RealD Taps Studio Veteran Anthony Marcoly As Strategic Advisor

http://www.digitalcinemainfo.com/reald_11_17_10.php

November 17, 2010

Source: RealD

RealD Inc., a global licensor of 3D technologies for cinema, consumer electronics, and professional applications, announced that studio veteran Anthony Marcoly has joined the company as a strategic adviser.

Marcoly, who most recently served as President of Walt Disney Studios Motion Pictures International, will work with senior management on a wide range of initiatives with a focus on continuing to drive growth across the company’s industry-leading 3D cinema platform.

“Anthony is a proven senior-level executive with three decades of experience in the cinema industry whose relationships around the world will help us continue to best serve our exhibition partners,” said Joseph Peixoto, President of Worldwide Cinema at RealD. “Anthony brings to RealD invaluable knowledge of both the domestic and international landscapes and we look forward to the many contributions he’ll bring through his unique perspective.”

"RealD is the worldwide industry leader in 3D cinema technology and has revolutionized the cinema going experience. I look forward to this exciting opportunity and being a member of this innovative team as it continues its global expansion," said Anthony Marcoly.

Marcoly spent twenty six years with The Walt Disney Company, most recently holding the position of President of Walt Disney Studios Motion Pictures International. Prior to his promotion to President, Marcoly was the Executive VP Distribution & Acquisitions at Buena Vista International (A $700 million subsidiary of the Walt Disney Company renamed Walt Disney Studios Motion Pictures Int'l in 2006).

Previous Disney positions included leadership roles in distribution as Senior Vice President Distribution and Director level roles in Sales and Finance. Marcoly’s industry awards include Cinema Expo Distributor of the Year in 2004 and CineAsia Distributor of the Year in 1997.

 

New 3D Deal with Utopia / Utopolis for FTT

http://www.digitalcinemainfo.com/masterimage_11_24_10.php  

November 24, 2010

Source: MasterImage

The Benelux-based group is planning to boost its 3D business with 45 MasterImage 3D installations.

As the very first exhibitor to have projected digital 3D at its main sites in the Benelux countries, Utopia / Utopolis Group, one of the major cinema circuits in Belgium, Holland and Luxembourg, entered into a deal with FTT Benelux S.A., youngest member of the FTT family, for the supply and installation of 45 MasterImage 3D digital cinema systems. Moreover, FTT also won the bid for the supply and installation of all silver screens for the group.

Thomas Rüttgers, Managing Partner of FTT group said: “We are very happy that our new subsidiary will implement its first long-time project together with Utopolis. They have been our customers for such a long time already and we are delighted that they have expressed their confidence in us one more time.”

Nico Simon, General Manager of Utopia S.A. added: “Having tested different options we think that the MasterImage 3D solution is the one that suits our requirements best and look forward to co-operating with FTT once again. For us it was surely a crucial factor that they have a relevant experience in digital 3D installations and branch offices close to our cinemas.”

Brian Kercher, Managing Director of MasterImage 3D Europe Cinema concludes: “3D is one of the important drivers of digital cinema and it surely stimulated the demand for digital cinema equipment. We are proud to work with FTT and Utopolis on this project as they are both renowned companies in their respective markets.”

The roll-out for Utopolis will start in December with the installations in Luxembourg and will then be carried out step by step in several waves. However, at least 4 to 6 screens will be equipped by the end of this year.

 

Cinedigm Digital Cinema Corp. Announces Continued Improvement in Second Quarter and First Half Operating Results

http://www.digitalcinemainfo.com/cinedigm_11_12_10.php

November 12 , 2010

Source: Cinedigm

Cinedigm Digital Cinema Corp. reported continued improvement in operating results for the second quarter and first half of fiscal 2011, ended September 30, 2010.

Revenues for the second quarter ended September 30, 2010 were $18.9 million, representing a 7.8% increase over the prior year. Cinedigm reported Adjusted EBITDA(1) defined below, of $10.4 million, a 10.4% improvement compared to the Adjusted EBITDA of $9.4 million one year earlier.

The net loss from continuing operations in the three month period was $(9.4) million, or $(0.31) per share, as compared to a net loss from continuing operations of $(0.9) million, or $(0.03) per share, in the prior year. The second quarter of the prior year benefited from a one-time gain of $10.7 million related to the extinguishment of debt during that period. Exclusive of this one-time gain, the net loss from continuing operations for the period improved by 19.5% as compared to a year earlier.

For the first six months of fiscal 2011, the Company reported revenues of $38.2 million, representing a 13.3% increase over the first half of the prior year. Adjusted EBITDA for the first half of the fiscal year was $20.9 million, a 13.5% improvement over the Adjusted EBITDA of $18.4 million one year earlier.

The net loss from continuing operations in the first half of the fiscal year was $(16.3) million, or $(0.55) per share, as compared to a net loss of $(7.8) million, or $(0.27) per share. Exclusive of the one-time gain noted above, the net loss for the first half of the fiscal year improved by 12.2% as compared to the year-earlier period.

Adjusted EBITDA in the second quarter and first half, excluding the EBITDA earned in the Company's Phase I and Phase II Deployment subsidiaries (all of which net of services fees is pledged to service the non-recourse debt of those subsidiaries) was $(178,000) and ($648,000), respectively, representing an improvement of 90.0% and 78.6% over the prior year's respective periods. This also represents a continued sequential improvement from the ($489,000) loss in the first quarter ended June 30, 2010.

Adam M. Mizel, interim co-Chief Executive Officer and Chief Financial Officer, commented, "Cinedigm continued to show solid operational and financial progress in the second quarter and the first half of fiscal 2011. Revenues and Adjusted EBITDA increased nicely, despite delays in our scheduled digital system deployment program due to manufacturing capacity limitations at our vendors. Nevertheless, we experienced a substantial increase in deployments as the second quarter progressed, which has continued in the current quarter and is expected to maintain its momentum through the balance of the fiscal year and beyond.

"We expect our recently announced non-recourse financing commitments from Societe Generale, Natixis and Macquarie Equipment Finance to further increase our deployment pace in the next 12 months and drive future growth."

