s a few more letters between friends, right? And it could be very important for your future, if you’re an independent filmmaker.

Well, J. Sperling Reich has a great blog that I found called Celluloid Junkie which basically talks about the business of exhibition. That means, what happens when your film gets into the theaters. In the latest posting, “Paramount Goes Direct-To-Exhibitors With D-Cinema Deal” Sperling talks about how digital projection is going to end up in our local movie theaters.

Many of you may have seen ads for Hollywood movies that announce that they will be screening “digitally” in some theaters. In essence, what this means is that the movie theaters have installed large video projectors, capable of screening films at 2K resolution — slightly higher than High Def video. Now, these systems (along with their hookups to higher quality audio) are not cheap to install. An article in Gizmodo puts the costs at roughly $70,000 per installation. The article goes on to say:

The five major studios involved will help out by paying a “digital print fee” of about $800 to $1,000 per film, which is about how much it cost to send out physical prints. By doing so they’ll help offset the billion dollar bill the theaters will be stuck with when upgrading all of their projectors. This means we’ll be seeing more films shown digitally, as well as more films shown in digital 3D, a gimmick that you’ll learn to loathe soon enough. But hey, more digital projectors is definitely something I can get behind.

That fee that the distributors finally agreed to pay is also the aforementioned VPF (”virtual print fee”). And it took years for the studios to realize that it was the only way they could encourage theater owners to buy those expensive projectors, an argument that still lacks weight among many theater owners. That is why the two organizations that are pushing the Digital Cinema Initiative (the DCIP, and Cinedigm) have been been looking for ways to entice the owners into jumping into the pool.  For awhile it looked like the distributors were going to pay some of the installation costs in some way — partnerships, loans, etc. That approach didn’t attract much enthusiasm from either side. And that’s when the VPf came along.

And hasn’t really taken off.

Sperling’s blog entry talks about Paramount seems to be returning to the idea of offering exhibitors direct financial assistance in some form. And, for that, who needs the DCIP? Sperling notes:

What’s significant about Paramount’s announcement is that previously studios have refused to cut deals to reimburse exhibitors for digital cinema installations directly with exhibitors for fear of future anti-trust litigation.  Instead, they relied on digital cinema systems integrators to provide a buffer between themselves and theatre owners.  But, with the digital cinema rollout at a near stand still, Paramount seems to be throwing caution to the winds.

Sperling’s reasoning behind this is that Paramount would like to see more digital theaters because they’d like to use the technology to see more theaters that could easily show 3-D films like their upcoming MONSTERS VS. ALIENS. I spoke a few posts ago about the distributors’ illusion that 3-D will save their worlds, so I buy into Sperling’s argument that this is why Paramount is breaking ranks, even while I disagree with Paramount’s reasoning. And I certainly like the idea that studios are thinking beyond the simple “let’s lay off the workers” model to saving their financial future.

But the most exciting thing, for me, about Paramount’s decision  to throw their money behind Digital Cinema has little to do with 3-D. I’m much more interested in how the projection technology can help the indie filmmaker.

My favorite film at Sundance this week was, bar none, Ondi Timoner’s documentary WE LIVE IN PUBLIC, which is about Josh Harris, a 1990s New York internet entrepeneur who used streaming video technology, and a very art-event orientation, to convert a Soho basement into a month-long living experience for a large group of people and which would be on camera every minute of every day. Every room — living rooms, bathrooms, bedrooms — had video cameras in it, recording the action. The film, which is uses this even as a mere starting point for a discussion of privacy and innovation, was a powerful experience (someone who sat next to me at the screening, looked at me at the end and said “That film freaked me out.”).

Ondi sat on a panel that I ran and mentioned that she had been editing the film up until just a day before the festival and it is truly a testament to the development of digital non-linear editing technology (she worked on an Avid) that she could be editing and finishing so late in the game, it is equally amazing to me that she was able to output a digital tape or two, bring it up to Sundance and simply show it. There was no need for complicated lab runs — color correction had already been done, sound was already added, multiple copies could be created rather quickly.

Observant readers will note that this is hardly new — filmmakers have been able to finish video for television on this very timeframe for years. But that’s only because each and every one of us agreed to buy the projectors that made this possible. We called them “televisions” but that didn’t matter. The public, acting as the exhibitors, agreed to shoulder the cost for the distribution of the studios’ content.  Paramount has finally admitted that that very model won’t work in theatrical distribtution but that it is still important to get that technology into theaters.

So they’re going to pay for some of it themselves.

What this means for us, as filmmakers, is that we’ll be able to create all sorts of films, using all sorts of capture formats, and finish them at our own pace and in our own manner and there will be thousands of theaters able to help show them. With high-end HD camers out there (JVC just announced a sub-$4000 camera at Macworld, RED has a more expensive series that are still within reach of the serious filmmaker) it might just throw some of the balance towards us. We can leave 3-D behind us, and take advantage of the digital theater that the studios hunger for 3-D brought us, and bring really great images to an audience that just might get interested.

Who knows, the studios might just be helping out the indie filmmaker.  You can say “thank you” in a few years.

