New 3-D Technology from TrioScopics

http://www.digitalcinemainfo.com/TrioScopics_09_25_09.php

September 25, 2009

Source: TrioScopics

TrioScopics LP has developed high-quality stereoscopic imaging technology that consists of proprietary encoding combined with inexpensive glasses, and does not require specialized projectors, screens, or players and display equipment, thus eliminating a major impediment to the distribution of 3-D entertainment. A demonstration by TrioScopics was unveiled at the recent 3-D Summit in Los Angeles. 

"TrioScopics has the potential to make high-quality 3-D ubiquitous in the marketplace immediately, without any equipment investments or expensive upgrades," says John D. Lowry, founder of TrioScopics. Lowry has been solving picture processing problems in the motion picture and television industries for 57 years, and holds numerous patents on imaging technology solutions. "With cost barriers eliminated, studios and exhibitors can meet the escalating demand for 3-D entertainment and significantly boost 3-D earnings potential for d-cinema and home entertainment applications." 

At the 3-D Entertainment Summit, Lowry showed 3-D content on a 48-foot screen that has been processed using the latest iteration of TrioScopics' technology, which is the result of three years of research and development. 

The process combines the left and right eye image pairs into a single color-encoded image that appears as a full color 3-D image when viewed through the TrioScopics-designed glasses. The TrioScopics system presents excellent 3-D depth, a wide range of color, and superb image fidelity in both digital cinema and home theater situations. 

Early versions of TrioScopics' 3-D technology were utilized in the DVD and Blu-ray releases of Journey to the Center of the Earth (October 2008 for Walden Media), My Bloody Valentine (May 2009 for Lionsgate), and Coraline (July 2009 for Universal), for which about 50 million pairs of TrioScopics' glasses were manufactured and delivered. 

"Our 3-D technology has improved with each subsequent release, and is now poised to provide a state-of-the-art, immersive entertainment experience to audiences worldwide," notes Lowry. He continues, "There are approximately 6,000 digital cinema installations in North America and over half are not equipped for 3-D projection. Our technology meets the growing market demands for 3-D entertainment today, expanding the number of theaters capable of displaying 3-D movies without the need for investments in new screens, accessories or systems. We can help distributors and exhibitors put 3-D on more screens now, instantly creating significant earnings potential. And we think that might be a game changer for the business." 

Lowry founded TrioScopics with Ian Cavén in February 2007. Lowry is a visionary whose unconventional and forward-thinking approach has led to a long history of image science breakthroughs. 
Today, in addition to his work with TrioScopics, Lowry is active with Lowry Digital, which he founded 11 years ago. The Lowry Process™, a unique proprietary image processing technology that he developed, has been used to fine tune motion pictures like The Curious Case of Benjamin Button, as well as to restore hundreds of cinema classics including Citizen Kane, the original Star Wars trilogy, and the James Bond and Disney Classics libraries.

Most recently, The Lowry Process™ was used to restore video images from the Apollo 11 moonwalk for NASA. For more information, visit www.trioscopics.com

Arts Alliance Media Announces the First Satellite Delivery of a feature film for commercial release in Europe

http://www.digitalcinemainfo.com/artsalliancemedia_09_15_09.php

September 15, 2009

Source: Arts Alliance Media

La Vida Loca Beamed to Cinemas across France

Arts Alliance Media (AAM), Europe’s leading provider of digital cinema technology, content and deployment, together with Arqiva Satellite & Media, the leading satellite and terrestrial communications provider, have successfully delivered La Vida Loca directly via satellite to 19 sites widespread across the Circuit George Raymond (CGR) Cinémas’ megaplex circuit, all of which use the AAM electronic delivery platform operating across Arqiva’s cinema satellite network.

CGR Cinémas is one of France’s largest cinema chains. La Vida Loca will be released in France on September 30th by Ciné Classics. The film was directed by Christian Poveda and produced by La Femme Endormie.

The film, encoded and encrypted into a JPEG 2000 DCP (digital cinema package) file by AAM’s London-based digital content processing laboratory, was electronically sent over a dedicated network link to one of Arqiva’s satellite teleport hubs based in the UK, and then delivered simultaneously via satellite directly to the library servers in each cinema in France. The file will be unlocked for screening by a security key (KDM) sent separately by email to each cinema via AAM’s bespoke automated KDM delivery system.

Currently, films are physically distributed to cinemas, either on digital cinema hard drives or 35mm analog prints. Electronic distribution via satellite provides significant time and cost savings, as well as increased programming opportunities.

AAM’s Chief Executive Officer, Howard Kiedaisch said, “AAM’s electronic content delivery platform is proven and open for business! Our thanks go to Ciné Classics and La Femme Endormie for giving us this great opportunity. Satellite delivery of films to cinemas is the bright new future for film distribution and exhibition and we are proud to be a first mover during these exciting times.”

The cinema satellite system available from AAM consists of professional grade equipment which, unlike consumer grade systems, supports delivery of advertising, trailers and encrypted feature films (as DCP files), as well as encrypted live broadcasts (live concerts, operas, dance, sporting events, filmmaker Q&A’s). Additional benefits of a professional system are higher quality, greater reliability, upgradeability and remote management facilities.

 

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Should the DCI Open its Doors?

http://www.digitalcinemareport.com/node/1252

 

Submitted by Nick Dager on Mon, 09/14/2009 - 08:49.

 

By Michael Karagosian

If you know anything about digital cinema, then no doubt you’ve heard of the Digital Cinema Initiatives, the joint venture of six major motion picture studios to establish a shared specification for digital cinema, focusing on distribution and security.  DCI has been an important player throughout much of the development of digital cinema. With that importance comes a responsibility to the many entities having a stake in the outcome.  It’s time to review the important work accomplished by DCI and the reasons why it's time for DCI to consider opening up its decision-making process.

Several years prior to the formation of DCI, SMPTE, the Society of Motion Picture and Television Engineers, began heading down the path of developing interoperable standards for the transition to digital cinema, an effort that continues today.  SMPTE played a central role in those early days by providing a forum for debating the technologies and methods for a marketable implementation.  DCI was formed a few years after the SMPTE digital cinema effort began.

The work on digital cinema began at a time that was fresh on the heels of the music industry battles over illegal online distribution.  The only fact that kept the movie industry from facing the same fate at that time was that movies took much longer to download.  The movie industry was about to head down the path of distributing first release movies digitally, and it needed to be sure that this wasn’t going to put it in the same jeopardy as the music industry.  

Prevention of piracy was the major, but certainly not the only, reason for the studios to band together in forming DCI.  Technology guidance became its primary focus, with the organization conducting tests where needed, and documenting its decisions in a specification.  In mid-2005, DCI released its Digital Cinema Systems Specification.  While much of the specification validated existing work within SMPTE, DCI originated much of the guidance on content security and related equipment behavior.  

In its early days, DCI was an operating entity with executive staff, employees, and consultants.  As the DCI spec advanced through its many versions, these were shared among manufacturers and exhibitors, with the opportunity to meet face-to-face with DCI’s executive staff to provide feedback.  

But after the specification was first released in 2005, DCI ceased day-to-day operations and let go of its employees.  Today, DCI operations consist of member meetings where changes to the DCI spec are decided.  Over 250 “errata” have been made to the DCI spec since its initial release.  While many of these errata are clarifications, substantive changes have also been made.  Unlike the early days prior to the initial release of the spec, there is no staff which with to discuss issues.  DCI has never engaged in open debates of its specification, but with competitive companies marketing products built to the spec, and with substantial investments made in purchasing these products, the issuance of additional “errata” without the involvement of others becomes problematic.

To determine compliance to the specification, DCI created its Compliance Test Plan.  Development of the CTP began in early 2006, when DCI first entered into a contract with the Fraunhofer Institute.  Fifteen months afterwards, DCI then contracted with Cinecert to reformulate and finalize the CTP, releasing version 1.0 in October 2007.