Mr. Mizel added, "I am pleased to note that due to the strong deployment pace in the quarter, Cinedigm's non-deployment businesses experienced its first EBITDA positive month in history in September, and we expect this trend to continue as our installations expand further."

Gary S. Loffredo, interim co-Chief Executive Officer and General Counsel, said, "As noted, the December 2009 completion of the NATO Cinema Buying Group Exhibitor-Buyer contract greatly enhanced our ability to finance agreements with exhibitors. As continued evidence of this trend, during the second quarter we announced agreements with Cobb Theaters for 170 screens, and Dickinson Theaters for 250 screens, as well as an additional 195 CBG members screens.

"This brings Cinedigm's total screens under Master License Agreements (MLAs) to 2,383, and our strong momentum and active discussions with many significant circuits will drive an extremely active and productive time ahead."

Mr. Loffredo concluded, "We believe that Cinedigm is at a very exciting point in its development, as we have successfully laid the groundwork for outstanding operational and financial progress in the weeks and months ahead. The second half of fiscal 2011 looks to be a strong period of growth for our Company, and we expect that trend to continue for the foreseeable future."

 

XDC and Reel Cinemas Agreed To Deploy 57 Digital Screens in UK

http://www.digitalcinemainfo.com/xdc_11_18_10.php

November 18, 2010

Source: XDC

Reel Cinemas, a growing UK exhibitor, XDC, a digital cinema service company in Europe, have agreed on the terms for a deployment of 57 digital cinema systems at 15 cinemas.

K.C. Suri, Managing Partner of Reel Cinemas, said: "We made the decision for XDC because they offered the most comprehensive solution available today on the market: simple and efficient financing structure, clear and transparent business model, keen technological expertise.

" With the help of XDC we are able to complete a full roll out within a reasonable short time frame, which allows our circuit to benefit from the advantages of digital cinema: 3D experience, alternative content programmes, operational cost savings."

Serge Plasch, XDC's Chief Executive Officer said: "Having this first VPF deal in UK is for XDC a very strategic milestone, since UK has always been a key market for cinema business. Reel Cinemas is a respected exhibition circuit and we are very proud to have been selected for their digital roll out plan. This agreement also demonstrates the solidity of our business model which is the only one able to offer agreement with all the 6 majors US studios, available financing from BNP Paribas Fortis and advanced knowledge in digital cinema technology ''.

David Pope, XDC's Director UK Operations added: "It really has been a pleasure working with Kailash Suri and Reel Cinemas to develop a Digital Cinema solution to suit their exact requirements. I am looking forward to our UK operation starting the role out and supporting Kailash and his team with a seamless transition to digital, maintaining the extremely high quality operation and outstanding entertainment service that Reel have provided to the public over the years."

Under the terms of the agreement with XDC, Reel Cinemas will install Series 2 DCI-compliant Barco digital projection systems. Reel Cinemas will also implement a fully integrated and networked solution across the circuit, thanks to XDC's advanced Theatre Management System and Central Library, the XDC's CineStore® Plaza.

A content delivery network will also be implemented by XDC in order to allow distributors to deliver films directly by satellite and/or broadband connection to the cinemas, as well as to give the opportunity to Reel Cinemas to perform live 2D and 3D transmissions.

All the systems will be connected to the XDC's NOC (Network Operations Centre) which will perform the hotline support and the preventative remote maintenance.

Thanks to the sophisticated XDC's CineStore Data web-based application, the frontline support (with the possibility to have a full remote monitoring of the digital systems) will be directly managed by Reel Cinemas local integrator Omnex Profilm Ltd, which will also take care of the installations and maintenance under XDC supervision.

Other UK exhibitors are planned to start digital roll out with XDC by early 2011. XDC is targeting to rapidly increase its UK operations in order to manage the deployment and the support of about 400 screens.

 

Technicolor to close North Hollywood film printing plant

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/11/technicolor-to-close-north-hollywood-film-printing-plant.html

 

November 19, 2010 |  7:02 pm

In another blow to L.A.'s entertainment economy, Technicolor Inc. plans to shut down its film release printing plant in North Hollywood next year, the company told employees this week.

The film-processing giant said it would shutter the plant because of the rapid acceleration of digital cinema, which has lessened demand for film prints. Operations will be transferred to a Technicolor facility in Mirabel, Canada, outside of Montreal, although Technicolor will still provide some "front-end" services in Los Angeles, such as processing dailies.  

Technicolor said it was unclear how many jobs would be affected, saying that depended on the outcome of negotiations with local unions, but the move is expect to result in 100 or more job losses. Between 300 and 400 people work at the plant.

"We could not afford to maintain two facilities given the decline in film and growth of digital," a Technicolor spokesman said Friday. The Hollywood-based company recently lost a print release contract with Universal to its competitor, Deluxe.

Although it remains one of the largest processors of film in the world, the company has been repositioning itself in recent years to become more of a digital production services business, investing more than $200 million in digital postproduction and visual-effects facilities, including in Bangalore, India, London and the company's new Hollywood headquarters.

Technicolor's announcement, first reported by Variety, was the latest hit to L.A.'s postproduction industry. This week, Venice-based visual-effects company Digital Domain announced it was buying Westlake Village-based 3-D conversion company In-Three Inc. and that it plans to move most of that company's 70 jobs to Florida, where costs are lower.

-- Richard Verrier

 

RealD and Wanda Cinema Team Up for 3D Rollout

http://www.digitalcinemainfo.com/reald_11_18_10.php

November 18, 2010

Source: RealD

China’s Biggest Cinema Chain to Install RealD 3D on up to 500 Screens

RealD Inc. a global licensor of 3D technologies for cinema, consumer electronics, and professional applications, and Wanda Cinemas, China’s largest movie theatre circuit, announced today plans to install RealD 3D technology on up
to 500 screens across the Wanda circuit. Installations have already begun and will see RealD 3D installed in high profile locations across cities including Beijing, Shanghai, Guangzhou, Chengdu and Xian.

“Wanda is the largest cinema chain in China and one of the fastest growing circuits in the world,” said Joseph Peixoto, President of Worldwide Cinema.

“We look forward to working with Wanda to develop a broad-based 3Denabled circuit in China and continue RealD’s expansion of our operations in Asia.”

