Monday, May 31, 2010

Studios take risk with 3D conversions

http://today3d.blogspot.com/2010/05/studios-take-risk-with-3d-conversions.html

 
The visual effects industry's ability to handle huge changes at the last minute has cultivated some dubious habits at the studios.

One exec sardonically calls it "postponing creative decisions." Basically, it means retooling and recutting pics until harrowingly close to release.

Since there's usually excess vfx capacity available worldwide, it all gets done. If one shop is overwhelmed, "911" calls go out to other shops, who step in to complete the show -- at a premium price.

Now studios are starting to apply the same thinking to 2D-to-3D conversions, but that's a much riskier bet.

3D conversion is "visual effects" in the sense that it's done by artists using computers and CG techniques. But visual effects are a well-established business with large, reliable companies that can take on 911s: Industrial Light & Magic, Weta Digital, Sony Imageworks, Double Negative and more.

3D conversion is a new business. The techniques and technologies are in their infancy. There are a few established conversion companies, but none have a lot of capacity.

Some conversion contracts are going to companies with little experience and only tests to show. I'm hearing that 911 calls are going out on 3D conversions already announced, but some of the more established companies are already booked.

Compounding those issues, studios continue to tinker with pics during the conversion, which makes the process tougher and costlier while hurting quality. That seems to have happened to "Clash of the Titans."

We recently saw a 3D test of one of this summer's tentpoles that ended up going out in 2D only. Through 3D glasses, it was unbearably dark -- predictably so, since the test footage hadn't been re-graded to compensate for the light lost in 3D viewing.

I have, however, seen one 3D release that looked as dark: "Clash."

Problems with a 3D conversion put the studio in a bind: Miss the release date, cancel the 3D release or put out an inferior product. The first has become unthinkable; no major release has missed its date due to post or vfx problems since "Titanic."

The second entails eating a very large expense and angering exhibitors who've made room for a 3D pic.

So there's a lot of pressure to go with option no. 3.

That may work until auds get more discerning, but at events I go to, "Clash" has technophiles -- the prime demo for 3D -- pretty angry.

The danger for the studios, though, is that until the 3D conversion business is more established, these new companies are signing up their clients for a piggy-back ride on a tightrope. There's a pretty good chance one of them will fall off -- and take a tentpole down with them.

 

What excites consumers when it comes to 3D?

What excites consumers when it comes to 3D?

3D is coming to the living room – we all know that. TV manufacturers are making certain of it. But what do consumers want from it? Software company Roxio asked over 2,000 consumers about their interest in 3D programming and what they'd like to see.  

An impressive 84 percent of those surveyed said they were interested in viewing 3D movies at home. And nearly as many expressed interest in capturing their own memories using the technology – with 80 percent saying they believe they will film or photograph family events in 3D within 5 years. But price remains a factor.

90 percent of the people said they would buy a 3D camera if it was priced under $200. Only 50 percent were interested if that price was $500 or less. Nearly 76 percent of the people Roxio spoke with said they would be interested in converting their home movies to 3D as well – with vacation videos topping the list of things they'd convert first.

As far as content, "The Lord of the Rings" was the biggest request for conversion to 3D, taking 38 percent of the vote. "Titanic" was second at 21 percent. "Gladiator" and "Finding Nemo" were tied for third at 19 percent.

The soon-to-be departed "24" was the TV show people most wanted to see in 3D. "House," "American Idol" and (somewhat surprisingly) "The Simpsons" followed.

And, as far as sporting events… no surprises there. The Olympics and the Super Bowl topped the wish list.

Find more of Roxio's survey results here

 

RealD had gross revenues of $189.08M for the year ended March 26, with a net loss of $39.7 for the year

 
Los Angeles-based RealD, the developer of 3D projection technology which is waiting in the wings for an IPO, revealed its latest year's result in an updated S-1 filing with the SEC last night. According to RealD, it had gross revenues of $189.08M for the year ended March 26, with a net loss of $39.7 for the year. Revenues were up significantly from the $45.0M in gross revenues the firm reported for 2009. The firm reported that it now has 3,385 RealD-enabled domestic screens, and 1,936 international screens, for a total of 5,321 screens using its technology. The firm's biggest growth was in international screens, where the firm had a 378 percent increase in enabled screens from last year. The firm benefited significantly in the year from licensing its technology for the James Cameron film Avatar, where it said it earned $27.9M in admission-based feeds. Other big movies for the firm were Up ($8.5M), Alice in Wonderland ($7.2M), Monsters vs. Aliens ($4.9M), Ice Age 3 ($6.2 million), GForce ($3.7 million) and Christmas Carol ($4.2 million).

Norwegian Media Disects Arts Alliance Finances

http://celluloidjunkie.com/2010/05/28/norwegian-media-disects-arts-alliance-finances/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+celluloidjunkie+(celluloidjunkie.com)

Anyone who has been following the motion picture exhibition industry for the past few years should know that digital cinema is not for the faint of heart nor light of wallet. Just ask Thomas Høegh, the founder and CEO of London based Arts Alliance, the parent company of Arts Alliance Media, a leading European integrator.

Last week I was forwarded a copy of an article about Mr. Høegh and Arts Alliance Media which ran in DagensNæringslev (or Today's Business), the biggest business trade paper in Norway. Translated to English, the headline reads "Red Figures On All Screens" and the sub-headline stated:

Thomas Høegh's film company Arts Alliance Media has lost a total of NOK 258m over recent years.   Accounting figures for DVD company Love Film also shows a three-digit one million kroner deficit.

It's always fascinating to see how mainstream media outlets cover the worldwide exhibition industry's transition to digital cinema, especially when they turn their attention to the equipment vendors and service companies facilitating the conversion. Despite the superficial and often naive approach most outlets take when writing about the subject, the DagensNæringslev piece was interesting in that it detailed Arts Alliance Media's finances by boiling down the company's 2009 annual report.