Both the specification and the CTP come with a disclaimer stating that “each DCI member company shall decide independently the extent to which it will utilize, or require adherence to” the specification or test plan.  With the DCI specification, it was obvious that not all studios agreed on every item in the spec.  The specification requirement for modems to be used for security key communication is probably the best-known area where studios disagree.  The CTP, however, provided the basis by which a pass-fail test could be applied to products.  Regardless of the disclaimer, the designated testing entities only share test results with studios when a product passes 100 percent of the CTP.  Thus, the CTP provides clear instruction as to how a manufacturer should meet the DCI specification.

For both exhibitors and financing entities, a product’s passage of the CTP provides the ultimate indicator that it is worthy of investment.  But what happens to that investment when the CTP changes?  Today, no products pass the current DCI CTP, but the portent of this question is real.  One manufacturer recently passed CTP 1.0.  However, a revised CTP 1.1 was then released, which the manufacturer’s product didn’t pass.  Such revisions put manufacturers, exhibitors, and financial entities at risk of having an obsolete product.

DCI’s specification and test plan provide a substantial part of the foundation of digital cinema.  But as with any foundation, this work needs to be solid.  When taking into account the investments made by manufacturers, exhibitors, and financial entities, there are many stakeholders to take account of.  Changes to DCI’s specification and test plan may continue to happen, but should they continue to happen behind closed doors?  This is the question that deserves discussion.

 

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Technicolor Launches Industry's First "Production to Projection" Solution to Deliver High-quality 3D to More Moviegoers

http://www.digitalcinemainfo.com/technicolordigitalcinema_09_22_09.php

September 22, 2009

Source: Technicolor Digital Cinema

Moviegoers Rank 35mm 3D Identical in Quality to Digital 3D in Warner Bros.’ Final Destination 3D Exit Polls

Technicolor announced a high-quality, affordable 3D solution that works with existing 35mm projectors. The Technicolor 3D Solution can be deployed immediately to bridge the gap until digital cinema can be more widely rolled out.

According to exit polling interviews conducted by independent research firm OTX, moviegoers ranked Technicolor 3D as being comparable to digital 3D cinema technologies, making it the first viable celluloid complement to existing 3D efforts.

A wider platform is needed to accommodate the growing consumer demand for 3D content. With more than a dozen 3D movies and even more special 3D events (concerts, sporting events, etc.) slated for 2010, 3D engagements are a proven complement to 2D at the box office. In fact, 3D engagements outperform 2D by more than 2-to-1 in attendance and even greater in box office.

Existing 3D technologies work exclusively with digital projectors, but currently only approximately 6,500 theatre screens in the U.S. have been converted to digital and roughly only 2,500 of those screens will be 3D-capable by year’s end. This means more than 90 percent of theatre screens in the U.S. are not able to provide a 3D experience to moviegoers…until now. Because there is no need for a digital cinema system, which can be costly,

Technicolor’s innovation puts 3D within economic reach of all theatre circuits, allowing them to complement 2D engagements and benefit from incremental revenue generated from increased ticket sales and ticket sale surcharges.

“In today’s economic environment, it’s a harsh reality that not every exhibitor has access to the funding required to install digital 3D projection systems. It was the desire to make 3D accessible to the masses that resulted in Technicolor creating a 3D solution to fill the gap between celluloid and digital cinema,” said Frederic Rose, Chairman and CEO of Thomson/Technicolor.

“Technicolor 3D equals the quality of digital 3D, and since it’s a fraction of the cost of digital 3D, it allows every exhibitor to benefit from the incremental revenue generated from 3D presentations while giving content creators the widest possible platform on which to share their movies.”

Warner Bros. and AMC, which have teamed with Technicolor for initial consumer testing, are encouraged by moviegoers’ response to the Technicolor 3D Solution. Sixty-five percent of moviegoers polled after viewing Warner Bros.’ box-office success Final Destination 4 in Technicolor 3D said the “overall image quality of the 3D” was “excellent” or “very good”—this compares identically to the results from digital 3D exit polls.

Movie Exit Poll Highlights from Technicolor’s 3D Presentation of Warner Bros.’ Final Destination 4

· Satisfaction of Overall Viewing Experience. Overall satisfaction was similar in Technicolor 3D and digital 3D and both test groups felt “satisfied” to “extremely satisfied” with this experience. The 35mm 3D group registered somewhat higher “extremely satisfied” responses that the digital 3D group.

· 3D Quality Compared to Last 3D Movie Experience. Comparing this experience to the last movie they saw in 3D, moviegoers who watched in 35mm 3D were near-identically inclined to perceive the 3D quality as “excellent” or “very good” as those who watched in digital 3D—comparisions to their last 3D experience were at parity.

· Movie Ratings & Recommendation. Moviegoers who watched in Technicolor 3D were more inclined to rate the film itself “excellent” and to “definitely” recommend it to friends versus those who watched in digital 3D.

How the Technicolor 3D Solution Works

The Technicolor 3D Solution employs a propriety “production to projection” system that leverages 35mm (film) projectors already in use by 90 percent of U.S. theatres today to deliver high-quality 3D content to moviegoers.

A patented lens system assembles the left and right eye images as the film runs through the projector and delivers a 3D ready image onto a silver theatre screen. The solution works with circular polarized glasses—identical to the ones used for existing digital 3D cinema—to “translate” the film’s content into an image that is perceived by the viewer as being three dimensional.

The silver screen can be used for the projection of both Technicolor 3D as well as digital 3D content. The Technicolor 3D Solution can be installed nearly immediately. No build-out or significant modifications of the projection booth are required.

 

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China Film Group Selects Ballantyne Strong to Provide and Install 160 Digital Cinema Projectors in Mainland China

http://www.digitalcinemainfo.com/ballantyne_09_22_09.php

September 22, 2009

Source: Ballantyne Strong

Ballantyne Strong, Inc., a provider of digital cinema projection equipment and services, cinema screens and other cinema products announced today that its Strong Westrex China subsidiary has been selected to provide and install 160 NEC Digital Cinema projectors for China Film Group Corp in locations across The People's Republic of China (PRC).

Ballantyne currently expects to ship and install up to half the machines in 2009, with initial shipments anticipated as early as Q3, and expects to ship and install the remaining projectors in 2010. The agreement follows an initial 100-projector order that was completed during Q2 2009.

John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "We are excited to build upon our longstanding relationship with China Film Group and expand our presence with this contract, our second digital projector deployment in the PRC."

"China continues to represent a very attractive market for our company, with approximately 6,000 cinema screens and expectations for continued expansion of that base over the coming years. We are confident that the high quality and performance of the NEC digital projector systems, combined with Strong Westrex's technical service capabilities will ensure ongoing success in this region. We look forward to working with China Film Group and their
partners to support their ongoing digital cinema needs."

In late 2008, Ballantyne executed an agreement with NEC Display Solutions Japan granting Strong Westrex distribution rights to NEC's line of digital cinema projectors for the PRC. Ballantyne opened a sales and service office in Beijing and is now working toward the opening of additional offices in the PRC and elsewhere in Asia in 2010.

 

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Katzenberg Keynotes 3D Entertainment Summit

http://celluloidjunkie.com/2009/09/17/katzenberg-keynotes-3d-entertainment-summit/

 

Posted by Admin | September 17, 2009 3:06 pm

Jeffery Katzenberg suggested that if exhibition doesn’t grab the 3D opportunity, “it will go down as one of the real great misses of our time.”

He shared his thoughts about 3D, both for the theater and the home, Thursday at the 3D Entertainment Summit in Los Angeles, during a keynote discussion with Bob Dowling, Summit co-producer and conference chair.