“We are pleased to collaborate with RealD and plan to install their 3D technology on 500 of our screens across China,” said Jerry Ye, General Manager, Wanda Cinemas. “Wanda has a long-standing goal of presenting a first-class movie experience and this collaboration will bring our audiences access to the stunningly realistic films."

 

IMAX Signs Theatre Deal With ODEON & UCI Cinemas Group; Introduces Joint Venture Business in Spain and Italy

http://www.imax.com/corporate/investors/

NEW YORK, Nov 23, 2010 (GlobeNewswire via COMTEX) -- IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) and ODEON & UCI Cinemas Group, Europe's largest exhibitor, today announced an agreement to install two new digital IMAX(R) theatre systems under joint venture agreements in Mallorca and Milan, marking IMAX's first JV theatres in Spain and Italy. The Spanish location will open under the Cinesa brand in Mallorca. The location in Italy will operate under the UCI brand in Milan. Both locations are scheduled to open on May 20th, 2011. These new theatres are the latest in a surge of IMAX theatre system signings and openings in Western Europe this year in markets such as the United Kingdom, France, The Netherlands and Germany. Today's announcement adds to ODEON & UCI Cinemas Group's position as the largest operator of IMAX theatres in the EMEA (Europe, Middle East and Africa) region. "Building on the tremendous success that we have had with IMAX in our ODEON theatres in the UK, we are pleased to bring The IMAX Experience(R) to our theatres in continental Europe," said Rupert Gavin, CEO of ODEON & UCI Cinemas Group. "Based on our firsthand experience with IMAX, we are hopeful that the IMAX brand will be embraced by our customers in Mallorca and Milan. We are optimistic that based on the success of these initial locations, we will see an expansion of our IMAX business into our other key markets across Europe." "Expanding our joint venture business into two major markets with Europe's largest and most recognized exhibitor is an ideal way to capitalize on the momentum of our brand in this region," said IMAX CEO Richard L. Gelfond. "Just as we've seen in other parts of the world, consumer demand for The IMAX Experience has grown significantly in Western Europe over the past year, as more locations open. Introducing our brand to new audiences in these markets with UCI will help to continue to drive increasing demand in the region." "In 2010, we have signed more theatre deals in Western Europe than in any other year in our history," added Larry T. O'Reilly, IMAX's Executive Vice President, Theatre Development. "UCI is a superb ambassador of the IMAX brand, and we believe that expanding our relationship with them in key European markets like Milan and Mallorca will serve as a catalyst for increased long-term growth in Europe." IMAX's digital theatre system delivers The IMAX Experience and helps drive profitability for studios, exhibitors and IMAX theatres by eliminating the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on IMAX screens. The system can run both IMAX and IMAX (R) 3D presentations. About ODEON & UCI Cinemas Group With over 75 years experience, ODEON & UCI Cinemas Group is the largest cinema operator in Europe. The Group is the leading cinema operator in the UK, Spain and Italy, second largest in Ireland and third largest in Germany, Austria and Portugal. It operates 1,845 screens at 204 sites across Europe. About IMAX Corporation IMAX Corporation is one of the world's leading entertainment technology companies, specializing in immersive motion picture technologies. The worldwide IMAX network is among the most important and successful theatrical distribution platforms for major event films around the globe, with IMAX(R) theatres delivering the world's best cinematic presentations using proprietary IMAX, IMAX(R) 3D, and IMAX DMR(R) technology. IMAX DMR is the Company's groundbreaking digital re-mastering technology that allows it to digitally transform virtually any conventional motion picture into the unparalleled image and sound quality of The IMAX Experience(R). The IMAX brand is recognized throughout the world for extraordinary and immersive entertainment experiences for consumers. As of September 30, 2010, there were 470 IMAX theatres (348 commercial, 122 institutional) operating in 45 countries. IMAX(R), IMAX(R) 3D, IMAX DMR(R), An IMAX 3D Experience(R) and The IMAX Experience(R) are trademarks of IMAX Corporation. More information about the Company can be found at www.imax.com. You may also connect with IMAX on Facebook (www.facebook.com/imax), Twitter (www.twitter.com/imaxnews) and YouTube (www.youtube.com/imaxmovies). The IMAX Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6469 This press release contains forward looking statements that are based on management's assumptions and existing information and involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include ongoing discussions with the SEC and OSC relating to their ongoing inquiries and the Company's accounting, the performance of films, the signing of theatre system agreements, the viability of new technologies, businesses and products, the timing of theatre system deliveries, the mix of theatre systems shipped, the timing of the recognition of revenues and expenses on film production and distribution agreements, risks arising from potential material weaknesses in internal control over financial reporting and fluctuations in foreign currency and in the large format, general commercial exhibition and out-of-home entertainment markets. These factors and other risks and uncertainties are discussed in the Company's most recent Annual Report on Form 10-K and most recent Quarterly Reports on Form 10-Q. This news release was distributed by GlobeNewswire, www.globenewswire.com

 

Making 3-D Glasses Fashionable

http://blogs.wsj.com/digits/2010/11/08/making-3-d-glasses-fashionable/

November 8, 2010, 10:51 AM ET

By Lauren Goode

3-D glasses are going in the direction of high fashion.

In recent days, both Gucci and Calvin Klein Inc. unveiled high-style 3-D glasses with price tags of $225 and $180, respectively. Now eyewear and apparel maker Oakley Inc., is diving into the third dimension with the release of a $120 3-D version of its popular Gascan model of sunglasses.

The glasses can be used for watching 3-D content on 3-D TV screens in the home and in the theater, except on IMAX and Dolby 3-D Digital Cinema screens.

But while the Oakley glasses combine style with 3-D technology, the glasses aren’t entirely multi-purpose – meaning consumers might not want to use them in both the 3-D theater and, say, on the ski slopes.

“You can use them outdoors, but they’re not optimized for outdoor use,” says Scott Smith, category manager for Oakley’s 3-D Optics. “We optimize our standard Oakley sunglasses for use outdoors. The light transmission in 3-D glasses is different. You’re going to get 40 to 50% light transmission with 3-D glasses.”