 

Stereo3D broadcasting: where has it got to and where is it going?

http://www.quantel.com/repository/files/whitepaper_Stereo3DbroadcastingJan09.pdf

 

January 2009

 

Two years ago, if someone had said to you ‘Stereo3D TV will be the next big thing’ would you have taken them seriously?  

 

In the next few years, assuming the world economy doesn’t turn up more unpleasant surprises, we may just

be at the very beginning of the introduction of Stereo3D Broadcasting.      

 

Hollywood is already embracing Stereo3D film. Now, around the world, Broadcasters too are starting to

seriously investigate – even plan for – Stereo3D.

 

Totally new technology introduction always generates lots of questions.  

 

This paper or blog tries to help provide some accurate answers to six common questions about what

services could we expect, how could we get them and when might they happen.  

 

However in the end this is a personal view, based on two years of experience of tests, discussions,

presentations and actual product development. We hope it helps shed some light on the current discussion

and feel free to drop us a line if you agree or disagree or just want to talk.

 

Mark.horton@quantel.com

Trevor.francis@quantel.com

 

 

What is the probability that Stereo3D will happen?

 

Very high. Here are some pertinent ‘lessons from history’ from the

introduction of sound and colour in film:

 

‘Talking pictures will never replace the silent drama’

Joseph Shenck, United Artists, C.1928

 

‘I consider the so-callled “all-talkie”….nothing but rotten trash’

Sergei Eisenstein, 1929  

 

‘The reaction to talking pictures is somewhat problematical. Talking throughout the entire picture has a tendency to retard the action’

Pat Powers, Cinephone, 1929

 

“The process of Color motion picture photography [has] never been perfected…it would tire and distract the eye, take attention from faces and acting and facial expression, blur and confuse the action….”  

Douglas Fairbanks, 1930

 

And then a few years later:

 

‘Whether color can make black and white pictures as obsolete as sound made silent pictures, is, as suggested, quite another question. The silent picture was slain overnight by the jawbone of Al Jolson, whose Jazz Singer threw a hitherto sceptical industry bodily into speaking likenesses. But color is not so pronounced a revolution as sound’

Fortune Magazine, 1934

 

By early 1929 all the important studios in Hollywood had become thoroughly sound conscious. This was a great help to us in introducing color. Prior to that studio executives were loth to permit any change

whatsoever in their established method of photography and production. But with the adoption of sound, many radical changes became necessary. Technicolor was always confronted with objections photographing in color required more light, different costumes, a knowledge of color composition, additional time, and one or the other of these points, plus the added forceful argument that it cost more money, made it difficult for us to get started.  

 

In my opinion, the turning point came when we ourselves produced the series of short subjects. By entering the field as a producer, by keeping very careful records of our time and money schedules, and by openly discussing with studio executives everything that we were doing as we went along, we dissipated most of the prevailing misinformation.

Technicolor Founder H. Kalmus, 1938

 

A personal favourite book is Alvin Toffler’s influential 1970’s ‘Future Shock’ which predicted a near-future where the speed of change is faster than we can absorb. He predicted this would disorient people and generates many negative reactions. Here we are in that future and he was right. Film and TV are technology driven businesses, yet as in many other industries, many people dislike change.  

 

A very recent case is Digital Intermediate – the process of digital colour correction of movies. Digital

Intermediate took about two and a half more years than actually needed to gain full acceptance, mainly

because of some highly emotional resistance, although the benefits were quite literally there for anyone to see. Now, almost every movie goes through the DI process.  

 

Of course, many much-hyped film innovations prove nothing but fads and there’s nothing wrong with some healthy scepticism. However, as individuals and as an industry, we have a responsibility to rationally think about new technology. The world isn’t going to wait around for us.  

  

Objections fade if and when it’s clear a new technology delivers real benefits – either to the content maker or the audience. The most compelling argument is of course money. If a new technology can either save money or make more money that tends to get attention. Show business is a business.    

 

Digital Stereo3D film making is already being enthusiastically embraced by Hollywood because of current evidence that the numbers work.  

 

Assuming you have a film that already appeals to an audience, Stereo3D presentations get more cash through the door. Last year, Hannah Montana smashed box office records and this year dozens of titles are in production.   

 

There are some who think Stereo3D is just a passing fad. Some say that Stereo3D already failed once in the 1950’s and that what counts is making good content. However, similar arguments were used against sound and colour in film. When film makers of the 30’s made good films that used sound and colour that audiences would have gone to see anyway then sound and colour thrived. What sound and colour did was enhance the audience experience.  

 

Now good movies - that happen to use Stereo3D - are getting good box office. As long as we make good

films there is no reason for Stereo3D films to be a short lived fad. In the analogue 1950’s we simply did not

have the technology to make consistently good stereo films in a reasonable time and at a reasonable cost

and there were many issues with projection. Now with digital capture, digital post and digital projection, the

situation is wholly different.  

 

It follows that the key argument in favour of Stereo3D Broadcasting is the overwhelmingly positive reaction

the general public has to it. As an industry we do well to always consider the general public. They are

everyone’s customers. We aren’t here just to sell to each other.  

 

What exactly do we mean by Stereo3D broadcasting?