On theater pricing, he said: “Exhibition has been incredibly timid about (pricing). Every piece of research we did showed the consumers felt they got a valuable experience at a $5 premium and almost no one adopted (the premium).”

The Dreamworks Animation CEO commented: “I find it amazingly curious how slow the live action business has been at jumping on this opportunity.” And the 3D champion also admitted that he perhaps went too far in predicting that all content would go 3D, adding that it “dampened his credibility.”

Commenting on Technicolor’s 3D approach, he said: “I’ve seen it in a controlled environment. I’ve yet to see it in a large theater, but the early demonstrations looked pretty good. It’s not ideal but we are in an economy unlike anything we faced in our lifetime. So to me, that’s an interim step.”

Katzenberg noted that theater owners have had a few years head start, but “rollout into the home is going to pick up serious momentum next year.”

During the well attended event, he predicted that sports and games would drive 3D to the home faster than other types of entertainment. As to broadcast, Katzenberg noted that with Disney’s work in the 3D arena, he expects “real leadership” from ESPN.

The two-day event at the Hilton in University City featured a conference program and exhibits from companies including 3Ality Digital, Sony, Panasonic, JVC, Sensio and NVidia.

 

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3-D television expected to come to homes in 2010

http://edition.cnn.com/2009/TECH/09/18/3D.home.television/#cnnSTCText

 

September 18, 2009 -- Updated 1302 GMT

 

By John D. Sutter
CNN

(CNN) -- Three-dimensional images are expected jump out of movie theaters and into living rooms by next year.

Panasonic demonstrates 3-D television at a recent technology expo in Atlanta, Georgia.

"TV finally becomes real" in three dimensions, said Robert Perry, an executive vice president at Panasonic. "You're in it. It's the next frontier."

Perry compared the 3-D transition to the switch from black-and-white to color television and the shift from standard- to high-definition images. See what 3-D TV demos look like »

ESPN is test-recording some sporting events in 3-D, using cameras with two sets of lenses, which would make football players appear to jump out of home television screens during live 3-D broadcasts.

And, although television makers haven't released specifics, the price of 3-D TV -- which requires a new television, broadcasting content and 3-D glasses -- is not expected to be substantially higher than some high-definition televisions on the market now.

Still, there are skeptics who say that 3-D is not ready for prime-time home viewing.

There are concerns that 3-D broadcasts, which require twice the data, will gobble up an unworkable amount of television bandwidth. And some worry that 3-D glasses and graphics won't make a smooth transition to American living rooms.

Shane Sturgeon, publisher of HDTV Magazine, said some of the glasses give him a headache and will block some people from buying the new technology.

"From what I've seen from most of the manufacturers, it's just not there yet," he said of 3-D TV technology. "I think right now, the technology -- whether you're talking about the refresh rate or the strobing or the glasses -- there are too many things right now that get in the way of enjoyment of the film for it to kick off."

All 3-D technology relies on the idea that if separate images are presented to the left and right eyes, the human brain will combine them and create the illusion of a third dimension.

TV makers go about this in different ways, though.

Panasonic and Sony, which demonstrated their products for CNN at a recent tech expo in Atlanta, Georgia, use "active glasses" and TVs with high refresh rates to achieve the effect.

Two images, one for the right eye and one for the left eye, alternate quickly on the TV. Shutters on the 3-D glasses swap the viewer's vision from right eye to left eye at the same rate: 120 hertz, or 240 hertz for the images together. The TV connects with the glasses through a sensor that's placed between the lenses on the glasses.

"It's like a little Venetian blind: open, close, open, close, open, close," John Wyckoff, a Sony content manager, said of the glasses.

The effect moves so quickly that it tricks the brain into merging the images and creates the perspective needed to see images in 3-D, he said.

Glance away from the TV, though, and you can see the lenses opening and closing, which irritates some people.

Those who saw the technology at the recent Custom Electronic Design and Installation Association Expo seemed wowed by Panasonic's 3-D footage of Olympic events and skiers who appeared to send snow flying into the laps of the audience.

David Lesch fidgeted with his 3-D glasses during Panasonic's demo but said the 3-D picture on the company's 103-inch plasma screen was excellent.

However, it may not be effective for all TV programming, he said.

"I cannot imagine that I will watch CNN in 3-D," said Lesch, sales director at AV Media, which sells electronics. "But for sports, yes. To watch soccer and ice hockey -- anything -- that would be great."

These next-generation televisions would be able to play shows in 2-D or 3-D. They also would be able to show video games in 3-D, which Sony demonstrated at the expo in Atlanta.

Sturgeon, of HDTV Magazine, said JVC is working on a type of 3-D technology that's different form the strobing glasses used by Panasonic and Sony.

JVC's version uses polarized glasses to separate the right-eye image from the left-eye image and is more pleasing to the eye, he said.

Aside from the kooky glasses, people who want to watch television that jumps off the screen will need something to watch. The process of making live television work in 3-D probably would involve a major conversion of broadcast equipment.

Also, Blu-ray is said to be working on a product that would play three-dimensional movies at home.

Panasonic and Sony said they're still working out some kinks in their 3-D entertainment systems. The TV makers hope to ride the wave of popularity of improved stereoscopic 3-D movies, such as recent hit "Up," that are being shown in theaters.

Perry, of Panasonic, said he expects 3-D TV to be common in homes within five to 10 years. Technology that will make 3-D TV possible without glasses should be ready in 10 to 15 years, he said.

Michael Bridwell, spokesman for Digital Projection, a company that makes high-end 3-D home theaters, said 3-D is the biggest technology coming to television and home movies in the foreseeable future.

Well, at least "until we get to holograms," he said.

 

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D-cinema gets $525 mil boost

http://www.hollywoodreporter.com/hr/content_display/news/e3i85a75f3355f4093d7cb396ac259a5407

Consortium's fund will bankroll 15,000 conversions
By Carl DiOrio
Sept 10, 2009, 11:00 PM ET
Stop the presses! Digital dollars are finally on the way ... and should arrive in November.

JP Morgan next week will send out briefing books for a $525 million financing of up to 15,000 d-cinema installations over the next five years at the nation's three biggest movie circuits. The circuits -- Regal, AMC and Cinemark -- will add 3D equipment at many of the sites.

The 3D embellishments will carry considerably lower costs, which will be borne by the theater chains or in some cases 3D vendors. The heftier expense of first converting screens to digital is being defrayed in large part by commitments from the major studios.

The studios previously signed off on so-called virtual print fee deals, which guarantee payments to exhibs for years after studios cease having true film print costs. But the upfront costs of the conversions are so big as to require help from Wall Street, so JP Morgan is arranging a $325 million bank syndication and $200 million in equity-based contributions from private-equity firms and the circuits themselves.

The industry's rollout of digital and 3D hardware was stalled by the nation's protracted credit crunch. So though the syndication will take a couple months to complete, word that the rollout soon can resume comes as qualified good news for distributors struggling to market 3D releases despite the paucity of 3D screens.

Third-party integrators help channel d-cinema funds to exhibitors, and Digital Cinema Implementation Partners will serve as conduit for funding to Regal, AMC and Cinemark. Other domestic integrators include Cinedigm, which like DCIP has been hampered by financing issues.

Originally planned in early 2009, a DCIP syndication first was delayed until summer before lingering credit difficulties pushed its launch beyond Labor Day. The funding impasse -- which dragged on for the better part of a year -- has had studios with 3D releases competing furiously for a paltry base of 3D movie screens, both domestically and abroad.

Things grew so tense that the Big Three circuits got started on some of the DCIP conversions even before the financing is arranged, with the promise of repayment once the syndication closes. The early expenditures could top $60 million.

There may now be fewer than 2,000 noncompetitive 3D auditoriums in the U.S. and Canada. New installations could push that number above 2,500 screens by year's end and hundreds higher by the end of 2010.