Mr. Smith says he believes initial buyers of the glasses will be consumers already familiar with Oakley glasses and early adopters of 3-D technology who are seeking “solid fit and function” from 3-D glasses.

The Oakley 3-D Gascan glasses are expected to be available later this month through retailers such as Sunglass Hut, Zappos.com, and Oakley’s own retail stores and website.

A limited edition version of the Oakley 3-D glasses, pegged to the release of the upcoming Disney film “TRON: Legacy,” was announced late October and will be available this month for $150.

The company says it spent two years designing the 3-D glasses, working closely with both RealD Inc., a maker of 3-D cinema technology, and DreamWorks Studios to ensure optical quality. The glasses are designed for what has been termed “passive” 3-D viewing, which involves seeing two different displays, with the glasses providing a filter for what each eye sees. “Active” 3-D displays send alternating images to the left eye and right eye, and a built-in shutter in the glasses creates the 3-D image for the wearer. Most of the 3-D TVs out on the market right now are using active 3-D technology, but Oakley says more passive screens are expected to hit the market soon.

“Passive” 3-D glasses cost about $5 to $20; “active” glasses can cost upwards of $100. “The price point of the glasses is a hurdle in this,” John Batter, president of production at DreamWorks Animation SKG, said recently in an interview with the Wall Street Journal, and pointed out that old-fashioned 3-D glasses, such as the kind used during the technology’s inception, were very cheap.

In the meantime, some manufacturers are hoping to eventually move beyond glasses altogether. Companies like Toshiba Corp. and Samsung Electronics Co. working to bring more glasses-free, or autostereoscopic, 3-D TV screens to market.

http://online.wsj.com/video/digits-3-d-glasses-go-high-fashion/3B4AE893-4779-4BDB-8E20-126672F08B44.html

 

The Theater Stocks Battle: RealD vs. IMAX

http://www.today3d.com/2010/11/theater-stocks-battle-reald-vs-imax.html

Nov 12, 2010

The battle of the movie theater format is on in theaters around the world. But at The Motley Fool, we don't care quite as much which theater experience you prefer (although that is important) but rather which theater will make you money. Let's introduce our contestants.

RealD (NYSE: RLD) is the new kid on the block, just hitting the stock market in July and has since risen an impressive 53.6% since going public at $16.

IMAX (Nasdaq: IMAX) is the wily veteran who has been around since 1967 and has just recently begun to hit its stride.

Both companies make 3-D projection equipment, get licensing revenue and make those funky glasses we love to wear at the movies.

The biggest difference between RealD and IMAX is the place they see themselves taking in the market. RealD is expanding as fast as possible to beat out other formats, and IMAX is taking the role of the luxury provider by picking and choosing partners and keeping a sense of exclusivity to its brand.

The business model battle
A good way to judge these two companies is to see how much revenue they generate per theater. The two companies have slightly different business models and report slightly differently, but for the table below I am comparing RealD's license revenue to IMAX's revenue from joint ventures and films. I believe these are the best basis for comparison.

 

Company	Theaters	Film Revenue (Q3 2010)	Revenue/Theatre
IMAX	470	$27.5 Million	$58,568
RealD	9,300	$23.8 Million	$2,555

* Theater count is as of the end of the third quarter.

Whoa, now that's a difference if I've ever seen one.

The bread and butter of both companies are a slice of each ticket you purchase at the box office. IMAX can obviously command a higher percentage of that box office than RealD.

Another big difference in financial performance is what they can command for glasses you wear while in the theatre. RealD lost $6.6 million in its product segment largely due to the cost of new 3-D glasses and recycling used ones. IMAX, on the other hand, sells a cleaning machine and doesn't spend enough on glasses to even make it a point of concern in its SEC filings. RealD mentions the word "eyewear" 87 times!

I make a big deal of this because, while RealD gets high margins for licensing revenue, it is essentially subsidizing that revenue with eyewear it sells below cost.

Advantage: IMAX.

Where are the IMAX theaters?
The theater model that IMAX and RealD use is another major differentiator. RealD is trying to get into as many theaters as possible and will start running into an issue of saturation fairly soon. Its 9,300 screens are already more than theater behemoths Regal Entertainment(NYSE: RGC), which operates 6,703 screens, and CineMark, which operates 4,938 screens. IMAX, on the other hand, can pick and choose markets to enter maintaining a premium product.

IMAX has 470 screens, which are split between 348 commercial screens and 122 institutional screens. Backlog, which has been growing rapidly, consists of 257 theater systems as of the end of the quarter. When completed, a worldwide screen count of 727 is far from saturating the market.

IMAX is very profitable with only 470 screens, but RealD posted a loss of $5.1 million with 9,300 screens. Some would argue RealD will become profitable with more scale but I ask how many screens does it need? 15,000? 25,000? 50,000?

Two wins for IMAX.

Beyond the theater
RealD does hold an advantage in the consumer electronics field, where it has recently opened up the RealD format. This is still very much a nascent market, but it does provide an opportunity for growth.

IMAX has a number of ventures including a 3-D television channel with Sony and Discovery. It has also made an investment in Laser Light Engines alongside Harris & Harris (Nasdaq:TINY) to develop brighter projection bulbs. It also recently announced a new nXos Calibrator for IMAX audio systems. Not exactly stepping on Dolby's (NYSE: DLB) toes here, but improving its offering to stay ahead of the game.

RealD gets on the board with a win beyond the theater, although with an asterisk because consumer electronics aren't a big component of revenue yet.

The movies
Movie studios have played a more neutral game, attempting to offer both RealD and IMAX formats when possible. Dreamworks' (Nasdaq: DWA) recent release Megamind was available in both formats and so was Disney's (NYSE: DIS) smash hit Toy Story 3. Upcoming films with high expectations like Tron: Legacy, The Green Hornet, and Mars Needs Moms are also being shown in both formats. I can't really give an advantage to either company based on movie titles.

The verdict
IMAX has a far superior business model, and I like IMAX's ability to pick and choose blockbuster movies to keep its product premium.