 

One definition of Stereo3D broadcasting might be:

 

‘The transmission of a high quality left eye and right eye signal to the viewer of a Stereoscopic ready

domestic Television with horizontal parallax information extracted by viewer glasses that helps convey depth’.  

 

This intentionally narrow definition excludes:

 

        Anaglyph (which is a single signal with colour used to convey depth. Although simple to do, poor

        colour quality makes this an unattractive option)  

        Narrowcasting to D-Cinema theatres (although this is an interesting new area)

 

Just now we would exclude multi-view stereo that does not need glasses. This is a bit complex to broadcast

today, is lacking in resolution and currently has limited ‘sweet spots’. So, right now this is not quite ready for

prime time, especially as some proposed camera systems are being studied that use five rather than two

sensors. However, things are changing very fast and we should keep an open mind on systems that do not

require glasses, as some very smart people are working on this now and this may become very significant in

the future.  

Let’s break the production process down into sections – shooting, galleries and trucks, post production suites

and transmission.

 

Shooting  

 

A pair of matched cameras, typically spaced at roughly adult eye distance, are used to capture the image.  

 

The horizontal offset produces a binocular disparity. That binocular disparity, together with other information

in a scene, including the relative size and height of objects, occlusion, sharpness and detail, linear

perspective, object density, differential brightness, shadows, haze, and relative motion is used by the mind to

create depth perception.

 

No special cameras are needed, however since the only difference between the eyes should be horizontal

disparity (and not for example color, geometry or focus differences) care is needed to match and

geometrically align the cameras.  

 

Special rigs are used which range from inexpensive and simple (which can produce good stereo but only if

carefully set up and skilfully used) to highly sophisticated rigs, like the 3ality Digital systems shown here, with

advanced mechanics and electronics which need minimal set up times and are easy to use.  

 3ality Digital rigs have been in action recently in many Broadcast tests including NFL and Sky

 

Shooting for Stereo3D is a different aesthetic than conventional TV. The audience is far more involved in the

image and wobbly camera work or whip pans are usually avoided, in favour of a more immersive and

smoothly paced style that draws the audience in.

 

One important topic to understand is ‘where to place the action’. Up to now much stereo has been shot for

large screens, not for domestic television sets. One artistic judgement is whether to place the objects of

interest in a shot on, behind or in front of the TV screen by ‘converging’ – which means ‘toeing’ the cameras

inwards or outwards in a similar way to how we move our eyes when we look at objects close up or further

away. 

 Positive, Negative and Zero Parallax

 

Placing objects behind the screen (positive parallax) gives a ‘window’ effect i.e. the viewer is looking through

a frame to a scene behind1 Placing objects in front of the screen (negative parallax) gives the appearance of

action happening in the viewer’s room.  

 

An ‘in your face’ style is great for certain kinds of action but care is needed not to push objects so far that the

viewer can’t ‘fuse’ them and they get an uncomfortable double image.  

 

Also care is needed framing shots where the action comes out of screen, if the objects are cut off by the

screen edges. This gives a so called ‘conflict of cues’ – the image is in front of the screen yet is also

occluded by the screen frame so must therefore be behind the screen.  

 

This is much more of an issue in Television than for example in IMAX where the edges of the screen are

much further out from the point of view of the audience. Converging on an object (i.e. there is no horizontal

difference between the left and right images) places an object on the screen (zero parallax).

 

So, there are new considerations, as there were when color was introduced, but unlike the changeover to

colour, the cameras are the same, you just need more.  

 

Production galleries and trucks

 

In some recent tests, existing production switchers (vision mixers if you are from the UK) and existing DVEs

were used. Production switchers can tie crosspoints allowing two cameras to be cut as if they were one and

DVEs can be used to horizontally slide images, simulating convergence control. Graphics inserts can be

made with a twin key and fill, introducing a horizontal offset between the signals. We don’t quite have all the production manufacturers committed to Stereo3D yet but this is changing fast and

expect plenty of news at NAB 09.

 

One point to mention in passing is that some stereo tests use a mux/demux workflow which combines left

and right eye into a single stream, allowing it to be passed down a single cable (or transmitted as a single

datastream). While this reduces the resolution of the image, one curious property of stereo is that the image

still appears sharp. The way we perceive stereo is still not fully agreed upon but we do know that the brain

creates stereo rather than passively capturing it and, if supplied with two lower resolution signals, many

viewers ‘see’ a high quality result.      

 

There are a number of tests in progress, some using different methods to the ones mentioned but the

common conclusion so far is positive – it can be done.

 

Post production suites  

 

The ‘fourth dimension’ of stereo is time. As well as removing any stereo or non stereo image errors a critical

role for post production is to create Stereo3D that is comfortable to watch over extended periods of time.

That means handling the z-space information on a shot so that it is technically and artistically correct and

also handling z-space over a sequence of shots, so that the eyes can comfortably adjust.  

 

Shooting fast moving Stereo3D content is quite different from shooting stills (and can be different from

feature film work where there may be more opportunity to set up takes). However, with a little experience any

competent artist can learn how to post produce stereoscopically and there are new measurement and

correcting tools coming on the market to make life easier.  