Some of the key points reported were:

  • From 2005 to 2009 has lost millions of kroner.
  • The company has an overall deficit of GBP £28.4 million (USD $41.01 million).
  • In 2009 AAM earned a profit before taxes of NOK 61.7 million (USD $9.52 million) on revenue of NOK 79.9 million (USD $12.32).
  • In 2008 AAM lost NOK 103.5 million (USD $15.96 million).
  • The owners have continued to provide AAM and Love Film with capital to the tune of NOK 128 million (USD $19.7 million).

Of course, the article also pointed out some of the well known facts about AAM, including their involvement in digitizing 240 screens in the United Kingdom through a government subsidy program and a contract to convert 400 screens for CGR in France. The company's financial report also states that the global financial crisis has impacted the profitability of AAM, which isn't really news since the credit crunch caused digital cinema rollouts to stall, if not halt completely, during most of 2009.

You may be asking yourself why a Norwegian business journal would be so interested in AAM and Høegh. The most obvious answer is that  Høegh is Norwegian, though there is a more legitimate reason for DagensNæringslev to be paying such close attention to British based company. The piece goes on to highlight the finances of AAM's eight subsidiary companies, the largest of which (by revenue) is Arts Alliance Media Digital, a cinema equipment financing entity which has lost NOK 11.1 million (USD $1.7 million) between 2006 and 2009.

Tied directly to Norway is the AAM company Nordic Digital Alliance (NDA) a joint venture between Høegh and the Norwegian municipality of Kristiansand. NDA had hoped to win Film & Kino's tender to digitize all of the movie screens in Norway, however in February Unique Cinema Systems won the lions share of the contractwhich is worth more than NOK 300 million (USD $50 million). NDA, which lost NOK 4.1 million (USD $632,000) between 2006 and 2008, walked off with one of the ten bids.

If read improperly this all seems pretty damning and it would appear that AAM's has a bleak future. Yet it is important to remember that sometimes numbers don't paint the entire picture of a company, especially in a business as financially front loaded as digital cinema. This is partly why Høegh declined to comment on the annual report, which was released in mid-May. When contacted via email AAM's chief operating officer Fiona Deans probably put it best in replying:

Thomas has been involved in building many companies over the last 15 years and in all cases they have required investment in their early years of business in order to generate helathy returns as they reach maturity. As a case in point, LoveFilm, who as the [DagensNæringslev] journalist pointed out lost money 2005-2008, but will be showing a healthy profit in 2009.

In terms of Arts Alliance Media, we are still in the investment stage of the business, and at the end of 2009 we succeeded in raising EUR €43 million (USD $52.9 million) in financing to continue our expansion. Recent announcements regarding deals with The Space, Reel Cinemas in the UK and Denmark Digital show that this investment is creating real growth. The news in March that we we have raised EUR €50 million (USD $61.5 million) for equipment financing from Sankaty Advisors shows that the financial community see AAM's business as having sound potential.

I'm not foolish enough to try and prognosticate on the future of AAM. Sometimes red ink is a byproduct of growth and sometimes its a sign that a business is in trouble. Let's recall Amazon.com, which after being founded in 1994 took 8 years to earn their first quarterly profit and by the end of 2002 was USD $2.2 billion in debt. At the time their books were filled with numbers in parenthesis and their stock was trading at USD $12.59. Many business pundits had publicly written the company's obituary. Today, Amazon is the world's largest Internet retailer, earning a net income of USD $299 million in the quarter ending March 31, 2010 on revenue of USD $6.7 billion. Their stock price is currently north of USD $120.     

Thursday, May 27, 2010

Digital Entertainment Content Ecosystem Announces New Member companies and appoints Mark Teitell as General Manager

http://www.digitalcinemainfo.com/digital-entertainment-content-ecosystem_05_26_10.php


May 26, 2010

Source: Digital Entertainment Content Ecosystem

BT, Cineplex Entertainment, CSG Systems' Content Direct, Huawei, IBM, NDS, and Red Bee Media Join Charge to Make "Buy Once, Play Anywhere" a Reality for Consumers

The 
Digital Entertainment Content Ecosystem LLC (DECE LLC), a cross-industry consortium dedicated to driving a new, open market for digital content distribution, named Mark Teitell as its general manager and announced the addition of seven companies to the coalition, bringing the total to 55 member companies. 

DECE's newest members who are dedicated to ensuring digital content, devices and services will work together seamlessly include: BT, Cineplex Entertainment, CSG Systems' Content Direct, Huawei, IBM, NDS, and Red Bee Media. These companies join DECE's diverse roster of member companies that span every industry involved in digital entertainment. 

"Cineplex is dedicated to expanding and enhancing entertainment choices for our guests both in our theatres and at home through our Cineplex Store, " said Pat Marshall, Vice President Communications and Investor Relations, Cineplex Entertainment. "Leveraging the benefits of the DECE ecosystem is part of our plan for online innovation as we prepare to launch our digital download product later this year. We're delighted to join fellow DECE participants in charting this course and bringing the ecosystem to market." 

Brian Levy, Chief Technology Officer of new member Red Bee Media added, "Red Bee Media with our heritage of innovation are proud to join DECE and to play our part in this important industry body to deliver next generation cross device content services to the customer."

Additionally, DECE has retained the services of Mark Teitell to help drive strategy, product and business development, marketing and operations for the consortium. Teitell will be dedicated to working with executives from DECE member companies to launch DECE's open, interoperable digital ecosystem and accelerate its global adoption by the industry and, ultimately, consumers.

"DECE has grown tremendously in the past year, both organizationally and technically," said Mitch Singer, president of DECE and Chief Technology Officer of Sony Pictures Entertainment. "With a seasoned executive like Mark, who is so well-versed in the digital entertainment landscape, coupled with the support from our ever growing team of member companies, we are moving steadily towards launch."

Teitell most recently served as a partner in the media and consumer technology practice at Oliver Wyman, an international management consulting firm. There, Teitell advised senior leaders across the home and mobile entertainment value chains, including DECE, as it made key strides such as developing a common file format for digital content and selecting a vendor for its digital rights locker. 

These milestones were announced by the consortium at CES 2010, along with the approval of five DRM solutions and the addition of 21 new members. With these elements in place and the continued expansion of the consortium, DECE is establishing the backend platform that will support this new, open digital media market and prepare the way for its brand launch.