 

Cinedigm Digital Cinema Corp. Receives Commitment Letters for Non-Recourse Phase 2 Borrowing Facility

http://investor.cinedigm.com/releasedetail.cfm?ReleaseID=529575

Societe Generale, Natixis and Macquarie Equipment Finance to Provide up to $110.0 Million; Funds to Support up to 2,100 Digital Cinema System Conversions

LOS ANGELES, CA and MORRISTOWN, NJ -- (MARKET WIRE) -- 11/11/10 -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM), the global leader in the digital cinema industry, today announced that its non-recourse Phase 2 subsidiary has received commitment letters from Société Générale and Natixis for a senior credit facility totaling $75 million with flexibility to expand up to $86 million through syndication, and from Macquarie Equipment Finance ("Macquarie") for up to $23 million of junior capital. Closing is targeted for late 2010 with deployments commencing in the first quarter of 2011. This Phase 2 facility will deploy up to 1,800 - 2,100 digital systems, with projectors being provided exclusively by Barco and NEC.

These new commitment letters address both senior and junior capital requirements of a non-recourse borrowing facility which Cinedigm can offer to exhibitors to provide a complete financing solution. Under the terms of the facility, Macquarie will own title to the equipment and consolidate the revenues, earnings, assets and debt related to the deployments. Cinedigm will be the servicer for the digital systems, will license systems to exhibitors and will work closely with studios and the lenders to oversee the smooth deployment during 2011 and early 2012, as well as the ongoing management of these digital systems.

"We are pleased with the confidence in our company as indicated by these significant commitments from Société Générale, Natixis and Macquarie," said Adam M. Mizel, interim co-Chief Executive Officer and Chief Financial Officer of Cinedigm. "Given the growing momentum for digital cinema this year, our exhibitor partners are rapidly changing over to digital and requiring innovative financing solutions. These commitments will allow Cinedigm to further accelerate its Phase 2 deployments and enable exhibitors to capitalize on the advantages of digital cinema, such as 3D movie releases and exciting alternative content offerings."

"We are pleased to reaffirm our support for Cinedigm's digital rollout, together with our Joint Lead Arranger, Natixis," echoed Richard Knowlton, Managing Director, Société Générale Corporate and Investment Banking. This commitment expands and replaces the proposed facility from Société Générale and GE Capital for $100 million, reported in October of 2009.

Commitments by Société Générale Corporate & Investment Banking, Natixis and Macquarie are subject to certain closing conditions, including the execution of loan documentation satisfactory to Société Générale, Natixis and Macquarie and Cinedigm's Phase 2 subsidiary.

Cinedigm's Phase 2 subsidiary unit serves as the funding vehicle, administrator, and technology integrator for the company's 10,000-screen digital cinema rollout plan. Phase 2 acts as the administrator and financing intermediary between content-owners -- major studios and independent distributors, among others, equipment vendors and exhibitors who will receive turnkey, Digital Cinema systems in conformance with DCI specifications, including 2K DLP Cinema® projectors and related hardware and software. Since 2005, Cinedigm, through its Phase 1 and Phase 2 digital cinema subsidiaries, has participated in the installation of over 6,000 digital cinema systems and has been contracted to install 420 systems in the coming months with Dickinson Theatres and Cobb Theatres.

Cinedigm's Phase 2 has been selected as the integrator of choice by the National Association of Theatre Owners' Cinema Buying Group whose 600 plus members own more than 8,000 theatre screens around the United States.

About Cinedigm
Cinedigm is a leader in providing the services, experience, technology and content critical to transforming movie theaters into digital and networked entertainment centers. The Company partners with Hollywood movie studios, independent movie distributors, and exhibitors to bring movies in digital cinema format to audiences across the country. Cinedigm's digital cinema deployment organization, software, satellite and hard drive digital movie delivery network; pre-show in-theater advertising services; and marketing and distribution platform for alternative content such as CineLive® 3-D and 2-D sports and concerts, thematic programming and independent movies is a cornerstone of the digital cinema transformation. Cinedigm™ and Cinedigm Digital Cinema Corp.™ are trademarks of Cinedigm Digital Cinema Corp. www.cinedigm.com [CIDM-G].

About Macquarie Equipment Finance

Macquarie Equipment Finance, a member of Macquarie Group, provides lease financing, asset management solutions, and remarketing of technology, healthcare, and capital equipment for enterprises around the globe Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services.

Macquarie's main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries and employs more than 15,500 people. Assets under management total $307 billion. For more information, visit www.macquarie.com/mef.

 

Sony licenses Civolution's NexGuard - Digital Cinema audio and video watermarking technologies

http://www.digitalcinemainfo.com/civolution_11_09_10.php

November 9, 2010

Source: Civolution

Civolution, a provider of technology and services for identifying, managing and monetizing media content, announced that it has signed an exclusive agreement with Sony's Digital Cinema Solutions Group to integrate Civolution’s NexGuard – Digital Cinema watermarking into Sony 4K SXRD digital cinema systems for 3D stereoscopic and 4K resolution projections on a global scale.

“Civolution’s NexGuard watermarking offers state of the art security throughout our digital cinema servers worldwide and complies with the DCI specifications for persistent content protection, including traceable forensic evidence in case of content theft,’’ said Rich Reames, Director of Technology, Digital Cinema Solutions Group at Sony Electronics.

In this multi-year agreement, Sony’s Digital Cinema Solutions group will integrate Civolution’s watermarking technologies to market DCI compliant servers and projectors with audio and image forensic marking capabilities.

Forensic marking is intended to make illegal recordings of digital cinema content traceable, and is today a requirement under the Digital Cinema Initiative, a joint venture of major motion picture studios, formed to establish a standard architecture for digital cinema systems. The NexGuard - Digital Cinema watermark can survive in-theatre camcording and subsequent compression to low bitrates.

“The DCI compliant and camcorder proofed NexGuard solution helps to protect assets and creates a more secure digital cinema environment,’’ said Jean-Michel Masson, Senior Vice President, Watermarking Operations, Civolution. “We are very pleased to roll-out the NexGuard forensic marking with one of the leading D-Cinema system manufacturers and offer the studios a security solution for all digital cinema screens, including 3D and 4K theaters.’’