 

Audio post is an interesting area as 5.1 can be used very effectively to enhance depth.

 

Today, given the right tools, post production of Stereo3D content is becoming simpler, quicker and cheaper

than ever before.

 

Stereo images can now be accurately measured and corrected for example using the new 3ality Digital

SIP2100. 

Transmission Schemes

 

Transmitting two full quality Stereo3D HD signals as independent streams is impractical as it uses up

significant bandwidth and risks the two signals picking up unwanted differential artefacts or getting out of

sync. There are several schemes that aim to remove this including Side By Side, Checker Board and

Stereo3D specific compression.  

In Side by Side, a single signal is created that ‘squashes’ the left and right eye into a single picture. This is

then expanded out by the viewing device.  

‘Side by side’ horizontal squeezing of the original images to one picture. Pictures are then unsqueezed in

final playout.

 

Because we makes stereo in our brains by some very complex and not fully understood methods, despite

the reduction in resolution, pictures still look very good. If done properly, the actual quality is higher than

many of the excessively compressed HD services being broadcast today.

 

A single cable can carry the signal around a Broadcast facility prior to transmission and because the signal

travels as a single stream, there is no possibility of two signals getting out of sync. Sensio and Hyundai

currently use this method.  

 

In ‘checkerboard’, each eye is placed in a single frame rather like a chessboard with white spaces as one

eye and black as the other.  

Texas Instruments Checker boarding scheme Again there is no possibility of two signals getting out of sync. A number of TV vendors already use this.

 

Specific Stereo3D compression can use a variety of schemes that take advantage of the similarity between

the eyes to intelligently send only needed data.  

 

Monocular picture streams have much redundant image content between a group of frames which can be

reduced through use of long GOP compression. Stereo3D can take advantage of this too but also remove

redundant data between left and right views.  

 

Compression can be used to reduce payload by removing redundancy between eyes over time. This

example is ‘Worldline’      

  

Using two channels of non Stereo3D compression is very risky to use for Stereo3D because of the possibility

of concatenation or compression artefacts introducing differences between the eyes.  

 

However good Stereo3D compression schemes are likely to find favour and companies like TDV already

have working systems on the market.

Will Stereo3D Broadcast really work?

 

Yes. However, like sound and colour, not everyone is a believer. Here are some current objections:  

 

The EBU's head of emerging media David Wood said at IBC: "There is a degree of scepticism that we have

enough technology breakthroughs to make 3DTV work at the moment………. the technology is seriously

flawed in two main areas. The furthest point on the screen needs to be fixed at 6.5cm - the same as the

distance between human eyes. This can be achieved by projection in a cinema but there's no way of

knowing what size a viewer's display will be. Secondly there is a conflict between the focus and the

convergence of our eyes when viewing 3D. These psycho-physical limitations can never be solved with a

stereoscopic system….The real long-term future of 3DTV - and we are talking 50 years - is Object Wave

recording, a subset of which is the hologram"

TVB Europe, October 2008

 

The first point being raised here is that stereoscopic images are created in the mind by presenting two

images of a scene with a horizontal parallax difference that provides binocular disparity. That disparity makes

the viewer perceive depth. The amount of horizontal parallax is important for camera operators (or CGI

artists). Too little or too much and the viewer will not get the view that the Director intended (and in the worst

case too much can lead to headaches and fatigue). It is correct that we need to understand and manage that

depth relationship.  

 

Just as we need to manage the amount of colour or sound in a picture (and we don’t know how loud or what

colour settings viewers are using at home) we need to manage the amount of horizontal parallax. There are

two aspects to this – training and technology. If people know that a project will be shown on TV it is possible

to take that into account during shooting and post to set up an average that will work on any screen. There is

now also technology on the market to help people get it right, or if necessary automatically correct the image

(just as in colour or sound we have metering but also legalisers). The technology can be used during

shooting, post production or delivery.    

 

The second point being raised is that we normally focus and converge on the same point when we look

around but when we look at a Stereo3D TV screen, we focus on the screen plane but converge at a different

point (the implication being that this is unnatural and uncomfortable). However, beyond a certain distance

from a screen the subjective effect is negligible.    

 

Stereoscopic expert Lenny Lipton deals with the topic of accommodation and convergence on his blog

http://lennylipton.wordpress.com/2008/06/11/reality-check/. Lenny wrote ‘Foundations of the Stereoscopic

Cinema’ one of the definitive reference texts on Stereo3D.  

 

However, here is a different kind of objection.

 

James McQuivey, analyst at Forrester Research, said: "It's a very restricted viewing experience. You need to

sit in a certain part of the room, and wear glasses. You can't turn your head and chat to your friend and more

importantly, even if there were 100 3D films - and there are not - is that really enough to justify $1000 extra

on a television. That is a big premium to pay for just a film every week or so."

The Telegraph January 2009

 

While it’s true that there will be areas in peoples living rooms which give a better view that others, those

areas will typically correspond to where they sit anyway. It’s true that you need to wear glasses but as we’ll

discuss later there is no definitive evidence yet about consumer acceptance.  

 

The lack of content argument didn’t stop sound and colour.  