The additional 3D screens are desperately sought by studios planning extra-dimensional campaigns the next several months. Those include Fox, which has scheduled the high-profile release of Jim Cameron's 3D sci-fi actioner "Avatar" for Dec. 18.

"As far as Fox is concerned, the sooner the better," Fox distribution president Bruce Snyder said. "More units should be out there for both Thanksgiving and Christmas, and time's a-wasting."

There are now fewer than 7,000 movie-quality digital screens in the U.S. and Canada. Once fully funded, DCIP aims to convert an additional 500 screens per month to digital projection, meaning the likelihood of 12,000-13,000 digital screens in operation by the end of 2010.

In about two weeks, JP Morgan reps will begin meeting with a dozen top lenders and then will seek to broaden the syndication in October. A November closing is targeted.

Funding for a resumed international rollout of digital hardware also is expected in coming months as global financial markets rebound. D-cinema integrators in Europe and elsewhere are primed to roll out thousands of additional digital systems once banks are lined up to cover costs, and studios will press international exhibs to equip as many of those auditoriums as possible with 3D capability.

Technicolor Goes 3D With Film Based System

http://celluloidjunkie.com/2009/09/17/technicolor-goes-3d-with-film-based-system/

Posted by J. Sperling Reich | September 17, 2009 8:00 am

With the demand for digital 3D films at an all time high,Technicolor has decided to jump into the fray with what they are calling an affordable, alternative solution that has stirred up intense debate. The leading motion picture service company is introducing the Technicolor 3D Solution, which will allow exhibitors to use their existing 35mm film projectors to project 3D releases without upgrading to more costly digital cinema equipment. And there's the rub; rather than using digital content Technicolor's solution is film based.

Even though the technology relies on celluloid, rather than bits and bytes, Ahmad Ouri, Technicolor's Head of Strategy, Technology & Marketing, on Wednesday assured roughly 400 members of the industry that the technology was not old or steeped in the past. Sitting on a panel titled 3D's Impact On Digital Deployment at the 3D Entertainment Summit in Los Angeles, Ouri explained, "It's actually new technology that we're introducing that's perhaps based on an older concept. A lot of people have experienced 3D on film historically. We're introducing a system that is basically an over/under film based solution that's two-perf based on a format that Technicolor brought to market decades ago called Techniscope."

Techniscope was first introduced in 1963 and used by the likes of spaghetti-western filmmaker Sergio Leone in an effort to find more economical ways to shoot. By halving the size of each film frame less film stock could be used, though the image quality was less than that of the four-perf (or four sprocket hole) format. Technicolor 3D Solution uses a special split lens that can be mounted to a conventional 35mm projector which then assembles the left eye and right eye images as the film runs through the projector. The system requires the same type of silver screen and circular polarized glasses employed by digital 3D systems such as MasterImage and RealD.  Technicolor already distributes glasses for both of these companies and will begin to distribute their own branded, polarized glasses.

Technicolor has already shown the system to the studios and most of the North American exhibitors, not to mention a few filmmakers and members of the press. Last month, Technicolor worked with Warner Bros. and AMC Entertainment to run a two week trial of the solution at a multiplex in Burbank during the release of "The Final Destination". Exit polls performed by research firm OTX showed the "quality" and "satisfaction" scores of Technicolor 3D Solution to be the same as the digital 3D version playing in the same theatre. According to Technicolor, their system actually ranked slightly higher.

Technicolor is hoping their solution will help exhibitors quickly ramp up the number of 3D screens at their disposal to play such films as James Cameron's 3D opus "Avatar", one of the most highly anticipated releases in the last few years. There are at least 10 3D films being released in 2009 with 12 scheduled for 2010 as of now. More are likely to be added. Unfortunately, thanks to the high price of digital cinema equipment and the global financial meltdown only 2,500 screens in North America (out of a possible 40,000) are capable of playing 3D movies. Many big blockbuster releases open on more than 3,000 screens which has forced studios to distribute 2D versions of 3D titles. However, 3D versions earn more than twice the box office than 2D versions of the same release, in part because theatre owners charge a premium ticket price for 3D movies. Thus, expanding the 3D install base has been a major priority for both distributors and exhibitors.

In the press release announcing the product Frederic Rose, Chairman and CEO of Thomson/Technicolor said:

"In today's economic environment, it's a harsh reality that not every exhibitor has access to the funding required to install digital 3D projection systems. It was the desire to make 3D accessible to the masses that resulted in Technicolor creating a 3D solution to fill the gap between celluloid and digital cinema."

Other industry executives on Wednesday's panel didn't exactly see Technicolor's solution in a similar light. "I think that any money invested in technology that's not digital is something that's not good for the industry in general and for where we are taking the industry," said RealD's President of Worldwide Cinema, Joseph Peixoto. "Exhibitors, if they had money to invest in interim solutions I think that they should contribute that to the digital rollout that's upon us. I think everyone should not be distracted."

"We agree that digital is and the digital transition is going to happen," Ouri argued. "Frankly we've been supporting it longer than anybody on this panel. We spent more money on digital cinema starting with Disney in 1999. We continue to do so and we have a majority of market share for mastering and distribution. This is not meant to compete or replace the digital rollout or delay it. It is meant to address the screens that otherwise would run what could be a 3D film on a 2D film screen today. It's grading the 2D film screens to be able to show 3D to more consumers in a way that's affordable and available today."

Chuck Goldwater, President of Cinedigm's Media Services Group believes that exhibitors should be spending all of their pennies on digital cinema, rather than on what he sees as an interim solution. "You know you can only squeeze so much efficiency out of that. It's like putting fuel additive in an old clunker when there's new, more fuel efficient cars," he said. "Exhibitors who want to make an investment instead of making an investment in their older film projectors can channel that investment into the first step for them of a digital conversation which is clearly the long term and exponential leap into the future."

Ouri held his ground and even provided some cursory financial modeling for attendees of the conference. "The silver screen is an investment that is not a throw away, so it is a step toward digital," he explained. "The payback, we estimate, is just one feature run. So they get one Disney movie and they payback all their costs. So we believe that's efficient, not inefficient."

"For those screens that for two to five years are not going to see digital the question is do we leave the consumers just experiencing 2D or do we give them an alternative?" he asked "It might be a distraction, but there is money left on the table by the studios and the exhibitors and frankly it's not an insignificant number of dollars."

 

Technicolor’s Over-Under Gamble

http://www.digitalcinemareport.com/node/1251

The over-under is the name of a popular kind of bet in which people wager whether, for example, a particular team will have more or fewer than (over-under) a set number of wins in a given season. Over-under is also the name of a 3D projection process that splits the film frame in half horizontally and it is the basis of Technicolor's current gamble as it searches for ways to maximize its film legacy and brand in this increasingly digital world.

(Editor's Note: A few hours after the latest Report went online I received a call from Ahmad Ouri, Technicolor's chief marketing officer who was not pleased with what I had written about Technicolor's new 3D system for film projection. He wanted to clarify some facts and to set the record straight and I agreed.  You can read what he told me at the end of this column.)

Technicolor is betting that the digital rollout will take longer than many people believe it will. The gamble started to look a little riskier with the announcement that JP Morgan is finally ready to release more than half of its billion-dollar commitment to finance the DCIP transition. That means that in the very near term Regal, AMC and Cinemark can begin to upgrade the more than 15,000 screens that the three exhibitors control.

To date, information about Technicolor's over-under system has been rather sketchy and there were no images of the system available. A Technicolor spokeswoman explained that the company has applied for several patents on the technology and is somewhat cautious about revealing too much just yet.

The initial – and somewhat hyperbolic – promotional material about the system outlined Technicolor's idea this way:

"How, we asked, can we bring the immersive and thrilling experience of 3D to the theatre without the huge barrier of investment? Install the new Technicolor 3D lens system on your existing 35mm projector and open the door for additional 3D screens to help drive increased attendance and 3D ticket premiums. 

