Wednesday, September 26, 2007

Promising D-cinema still short of European breakthrough

26 Sep 2007 06:44 Despite growing evidence that digital cinema can offer greater choice that the public wants, rollout in Europe in particular remains mired in an impasse over payment and business models.

That was the message of this year's Screen International annual digital cinema conference in London.

In his keynote speech, Bud Mayo, CEO of d-cinema pioneer Access IT, spelled out what he believes is the irrefutable argument for new technology – that it will boost off-peak admissions by offering more choice.

"Nobody is in a theatre for the most part Monday to Thursdays," he said.

"We believe that digital cinema, in addition to better sound and image quality can enable those empty seats to be filled by providing many more choices and scheduling possibilities."

Slow periods can be filled by alternative screening options for customers, he suggested.

"Music concerts, sporting events ethnic and religious evcnts and lecture series; these choices, live and pre-recorded, will expand dramatically over the next few years."

"In fact any form of entertainment you find in an arena anywhere in the world will find its way into your screens at off peak hours that are attractive."

He believes a relatively small amount of supplementary activity to the core film business could bring big results: A 1% increase in admissions in Western Europe alone would mean $600m, he said.

The argument was backed up by other speakers, who offered case studies of experiment in non-film content.

Mark de Quervain, sales and marketing director at UK cinema chain Vue. has experimented with live concerts and is planning a comedy show.

"We are in a learning process, finding out what works and what does not."

The early efforts, such as a concert this year by veteran rock group Genesis, pulled in customers but de Quervain conceded that it was a huge effort to produce and it was not clear how future global releases would work out.

He estimated that live events and other non-film activity would account for between 1-3% of business.

The potential for charging a premium rate for such content remains one of the more attractive promises of d-cinema, and again there are now proven cases of customers willing to pay a premium rate.

Marc John, head of digital development at the UK's Picturehouse chain said an opera season from the Met in New York had packed out theatres – both at an initial $25 (£12.50) and the subsequent $50 (£25).

"People did not bat an eyelid at higher prices and cinemas said they not only attracted usual cinemagoers but new people."

That public demand extends to a wider choice of film rather than simply replacement of feature content.

Peter Buckingham, head of distribution and exhibition at the UK Film Council said the recent experiment during the Summer Of British Film season had been hugely successful.

The council helped put a series of restored classic films – including The Dam Busters, Goldfinger and Brief Encounter in a wide range of cinemas across the country and found audiences highly responsive.

"It proved that people want a wide choice of films on the big screen, even if those films are available on DVD.

Most speakers estimated that alternative content to the current diet would amount to between one and three per cent of their activity.

But such changes inevitably ask questions of the business model.

Despite evidence of benefits digital cinema remains mired in aguments over who pays for installation that is already threatening some parts of the industry.

Nicolette Homes, commercial director at Carlton Screen advertising, which boasts a commanding market share in the UK, warned: "unless we go digital in the next two to three years, I am not convinced we will still be in business.

"To run half the estate digital and half in 35mm is not possible in any way. We will just go bankrupt,"

Major business, she warned, wanted digital advertising but no one would tolerate the costs of a half-digital, half-35mm solution.

What Homes' point illustrates is that the wider industry knows it cannot stay where it is now, cannot support a halfway house and does not know if it is possible to find an equitable solution to please all parties in the future.

The conference heard that Germany is finding it hard to find a way to reach agreement on a rollout plan that will achieve growth without losing smaller cinemas.

Analyst David Hancock, of Screen Digest, said he feared the debate had led to a damaging "politicisation" of the d-cinema issues in which tensions between demands for fairness and the free market had become a real issue.

The most promising breakthrough in Europe seemed to have come earlier this year when Arts Alliance Media (AAM), which announced a deal with Universal Pictures International and Twentieth Century Fox on the most developed model for sharing costs between distributors and exhibitors - the virtual print fee.

Further deals will come, AAM CEO Howard Kiedaisch promised, saying it was more a question of timing than underlying problems.

Julian Levin, evp digital exhibition, Fox Entertainment, said he understood the issues around VPF but warned there was a limit to the patience of studios for arguments that had led to what he called "organised chaos."