 

It is true that we don’t have much content yet. However, one immediately available source of content will

come from Hollywood as the number of new Stereo3D titles grows every month. In our tests, good Stereo3D

film content made for the big screen usually works well on Stereo3D TVs with just a little adjustment. This is

a ‘sunk cost’ as the movies are being made anyway, so with normal rights payments and some remastering

there is an existing pool of film content. There are also many Stereo3D titles from the last century2

 – we’ve

been looking at how restoration can work and it seems it makes sense for some of the better ones to be

remastered. This would take a bit of time and money but is perfectly feasible.    

 

If a Broadcaster wants to put a film channel on air, there could be enough new or remastered content for a

film channel to start sometime in 2010 and each year after that the available content will rise.  

 

Of course, as anyone following the tests and real content creation taking place at the moment can tell you,

there’s going to be much more than film to watch – during 2007/2008, music concerts, game shows, wildlife

documentaries, tennis, ice hockey, soccer, air races, winter sports, basketball, martial arts and American

football and much more were all shot in Stereo3D.

 

Finally the cost of TV sets argument doesn’t hold up in the long term. Stereoscopic TV sets will come down

in price to a small percentage above a monoscopic set. If the demand and the will are there, any short term

issues will go away.  

 

Hollywood is very interested in Stereo3D Blu-Ray right now and that (along with Stereo3D games) will help

drive TV purchases irrespective of Broadcasting.  

Here are a few of the remastered titles available. http://www.sensio.tv/en/home_theater/3d_dvd/available/default.3d

How are Broadcasters thinking about Stereo3D now?

As a new choice. Childhood is called ‘the formative years’ for a reason. We grew up, like many, watching just

a few channels of analogue TV. TV was something you watched passively and there wasn’t much choice.

There was plenty of bad TV but some was excellent. Some of the advertising was really good too.  

 

But the world moved on and we need to move on too.

 

For kids growing up now, things are vastly different:

 

        Channel proliferation means massive audience dilution for the advertiser.

        Time shifting set top boxes allow viewers to fast-forward through commercials or just miss them altogether. 

        Phones are delivering content.  

        PC and Mac based home entertainment provided by games, video download sites and Internet  social networking sites are yet more alternatives to sitting down at home to watch conventional TV.    

 

Games consoles also appeal to the young and the not-so-young. Games console manufacturers are starting

to look seriously at Stereo3D themselves. That creates new levels of competition for conventional

broadcasters but also presents an opportunity for Stereo3D Broadcasters. There will be an existing

population of Stereo3D TV sets which have been bought for gaming.  

 

Kids are growing up with lots of screens delivering entertainment and information. Conventional broadcast

TV has no inalienable right to be the delivery system of choice in the future. All that said, after a hard day at

work, or at school, it’s still great as many people still do, to sit down and relax in front of a TV – especially if

you established that habit in your formative years. News and sports have also been shown to hold a good

share of the audience, if done well.  

 

All this is well known – the question is ‘what do Broadcasters want to do about it?’ One answer is to simply

concentrate on reducing costs and maximising efficiency. That is a perfectly valid argument for some

broadcasters to take. However the efficiency argument alone can’t bring in new revenue or win new

audiences. 

 

There are many new potential sources of revenue - that have nothing to do with Stereo3D - that

Broadcasters can adopt to offset the decline in the old 30 second commercial. These are all perfectly valid

choices, however amongst hundreds of channels Stereo3D will be a strong differentiator. Stereo3D will be

one of many choices – but a spectacularly different choice.

 

In fact some Broadcasters considering offering Stereo3D TV are counting on limited competition, at least in

the early days.  

 

What’s the business case for Stereo 3D broadcasting?  

 

Digital Stereo3D Broadcasting is now being seriously studied because it is a potentially lucrative business.

The technology to begin stereo broadcasting exists now and the first pilot channel is already transmitting in

Japan. Show the general public and you get a positive reaction.  

 

A key debate will be around start up costs. There were initial objections to colour TV on the grounds of start

up cost and colour took many years to roll out. Interestingly the technology costs today of moving from

monoscopic broadcast to stereoscopic broadcast are much lower than the inflation adjusted costs in the 50’s,

60’s and 70’s of moving from black and white broadcast to colour.  

 

Compare at a headline level what technology a Broadcaster needs to change:

 

·         Monochrome to Colour  Monoscopic to

·         Stereoscopic

·         Comments

·         Cameras  New cameras  Same cameras    Existing HD cameras used in matched pairs are suitable for stereo  

·         Storage    New VTRS  Same storage  Existing NAS or SANs can be used. Pairs of

·         VTRs can be used.

·         Some new VTRS can record Stereo signals (e.g. Sony).

·         Production galleries 

·         New production switchers

·         Existing production switchers.

·         Existing DVEs

·         Most current production switchers and twin channel

·         DVEs can be repurposed for Stereo

·         Post production  New equipment  Some new, some current  

·         Transmission  New  Current  

  

So, while there are costs (and not all of them are covered here), on a technology level they are nowhere near

what some people may imagine. Can we get people to wear glasses to watch TV?  