 By leveraging our knowledge and experience, we have created a system that offers a solution to the shortage of 3D screens in the marketplace. Until now, 3D has been reserved for the few. Now, there is no wait for a cost effective system that makes 3D films accessible to everyone, everywhere."

Ahmad Ouri, Technicolor's chief marketing officer recently told Variety's David S. Cohen, "We're not proposing this is going to replace digital 3D forever. We're looking at this as a solution that will address the scarcity of 3D screens out there and enable more consumer access to 3D content, which is now limited by the slowdown in the digital rollout."

The over-under process is not new, although Technicolor says its new system advances earlier efforts. In the over-under process the 35mm frame is split in half horizontally. The top is printed with the image for one eye; the bottom half is printed for the other. A special split lens – the apparent heart of Technicolor's new system – projects the image onto a silver screen.

Ouri told Variety that Technicolor's system features "the use of the latest and greatest materials versus what was there decades ago. The most advanced glass in the lenses, the most advanced polarizing materials, both in the lenses and in the glasses, to optimize the picture." He also told Variety that the lens costs $5,000-$7,000 but will be leased for less than that and that after a pilot program that is already underway the company hopes to have it ready for use in November and to have "a meaningful number" of installations by the end of the year.

Ouri was traveling in India last week but I was able to ask him some questions via email. His responses were rather vague and, in my mind, raised as many questions as he answered.

He said, "Technicolor will make 3D glasses available for purchase to support all the screens it deploys using Technicolor 3D technology." But that doesn't explain whether Technicolor will manufacture those glasses or use those of an existing company.

He did clarify some details of the pilot program, an effort that he suggests was well-received. "We conducted a two-week pilot with Warner Bros and AMC theatres around Final Destination 4 where moviegoers rated the 3D image quality to be the same for Technicolor 3D and digital 3D," he said. "Overall we are very pleased with the progress we are making with exhibitors and studios and hope to announce more on our deployment plans very soon."

Technicolor is holding a screening today, September 15th, in Burbank to introduce the system formally to the Hollywood film community. The system will get still more scrutiny later in the week at the 3D Entertainment Summit in Hollywood. At that time more details are likely to emerge.

For now the reaction from studios is mixed. Some, like Dreamworks Animation SKG's Jeffrey Katzenberg have reportedly voiced cautious optimism about Technicolor's plans.

Manufacturers are also skeptical. Rick Heineman, RealD's vice president of corporate communications released this statement about the Technicolor announcement: "RealD believes in delivering premium 3D to moviegoers using state-of-the-art digital technology for the brightest and crispest images delivered to the largest screens for a fully immersive 3D movie experience - not taking steps backwards with decades old technology that has consistently proven inferior.  Today's 3D, RealD 3D, is helping drive the box office to new records and giving the world's best filmmakers a new cinematic tool, and audiences are responding with RealD 3D films out pacing 2D versions on average three or four to one."

Even conceding a significant technological breakthrough, the over-under process presents as many problems as it solves.  Maintaining the rock-steady image that is necessary for a successful 3D presentation is a challenge with film projection because even under the best of circumstances film flutters as it moves through the gate. Moreover film prints stretch over time and suffer from smudges and scratches and 3D presents one more opportunity for a projectionist to make a mistake.

Just as critical is the issue of brightness. Again, Technicolor's technology may improve this but it seems obvious that their system is aimed at exhibitors who want to save money. Fair enough, but are those cost-conscious exhibitors going to then go to the added expense of installing silver screens in their 3D theatres? Common sense suggests they won't.

Admittedly, this is a small gamble for Technicolor. Even if sales are small, anything that can sustain the viability of 35mm film would seem to be good for their business. And there seems to be little doubt that some theatres may take advantage of the relatively low cost to enter the 3D sweepstakes. The greater gamble here is that the public will be turned off by an inferior 3D experience just as 3D is beginning to gain momentum and that could turn away moviegoers in an era when theatre attendance is flat at best.

I spoke with the head of one independent Hollywood movie studio, a person with a slate of horror movies in development, one or two of which she would like to produce in 3D. She is also a person knowledgeable about the over-under process and she was not enthusiastic about the Technicolor announcement: "It's a better idea than anaglyph but it's still not a very good idea."

Technicolor Responds

In our conversation following the release of the current Report, Ouri repeated the assertion he made when he spoke with Variety's David Cohen that Technicolor does not see its new technology as a replacement for digital 3D and he emphasized that Technicolor is already deeply involved in digital 3D through its Technicolor Digital Cinema division.

Ouri seemed most upset about what he saw as my assertion that Technicolor was somehow a backward looking film company that wants to ignore the inevitable industry transition to digital. "Technicolor was one of the first company's in digital cinema," he said, and Technicolor currently is a market leader in digital mastering and distribution.

The Technicolor 3D system includes a proprietary film mastering process and lens. Technicolor has applied for patents for both.

Technicolor will supply its own 3D glasses, at least in the short term. Ouri made the point that "all manufacturer's 3D glasses are currently OEMed in India and China," as will Technicolor's. He also noted that Technicolor Digital Cinema is already the market leader in distributing other company's 3D glasses to theatres.

He downplayed my assertion that the installation of a silver screen is an expense that exhibitors aren't likely to embrace saying, "Some of the exhibitors we've spoken with have already installed silver screens" in anticipation of the digital rollout, which has been slower than most people expected.

And Ouri shared an executive summary of the results of the recent audience testing of Technicolor's 3D system.

Exit polling was done at screenings of The Final Destination 3D on Friday August 28th and Saturday August 29th at the AMC Burbank 16.

The international independent research firm OTX conducted the survey. More than 300 people were surveyed, virtually half of them were men and half were women. Just over half of the people surveyed were under age 25, the rest were 25 or older.

OTX polled people who saw the movie in digital 3D and people who saw it in 35mm film using Technicolor's 3D system. In both cases, two thirds rated the overall 3D image quality as excellent or very good. Similar results were obtained when they were asked about the 3D special effects they saw and when they were asked to compare the quality of the presentation to their last 3D experience.

Ouri said the motive behind this development was the slowness of the digital rollout and the growing fear that a large number of exhibitors won't be able to get funding anytime soon, if ever. "Our new technology addresses the screens that are only able to show 2D film," he said. "We're not trying to shove this down the industry's throat. We're not competing with digital 3D. We're competing with 2D film.

XpanD Opens New Los Angeles Headquarters

http://www.digitalcinemainfo.com/xpand3Ddigitalcinema_09_03_09.php

September 3, 2009

Source: XpanD

XPAND, a worldwide authority in 3D cinemas and technology platforms, opened the doors of their newly designed Los Angeles headquarters this week, centrally located near some of Hollywood’s most famous landmarks.

Taking a strong lead as a major player in the 3D entertainment movement, XPAND has formed solid alliances with the creative communities, studios, production groups, exhibitors and the ever-present engineering experts that continue to facilitate the company’s growth and expansion.

The requirement for a fully equipped Los Angeles-based operation was imminent and the timing was right as Hollywood studios prepare for its largest line-up of 3D films later this year and in 2010.

Coupled with the recent European appointments of Bernard Collard, VP of Sales and Business Development for the EMEA territories and Alain Rémond, General Manager of XPAND France, which has created a uniformed structure to support the largest current market share of the company, XPAND has proven that it’s global future will become a dominant brand of endorsable 3D products.

“It’s wonderful to finally have our new LA offices open where we can host guests to a unique screening theater, state-of-the-art 3D displays and the continual streams of some of the finest content, says Maria Costeira, XPAND’S CEO. “Having the opportunity to be working in Los Angeles with so many talented groups, esteemed professionals and friends of the company is a real privilege.”

With more than 1200 installations spanning over five continents, the company will continue its obligation by adding more production and support facilities in the coming years.