The current deals on the table needed to be taken up by exhibitors, he suggested, or they could end up paying all the bill for digital benefits.

http://www.screendaily.com/ScreenDailyArticle.aspx?intStoryID=34913&strSearc h=vpf&strCallingPage=ScreenDailySearchSite.aspx

Tuesday, September 25, 2007

U2 in 3D

By Staff

Sep 25, 2007, 04:15

The 3D feature film U2 3D from directors Catherine Owens and Mark Pellington and directors of photography Peter Anderson (3D DP) and Tom Krueger (2D DP) rocked this year's Cannes Film Festival. U2 3D production company 3ality Digital and technology company Assimilate teamed to bring the experience to the 2007 IBC audience. A 55-minute, nine-song preview of U2 3D screened at IBC in September. Both this preview and the full-length version of the film were edited by Bluerock's Olivier Wicki. The film's opening title sequence, logo and movie poster were crafted by Spontaneous creative director John Leamy. 3ality's stereoscopic 3D technology coupled with Assimilate's Scratch real-time 3D data workflow and DI tool suite delivers a thrilling visual ride in which lead singer Bono reaches out toward the 3D camera and appears to step into the theater. U2 3D is scheduled for release to theaters this year. The U2 3D concert film is the first non-IMAX project to be shot, edited and exhibited solely in 3D. Co-directors Catherine Owens and Mark Pellington pieced the feature-length film together from hundreds of hours of footage they shot of U2 at several South American shows during the band's 2005-06 “Vertigo” tour. The film's producers from 3ality Digital Entertainment assembled nine Fusion 3D camera systems, the largest assemblage of 3D camera technology ever used for a single project, to film the band. Developed by Vincent Pace and Director James Cameron, each Fusion stereoscopic rig consists of two modified Sony HDC-F950 high-definition cameras mounted side by side, simultaneously recording left- and right-eye footage, as well as a complex set of software and servos that maintains appropriate intraocular distance for accurate 3D. Between two and nine 3D camera rigs were set up at different positions around the stadium to capture the action both on the stage and in the audience. Cranes and dollies were provided by Chapman/Leonard Studio Equipment. “The U2 3D film is so incredibly 'live' that you feel the rhythm and beat, the excitement of being at a live concert. It's a blending of physics, creativity and 3D technology that delivers a thrilling rush to the audience,” says 3ality CEO Steve Schklair. Schklair explains that his company has created a 3D workflow that perfectly aligns footage recorded by the two separate digital cameras in the 3D rig. The 3D pipeline efficiently takes the video streams from the two cameras and manipulates them to become matched left- and right-eye data with appropriate convergence and intraocular distance. The technology also helps blend depth of field between scenes to make 3D viewing easier for audiences. 3ality Digital uses Assimilate Scratch software running on a BOXX workstation as the lynchpin of its real-time stereoscopic/3D digital workflow. On U2 3D, Scratch was used for conform, color grading, preview, dailies, playout, rough cuts and finishing. Schklair says 3ality chose the Scratch DI software suite because of its ability to provide 3D screening directly from the system without additional processing. “With its speed, ease of use and quality results, Scratch enabled us to reduce the 3D post process from months or weeks to days or hours in numerous instances,” adds Schklair. By using the dual DVI outputs on the Nvidia Quadro FX cards and the functionality of Scratch CONstruct, 3ality created a timeline with right-eye material on one layer and left-eye material on another. The two clips were edited as a single instance; color grading and other effects were easily applied and copied. Once the editorial fine-tuning and color grading were applied, the dual-stream stereo imagery was output directly from Scratch to the screen for review by the directors of photography, directors and client.

http://www.uemedia.net/CPC/digitalcinemamag/articles/article_16537.shtml

Wednesday, September 12, 2007

Euro d-cinema supporters want to get rolling

By Carolyn Giardina

Sept 12, 2007

Language barrier among hurdles

AMSTERDAM -- Europe-based stakeholders Tuesday exhorted the industry to get the digital cinema transition rolling on the continent, where the switchover is lagging behind that of the U.S. "There is a great appetite to start digital cinema deployment in Europe," David Monk, CEO of the European Digital Cinema Forum, said during the final day of the International Broadcasting Convention here. "But because it's more complex (than in the U.S.), the ability to set up a deal has been thwarted. It's unbelievably difficult." There are an estimated 5,000 digital cinema screens deployed worldwide, about 4,000 of which are in the U.S. "Europe wants an understandable and simple way to engage a virtual print fee model," Monk said. "What made the U.S. market take off is the availability of the VPF model. But in Europe, this is more complex. It's more divided; it's complicated by languages and more complicated relationships. "Let's get something together that may not be commercially optimal but gets the market started," he added.