 

Canada's Cinemas Guzzo Purchases 57 Christie Digital Projectors

http://www.digitalcinemainfo.com/christiedigitalcinema_05_20_10.php

May 20, 2010

Source: Christie Digital

Christie announced that Cinemas Guzzo, a Canada-based leading independent cinema chain has purchased 57 Christie Solaria™ series digital cinema projectors. 

Cinemas Guzzo, a family owned business founded in 1974, with 148 screens in 11 theatre complexes throughout the Montreal area, has launched several waves of expansion – the most recent being a new generation of avant-garde entertainment centers.

Founder Angelo Guzzo is one of the earliest pioneers of independent multi-screen movie theatres inCanada. He was instrumental in leading the struggle for independent theatre owners to obtain the right to project first-run movies, paving the way for others. Along with his son Vincenzo, Executive Vice President of Cinemas Guzzo, they are tapping into their passion for cinema to successfully expand their presence across Quebec. Over the next few years, they anticipate opening three new 100% digital multiplexes, all using Christie projectors.

"Christie is the only manufacturer that has 4K-upgradeable digital cinema projectors that not only deliver exceptional performance, but are available at an affordable price," said Vincenzo Guzzo. "We are confidently moving forward with Christie as our exclusive digital cinema provider because of their extensive history of delivering reliable products, along with friendly and supportive service to the exhibition community."

Guzzo added, "Unlike other manufacturers, Christie gives us many more choices of products and brands to expand our digital cinema capabilities, especially when creating our 3D systems."

Installation began in January of this year and Cinemas Guzzo anticipates that all 57 Christie Solaria projectors of which 30 are Christie CP2230's will be fully deployed by November, in time for the U.S. Thanksgiving holiday weekend. At that point, they will have doubled their 3D capacity in all 11 theatre complexes. Cinemas Guzzo also selected GDC servers and Master Imaging's 3D technology.

"Digital 3D makes a very big difference to the audiences we cater to. We plan to install at least four digital projectors in each theatre to run 3D content in dual languages. It's great to have the flexibility to show two different 3D titles simultaneously. Our goal is to have 50% of our screens showing 3D to take advantage of the slew of 3D coming down the pipeline," said Guzzo.

China Film Group Selects Ballantyne Strong for an Additional 200 NEC Digital Cinema Projectors for Mainland China

May 13, 2010

Source: Ballantyne

Ballantyne Strong, a provider of digital cinema projection equipment and services, cinema screens and other cinema products, announced that it has been selected to provide 200 NEC digital cinema projectors for China Film Group Corp. in theatres throughout The People's Republic of China (PRC). 

Ballantyne expects to make initial shipments of 50 projectors in the second quarter of 2010, with the balance of the order to be shipped later this year. The new agreement follows a 100-projector order completed in Q2 '09 and a 160-projector order completed in Q1 '10. 

John P. Wilmers, President and CEO of Ballantyne, commented, "We are gratified that China Film Group has expanded its commitment to Ballantyne and our NEC projector line with this, their largest order to date. As we have previously stated, China is a very attractive market opportunity for Ballantyne and our partner, NEC. With approximately 6,000 cinema screens currently, the PRC is focused on rapidly growing its theatre and screen footprint to as many as 12,000 or more screens in the next three-five years. We look forward to supporting China Film Group in bringing digital cinema to a growing number of Chinese consumers. We are also working on plans to bring our cinema screen products, including specialty 'silver screens' required for most 3D cinema methods, to serve the needs of this growing market and hope to initiate that effort in early 2011
."

Researcher Asks Is Everything Really Better in 3-D?

http://www.digitalcinemainfo.com/ryerson-university_05_14_10.php

May 14, 2010

Source: Ryerson University

From its heyday in the 1950s to its current resurgence, 3-D technology has gone from a cinematic gimmick to a box-office gold mine. 

James Cameron's Avatar, heralded for its creation of a three-dimensional fantasy world, is now the highest grossing movie ever. So it seems that audiences are keen on three-dimensional media productions, but do they really like it better than 2-D and what do they like about it? According to one Ryerson University researcher, the truth behind viewers' perceptions of 3-D media is in their faces and eyes. 

Richard Grunberg, Professor in Ryerson's School of Radio and Television Arts, is conducting groundbreaking work on audience members' responses to four image formats: 4K (extreme high definition), 4K 3-D, 4K 2-D and 2K 2-D (still high definition, but with lower resolution). 

As director of photography in the University's state-of-the-art Digital Cinema and Advanced Visualization Laboratory, Canada's first full 4K Digital Cinema Lab, he's curious to know how viewers react to the technical aspects of images, including resolution, noise, compression, motion artifacts, colorimetry and dynamic range.

It's important to study viewers' responses, says Grunberg, given the rebirth of 3-D technology and the growing availability of 4K digital cinema. "We're trying to analyze how people perceive the difference in formats and then quantify it. For example, do people react 20 per cent more to an image that's shown in 4K high definition? Do they really have a greater response to 3-D images and to what degree? It's all about making sure the producers, and the audiences, get the most bang for their buck."

Grunberg launched his research process by shooting a children's television show in the digital cinema lab using different image formats. A number of 3-D experts, as well as directors and directors of photography from several Canadian kids' TV programs were invited to participate in the shoot. 

With this footage now in hand, Grunberg and his team is recruiting volunteers who will watch the program while their facial and eye movements are monitored by sophisticated tracking equipment and computer software programs. The observation process has a number of goals. For example, where do audience members look during specific on-screen moments; which special effects garner the most favourable reactions; and how do different age groups respond to various image formats and screen sizes? 

"We're also trying to identify the parameters of 3-D technology," Grunberg says. "For instance, if a 3-D hand is shown on a 42-inch screen, at what point does it become disconcerting to the viewer?"

Grunberg's preliminary research attracted considerable attention at the 2010 National Association of Broadcasters' show, which was held in Las Vegas in April. Ultimately, production and post-production companies could, with the help of Grunberg's findings, custom-design 3-D films taking into account both different screen sizes and the unique preferences of certain viewer groups, such as children. 