 

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D-cinema gets $525 mil boost

http://www.hollywoodreporter.com/hr/content_display/news/e3i85a75f3355f4093d7cb396ac259a5407

Consortium's fund will bankroll 15,000 conversions

By Carl DiOrio

Sept 10, 2009, 11:00 PM ET

Stop the presses! Digital dollars are finally on the way ... and should arrive in November.

JP Morgan next week will send out briefing books for a $525 million financing of up to 15,000 d-cinema installations over the next five years at the nation's three biggest movie circuits. The circuits -- Regal, AMC and Cinemark -- will add 3D equipment at many of the sites.

The 3D embellishments will carry considerably lower costs, which will be borne by the theater chains or in some cases 3D vendors. The heftier expense of first converting screens to digital is being defrayed in large part by commitments from the major studios.

The studios previously signed off on so-called virtual print fee deals, which guarantee payments to exhibs for years after studios cease having true film print costs. But the upfront costs of the conversions are so big as to require help from Wall Street, so JP Morgan is arranging a $325 million bank syndication and $200 million in equity-based contributions from private-equity firms and the circuits themselves.

The industry's rollout of digital and 3D hardware was stalled by the nation's protracted credit crunch. So though the syndication will take a couple months to complete, word that the rollout soon can resume comes as qualified good news for distributors struggling to market 3D releases despite the paucity of 3D screens.

Third-party integrators help channel d-cinema funds to exhibitors, and Digital Cinema Implementation Partners will serve as conduit for funding to Regal, AMC and Cinemark. Other domestic integrators include Cinedigm, which like DCIP has been hampered by financing issues.

Originally planned in early 2009, a DCIP syndication first was delayed until summer before lingering credit difficulties pushed its launch beyond Labor Day. The funding impasse -- which dragged on for the better part of a year -- has had studios with 3D releases competing furiously for a paltry base of 3D movie screens, both domestically and abroad.

Things grew so tense that the Big Three circuits got started on some of the DCIP conversions even before the financing is arranged, with the promise of repayment once the syndication closes. The early expenditures could top $60 million.

There may now be fewer than 2,000 noncompetitive 3D auditoriums in the U.S. and Canada. New installations could push that number above 2,500 screens by year's end and hundreds higher by the end of 2010.

The additional 3D screens are desperately sought by studios planning extra-dimensional campaigns the next several months. Those include Fox, which has scheduled the high-profile release of Jim Cameron's 3D sci-fi actioner "Avatar" for Dec. 18.

"As far as Fox is concerned, the sooner the better," Fox distribution president Bruce Snyder said. "More units should be out there for both Thanksgiving and Christmas, and time's a-wasting."

There are now fewer than 7,000 movie-quality digital screens in the U.S. and Canada. Once fully funded, DCIP aims to convert an additional 500 screens per month to digital projection, meaning the likelihood of 12,000-13,000 digital screens in operation by the end of 2010.

In about two weeks, JP Morgan reps will begin meeting with a dozen top lenders and then will seek to broaden the syndication in October. A November closing is targeted.

Funding for a resumed international rollout of digital hardware also is expected in coming months as global financial markets rebound. D-cinema integrators in Europe and elsewhere are primed to roll out thousands of additional digital systems once banks are lined up to cover costs, and studios will press international exhibs to equip as many of those auditoriums as possible with 3D capability.

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More Digital Projectors, Coming to a Theater Near You

http://gadgetwise.blogs.nytimes.com/2009/06/18/its-a-4k-world-after-all/

 

June 18, 2009, 9:02 am

By Eric A. Taub

Movie theaters throughout the world are shedding their old film projectors and installing digital versions. Digital cinema offers pristine, scratch-free, rock-solid images and super-sharp pictures.

In the fight for digital cinema product share, Sony has made 4K resolution its signature difference between it and Texas Instruments, its rival in the field. According to Sony, 4K, with four times as many pixels on the screen compared with T.I.’s 2K technology, offers a far sharper image, which will draw consumers back to the movies.

T.I. has always said that 2K is good enough, with tests showing that consumers can’t see the difference.

T.I. has been against 4K, until now. On Thursday, the company announced that it would market 4K technology, which will be incorporated into its next-generation projector technology to be manufactured by a variety of partners.

The company will continue to sell 2K projectors to the majority of its customers, according to Nancy Fares, business manager for T.I.’s DLP Cinema Products Group.

Ms. Fares said this was not a case of Texas Instruments trying to play catch-up to Sony, which recently announced a number of large contracts to install its 4K projectors in AMC, Muvico and Regal Entertainment cinemas. Texas Instruments has been working on 4K technology for two years, she said.

And when T.I. said that most consumers can’t see the difference between a 2K and 4K image, the company is sticking to its guns.

Its 4K technology will be installed in only about 20 percent of its customers’ theaters, the “brightest and biggest” with screens 70 feet and larger in size.

Even digital IMAX theaters, Ms. Fares said, successfully use TI’s 2K technology.

Have you experienced 2K and 4K digital cinema technology? Can you tell the difference?

 

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DCIP Closer To D-Cinema Funding

http://celluloidjunkie.com/2009/09/12/dcip-closer-to-d-cinema-funding/

 

Posted by J. Sperling Reich | September 12, 2009 9:06 am

The announcement the entire exhibition and distribution industry has been waiting for has finally happened; Digital Cinema Implementation Partners (DCIP) will finally get funding to roll out d-cinema equipment on over 15,000 screens at U.S. exhibitors AMC, Regal and Cinemark.  Some may view it as a non-announcement as this doesn’t mean the money is in the bank yet.  At the very least though, DCIP’s financing is looking more probable than it did earlier this year when the global financial meltdown was holding up any potential funding.

The Hollywood Reporter is stating that investment bank J.P. Morgan has set out to raise $525 million from brand name lenders before seeking additional sources of cash from private equity firms and the exhibitors themselves. So, while funding is not readily at hand, with a heavyweight such as J.P. Morgan in their corner it hopefully won’t be long before DCIP will be seeing some cash to jump start its efforts.

Once the roll out is under way, DCIP hopes to install 500 screens a month and have nearly 13,000 screens completed by the end of 2010. This seems to be an incredibly aggressive figure and may be a goal that is unachievable should the manufacturers of d-cinema servers and projectors not be able to keep pace with DCIP. Not that they wouldn’t mind trying, since most equipment manufacturers have been suffering due to the protracted roll out of the technology caused by the credit crunch. Presently, there are nearly 7,000 digital screens in the U.S.

Of course, virtual print fees offered by the studios to third party integrators such as DCIP and Cinedigm what will help pay off the massive loan over the next decade. Unfortunately for distributors, it looks as if DCIP’s funding will only be finalized in November, not nearly in time to install equipment for the 3D holiday film releases. That’s why some of the exhibitors in DCIP’s stable have begun to pay for and install d-cinema equipment out of their own pocket. The reporter believes nearly $60 million worth of kit has already been deployed by the big three circuits. Most, it not all, such installations were strategically completed for the purposes of showing 3D content and one would expect that the first DCIP screens will be aimed at 3D capability.

It seems the story in the Reporter was geared more towards those just coming up to speed on the subject rather than those working in the exhbition or distribution space, especially given such statements as:

D-cinema integrators in Europe and elsewhere are primed to roll out thousands of additional digital systems once banks are lined up to cover costs, and studios will press international exhibs to equip as many of those auditoriums as possible with 3D capability.

Sound familiar? Unfortunately, if you’ve attended any exhibitor trade show in the past four years, it probably does.