Monk identified additional concerns about the rollout in Europe. "The European market is more fragmented. It has the largest population of smaller and remote cinemas," he said, adding that the needs of this market must be examined because some feel that the full Digital Cinema Initiatives specifications are "excessive" for those theaters. He also said it was important to protect the continued life of smaller theaters used for specialty markets. "A lot of independent films play in these special venues," he said, adding that government intervention might be needed. Meanwhile, the digital forum announced completion of a study that found the average cinema screen in Europe to be slightly more than 26 feet wide or less, with seating for 180. "EDCF members represent both large and small operators with an inventory of both large and small cinemas," said EDCF technical support group director Peter Wilson, who is director of U.K. consulting firm High Definition and Digital Cinema. "It has been felt for a long time that the smaller screens will not be served well by the current generation of projection equipment," he added. "This equipment has been optimized for the larger screen sizes and will not be cost effective for the large number of operators of the smaller screens." The aim of the report is to assist manufacturers in their product planning, Wilson said.

http://www.dcinematoday.com/dc/extURLs.aspx?ID=293

Monday, September 10, 2007

D-cinema is 'big area in standards work'

Kisor: ‘Building on the core standards that have been completed’

September 10 2007

SMPTE is moving forward with its digital cinema standards efforts, particularly reflecting 3D and alternate framerates, reported society president Bob Kisor. This overall effort in digital cinema is also reflected in the society's participation in several related panels here at IBC, writes Carolyn Giardina. The organisation's DC 28 digital cinema committee has been actively developing digital cinema standards. "It's a big area in the standards work in relation to giving the industry a uniform platform to build products and distribute the content," explained Kisor, VP, engineering and technical services at Paramount Pictures. "It's actually gaining significant traction in the US and other parts the world including Europe and Asia. Standards issues are being visited worldwide to facilitate an interchange of content," said Kisor. He reported that the society is currently working on inclusion of alternate framerates beyond 24 and 48, which was in the organisation's DC 28 digital cinema standards. "There's a study group that has published a report, and that will help generate standard recommendations for final approval," related Kisor. "They encompass 25, 30, 50 and 60 framerates. There are others that have been discussed. [These framerates] are for being able to project legacy work and alternative content, in addition to first run features." Reflecting a key topic at IBC, Kisor reported that the work has started toward developing standards for 3D digital cinema. "They should move much faster because it is building on the core group of standards that have been completed," he said. The next SMPTE DC28 committee meeting is scheduled for 25-27 September.

http://www.ibc.org/cgi-bin/enews_cms.cgi?story_no=91&issue=11

Sunday, September 9, 2007

DVidea Asset Management for Digital Theaters Premieres

By Neal Romanek

Sep 9, 2007, 23:44

DVidea, developer of digital asset management tools for theater owners, has unveiled its new Theater Management System (TMS) at IBC 2007 in Amsterdam. Designed to meet the needs of digital cinema exhibitors, the TMS was developed with the cooperation of industry partners and end-users to provide the most comprehensive tools for media management and automation. Appointments for private demonstrations can be reserved by contacting William Sully at wsully@dvidea.com. DVidea’s Theater Management System offers a comprehensive set of easy-to-use tools to manage each aspect of the new digital workflows involved in theater exhibition. Intuitive interfaces for each task are easy to learn and use, and adaptable to a range of workflows. The DVidea TMS system is built on open standards for straight-forward installation, easy administration and reliable third-party integration. Key Features of DVidea TMS Library – Easy manual or automated ingest of features, pre-shows, local productions to the Library, your Central Content Catalogue. File and KDM Management – DVidea automatically handles your internal and external transfers and tracks the progress. Scheduling – Programming made simple; build or import pre-shows and ad blocks. Total flexibility for current and future scheduling as well as updating shows in-progress. Monitor – Real-time status of all devices and multiple viewing screens; built-in alerts. Equipment Automation – Pre-set controls for sound, lights, cinema servers, projectors and third party automation systems. Exchange – Automated data transfers of playlists, logs, financial information with booking, ticketing, point-of sales and network operating centers. A wide range of additional features designed to improve workflow is included in DVidea Theater Management System. DVidea’s Theater Management System is based on open technology standards. Built on proven, non-proprietary platforms, DVidea’s TMS integrates easily with industry-standard operating systems and hardware, including third-party automation systems. The system is DCI compliant, handles multiple formats and includes security protections with full control of the workflow processes.