The NexGuard - Digital Cinema watermarking technology has been in operation in tens of thousands of theatres since the worldwide introduction of digital technology in 2006, and is compatible with 2K, 4K, 2D and 3D systems. Watermarking upon projection enables the identification of the theatre screen and the time of projection, a condition made mandatory by the movie studios that were instrumental in establishing DCI specifications.

DCI specifications ensure a uniform, high level of technical performance, along with reliability and quality control. The content theft is potentially organized based on illicit camcording of movie pictures during the in-theater projection, and then pirate copies circulate on the Internet or are sold on the black market as DVDs. Such content theft impacts the whole movie industry economics. Forensic Marking helps to locate the source of such content theft.

 

D-BOX Technologies Announces 5 New U.S. Markets to equip theatre locations with its motion seat technology

http://www.digitalcinemainfo.com/dbox_11_08_10.php

November 8, 2010

Source: D-Box

D-BOX Technologies Inc announced that it has reached an agreement with Warner Bros. Pictures to feature its immersive D-BOX motion technology with the much-anticipated final motion picture adventure, Harry Potter and the Deathly Hallows: Part 1 in theatres November 19.

This seventh installment and first part to the final act, Harry Potter and the Deathly Hallows: Part 1 is the second movie of the Harry Potter franchise to feature D-BOX’s Motion Technology. During scenes of dramatic flight and fierce battle, moviegoers will feel subtle motion effects directly from their seats that occur in perfect sync with the onscreen movie action, resulting in a completely realistic, immersive movie experience.

“The support of Hollywood studios like Warner Bros. has been instrumental in our company’s steady growth and expansion,” said President and CEO of D-BOX Technologies, Claude Mc Master. “This is the second Harry Potter movie to feature D-BOX and we’re thrilled to be a part of one of the biggest predicted blockbusters of the year.”

With the debut of this new film, D-BOX will introduce five new U.S. markets to its innovative motion seat technology.

Two theatres with Emagine Entertainment in Michigan; two with UltraStar Cinemas, one in Scottsdale, Ariz. and one in Anaheim, Calif., another with Galaxy Theatres in Riverbank, Calif. and a second in Japan with Warner Mycal.

 

Arts Alliance Media Signs First Two Digital Cinema Deployment Deals with Local Distributors in France

http://www.digitalcinemainfo.com/artsalliancemedia_11_08_10.php

November 8, 2010

Source: Arts Alliance Media

MK2 and DistriB Films sign long term Virtual Print Fee deals

Arts Alliance Media (AAM), Europe’s leading digital cinema company, has reached non-exclusive long-term agreements with two distributors for digital cinema rollout in France.

MK2 Distribution (MK2) and DistriB Films have become the first French independent distributors to support the DCI-compliant rollout by signing up to 10 year commitments. Both distributors will provide feature films in digital format, and will make provisional contributions towards the digital cinema deployment costs of AAM-deployed screens.

The terms of the agreement adhere to the recent legislation passed in France outlining the framework for distributors' contribution to the digitization of screens. This milestone within the independent sector represents a significant step forward towards the successful conversion to digital within the French cinema industry.

In November 2007, the first European cinema chain, France’s CGR Cinemas, signed up with AAM to convert 100% of its 400 screens to digital. This deployment is now complete and AAM is working towards the digitisation of complexes belonging to independent exhibitors. The agreements with MK2 and DistriB Films cover all screens installed by Arts Alliance Media in France.

Isabelle Nerin, Sales Manager, Distribution, of AAM said “We are very proud to be the first deploying entity to sign long term VPF deals with French distributors. This shows that our offer is adaptable to all types of films and distribution practices. Signing established distributors such as MK2 as well as new and upcoming companies like DistriB Films will ensure that a wide diversity of films is available in digital for AAM’s exhibitor clients.”

Matthieu Bardel, CEO of DistriB Films, said “We are extremely pleased to be the first distributor in France to sign a long term partnership with Arts Alliance Media, which, with CGR, has been the pioneer of digitisation in France. As a new distributor, we are delighted to jump directly to digital distribution, and look forward to the benefits this provides”. DistriB Films aims to distribute 8 to 10 films per year, starting in November 2010.

Nathanaël Karmitz, CEO of MK2, commented “We’re delighted to have signed this agreement with AAM, which will allow us to contribute to the digitisation of French cinemas using a reliable business model, in accordance with the CNC legislation.”

Gwendal Auffret, AAM’s Senior VP of Digital Cinema, added “Now that the law on digital projection has been voted upon, all the elements are in place for French distributors to join AAM’s initiative and help French cinemas digitize quickly and on a large scale.”

France is currently one of the leading territories in Europe for digital conversion, and has the largest number digital screens, as well as the largest number of 3D screens, in Western Europe. AAM signed CGR Cinemas, one of France’s largest chains with 400 screens, to its rollout scheme in 2007. AAM also has existing VPF deals with five Hollywood studios.

 

Deluxe Australia Announces Satellite Plans

http://www.digitalcinemainfo.com/deluxe-australia_11_05_10.php

October 30, 2010

Source: Deluxe Australia

Industry veteran Adrian McCarten will lead team in preparing satellite services for digitally equipped theaters in Australia and Asia.

Deluxe Australia, a subsidiary of Deluxe Entertainment Services Group Inc., announced the appointment of experienced satellite veteran Adrian McCarten to the newly created role of Digital Content Distribution Executive.

Based in Sydney, Adrian will spearhead deployment of Deluxe's satellite initiatives throughout the region as an extension of Deluxe Australia's leading Digital Cinema operations which already provides reversioning, mastering, replication, Digital Cinema Packaging (DCP), hard-drive distribution and key management services for its Hollywood studio customers into Australia, New Zealand and the Asia Pacific. Deluxe's planned network will deliver traditional 2D and 3D feature films, live events, special content, and other programming designed for digitally equipped theaters.

"Adrian comes to us as an experienced Operations Manager with an in-depth knowledge around signal transmission methodologies and is very well networked globally," says Alaric McAusland, Deluxe Australia's Managing Director.

"Deluxe Australia is already the leading local provider of services in film and digital media to the entertainment industry. Adrian's appointment marks the next evolution in our theatrical distribution services for the region which will ultimately give distributors and exhibitors confidence in partnering with a proven operator," adds McAusland.