"There's still room for improvement in 3-D technology," said Grunberg. "We're working to make it as much of an immersive experience as possible. At the end of the day, the goal is to maximize the audience's viewing experience."

The $2.9-million Digital Cinema and Advanced Visualization Laboratory, outfitted with an impressive array of technology, has received funding and support from the Canada Foundation for Innovation, the Ontario Ministry of Research and Innovation , DALSA Corporation, CANARIE (Canada's National Research and Education network provider), and StarLight (a Global Open Light Exchange facility in Chicago).

Ryerson University is Canada's leader in innovative, career-oriented education and a university clearly on the move. With a mission to serve societal need, and a long-standing commitment to engaging its community, Ryerson offers close to 100 undergraduate and graduate programs.

Distinctly urban, culturally diverse and inclusive, the university is home to 28,000 students, including 2,000 master's and PhD students, nearly 2,700 tenured and tenure-track faculty and staff, and more than 130,000 alumni worldwide. 

Research at Ryerson is on a trajectory of success and growth: externally funded research has doubled in the past four years. The G. Raymond Chang School of Continuing Education is Canada's leading provider of university-based adult education. For more information, visit
www.ryerson.ca

 

Cinedigm expands credit facility to $47 million


By Carl DiOrio
May 26, 2010, 07:43 PM ETDigital-cinema integrator Cinedigm said Wednesday that it has expanded its credit facility from $8.9 million to $47 million, using money from an undisclosed lender.

Like other third-party companies assisting in the studio-backed rollout of d-cinema installations to movie theaters nationwide, Cinedigm was stalled in its efforts for at least a year by the protracted global credit crunch. With credit markets easing, the integrator expressed confidence that its second-phase deployment of digital projectors and other equipment will get going in earnest, converting as many as 10,000 additional movie screens for digital play.

Cinedigm participated in more than 4,200 system installations beginning in 2005.

"We are thrilled that this financing has closed and that we can continue the momentum which started late last year," Cinedigm chief Bud Mayo said.

Hollywood film distributors are paying for much of the related costs of the installations through so-called virtual print fees, but bank financing was needed to cover upfront outlays.

Wednesday, May 26, 2010

Spring Technology

http://www.hollywoodreporter.com/hr/content_display/technology/news/e3ib44a736b59dbd4f4e1dcb694b966a0d8

 

By Carolyn Giardina

May 24, 2010, 06:38 PM ET

It wasn't so long ago that deliverables -- the final copies of a movie that are distributed to theaters -- were synonymous with film prints. Then digital cinema came along, and more recently, 3D.

Now theatrical deliverables are a combination of film prints and digital media with various technical specifications. For international day-and-date releases (as far as tentpoles are concerned) the process of creating, managing and distributing these versions is astonishingly complex, and even more so when it comes to 3D releases like the monster May opener from DreamWorks Animation, "Shrek Forever After."

The issue with 3D is that it doesn't represent just one additional version of the movie. The various 3D projection systems created by such companies as Dolby, Master Image, RealD, Xpand and Imax have different technical needs and therefore demand a whole range of versions. Add to that dubbed and subtitled foreign-language editions for each system, and the number of extra versions can be overwhelming.

"We have the same or tighter delivery timelines," says Ahmad Ouri, chief marketing officer at Technicolor, "and the number of deliverables are going up."

Nowhere was the complexity of these deliverables more apparent than with "Avatar."

More than 100 versions of "Avatar" were created, color-timed at different light levels, even with different aspect ratios, all planned for individual theater configurations.

This result was made possible by a remarkable effort by Fox, Lightstorm and key suppliers, notably Modern VideoFilm and Deluxe.

"What 'Avatar' demonstrated is, you can deliver day-and-date at a larger scale than ever before," notes Jim Whittlesey, senior vp operations and technology at Deluxe Digital Cinema. 

But at a larger cost, too.

When the digital cinema push began a decade ago, studios had an eye on the elimination of film prints as a way to save money. That was especially important as movies started opening on ever-more screens, meaning that studios had to pay millions of dollars for enough prints to launch a "Spider-Man" or "Dark Knight" across the world.

But today, the market continues to require 35mm film prints -- and hard drives and files sent via satellite. "And we are preparing to deliver via fiber and broadband soon," says Rick O'Hare, senior vp at Deluxe Entertainment Services Group.

What this means is that, even as the major distributors are working around the world to help movie theaters go digital, the savings could be quite a while in coming.

"We believe there is a long tail for this transitional period," Technicolor's Ouri says. "It's going to become more complex before it simmers down."

"That is part of the incremental cost for us," DreamWorks Animation CEO Jeffrey Katzenberg says. "We now have a higher degree of complexity needed to put the right version of the movie in the right system in each theater. Logic would say there will be consolidation. But this is really the infancy of the platform, so it is difficult to predict."

New 3D systems could complicate the matter even more. One new version is Technicolor's 3D film format, which was used for the first time for Katzenberg's "How to Train Your Dragon" and has roughly 200 domestic installations. 

Ouri says other 3D projection systems, some with 4K resolution (four times the picture information found in today's commonly used 2K digital projection systems), might at some point mean still more versions are needed.

So what's the good news?

At least one issue, "ghostbusting" -- an extra post processing task that reduces or eliminates faint shadows around some images -- is getting resolved. So far, deliverables for the RealD format have required the ghostbusting postproduction process, while Dolby, Xpand and Master Image systems have required non-

ghostbusted media. But RealD has been working to change this. 

"I don't think we are going to see too many more, if any, new 3D releases that will require ghostbusting -- which makes our job a lot easier," Whittlesey says.

But that's just one of the many variants that must be resolved.

To help streamline the process, Whittlesey says establishing standard industry practices is crucial. Like figuring out light levels.

"We have to figure out how to get to standard light levels for 3D," he says. "It is still a little bit Wild West right now."

DreamWorks Animation's movies illustrate the light problem. "The 3D version (of a movie such as 'Shrek Forever After') is timed differently from the 2D version," says Katzenberg, referring to the "color timing" process. "We know there is going to be diminution of light because people are looking through polarized lenses. So you have to overcompensate. It is considerably different in the color-timing than the flat version."