http://www.uemedia.net/CPC/digitalcinemamag/articles/article_16516.shtml

Wednesday, September 5, 2007

AccessIT Signs Atlas Cinemas To Deployment & Pre-Show Programming Deal

By Neal Romanek

Sep 5, 2007, 02:18

Access Integrated Technologies has announced that Atlas Cinemas will be the fourteenth chain to deploy the digital cinema leader's fully integrated and networked system. This agreement brings the total number of screens signed to the AccessIT Deployment Plan to almost 3700 with 800 of those belonging to customers of AccessIT's PreFlix Pre-Show Entertainment solution. AccessIT recently announced the installation of its 3,000th digital cinema system ˆ a milestone for the company and the industry. AccessIT is working to complete the installation of its first 4,000 screens by the end of October. Atlas will convert 39 screens in three locations from film to digital using AccessIT's Theatre Command Center software, pre-show programming, Christie DLP Cinema projectors and other networked hardware that combine to play both feature movies and PreFlix advertising. The system is the only one of its kind being provided to theaters today. "The fully integrated services and networked functionality of AccessIT's digital cinema system will streamline the business of delivering high-quality films and advertising for Atlas," said Al Saluan, owner of Atlas Cinemas. "Ultimately, digital cinema from the industry leaders will mean more choice in alternative content thanks to the simplified movie delivery and networked scheduling process." Said Chuck Goldwater, President of AccessIT's Media Services Group: "Atlas Cinemas joins the digital revolution with a complete digital cinema solution that dramatically enhances all aspects of delivering and managing content and on-screen advertising at theatres. We look forward to working with the outstanding team at Atlas to help them along with our other exhibitor partners achieve all the benefits of digital cinema technology." Craig Sholder, Vice-President of Entertainment Solutions, Christie USA, added: "It is exciting to see visionary exhibitors such as Atlas Theatre's take the leap to Digital. With the high quality entertainment experience that Digital Cinema offers, their audiences will be treated to the best picture quality at every showing. Christie is looking forward to supporting Atlas in their transition with proven and reliable service and support, as well with brilliant images from our acclaimed Christie CP2000 DLP Cinema projector. " AccessIT Digital Cinema is the industry-leading deployment program for Digital Cinema that provides the funding, operations and administration for the company's studio-supported 4,000-screen Digital Cinema rollout plan supported by major studios and independent distributors, among others - and exhibitors who receive turnkey, Digital Cinema systems in conformance with DCI specifications, including AccessIT's unique Library Management Server and Theatre Command Center software, Christie DLP Cinema projectors and Doremi's DCP2000 JPEG server. To date, AccessIT has contracted to install roughly 3,700 systems in forty-one states and has completed the rollout of more than 3,000 screens with exhibitors including Allen Theatres, MJR Theatres, Showplace Cinemas, Marquee Cinemas, Neighborhood Cinema Group, Celebration! Cinema, Cinema West, Cinetopia, Emagine, UltraStar, Galaxy, Rave and Carmike Cinemas and AccessIT's own Pavilion Digital Showcase Cinema. Access Integrated Technologies, Inc. (AccessIT) provides theater operators the first and only studio-backed fully networked digital cinema system delivering more than three million digital screenings of Hollywood feature films to date. The company's digital cinema system provides feature films and alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content division, The Bigger Picture, AccessIT offers channels of programming including Kidtoons, Faith Based, Music and Anime. The ongoing 4,000-screen deployment is the largest of its kind in the world. Christie is a leader in visual solutions for world-class organizations, offering diverse applications for business, entertainment, and industry. A leading innovator in film projection since 1929 and a pioneer in projection systems since 1979, Christie has established a global reputation as a total service provider and the world's single source manufacturer of a variety of display technologies and solutions. Christie offers comprehensive solutions for cinema, large audience venues, control rooms, business presentations, training facilities, 3D and Virtual Reality, simulation and education as well as industrial and government environments. Christie solutions are used in over 75,000 locations worldwide, including more than 10,000 projectors and displays networked with ChristieNET˙ networking devices. For more information on Christie's cinema solutions and to find a theater with Christie Digital Cinema projectors, visit www.christiedigital.com.