The announcement comes after Deluxe Entertainment Services Group's recent joint venture with Echostar Corporation (Deluxe / EchoStar LLC) to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada; and the announcement in June that Deluxe Digital London had reached an agreement with Arqiva to use their European Digital Cinema Platform for the electronic delivery of DCPs from international studios to cinemas across Europe.

McCarten led the team that installed Australia's inaugural digital cinema satellite network and managed its first live satellite broadcast for the Australian Ballet's production of "The Nutcracker", live from the Sydney Opera House in December 2007. Since then he has produced and managed FIFA World Cup in Live 3D, Andre Rieu, "Live from the Red Carpet" and the "Twilight Fan Event".

"I'm extremely excited to be joining Deluxe," says McCarten. "Deluxe's view of satellite technology is pivotal to the future of distributing digital content and I am looking forward to working with local exhibitors and distributors in creating new opportunities in the digital cinema sector," adds McCarten.

 

Arts Alliance Media and Arqiva Bring Satellite to Odeon in Continental Europe

http://www.digitalcinemainfo.com/artsalliancemedia_11_05_10.php

November 5, 2010

Source: Arts Alliance Media

Arts Alliance Media and partners Arqiva Satellite & Media, have announced a deal to equip all of the Odeon & UCI Cinemas Group screens in mainland Europe with satellite service. The deal covers over 1,000 screens across 100 sites in 5 territories – Austria, Germany, Italy, Portugal and Spain.

All sites will be fitted with Arqiva’s professional satellite receive equipment, and will allow cinemas to take electronic delivery of digital content including Digital Cinema Packages (DCPs) of feature films, trailers and advertising as well as to receive live content, via Arqiva’s Digital Cinema Platform on satellite IS905.

Howard Kiedaisch, CEO of Arts Alliance Media, said of the deal “We’re thrilled to be working with Odeon & UCI, the largest cinema operator in Europe, and being able to bring them the true benefits of digital cinema with full electronic DCP delivery as well as secure, reliable alternative content events to their audiences from the same system. “

Barrie Woolston, Commercial Director at Arqiva Broadcast & Media, added “This deal is another vote of confidence for Arqiva’s expertise in satellite, and we’re delighted to be working with AAM to bring our professional equipment and satellite infrastructure to so many screens in such a leading cinema group. Odeon’s support for satellite rollout in their real estate demonstrates it really is the way forward for digital cinema.”

Drew Kaza, Executive Vice President of Digital Development for ODEON and UCI Cinemas, said “This deal is a great step along the digital road for Odeon across Europe. We’re excited to be delivering more of digital’s perfect quality, whether with film or special events from music to sport for all of our discerning guests. We have confidence that the partnership with AAM and Arqiva will help keep us at the forefront in delivery solutions for digital cinema well into the future.”

Satellite capability brings major advantages to both distributors and exhibitors in comparison to the current digital cinema practice of shipping content on hard drives. Content can be downloaded seamlessly to digital cinema servers, and sent to multiple sites simultaneously.

The ability to show live content such as sports, concerts and special events such as director Q&As brings an extra dimension to the entertainment offering for cinema audiences.

 

Arts Alliance Media Signs First Two Digital Cinema Deployment Deals with Local Distributors in France

http://www.digitalcinemainfo.com/artsalliancemedia_11_08_10.php

November 8, 2010

Source: Arts Alliance Media

MK2 and DistriB Films sign long term Virtual Print Fee deals

Arts Alliance Media (AAM), Europe’s leading digital cinema company, has reached non-exclusive long-term agreements with two distributors for digital cinema rollout in France.

MK2 Distribution (MK2) and DistriB Films have become the first French independent distributors to support the DCI-compliant rollout by signing up to 10 year commitments. Both distributors will provide feature films in digital format, and will make provisional contributions towards the digital cinema deployment costs of AAM-deployed screens.

The terms of the agreement adhere to the recent legislation passed in France outlining the framework for distributors' contribution to the digitization of screens. This milestone within the independent sector represents a significant step forward towards the successful conversion to digital within the French cinema industry.

In November 2007, the first European cinema chain, France’s CGR Cinemas, signed up with AAM to convert 100% of its 400 screens to digital. This deployment is now complete and AAM is working towards the digitisation of complexes belonging to independent exhibitors. The agreements with MK2 and DistriB Films cover all screens installed by Arts Alliance Media in France.

Isabelle Nerin, Sales Manager, Distribution, of AAM said “We are very proud to be the first deploying entity to sign long term VPF deals with French distributors. This shows that our offer is adaptable to all types of films and distribution practices. Signing established distributors such as MK2 as well as new and upcoming companies like DistriB Films will ensure that a wide diversity of films is available in digital for AAM’s exhibitor clients.”

Matthieu Bardel, CEO of DistriB Films, said “We are extremely pleased to be the first distributor in France to sign a long term partnership with Arts Alliance Media, which, with CGR, has been the pioneer of digitisation in France. As a new distributor, we are delighted to jump directly to digital distribution, and look forward to the benefits this provides”. DistriB Films aims to distribute 8 to 10 films per year, starting in November 2010.

Nathanaël Karmitz, CEO of MK2, commented “We’re delighted to have signed this agreement with AAM, which will allow us to contribute to the digitisation of French cinemas using a reliable business model, in accordance with the CNC legislation.”

Gwendal Auffret, AAM’s Senior VP of Digital Cinema, added “Now that the law on digital projection has been voted upon, all the elements are in place for French distributors to join AAM’s initiative and help French cinemas digitize quickly and on a large scale.”

France is currently one of the leading territories in Europe for digital conversion, and has the largest number digital screens, as well as the largest number of 3D screens, in Western Europe. AAM signed CGR Cinemas, one of France’s largest chains with 400 screens, to its rollout scheme in 2007. AAM also has existing VPF deals with five Hollywood studios.

 

Christie Presents World's First Full Feature Screening in 4K DLP Cinema

http://www.digitalcinemainfo.com/christiedigitalcinema_11_08_10.php

November 8, 2010

Source: Christie Digital

Alfred Hitchcock’s masterpiece “North by Northwest” presented flawlessly on Christie’s premiere 4K Solaria Series Projector Christie, the leader in digital cinema projection, has presented the world’s first full feature screening in 4K resolution DLP Cinema before members of the Hollywood community.