 

Yes. This is the objection that is the most difficult to refute technically because it is based on the tricky field of

human behaviour. The evidence so far is ‘yes – most but not all people will be prepared to wear glasses’.

About three quarters of the world’s adult population have some level of eyesight issue that glasses or contact

lenses would improve. In those countries currently most interested in Stereo3D broadcasting, the majority of

the adult population own glasses. Of course there is a potential vanity issue, however no one much minds

wearing sunglasses outdoors if it’s too bright and the need to wear earphones didn’t seem to slow down

sales of the Sony Walkman in the eighties.  

 

Why then do we hear assertions like ‘you’ll never get people to wear glasses to watch TV’. Polarised

stereo3D glasses are close cousins of Polarised sunglasses3

. No one much seems to violently object to

sunglasses – it’s a multi-billion dollar business - and if you already wear glasses, it will be possible to have

prescription Polarised versions made of them for Stereo3D TV viewing.

 

This objection can stem from a number of different factors:

 

        Negative experience of badly made or badly displayed Stereo3D films.

        Negative experience of viewing content while wearing anaglyph glasses.

        Poor stereo acuity.

        An honest commitment to auto stereoscopic (glasses free systems).

 

Anyone who has watched poor Stereo3D (including all Anaglyph) is likely to be sceptical that audiences can

be persuaded to watch it over extended periods of time. We wouldn’t want to either.

 

A percentage of the population have impaired stereo acuity (figures of 6% to 8% are sometimes quoted).

They may see some stereo effect but often wonder what the fuss is all about. It may be worthwhile having

you eyes re-checked if you are planning to work in stereo, as a change in prescription can help someone

with an astigmatisim.

The good news is that watching stereo at home will look much more like the first picture than the second :-)

 

Glasses free Stereo3D is a great long term objective but for today glasses will be the way forward.

 

Earphones and headphones used to be seen as ‘geeky’ too. Sony and later Apple made them fashionable.

Maybe we need someone to pick up the challenge of producing fashionable glasses.  

 

iPod is doing quite well with earphones isn’t it?

 

 There are also TV systems using active glasses and these, along with colour frequency based glasses are all possible ways of showing high quality TV pictures. Conclusion

 We know how to shoot, produce, post produce and broadcast Stereo3D today. The content will be there in

the next few years if there is a will to create it. TV sets are already on the market, more will be coming.

Stereo3D games are already on the market and DVD will be available.

 

Who knows what percentage of the population will accept wearing glasses? We don’t and neither does

anyone making definitive sounding negative pronouncements. Maybe they saw bad content. What we’re

reasonably certain of, based on personal experiences of working with many thousands of people here at

Quantel, with partners, or on the road at events, is that if you show good Stereo3D correctly and use good

glasses, many a sceptic is quickly won over. Seeing is believing.

 

There are lots of smart and dedicated folks in all kinds of companies working hard on making Stereo3D

Broadcasting happen right now. If we want Stereo3D Broadcasting, we can have it.

 

Since the general public looks like they will want it too, the questions now are increasingly ‘how’ and ‘when’

not ‘if’.

 

This isn’t the whole story and there is much more to be said. Please drop us a line if you want to talk through

any of these topics in detail.

 

Mark.horton@quantel.com

Trevor.francis@quantel.com

 

 

3-D, This Year's Savior

http://normanhollyn.com/2009/01/19/3-d-this-years-savior/

 

19 01 2009

3D Film Image

There’s an exhibit here at this year’s Sundance Festival, at the Sheffield, which highlights two different 3D technologies (the correct phrase, I’m told, is not 3D, but stereoscopic). And while I really loved the expansive, trippy, artwork that was displayed on the screens (created by the talented Justin Knowles, from CGI Studios) you have to wonder if stereoscopic is really something that audiences are clamoring for.  

Back in the 1970s, I remember a few 3D films which always involved the filmmakers tossing something directly at the audience. It was the fastest way to create the “oooh” effect in the audience. Last year, when I was at the CILECT Conference in Beijing, I saw an incredibly impressive 3D experience which was completely controlled by the viewer. So, the technology is impressive. But, like HD televisions, it’s hard to see how the audience is going to need to buy into the technology, especially if it requires buying anything.

The problems with convincing people to buy into the stereoscopic world were obvious at the exhibtion, just from the physicality of the presentation. First off, there were two incompatible technologies (how did that work for you HD-DVD??) — one with two stacked projectors and the viewer wearing a pair of glasses that combined the two into one brain image. Then there was the Mitbubishi style — 60fps projection, which alternated left and right eyes. It required a pair of expensive glasses that blinked the alternating eyes, synchronized with the screen so each eye saw only the frames designed for it. This amounted to, sorta, a 30fps image with depth.

Two competing technologies. Let me say that again — two technologies.

Each required a computer to play back the movies, but each required different standards. Good luck with that.

Second, in both cases, there were a limited supply of glasses and when too many people were using them, you got to stare at an unwatchable image.  Very 60s trippy, but not very satisfying. Unless the consumer is willing to buy a large supply of glasses, you’re going to have a limited supply at home as well (especially with the Mitsuibishi electronic glasses). And as soon as your seven year old kid marches off with one of your pairs, someone’s not going to be able to watch 3D in your house.