http://www.uemedia.net/CPC/digitalcinemamag/articles/article_16511.shtml

Saturday, September 1, 2007

Kodak Introduces Next Dimensions in Digital Cinema

September 2007

Kodak has announced that the company’s complete digi-tal cinema solution offers exhibitors new operational efficiencies, even as it ena-bles them to take advantage of the new revenue oppor-tunities provided by 3D technology. Kodak made the announcement in a presenta-tion that featured a glimpse into the wide range of 3D entertainment that will be available in the fut-ure.

Exhibitors have been ask-ing all suppliers the same business questions: What’s in digital for me? How will it improve our operations?’” said Bob Mayson, Kodak’s general manager of Digital Motion Imaging. Kodak Digital Cinema offers new efficiencies, connectivity and ability to increase rev-enue and new opportunities to offer greater programm-ing options and a more diverse mix of content, says Mayson.

Mayson pointed to the new Kodak Theatre Mana-gement System as automa-ting what are often dupli-cative tasks and labor-inte-nsive operations today. In the digital arena, Kodak learned a lot from designing, building, and installing a pre-show system that’s on 2100 cinema screens world-wide today, comments May-son.

“Digital 3D is a magnet, drawing audiences to the theatre,” said Michael Le-wis, chairman and chief executive officer of Real D, “because the Real D system delivers a dynamic and larger than life cinema exp-erience that’s not avail-able in any other venue.

Real D is in 3D digital systems, with nearly 1000 screens installed.

Kodak is Real D’s partner in a number of countries, including Aust-ralia where Kodak installed the company’s first systems in that country.

Mayson emphasized that more 3D content is on its way. “But, 2D content will still domi-nate the cinema screen,” he said, “and so a digital cinema system must be fl-exible enough to handle both. Kodak’s system can do that, automatically. For exhi-bitors, the Kodak system is a building block for their digital future.”

http://www.cinema-systemsindia.com/September2007/News&Techn-cinemaExhibition/Page20.htm

Dolby Streamlines Multiplex Operation with New Central Library Server

September 2007

Dolby has introduced the new Dolby Show Library, a central ingest and storage server designed to maximize efficiency and flexibility in a digital multiplex. The syst-em facilitates the network-ing of digital screens, giving the user the capability to load and schedule progra-mming centrally. Represen-ting a major step forward in digital multiplex operations, the Dolby Show Library has recently been installed in trial sites in both US and . Europe

With the Dolby Show Library, movies and other content can be loaded cen- trally once for the whole multiplex, rather than separately for each digital cinema screen. Content can be loaded from portable hard disk, from a satellite receiver, or other remote network connection. The theatre manager or projec-tionist can program the entire show schedule for the complex anytime, night or day, with movie transfers and program changes performed over the network automatically and unatten-ded. Programming is easy using the drag-and- rop Dolby Show Manager software.

Another advantage of the Dolby Show Library is added flexibility for alterna-tive content and pre-show advertising, as the unit pro-vides a gateway that allows providers of third- arty screen advertising and other alternative content to deli-ver and manage their pro-gramming over a network link.