Beyond such problems, the shift to digital may be helped by the creation of a "universal file" or a master version of the deliverable readable by all theaters' technologies.

A universal file could also accommodate multiple versions of a movie, including 

foreign-language editions and ones with various aspect ratios. Theaters would be able to extract the particular version they need.

"It is possible to have one version, with all subtitling, in one package in one hard drive," Whittlesey says. "But probably it will (come) down to five or six different packages that we ship around the world."

 

Did High Ticket Prices Lead To Shrek's Disappointing Box Office Performance?

 

The fourth and final Shrek film, Shrek Forever After, obliterated box office competition this past weekend. Earning over $70 million domestically, Shrek handily beat Iron Man 2, which came in with $26.4 million, and it destroyed MacGruber, which bombed with only a $4 million take.

 

Given these numbers, the film looks like a financial success at first glance. But a closer examination reveals that it didn’t perform nearly as well as expected under the circumstances. Did high 3-D ticket prices pave the way for Shrek’s disappointing box office take?

 

Many industry observers expected Shrek to perform better. While the first Shrek film only took in $42 million on its opening weekend, Shrek 2 earned $108 million in its first three days. And Shrek the Third shattered the record for highest-grossing animated opening weekend when it grossed $121.6 million back in 2007.

 

Shrek Forever After obviously didn’t do as well as the second and third films, and this was despite opening on 9,500 screens at 4,359 locations. But ticket prices were higher this time around, especially due to IMAX and 3D screenings, which accounted for 61 percent of revenue. In other words, Shrek Forever After had a lot of factors facilitating a very impressive opening weekend, but attendance was still down by 59 percent from the last Shrek movie.

 

Industry analyst Richard Greenfield (whose quotes come via the LATimes) thinks that high ticket prices might have been partially to blame. Greenfield points out that a smaller percentage of viewers opted for 3D this time around compared with How to Train Your Dragon, saying, “It appears that the average ticket price paid by consumers actually declined from ‘How to Train Your Dragon’ as a greater percentage of consumers simply opted to see the film in 2-D.”

 

He continues:

We wonder whether the U.S. consumer is simply telling movie exhibitors that 3-D pricing has simply gone too far, too fast for the average movie. While consumers may have no issue paying a 3-D premium for a movie such as ‘Avatar’ or ‘Alice in Wonderlandhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif,’ consumers may downgrade to 2-D for weaker content such as ‘Shrek.’

 

In other words, the movie wasn’t that great, and the higher 3D ticket prices definitely didn’t help things.

 

Brandon Gray at Boxofficemojo seems to agree:

[Shrek's marketing campaign] banked on 3D to give the movie extra kick, but 3D is not a draw in and of itself. It’s shown to be mostly a revenue enhancer, and the movies themselves are the real attractions. If a movie doesn’t seem special like Forever After, the 3D price premium may even be a deterrent.

 

I can see people opting for 2D instead of 3D due to higher prices. But can reports of high prices really discourage people from seeing the film completely? Or is this just a situation where the film didn’t measure up to the greatness of Shrek the Third (and thus, earned much less)? Weigh in with your thoughts in the comments.

 

 

Shrek 3D film fails to pull in the cash - Don't look far for the reason - this is the result of Clash 3D fiasco

http://today3d.blogspot.com/2010/05/shrek-3d-film-fails-to-pull-in-cash.html

DreamWorks Animation shares tumbled more than 10 per cent yesterday after the company's latest film Shrek Forever After had a weaker than expected opening weekend at the box office.

 

The film generated $71.2m in its first weekend in the US - substantially less than the $122m generated by Shrek the Third on its opening weekend three years ago.

 

Shrek Forever After was produced and screened in 3D, which has provided a box office boost for Hollywood in the past couple of years, powering films such as Avatar and Alice in Wonderland to record takings around the world.

 

Consumers have - until now - been willing to pay a premium for 3D tickets. But the weaker performance of the fourth Shrek movie has raised concerns that audiences are growing wary of the higher prices.

"We wonder whether the US consumer is simply telling movie exhibitors that 3D pricing has simply gone too far, too fast for the average movie," Richard Greenfield, an analyst with BTIG Research, wrote in a research note.

 

"While consumers may have no issue paying a 3D premium for a movie such asAvatar or Alice in Wonderland , consumers may downgrade to 2D for weaker content such as Shrek ."

Many in Hollywood will be hoping that the 3D bubble has not burst, including Jeffrey Katzenberg, the chief executive of DreamWorks Animation. He has staked his company's future on 3D with a pledge to produce all of the company's new releases in the format.

 

He has also become an unofficial spokesman for 3D, using industry conferences to talk about its potential to revolutionise Hollywood in the same way that the advent of sound and colour did decades ago.

The box office performance of a typical Hollywood film tends to be dictated by its opening weekend, which comes at the end of a big publicity and advertising blitz.

 

Shrek's performance was shy of the $88.5m forecast by Lazard Capital Markets. But Barton Crocket, an analyst with Lazard, wrote in a research note that "there were mitigating positives, including a very favourable audience reaction".

 

Lazard has not changed its $295m total estimate for the performance of the movie in the US, with Mr Crockett saying it has "solid international potential".

Shares in DreamWorks Animation closed down $3.82 at $31.05.

 

Monday, May 17, 2010

NAB 2010: 3D’s a Crowd

http://www.digitalcinemareport.com/node/1717

 

Submitted by Nick Dager on Fri, 05/14/2010 - 09:03.

 

Nearly 83,000 people from 156 countries attended last month's National Association of Broadcasters convention in Las Vegas and, if you were there, you could be forgiven for getting the impression that absolutely every single person at the show was involved in stereoscopic 3D. In some ways it was one of the most discouraging events I've ever attended because, in my view, this mad rush to get on the 3D bandwagon is almost certain to lead to an alarming number of poorly conceived, poorly executed and poorly received 3D movies and television programs. I'm not alone in this opinion. Privately – and sometimes publicly – those that do understand all that's involved in making quality 3D expressed similar thoughts.

The owner of one 2D-to-3D conversion company serves as the poster child for all that is wrong with the current state of the development of digital stereoscopic 3D.