[I actually offered the kind Mitsubishi sales woman some advice -- the company that invents a pair of glasses with a cheap tracking device, is going to make a mint. Think of how many times you use your car door remote to locate your car in a large parking lot.]

In its defense, at least the 3D experience offers enough different from the 2D one to make the average viewer notice (as opposed to HD, which I still maintain is not different enough to convince most of the American public to repurchase all of their SD DVDs). But if filmmakers spend the next three years throwing objects at the camera, in order to create that “oooh” moment, we’re going to grow tired of this gimmick rather quickly. It’s hard to believe that there are millions of people ready to throw away their 2D movies so they repurchase a more expensive experience that won’t involve things being thrown at them. And while people didn’t mind watching Ted Turner’s colorized movies on TV years ago, I don’t know anybody who refused to watch those movies in black and white when they were at more convenient times. In other words, 3D doesn’t rise to the level of “must have” or “it will change my life so it’s too cool to pass up.”

Except in games. The Beijing experiment, in which I could control how I perceived the space around me, was so immeasurably more satisfying than its 2D equivalent, that I was immediately thrust inside the experience.

Films are, basically, a directed experience — someone else is helping us through the story.  Games are much more player-driven and, as such, benefit from an expanded world. There is much that 3D can do to help us explore our world in film (I edited one short in 3D and it was not a wonderful experience), and I assume that as filmmakers get better at telling stories in that landscape, we will get more mature works. But it is in the world of immersive entertainment, where presenting the audience with a world that they can control, that steroscopic has some value.

To that end, everyone would get a better return on their investment if they stopped paying to give us Miley Cyrus in 3D, and instead invested in giving us Master Chief in 3D.

 

Paramount Goes Direct-To-Exhibitors With D-Cinema Deal

http://celluloidjunkie.com/2009/01/22/paramount-goes-direct-to-exhibitors-with-d-cinema-deal/#more-418

 

Posted by J. Sperling Reich | January 22, 2009 11:02 pm

On the eve of the National Association of Theatre Owners’ meeting with equipment vendors to review digital cinema requirements on Friday, Paramount Pictures has thrown the exhibition industry a curve ball in the hopes of resuscitating the stalled rollout of the technology.  Rather than work solely through integrators such as Digital Cinema Implementation Partners (DCIP) and Cinedigm (formerly AccessIT), Paramount has become the first Hollywood studio to offer North American exhibitors financial assistance for digital cinema installations.

What’s significant about Paramount’s announcement is that previously studios have refused to cut deals to reimburse exhibitors for digital cinema installations directly with exhibitors for fear of future anti-trust litigation.  Instead, they relied on digital cinema systems integrators to provide a buffer between themselves and theatre owners.  But, with the digital cinema rollout at a near stand still, Paramount seems to be throwing caution to the winds.

Paramount has a vested interest in seeing digital cinema take off, specifically to increase the number of 3-D capable projection systems. This March the studio will be releasing Dreamworks Animations’ “Monsters vs. Aliens” in 3-D and presently the United States and Canada only have about 1,200 screens properly equipped with 3-D systems.  Paramount has been promoting the film heavily for nearly a year at industry trade shows and will be airing a 3-D commercial for the movie during the upcoming Super Bowl telecast.
Paramount has already struck virtual print fee deals with four domestic digital cinema integrators; Cinedigm, DCIP, Kodak and Sony.  The studio has also signed VPF agreements with international integrators such as XDC, Arts Alliance Media, Ymagis and GDC.  However, integrators must turn around and find financing for such deals to purchase the digital cinema equipment they will install and maintain in theatres.  At an average of USD $70,000 per screen integrators need to land tens of millions, if not hundreds of millions of dollars in financing.  DCIP is presently looking for more than a billion dollars to roll out digital cinema equipment in upwards of 16,000 screens for AMC Entertainment, Cinemark and Regal Entertainment.

Raising such capital during the ongoing financial crises and worldwide credit crunch is next to impossible, as Mark Christiansen, Paramount’s executive vice president of distribution, pointed out when speaking with the Associated Press about the studio’s new plan:

“Trying to get $10 million or $100 million today is almost impossible.  Now a local theater owner can get financed on a local level and we will support them. We can get digital cinema rolling from the local level up instead of from a national level down.”

The studio’s thinking seems to be that banks might be more willing to loan money to individual exhibitors in smaller chunks, especially if they are local, regional businesses.  If the plan works it could certainly rescue some independent exhibitors who have not been pleased with the Cinema Buying Group’s VPF deal with Cinedigm or may be too small for VPF deals altogether.

Paramount intends to provide a VPF with a cap of USD $1,000 directly to theatre owners for a period of ten years (and for Paramount films only), provided the exhibitor converts half their screens to digital or install at least one 3-D projection system.  What isn’t clear from initial reports is whether an exhibitor will have to convert half of all the screens in every venue they own, as is the case with most integrator’s VPF agreements, or whether an exhibitor could focus digital installations on specific theatres.  Of course, exhibitors who have executed agreements with integrators and are already receiving VPFs would not be eligible to participate, though under the Paramount plan theatre owners who purchase their own equipment would be allowed to enter into deals with integrators at a later date should they choose to do so.