The Dolby Show Library is designed for cinemas equipped with the Dolby Digital Cinema playback system, and is supplied completely with 1.8 Ter-abytes of internal RAID6 movie storage. Additional storage options can be added externally.

http://www.cinema-systemsindia.com/September2007/News&Techn-cinemaExhibition/Page18.htm

Tuesday, August 21, 2007

DIGITAL CINEMA: MANUFACTURERS ON THE CUTTING EDGE

DIGITAL CINEMA: MANUFACTURERS ON THE CUTTING EDGE by Bill Mead

August 21, 2007 The year 2007 has been a good one for many digital-cinema vendors, with a number of significant milestones reached. For the first time, all movies grossing over $100 million were released in the DCI-specified digital format. According to Texas Instruments (TI), the leading projection technology provider, many of these titles were released simultaneously to more than 1,000 theatres and projected using their DLP Cinema® technology. Such titles as Spider-Man 3, Meet the Robinsons in 3D, Pirates of the Caribbean: At World’s End, Shrek the Third, Ocean’s Thirteen, Fantastic Four: Rise of the Silver Surfer, Transformers and Harry Potter and the Order of the Phoenix are now thrilling audiences with full digital-cinema projection. By the summer of 2007, more than 4,300 theatres worldwide were equipped with projectors incorporating DLP Cinema technology. At ShoWest 2007, TI announced a significant cost-saving development, a smaller, easier-to-implement version of its original 2K display device. Known as the .98 chip, the new device offers the same high-quality image as the previous 2K DLP Cinema chip, but is housed in a smaller, more efficient package, thereby reducing the overall cost of the projectors. Texas Instruments licenses its DLP Cinema technology to Christie, Barco and NEC, and each has expanded their product lineup to accommodate a wider range of screen size, thereby better matching the projector to that particular cinema’s needs. The new .98 chip enables TI projector partners to become more competitive by providing a variety of projector options at lower cost. Barco Digital Cinema has already adopted the TI .98 smaller chip in its new DP-1500 and DP-2000 models. The DP-2000 is for large and mid-size venues, and is designed for screens up to 20m (65’) wide with a lumen output of 18,000. The DP-1500 is designed for screens up to 15m (49’) wide with a lumen output of 14,000. In particular, the DP-1500 is ideal for smaller projection booths that could not previously accommodate a full 2K system. Barco's new DP-3000 is the brightest “large-venue” digital-cinema projector in the industry, with an extremely high screen illumination of 30,000 lumens. The DP-3000, with a 2000:1 contrast ratio, new lenses, a new optical design and high-efficiency 6.5kW lamps, is designed for screens up to 30 meters (98’) wide. The DP3000 debuted at ShoWest and had its cinema introduction with the world premiere of Transformers in L.A. this summer. Christie Digital has also introduced a lower-cost version of its legendary CP2000 2K projector, which is now installed in over 3,000 cinemas. Christie’s new CP2000-ZX is intended for small to mid-sized screens, but is approximately 50% the size of the standard CP-2000. The CP200-ZX can accept a standard Christie bulb, which can be easily replaced at a cost similar to conventional 35mm bulbs. Brightness levels can be customized from 9,000 to 17,000 lumens, for screens up to 14 meters (45’). NEC also completed its DLP Cinema projector family lineup with the introduction of its mid-sized NC1600C projector. The NC1600C ensures that midsize theatres with screens from 26 to 49 feet wide have a cost-effective, high-quality projector with the latest technologies designed specifically for their requirements. NEC is also particularly proud to point out that Regal Cinemas installed over 100 of its large NC2500 projector for the 3D presentations of Meet the Robinsons in March 2007. The systems were installed and setup verified by Strong Digital, NEC’s master reseller and system-integration partner. NEC has also supplied Technicolor Digital Cinema (TDC) with over 120 NC2500 projectors for the ongoing deployment with National Amusements, Wehrenberg Theatres and Zyacorp. In the spring of 2007, the excitement surrounding 3D digital projection continued to grow with in anticipation of Disney’s Meet the Robinsons. This single title provided the impetus for exhibitors to increase the number of 3D cinemas to over 725 cinemas in time for the March 30 release. According to Real D, the leading provider of 3D equipment, 3D movies are a worthwhile investment for theatres because tickets are typically selling at three times the level as the same movie projected in regular 2D format. The next big 3D event will be