I will not use his name or the name of his company. In part, I don't want to embarrass him and, in larger part, I will not do anything to publicize his business. The whole notion of 2D-to-3D conversion is fraught with problems and controversy in the best of circumstances and, given the sheer physics involved, the process has inherent limits. Even the experienced companies that take the time and care to do good work understand and admit these limits.

On the first morning of the show I met with this owner and founder and got a personal demo from him. The images on the screen were not simply un-watchable; they almost instantly gave me eyestrain and in just a few minutes gave me a growing headache. I took off the glasses and concentrated on what he was telling me about his technology and his company. It was then that he really ruined my morning, as if the headache weren't enough. He acknowledged the challenges that he and his competitors face when it comes to making really cost-effective 2D-to-3D conversions. He even seemed to understand the truly poor quality of what he was showing. That, he said, was the point. "Our product is good enough," he said. "It's cheap so people will be able to buy it and that will help grow the market. Once people get used to 3D in their homes they can upgrade to better quality later."

That was his business plan: cheap and good enough. In all my years covering new technology introductions I've never heard anyone, much less the owner of a company call his own product cheap and good enough.

Fortunately, he was the exception and there were many very interesting developments at this NAB both in business and technology.

Business

Arri, Fujinon and Zeiss today announced a strategic partnership designed to utilize the unique strengths of each company in order to create innovative new products for the entertainment imaging community. The agreement consists of an open exchange of ideas, standards and technologies, as well as close cooperation in the development of new products.

Canon announced that it has expanded its Canon Professional Services program. The CPS program expansion will offer the same three levels of membership – Silver, Gold and Platinum – to qualifying professional video customers, with each level receiving better and more extensive service benefits. The expansion of the CPS program is designed to extend Canon's service assistance and offerings to this professional demographic and support professional filmmakers and videographers with fast service, equipment evaluation loans, and a range of other benefits to be announced in the coming months.

New members can sign-up and join the expanded CPS program to take advantage of the current CPS program benefits as listed on the CPS Web site. www.usa.canon.com/cps

Existing CPS members with qualifying video equipment will also be able to take part in the expanded CPS video services and benefits. However, the expedited two-day and three-day service benefit for eligible video equipment will not be available until July 2010.  

"As digital imaging evolves, we are proud to expand the CPS program to meet this new evolution and embrace the opportunity we have to serve the video market, not only with superior products, but also with continued service to ensure our professional customers have the equipment and support they need to successfully do their jobs," said Yuichi Ishizuka, executive vice president and general manager, Consumer Imaging Group, Canon U.S.A.  

A complimentary CPS Silver membership will be offered free-of-charge to qualifying videographers, cinematographers and filmmakers. This level of membership includes a welcome kit, access to the CPS phone hotline and a 20 percent discount on repairs.  For professionals requiring a higher level of Canon support, CPS Gold membership additionally includes access to equipment evaluation loans for a limited trial period and an expedited three-day turnaround on service items. Along with a 30 percent service discount, CPS Gold membership also includes two free Check & Clean vouchers and backup loan equipment, when available, if repair or service exceeds the three-day turnaround.  CPS Gold membership has an annual fee of $100.

Nine global media operators and major rights holder, including ESPN, have selected Net Insight to deliver live HD and 3D broadcasts of the 2010 FIFA World Cup in South Africa. For the first time, the entire four-week event will be broadcast live in full HD to soccer fans in over 130 countries. To support this scale of broadcast, operators require a solution that allows them to produce, distribute and deliver the premium content consumers demand. With the highest quality transport with 97 percent utilization Net Insight's Nimbra provides the most efficient solution for converged video, voice and data.  

In addition to transporting hundreds of hours of live HD coverage, Net Insight will also transport ESPN's 3D broadcast. The broadcaster plans to cover up to 25 games in 3D, a first for the sports network. The games will also be available in selected movie theatres worldwide.

"With the highest level of bandwidth utilization available and guaranteed QoS of the Nimbra platform, Net Insight is the only company prepared to take on bandwidth issues associated with marquee broadcast events," said Fredrik Trägårdh, CEO of Net Insight. "These technology capabilities, combined with Net Insight's past success for major live broadcasts, such as the Beijing Olympics, are the reasons why Net Insight was selected by nine operators across the globe to deliver the action-packed soccer matches of The World Cup."

Technology

In our last Report we named what we felt were the Top Ten Products introduced at the convention. As a refresher, they were:

1. ARRI Alexa Camera
2. Panasonic AG-3DA1 3D Camera
3. Sony SRW-9000PL Camcorder
4. FGV Scmidle's FGV 7D-PL from Band Pro
5. Fujinon 3D Synchronous Control System
6. Dolby PRM-4200 Reference Monitor
7. JVC IF-2D3D1 Stereoscopic Image Processor
8. The Foundry Mari
9. Nvidia Quatro Digital Video Pipeline for 3D
10. T-VIPS TVG480 Digital Cinema Gateway

More complete coverage of those products can be found by clicking here http://www.digitalcinemareport.com/node/1684

But, of course, there was a lot more new digital cinema technology on display. Here are the highlights.

Production

3ality Digital was showcasing its full line of stereoscopic 3D gear. This included a standard HD OB truck from All Mobile Video to demonstrate how easy it is to transition from 2D to S3D.  The truck featured live S3D image capture using two 3ality Digital TS-2 Studio beam splitter rigs fitted with Sony cameras and paired with a shooting set, where show attendees can receive hands-on demonstrations on how to operate S3D camera platforms. 3ality's TS-2 rig fitted with various cameras was being demonstrated in the Panasonic, Ikegami, Grass Valley, Bexel and Vinten booths. 3ality-produced content was on display in several booths as well.

"3ality Digital's leading-edge work in live S3D broadcast production has captured the interest of a range of visionary companies," says Sandy Climan, CEO, 3ality Digital.  "We think the working presentations of our integrated technologies at the NAB show will do much to show the market how, together, we make S3D production accessible, precise and scalable."  
 


"We're deeply honored that virtually all of the leading camera manufacturers have selected 3ality Digital for their NAB exhibits, as it validates our production systems as the best S3D live action tools available to the market," says Steve Schklair, CEO of 3ality Digital Systems, the technology and production arm of 3ality Digital.  