Under the terms of the deal exhibitors would be allowed to own and operate their own digital cinema equipment, so long as it complied with Digital Cinema Initiative and SMPTE specifications.  In most integrator agreements it is the integrator that owns the equipment, not the exhibitor, something theatre owners have voiced complaints about in the past.  In fact, some North American exhibitors, tired of waiting for integrators to scrounge up financing or come up with a reasonable agreement, have instead begun to purchase and install their own digital cinema equipment in limited numbers so as not to miss out on any of this year’s upcoming 3-D releases.  Such moves could put the studios in a difficult spot, as instead of being in control of VPFs, exhibitors might start trying to recoup their investment in digital cinema through alternative means, such as attempting to decrease film rental payments.  Seeing this new trend of exhibitor financed equipment, Paramount’s move could also be an attempt to try and manage the situation before it gets out of control.

Paramount sure doesn’t seem to be trying to hide the fact that their aim is to widen the number of 3-D capable installations, since they told the Hollywood Reporter that VPFs for 3-D films will be higher than those paid out on 2-D films.  It’s no surprise that the studio should be so eager to try and re-ignite the digital cinema roll out.  For months rumors have swirled around the industry that Jeffrey Katzenberg, head of Dreamworks Animation, has been quite displeased with Paramount’s efforts to push digital cinema.  Katzenberg has been a huge advocate of digital 3-D presentation and announced that all of Dreamworks Animations’ future projects will be in 3-D.  With the release of “Monsters vs. Aliens” less than two months away, the announcement could be a move by Paramount to appease Katzenberg.  If that’s the case, it certainly seems to be working.  Katzenberg told the Hollywood Reporter:

“It’s a real big breakthrough, and I am counting on the other distributors to follow through on this, too.  It’s a tremendous opportunity for a number of exhibitors who have not had access to the kind of funding that now will be provided on a theater by theater basis, as well as for larger exhibitors who have been frozen out of the market because of the credit crunch.”

NATO also seems to be pleased with Paramount’s decision and like Katzenberg hopes that other studios will follow suit.  Given the quote from John Fithian, NATO’s president, which appeared in Paramount’s press release, it wouldn’t be surprising if the organization was instrumental in helping the studio come up with the new plan:

“Paramount is getting out front on this critical industry transition and we applaud them. Direct arrangements between distributors and exhibitors won’t work for everyone, but for some of our members, it could make the difference in surviving and thriving in the digital era. And it certainly enables some exhibitors to get wired much faster — and that means more 3-D screens sooner. We urge all studios to give this creative option a fair chance.”

With 20 digital 3-D films slated for release by the end of 2010 the digital cinema rollout has become an urgent matter for all of the major studios, and now that Paramount has dared to be the first to take the plunge and agree to sign VPF deals directly with exhibitors, don’t be shocked if you quickly see others following their lead.

 

Paramount Pictures Announces Direct-to-Exhibitors Digital Cinema Deal

http://sev.prnewswire.com/entertainment/20090122/LA6168722012009-1.html

First Studio To Implement Agreement To Accelerate Expansion Of Digital Footprint

HOLLYWOOD, Calif., Jan. 22 /PRNewswire/ -- Paramount Pictures, a unit of Viacom Inc. (NYSE: VIA) (NYSE: VIA.B) , today announced it has become the first studio to offer digital cinema support directly to exhibitors across the United States and Canada. The move is expected to accelerate the roll-out of digital and 3-D projection systems in theatres. The announcement was made by Jim Tharp, President of Domestic Theatrical Distribution.

The deal works in parallel with previously announced agreements with DCIP (Digital Cinema Implementation Partners), Cinedigm, Kodak, and Sony but allows exhibitors to seek financing for d-cinema systems locally rather than wait for comprehensive integrator agreements, which require significantly more upfront capital, to be completed. In addition, the agreement allows exhibitors to own and control their equipment (which is required to be DCI/SMPTE compliant), and to switch to an integrator-supported agreement at a later date if desired. The new agreement also includes independent theatres that do not belong to any integrator groups.

In making the announcement, Tharp said, "We are excited about the potential of more theatres offering more of Paramount's films in the highest quality digital and 3-D. Today's announcement is a good step forward to providing more audiences with the very best in movie viewing."

NATO President and CEO John Fithian said, "Paramount is getting out front on this critical industry transition and we applaud them. Direct arrangements between distributors and exhibitors won't work for everyone, but for some of our members, it could make the difference in surviving and thriving in the digital era. And it certainly enables some exhibitors to get wired much faster -- and that means more 3-D screens sooner. We urge all studios to give this creative option a fair chance."

To date, Paramount has signed nine digital cinema integration deals, the most of any major studio. They include domestic agreements with Cinedigm (previously Access IT) Phase 1 and Phase 2, Kodak, Sony, and DCIP, three deals with European integrators XDC, Arts Alliance Media and Ymagis, and two deals with Asian integrators DCK and GDC. So far, more than 3,500 screens have been converted to digital under Cinedigm's Phase 1 plan.