Held at the famed Mann Chinese theater complex in Hollywood, California, the screening was presented for the annual Society of Motion Picture and Television Engineers (SMPTE) technical conference. SMPTE is the leading technical society for the motion picture industry.

The 4K presentation on a Christie Solaria CP4230 projector, featured Alfred Hitchcock’s classic, “North by Northwest,” which was meticulously restored by Warner Bros. Motion Picture Imaging (MPI) with a process that included the highest available scanning resolution and played back using an Integrated Media Block from Doremi Cinema. “We were impressed by the 4K presentation of this timeless Hitchcock chase thriller,” said Wendy Aylsworth, SMPTE Engineering Vice President and Senior Vice President, Technology, Warner Bros. Technical Operations.

“The image looked superb, and the audience gave the film enthusiastic and rave reviews. Both Motion Picture Imaging’s restoration and the digital presentation were excellent.” “The audience saw details in the 4K restoration that were unlike anything ever seen before,” said Brian Claypool, Senior Product Manager, Entertainment Solutions for Christie.

“It’s not an easy thing to showcase new technology to an audience of engineers and technicians who belong to every discipline of the film industry. To get such a positive reaction from them is proof that superior 4K has arrived, and Christie’s 4K DLP Cinema solution meets the industry’s highest standards in image quality for spectacular 2D and 3D presentations.”

The new Christie Solaria Series 4K projector line for digital cinema features the enhanced 4K DLP Cinema chip from Texas Instruments (TI) (NYSE: TXN) and is designed to be compliant with the Digital Cinema Initiatives (DCI) specification. It was the first 4K DLP Cinema projection system to be demonstrated publicly at IBC in September 2010 and launched at ShowEast several weeks ago, where Christie began accepting orders.

The latest Christie Solaria CP4230 and CP4220 projectors feature the Christie 4K+4 advantage, which includes maximum performance for 3D, Christie Pixel Track technology for optimum image quality, simple maintenance procedures and the lowest cost of ownership of any digital projector on the market.

 

Katzenberg: 3D for Everything Digital by 2030

http://www.today3d.com/2010/11/katzenberg-3d-for-everything-digital-by.html

November 9, 2010

Speaking at the 3D Media Markets conference in New York City Oct. 27, DreamWorks Animation CEO Jeffrey Katzenberg said 3D-capable screens should number more than 30,000 worldwide by summer 2011 and that “anything presented digitally in public forums will be presented in 3D” by 2030, according to a press release from Panasonic, which co-hosted the event with PK Worldmedia.

Avatar producer Jon Landau also spoke at the event, according to the release, and noted that 3DTV is causing the film industry to create more 3D content for theaters, and that there was a shortage of 3D screens for Avatar. Meanwhile, 3D broadcasts like those for auto racing and The Masters golf tournament resulted in excellent advertising buy rates, according to Comcast SVP Mark Hess.

“Every new communications or entertainment medium is greeted by customary doubts about its future,” said Paul Kagan, chairman and CEO of PK Worldmedia, according to the release. “3D has not been exempt. But like TV, cable, cell phones and the Internet, 3D is destined to capture the attention and the hearts of the world's media consumers

 

 

Samsung and AUO release 70 inch 3D TVs

http://www.today3d.com/2010/11/samsung-and-auo-release-70-inch-3d-tvs.html

 

Nov 9, 2010

 

Samsung is set to release a behemoth of a 3D TV boasting a 70″ LCD screen. Chinese manufacturer AUO recently showcased its own 70″ version which has the same 29:9 viewing ratio as the common cinema screen, making it the perfect 3D TV for anyone willing to splash out and have it shipped to grace their home cinema set-up. AUO have indeed targeted this niche of home cinema enthusiasts with the 29:9 ratio, an ultra-thin border, 240Hz frame rate and LED backlighting.

Home cinema is an area that manufacturers of 3D hardware will certainly look to exploit with the increasing popularity of the format, regardless of the high prices. Audio visual enthusiasts, and gamers in particular, are providing the most receptive market for the emerging 3D technology with the likes of Microsoft investing in 3D; and products like these testifying to the fact that niche markets are ready and waiting to purchase such extravagant 3D hardware.

Now Samsung is following AUO's lead by announcing its very own 70″ 3D TV. The stereoscopic TV will light up living rooms with it's 800 million pixel resolution, in the format which might well revolutionise home cinema systems the world over. Whilst the team at 3DTVWatcher would welcome any 3D TVs of this ilk in thier living rooms, the price will undoubtdly match the colossal screen size, although until now no price or release date has been revealed for Samsung's version

 

 

 

Glasses-less 3DTV Is Eight To 10 Years Away Says James Cameron

http://www.today3d.com/2010/11/glasses-less-3dtv-is-eight-to-10-years.html

As we all know, James Cameron loves to talk about 3D. And considering the guy spent several years and millions of dollars developing 3D technology in the depths of the ocean in order to make Avatar, the least we can do is listen. Cameron believes the next big step in 3D is getting rid of those pesky glasses and that glasses-less 3DTV is about eight to ten years away from hitting critical mass here in the United States. Considering HDTV has been around since the 1990s, but didn’t really hit big until about five years ago, that estimate sounds about right. So, once Avatar 2 and 3 come home, maybe you won’t have to feel silly watching them with 3D glasses on.

However, the main conceptual issue with glasses-less 3DTV is most people have a problem actually visualizing what it means. Even though we live in a 3D world, it’s hard to imagine a 3D movie or TV without glasses. Well, the answer is coming home much sooner than you’d think. March’s release of the Nintendo 3DS will be most people’s first foray into the whole new world of glasses-less 3D entertainment and we attempt to describe the experience after the jump.

Note: I’m fully aware this is a crude example and there surely will be some difference between the 3D technology Nintendo is using in 2011 vs. what we will see in a decade from now. But playing with the 3DS was my first glimpse into this next stage and that knowledge seems apropos with recent Cameron’s declaration at Blu-Con 2010. Thanks to Gizmodo for the heads up