 

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Sony 4K: Resolution and determination

http://www.filmjournal.com/filmjournal/content_display/news-and-features/features/technology/e3i7bf40443797a443d6b676b97cfa76e62

Aug 24, 2009

The industry debate over the value of resolution in digital-cinema formats reached a turning point this past June, when Texas Instruments' DLP Cinema division and its three projector manufacturing partners, Barco, Christie and NEC, announced that they were developing new 4K technologies. The news came within a few months of top theatre circuits Regal and AMC signing a deal to install thousands of Sony 4K systems, which offer a resolution of 4096 x 2160 pixels, compared to 2K's resolution of 2048 x 1080 pixels.

For our annual special section on digital cinema, Film Journal Internationalwent directly to the manufacturers to get their vantage points on 4K vs. 2K.

Our coverage begins with the company at the forefront of 4K, Sony Electronics. FJI asked Gary Johns, VP of Sony Electronics' Digital Cinema Systems Division, to elaborate on his company's development of 4K technology and offer a glimpse of the road ahead.

How many 4K installations do you have to date? How many are expected by the end of 2009?
Our current base of installed 4K systems is now well over 500, and we expect it will be over 1,000 by the end of the year. Recent months have seen tremendous commitment and growth for Sony 4K digital cinema. We announced agreements with AMC Theatres and Regal Entertainment Group to install our 4K systems across their entire circuits over the next three years. Those two agreements bring our number of planned 4K screens to about 11,000.
In addition, we continue to work with existing clients to expand their Sony 4K deployment and are in negotiations with many other national and regional theatre chains who are interested in offering their customers the premier cinema experience. Contracted theatre chains include Muvico Theaters, Landmark Theatres, Channelside, Alamo, Camera Cinemas and Lincoln Square, and we expect to make several new announcements shortly.

What are the major advantages of 4K?
From an audience perspective, it starts with improved quality: unprecedented levels of resolution and contrast and, ultimately, a much more dynamic, engaging and immersive entertainment experience in a movie theatre. For exhibitors, offering 4K projection is a significant competitive advantage, offering the best image quality available. Sony 4K digital cinema systems are just that-complete projection systems designed and built to work together from the ground up...backed by Sony, a global leader in electronics.

Another important benefit of Sony 4K systems is that they are extremely scalable and flexible. Of course, our 4K system is able to play back 4K content, but it is also able to play back 2K content-better than 2K projectors-as well as a variety of other formats to meet our customers' needs. One other advantage of our 4K system is the ability to create stunning 3D presentations. 4K allows the use of two 2K images for full-time display of left eye/right eye images. This, coupled with high-quality image processing and optics, creates 3D images that are recognizably superior.

Sony's 4K 3D is relatively new-tell us about its progress in the past year.
The 3D landscape has exploded, with new releases being announced each month. Sony has joined forces with another company that is leading the 3D revolution, RealD, on a sales and distribution agreement that combines our 4K projector with RealD's 3D technology, offering exhibitors the best technology solution on the market. Since we announced our single-projector 3D lens solution, we are confident that Sony's 3D on 4K absolutely delivers the best 3D experience available, which should drive the installation of over 500 Sony 3D systems by the end of the year, establishing Sony as a leader in 3D presentation.

What 4K-related technological advances can we expect in the future?
As a total entertainment company, Sony is committed to developing a full 4K system and workflow components, including a camera, storage and post-production products, and of course, 4K projection. We are also working diligently to develop and offer the next steps in product development, including alternative light sources, expanded software offerings and state-of-the-art monitoring systems, to name a few.



What kind of co-existence do you expect for 2K and 4K technologies?
Clearly, we believe that Sony 4K provides the ultimate offering for moviegoers and research shows that most customers can see the difference between Sony 4K systems and 2K systems, regardless of screen size. We have published a white paper, available on our website, www.sony.com/4K, which clearly explains the science behind this reality. As a further sign of recognition of the superiority of 4K technology, other projector manufacturers have announced plans to make 4K projectors in the next couple of years, so it would appear there is a clear move toward 4K. Fortunately, we have been committed to 4K from the beginning and are confident that we will continue to make the best projectors in the business.

How do you see the digital rollout proceeding over the next 12 months?
The entire industry-manufacturers, exhibitors, studios and other organizations-are all working extremely hard to ensure that digital cinema is rolled out in the most effective way. Everyone understands that this is the industry's direction and that the movie theatres of the future will be digital. Now that the industry has recognized the value of 4K, the final hurdles will be meeting the financial realities of conversion, implementing an effective business model and tackling the logistics of rolling out digital technology in a theatre. We're optimistic that soon, this industry will be well on its way to being a-mostly 4K-digital community.
How supportive is today's exhibition community of the digital transition?

Exhibitors are extremely supportive of a digital conversion, realizing the benefits that a digital environment can bring, including operational efficiency, expanded format offerings (like 3D) and alternative content to increase traffic to theatres.

What are your predictions for the future of live events projected in 4K?
As 4K cameras come onto the market, 4K workflow costs decrease and more Sony 4K projection systems get deployed, we expect it to become more and more common for live events to be delivered in 4K. There has already been tremendous progress in this area and we expect that we will see significant 4K live content in the next few years.

What is Sony doing to encourage more 4K content from the Hollywood studios?
We continue to work closely with each studio on delivering the right digital solution. The studios are very supportive of digital distribution, and specifically 4K resolution, with many executives citing that as their future direction. For example, Sony Pictures Entertainment has already made 4K a centerpiece of its distribution plans for the majority of its motion pictures. But perhaps the best example of the growing acceptance of, and demand for, 4K content occurred recently when three major studio motion pictures-which were all released within a month of each other-were made available to theatres for 4K projection.

 www.sony.com/4K
http://www.sony.com/4K

MEDIA BROADCAST enables Cineplex cinemas in Germany to offer expanded and attractive content

http://www.digitalcinemainfo.com/media-broadcast_09_09_09.php

September 9, 2009

Source: Media Broadcast

MEDIA BROADCAST and the Cineplex Group in Germany, a consortium of financially independent medium-sized cinema companies which is one of the largest cinema providers in Germany, have concluded an agreement on collaboration in the area of digital film delivery via satellite.

For the affiliated Cineplex cinema operators, this agreement opens up the opportunity of using the MEDIA BROADCAST delivery platform for relaying digital cinema films and alternative content. This will offer both distributors and providers of alternative content (such as operas, concerts and sports events) a new option for bringing content to the big screen throughout Germany. 

Cinema operators can thus create flexible and attractive cinema content. The business relationship between the distributor and the cinema operator remains unaffected by this, as films will continue to be booked directly by the cinema operator with the distributor. 

"As innovative cinema operators we have already shown in the past how real cinema experiences can be created for moviegoers throughout Germany. The digitisations of our cinemas and the 3-D movie experience have already been launched with success. Through the cooperation agreement concluded with MEDIA BROADCAST we are focussing on proven solutions in order to further reinforce and extend the attractiveness of our cinemas by means of additional content", according to Kim Ludolf Koch, Director of Cineplex Deutschland.

"MEDIA BROADCAST is delighted about this agreement, which is the fruit of our successful cooperation over recent years with Cineplex's "Admiral Filmpalast" cinema in Nuremberg, amongst others. Thousands of successful
showings and reliable transmissions of digital films (DCPs) and live events in the cinemas have shown that not only cinema operators, but also distributors and suppliers of alternative content can rely on our services", added Helmut Egenbauer, CEO of MEDIA BROADCAST.

MEDIA BROADCAST is making special reception technology available to the digitized cinemas free of charge. These satellite transmission platforms are open for use by any cinema operators wishing to present digital films and alternative contents in their cinemas. 

Performance in line with DCI

MEDIA BROADCAST has structured its digital cinema offering in line with the international principles of the DCI. This centres on a hardware and software solution which incorporates the entire process for the distribution of digital content. The transmission of the encrypted films, so-called Digital Cinema Packages (DCP), takes place via
satellite to the catch server systems in the cinemas, from where the films are further relayed using special processes to the server systems of the cinema operators, which are used to play the films. Furthermore, the system supports all the relevant features of a fully documentable workflow. 