the release of Beowulf in November; Real D already has commitments that will bring the total to over 1,000 3D screens. All new 3D projection systems start with a standard 2D DCI-specific digital-cinema system. The current resurgence of 3D titles is made possible by the sharp and stable image delivered by today’s digital projectors. The stability of digital eliminates the classic problems associated with older 35mm 3D equipment. One single 2K DLP Cinema-grade projector can be easily converted to 3D with the addition of outboard equipment. Sony continued its push for 4K with its SXRD™ technology with the release of Spider-Man 3 in 4K resolution at selected cinemas. Spider-Man 3 is the latest of a series of titles have been mastered and projected in full 4K resolution including Ocean’s Thirteen, The DaVinci Code and Poseidon. In March 2007, Sony announced that Muvico Theaters will be equipping the new Chicago Entertainment complex with its newly announced SXRD 220 series projectors as the first step in equipping the entire chain with Sony equipment. The new Muvico 18-screen facility, scheduled to open in August 2007 in the suburb of Rosemont, Illinois, will have all of its theatres equipped with SXRD projectors using a combination of the SRX-R210 unit, a 10,000-lumen model, and the SRX-R220 model, an 18,000-lumen unit, as well as its LMT-100 media block system. Sony has also been deploying trials installations of the SXRD 4K projectors with Cathay Cinemas in Singapore, with Odeon/UCI Cinemas at Guildford U.K., and also with the Norway Digital Interoperability in Cinemas (NORDIC) project. Dolby Laboratories, the well-known cinema technology leader, has developed a multi-faceted approach to digital cinema. Not only is it an equipment supplier with its Dolby Digital Cinema system, Dolby is developing what promises to be a more economical approach to 3D. Dolby Labs has been quietly beta-testing its Dolby Digital 3D system with Malco Theatres in Madison, Mississippi. The new Dolby Digital 3D system is also being tested in various European locations in association with the Kinepolis Group in Belgium. Dolby hopes to have its 3D system ready for initial deployments with the fall release of Beowulf. Currently, there are more than 400 Dolby Digital Cinema systems installed worldwide in 22 countries. Theatre chains such as National Amusements, Malco Theatres, Megaplex Theatres and Premiere Theaters have installed the Dolby Digital Cinema server in many of their primary locations. In addition, TDC has ordered 190 Dolby Digital Cinema servers for the North American digital-cinema beta test and for Belgium-based Kinepolis Group. To facilitate creating movies in the DCI-specified digital format, Dolby has developed its DCC-2000 Secure Content Creator, a scalable mastering solution for JPEG 2000 digital cinema compression, encoding, packaging and encryption. Recently, the China Research Institute of Film Science & Technology (CRIFST) selected the DCC-2000 for its facilities, and additional installations are scheduled for the U.S., U.K., Japan, the Netherlands and Belgium. Kodak has been busy deploying its JMN3000 Digital Cinema Content Player along with its new Kodak Theatre Management System with a number of key customers in Europe. Empire Cinemas, one of the U.K.’s largest privately owned cinema chains, has installed the Kodak JMN3000 along with the new Kodak Theatre Management System (TMS) for its six-screen multiplex in High Wycombe, Buckinghamshire, U.K. In addition, Kodak announced key installations with Supercinema Clarici in Foligno, Italy, and also with Village Cinemas in Greece. Doremi continues to lead in JPG2000 DCI server installations, with well over 3,000 cinemas equipped with its DCP-2000 server. In the U.S., their installations have been propelled by their strong relationship with AccessIT. Recently, TDC also purchased 150 Doremi DCP-2000s servers to be used in various installations. In Europe, Arts Alliance Media, the digital-cinema provider for the U.K. Film Council project, recently adopted the Doremi DCP-2000 for its 240 installations. Other recent European installations include the Odeon Surrey Quays complex and many of the systems deployed by XDC. In addition, Doremi has installed its DMS-2000 mastering system in post-production facilities in Norway and Russia, bringing their worldwide total of content-mastering facilities to over 25 locations. XDC of Belgium has announced the development of its CineStore® Solo G3 digital-cinema server. This hybrid JPEG2000/MPEG2 system supports the current DCI specifications and will be the central core of future XDC deployments in Europe. The XDC CineStore Solo G3 is the first commercial product to use the new intoPIX Field Programmable