Band Pro introduced the wide and short Ruby 14-24mm T2.8 zoom from Focus Optics. This new niche lens delivers a quality image with extreme sharpness, especially at the wide end.

The new Ruby offers full coverage even for the F35 sensor. Weighing just three pounds and measuring 138 millimeters long, the Ruby has a front diameter of 110 millimeters and will accept a 102 millimeter screw-in filter. The lens works on all 35mm PL mounted cameras, including the Sony F35, Arri, Red, and Canon D7, and on the Canon D5 with an adapter.

The Ruby 14-24mm T2.8 is available worldwide exclusively through Band Pro Film & Digital.

Fujinon has completed its family of four PL zoom lenses with the introduction of two additional models: the 24-180 mm T2.6 and 14.5-45 mm T2.0. The new lenses join two PL zooms previously introduced: the 18-85 mm T2.0 and 75-400 mm 2.8-T3.8.
 
Designed for current and emerging 35mm format film and digital cinema motion picture cameras, Fujinon's PL Series offer T-stop, focal range and optical performance previously unavailable in a family of PL zooms. With workable size, industry-inspired functionality and focal range from 14.5 mm to 400 mm, these zooms provide top performance and cost efficiency.
 
All four Fujinon PL zooms have 136mm front diameters. Focus, zoom, and iris gears are all in the same position—which speeds up lens changes, since follow focus accessories and lens motors can stay in the same position on the rods. Focus barrel rotation is a uniform 280 degrees on all four lenses. The new Fujinon lenses were also on display in the Band Pro booth.

Vision Research introduced the Phantom Flex, the company's next generation, high-speed camera for the digital cinema market. The company says the camera redefines what's possible when it comes to high-speed imaging.  A Vision Research camera was used for several key scenes in recent the Academy Award winning movie The Hurt Locker.

Vision Research also unveiled a new lens mount for the company's advanced Phantom high-speed cameras, which allows users to remotely control the focus and aperture of Canon's digital EOS lenses. 

Compatible with the vast array of Canon EOS lenses available today, the new Vision Research Canon EOS lens mount is now available for all currently shipping Phantom v-Series digital high-speed cameras. The lens can be remote controlled using Vision Research's new Phantom Camera Control desktop-based software package, which provides an intuitive interface for adjusting aperture and focus. The ability to control these settings without having to physically interact with the lens is ideal for applications where the Phantom camera is not accessible, due to positioning, the environment or safety issues.

Vinten Radamec provided encoded pan and tilt heads and pedestals for a series of virtual reality demonstrations at the convention, including the first ever showing of the real-time integration of live stereoscopic 3D cameras as part of a virtual environment, at the Brainstorm Multimedia booth.

Brainstorm used a stereo 3D camera system from Krono Mav supported by a Vinten Vector 950i pan and tilt head. The 950i provided a constant stream of positional information to Brainstorm's eStudio real-time graphics engine, ensuring that physical and virtual elements remain in perfect synchronization.

"It is great to be involved in the world's first 3D stereoscopic demonstration with Brainstorm Multimedia," said David Hoffman of Brainstorm America, a Vinten and Vinten Radamec reseller.

"In addition to the interactive theatre presentation, visitors to NAB can also see Vinten and Vinten Radamec products working in virtual environments in the nVidia and Ultimatte booths, and of course in Vinten's own booth. As well as watching demonstrations they will be able to get their hands on the equipment, to pan and tilt and see the results of the special effects tracking."

Grass Valley was touting its involvement in the recent live 3D telecast of an NHL hockey game. Game Creek Video of Hudson, New Hampshire used a Kalypso high-definition video production center to produce the live 3D multi-camera telecast of the game between the New York Rangers and New York Islanders at New York's Madison Square Garden. From there, and for the first time, the signal was distributed to Cablevision subscribers throughout the New York metropolitan area with 3D television sets in their homes.

Fans in the Theater at Madison Square Garden were also able to watch the production on a large 3D screen, which was provided by RealD using its 3D stereoscopic Cinema Processing System.

K-Tek introduced the Norbert Camera Accessory Mounting System – a flexible accessory management system designed to complement the latest generation of video-capable DSLRs and compact HD video cameras. Norbert enables a cinematographer to attach a large array of production tools to a DSLR camera without compromising the camera's integral shoe mount. The heart of the system is the Norbert base frame. Machined from rugged yet lightweight black anodized aluminum, the frame has numerous threaded holes in 1/4x20 and 3/8x16 sizes and 23 standard shoe mounts that allow the user to customize the Norbert system to meet the specific needs of any shooting situation. The frame attaches to the camera via a handy quick-release mechanism. Additional threaded holes on the base accept tripod-mounting brackets.

Litepanels says it has brought the Fresnel into the 21st century with the new Sola series, which offer beam control of 70° to 10° and provide the controllability and single-shadow properties inherent in a Fresnel light, but utilize just a fraction of the power of conventional fixtures.

Like all Litepanels, Sola Fresnels feature instant dimming from 100 percent to zero with no noticeable color shift. The SolaENG provides manual focus and dimming control via camera lens style ergonomic controls. The Sola6 and Sola12 provide on-fixture motorized control of focus and local dimming via a convenient touch screen, and are also remote-controllable via their integrated DMX interface. Output is fully flicker free, and remains consistent even as the battery voltage goes down.

Litepanels Solas are available in three models. The Sola6 draws 75 watts yet produces output equivalent to a 650W tungsten unit, and weighs 6 pounds. The Sola12 draws just 250 watts yet produces output equivalent to a 2000W tungsten and weighs only 14 pounds. Designed for both on-camera and off-camera mounting, the SolaENG is only 4-inches by 4-inches by 5-inches and weighs just 10 ounces. The SolaENG runs on 10-20VDCsources such as camera batteries, or via an AC power adapter.  