MEDIA BROADCAST is involved in digital cinema as part of both domestic and international projects and committees.

Technicolor dreams of a bright future in digital cinema

http://www.latimes.com/business/la-fi-ct-technicolor24-2009aug24,0,7342450.story

While much of Hollywood is scaling back, the film processor has invested more than $200 million in its production facilities. 'We are pushing harder than anybody else in the industry,' the CEO says.

By Richard Verrier

August 24, 2009

Technicolor has been a fixture since the early days of Hollywood. 

The company brought color to the big screen in such classics as "Gone With the Wind" and "The Wizard of Oz." When its pioneering "three-strip" color process fell out of favor, Technicolor reinvented itself as a successful film processor. The company later became a leading duplicator of VHS tapes and DVDs.

Now, after 94 years of serving Hollywood, Technicolor Inc. has planted itself in the heart of Tinseltown, leaving its nondescript headquarters in an industrial neighborhood near Burbank Airport. Its new digs -- a modern, six-story structure at the corner of Sunset Boulevard and Gower Street -- are a symbol of the company's latest transformation. 

Technicolor is now refashioning itself to keep pace with the digital revolution that has reshaped the entertainment industry. 

It has invested more than $200 million in digital post production and visual effects facilities, including in Bangalore, India, London and the company's new Hollywood headquarters, as well as in a sound editing facility that is slated to open next year on the Paramount Pictures lot on Melrose Avenue.

"People say Technicolor, it's just fighting to stay in the old business and they will never make it in the digital business," said Frederic Rose, chief executive of Thomson, the French media technology company that owns Technicolor. "In reality, we are pushing harder than anybody else in the industry to go digital." 

The global expansion comes at a time when many other companies that service Hollywood are scaling back in the face of a severe production slowdown. Not that Technicolor has much alternative: The bulk of the company's business derives from replicating DVDs and processing film prints for theaters, both challenged segments. DVD sales are slowing and more movies and TV shows are being shot digitally.

Technicolor is the largest manufacturer of DVDs and remains one of the largest processors of film -- it processed 1.8 billion feet of film during the first half of this year. 

But the company also has emerged as a market leader in the processing and distribution of digital cinema. Its new headquarters includes nine digital scanners, which cost more than $1 million apiece. They are part of a "digital intermediate" process that Technicolor developed several years ago that allows film to be color-corrected and edited on digital equipment as opposed to in a film laboratory using chemicals. The process is less expensive and faster.

As part of a strategy to expand into creative services, Technicolor in March hired Tim Sarnoff away from Imageworks, Sony Pictures' visual effects and computer animation unit, to lead its new Digital Productions division, which creates visual effects for movies, television shows, commercials and video games. 

"They could have put their head in the sand and said, 'This is what we do.' But they didn't," said Randi Altman, editor in chief of trade publication Post Magazine. "They've adapted and evolved with the industry."

Technicolor's outlook brightened recently when its parent company reached a deal with creditors to slash 45% of its $4.1 billion in debt. Thomson, a provider of digital set-top boxes and other telecommunications equipment, amassed the huge debt after a string of costly acquisitions. 

As part of a restructuring plan, Thomson is focusing more resources and marketing on Technicolor, which generates $3billion in yearly revenue and accounts for about 45% of Thomson's revenue.

Rose, who keeps offices in Hollywood and Paris, wants to position Technicolor as the French company's cornerstone brand. That's a departure from his predecessor Frank Dangeard, who struggled to transform Thomson into a "one-stop shop" of digital equipment and services for movie studios, TV channels and cable and telecommunications companies.

Dangeard resigned last year as Thomson's losses mounted. The board tapped Rose, a former top executive with French telecommunications firm Alcatel-Lucent, to turn things around.

To highlight the Technicolor brand, Rose insisted that all references to "Thomson" be removed from Technicolor signs and employee e-mails. He's also marshaling Thomson's researchers, who helped develop the technology for the MP3player, to create and patent new technologies for Technicolor's customers, such as finding ways to deliver 3-D entertainment in the home.

Technicolor also is shedding businesses that don't directly involve its key customers -- studios and filmmakers. That includes Premier Retail Networks, a company that manages video networks for retailers including Wal-Mart; and Screenvision, a joint venture with British broadcaster Carlton Communications that provides advertising for movie theaters. Thomson also plans to unload its Grass Valley unit, which supplies digital cameras, routers and switchers to the broadcast industry.

"The company had stopped focusing on its customer and instead focused on diversions," Rose said. "The new Technicolor is focused exclusively around content creators. What do these people want and what do they need to grow?"

Some aspects of Technicolor's digital strategy haven't worked. The company last year pulled the plug on a planned rollout of digital equipment in theaters, concluding that it wasn't economical and that it veered too far from its core business.

Instead, Technicolor recently devised a system that can show 3-D movies using conventional film projectors, potentially saving exhibitors from spending $75,000 on a digital projector. The rollout of 3-D screens has been significantly delayed because exhibitors have had difficulty funding the conversion, raising concerns among studio executives who are releasing dozens of 3-D films in the next two years. Technicolor's system will be tested this fall at an undisclosed theater in Los Angeles. 

Industry insiders say reaction among studio executives and exhibitors has been mixed. But at least one studio executive who has seen a demonstration of the system is impressed.

"The solution they are working on today could potentially be very helpful to the deployment of the new 3-D platform in theaters across the globe," said DreamWorks Animation SKG chief Jeffrey Katzenberg, who is an outspoken proponent of 3-D. 

Technicolor has 13,450 employees, including about 2,000 who work in various offices throughout Los Angeles. Its chief rival is Deluxe Entertainment Services Group Inc., the post production house owned by Ronald Perelman's holding company, MacAndrews & Forbes Holdings Inc. As the world's largest film processing company, Deluxe has faced similar challenges as Technicolor, and also has moved heavily into digital services.

Like other service companies, Technicolor's business was buffeted by last year's labor unrest in Hollywood and the effects of the recession, which slowed film production and further damped DVD sales. 

The company cut 1,200 jobs at its North American facilities in 2007, largely because of the slowdown in DVD sales. The mastering and replication of DVDs generates about 40% of the company's revenue. Technicolor saw a 22% drop in DVD replications in the first half of this year.

Yet the company's earnings (before taxes, depreciation and amortization) rose 13% to $77 million in the first half of 2009, according to a company filing. 

One reason has been growth in Technicolor's digital asset management business, which involves encoding movies and TV shows so they can be distributed in various formats, including video on demand and over the Internet.

Another small but growing area for the company is visual effects and computer animation. In late 2004, Technicolor bought the Moving Picture Co., a leading London visual effects house known for its work on Super Bowl commercials as well as films including the "Harry Potter" movies and "Lara Croft: Tomb Raider."

Moving Picture Co. has offices in London, Vancouver, Canada, and Santa Monica. It also works with an effects and animation house in Bangalore, India, called Paprikaas, which is partly owned by Thomson. Technicolor in 2007 partnered with DreamWorks to build and staff the facility, which has become another production outlet for DreamWorks, animating DVDs, the successful "The Penguins of Madagascar" cable TV series for Nickelodeon and, eventually, feature films.

To be sure, Technicolor is entering an arena dominated by larger, more established players such as Sony Pictures Imageworks and Industrial Light & Magic. A number of visual effects firms have struggled with the high cost of producing effects and overseas competition, and some, notably the Orphanage in San Francisco, have gone out of business.

Sarnoff, who is working to integrate the various facilities, says Technicolor can compete by offering high-quality effects at a lower cost than rivals.

"Technicolor has a distinct advantage in that it is truly a global company," he said. "It has facilities in places where they already have tax incentives and strong talent pools."

richard.verrier@latimes.com

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