S3D Technologies was showing its S3D Beam Splitter Rig. According to the company, the new rig is suitable for film and digital cameras with lenses of up to 114 mm diameter and a 16 mm focal length. It has a camera release system that allows the operator to remove and fix cameras efficiently and fast. In addition, the operating temperatures of its electronic components range from -40ºC to 80ºC (-40ºF to 176ºF), which makes filming in a variety of locations and climates, a practical possibility.

Vizrt was showing real-time, stereoscopic 3D HD imagery on a 3 by 1.7 meter using two three-chip Christie DLP HD8K projectors. The projectors, which were equipped with Infitec filters, delivered 8,000 lumens.

"The quality of our stereo 3D graphics projected on Christie's projectors is unsurpassed," said Gerhard Lang, Vizrt's chief engineering officer. "The HD8K projectors have true native HD resolution of 1920x1080.  And they use Xenon illumination, which is the pinnacle of image color accuracy, and is needed for the filter technology provided by Infitec. The output is the way stereoscopic 3D is meant to be viewed."

"We see 3D HD virtual applications becoming a major growth market for broadcast much the same as digital HD has been important to the future of television," said Gary Fuller, vice president, Christie Business Products. "Vizrt is clearly leading the way with exciting new ways of delivering real-time HDTV stereo content."

Post-Production

Cintel International featured a new film scanner, ditto evolution and a new image-processing platform, imageMill2.

Simon Clark, Cintel's business development manager, said, "diTTo evolution offers solutions to all film scanning needs.  It can evolve from a simple-to-use, calibrated pin registration scanner for digital intermediate use with superb image quality to a multi-format, non-pin registration machine for shrunken and damaged film incorporating a full set of image restoration tools."

Cinetel sales director Simon Carter said, "imageMill2 will address the industry's need for a fast yet simple-to-use Noise and Grain management tool for both data-centric Digital Intermediate applications and Restoration projects within one product.  With speeds in excess of 25fps for 2K and HD files, the performance of imageMIll2 is unequalled.  We are currently processing 4K files at 10fps and can also deal with SD files at twice real time.  With imageMIll2 you can truly 'eliminate the wait'."

Cintel was also demonstrating a new Millennium dataMill workflow utilizing the Yoyo system from Yoyotta.  Film will be scanned to HD data in real time with the Yoyo system controlling both the film scanner and an imageMill processing engine.

Barco premiered the RHDM-1701 a 17-inch high-definition reference monitor that is a more compact version of the company's RHDM-2301. Although broadcasting and post-production professionals have praised the quality of the 23-inch RHDM-2301 reference monitor, they also requested a more compact version that could fit into 19-inch racks.

As a true Grade-1 LCD display, the company says the RHDM-1701 provides the color accuracy professionals demand. Advanced calibration and stabilization technology keep the colors lasting, ensuring a perfect reference at all times. The motion handling system prevents motion blur and produces CRT-like quality that is second to none. And a native 10-bit panel, calibrated RGB-LED backlights, and 48-bit processing are designed to deliver excellent color accuracy. The RHDM-1701 is available in B and P versions, targeting the broadcasting and post-production markets, respectively.

"The RHDM-1701 is a valuable addition to our portfolio," says Goran Stojmenovik, product manager LCD Displays at Barco. "It perfectly fits the need for compact reference monitors, bringing perfect color accuracy to more confined spaces. Its reduced dimensions, in combination with the advanced motion handling system, make the RHDM-1701 ideal as a real-time reference monitor for fast-moving actions – such as sports games."

Blackmagic Design unveiled DeckLink HD Extreme 3D, a new model of it's capture card with new 3D support, hardware up, down and cross conversion, 12 bit hardware architecture, 3 Gb/s SDI, support for up to 1080p60 in SDI, component analog and HDMI connections, as well as full SD, HD and 2K support.

DeckLink HD Extreme 3D is ready for 3D workflow using both interleaved/side by side and dual stream capture and playback. Interleaved 3D allows the left and right eye to be interleaved as fields into a single video connection and file, so customers can edit using current editing software.

Dual steam 3D allows customers to use the DeckLink HD Extreme 3D dual link SDI connections to capture and playback two streams, one for the left eye, and one for the right eye. The two streams are recorded into two separate media files. Dual stream 3D is higher quality because each eye is full resolution video, but dual stream is less compatible with current editing software.

To solve this problem, Blackmagic Design's Media Express has been upgraded to handle both interleaved and dual stream 3D for capture and playback of 3D media for a complete 3D solution.

With SDI, HDMI and analog video capture and playback, combined with balanced analog and AES/EBU digital audio, DeckLink HD Extreme 3D lets customers connect to all decks, cameras and monitors! DeckLink HD Extreme instantly switches between SD, HD and 2K, so is the ideal solution for all post production and broadcast users when working on design, editing, paint and effects tasks.

"We are so excited by the new 3D workflows and with DeckLink HD Extreme 3D, now there is an all in one solution to allow everyone to have access to the highest quality 3D workflows. I cannot believe how many advanced industry leading features are packed into this single product," says Grant Petty, CEO, Blackmagic Design, "DeckLink HD Extreme 3D is the only way to get advanced 3D, 4:4:4 and 2K capture and playback, combined with conventional SD and HD at a price everyone can afford."

DeckLink HD Extreme 3D is available now for $995 from Blackmagic Design resellers worldwide.

Lasergraphics featured enhancements to its Director pin-registered 35mm/16mm film scanner, including: HD QuickTime Dailies at up to 14 frames/second; thumbnail preview at 100 frames/second; automatic scene and splice detection, and per-scene color grading. Lasergraphics also demonstrated a fully functioning file-based digital intermediate workflow with at what the company calls a small fraction of the cost of competing systems. 

SmartJog was showcasing its re-designed cloud storage solutions. The new features are aimed at creating community-based workflows with easy-to-use access tools.

Clients can manage access to their centralized archival catalogs by giving access rights to other connected companies or users anywhere in the world. Clients can give access to send, preview, and update content data. The new features enable connected customers to quickly establish and manage collaborative workflows and projects.  

"SmartJog users can greatly benefit by the new tools and features offered in our cloud storage solution.  Granting catalog access to others based on such parameters as company, country or individual provides a high level of flexibility and security in worldwide collaborative workflows," said Joe DiBianca, vice president at SmartJog.