Gate Array, which integrates JPEG2000, MPEG decoding, DCI-specified security and a host of other features into one flexible and easy-to-upgrade module. XDC’s CineStore G3 playback server is part of a full family of XDC products that provide end-to-end content preparation, asset management, technical monitoring and theatre operations. DTS Digital Cinema announced in mid-2006 that they were entering the digital exhibition market by acquiring exclusive rights to the technologies and products from industry pioneer Avica Inc. Previously, DTS had also made a move into digital exhibition by announcing the purchase of a software company. The acquisition led to the launch of the DTS Digital Booking System that was quickly adopted by customers such as Cinépolis and Goodrich Quality Theaters. Building on Avica’s previous work in MPEG servers, DTS upgraded the original FilmStore® line to full DCP JPEG2000 capability and expanded the product line to include the FilmStore Content Management System designed to provide end–to-end solution for management of digital content within a multiplex. The system consists of three interrelated components: FilmStore Director content-management software, FilmStore Central ingest and storage system, and the FilmStore Digital Cinema Player, together providing a powerful digital-cinema management system. Another digital-cinema pioneer, QuVIS is still very much in the market and has been quietly testing a new server product with several exhibitors in the U.S. According to announcements made at ShoWest 2007, both QuVIS and Barco are working closely with DIGESERV, a new company offering a unique financial plan to assist exhibitors with the digital conversion. In Asia, server pioneer GDC of Singapore continues to lead with systems being installed in China and Korea. In March 2007, GDC announced the SA-2100 DSR™ Digital Film Server, which is 33% smaller in size and designed to meet DCI specifications such as Texas Instruments Cinelink™ 2, forensic watermarking, and FIPS-140 security features. GDC also announced the DCI-2000 Digital Cinema Integrated Projection System that conveniently combines the server and projector in one easy-to-deploy and operate package. In March 2007, both GDC and Barco announced a major commitment from China Film Group for the supply of 700 Barco 2K DP-1500 and DP2000 projectors along with GDC servers for cinemas in China. Qube Cinema has been active in expanding its European presence by supporting the recent Lisbon Village Film Festival with a number of digital screenings. Sathyam Cinemas has chosen to integrate the DCI-capable Qube XP-D digital-cinema server for all screens at its flagship multiplex at Chennai, India. The first digital cinemas being deployed in Kuwait are also using the Qube XP-D server. The Kuwait National Cinema Company (KNCC), one of the largest theatrical exhibition companies in the Middle East, and Qube Cinema, Inc. have partnered to bring the first digital cinema to the Middle East and Gulf Region. A pilot DCI quality digital cinema is under installation in KNCC’s theatre (Cinescape) in Kuwait City, using a Qube XP-D and a 2K Barco-based digital projector. Overall, digital cinema vendors should be pleased with the progress they have made in the past few years. The projector manufacturers have transitioned from basic designs to now having complete families of DCI-specified 2K projectors that address a wide range of screen sizes and operator needs at more reasonable price points. The server manufacturers also have done an extraordinary job keeping up with evolving requirements, moving their original products from incompatible MPEG formats to those now universally supporting the DCI-specified interoperable JPEG2000 format. While the equipment prices may still be higher than desired, we should keep in mind the significant R&D commitments made by these companies to bring us the products that now deliver the image quality and overall reliability required to move the cinema exhibition industry into the future.

http://www.filmjournal.com/filmjournal/features/article_display.jsp?vnu_content_id=1003628471&imw=Y

KINEPOLIS KUTTING EDGE - Belgium Circuit Unveils Latest Digitally Advanced Site

http://www.filmjournal.com/filmjournal/features/article_display.jsp?vnu_content_id=1003628494

Source: FilmJournal

Aug. 21, 2007

by Andreas Fuchs “Kinepolis Oostende is first and foremost designed for people, and offers an exceptionally high standard of comfort and convenience and a wide range of entertainment. It is also a multifunctional facility.” (Kinepolis press notes) One year to the day after Kinepolis Group (kinepolis.com) opened its 22nd cinema in Brugge (Bruges), the Belgium-based pan-European exhibitor launched its latest venue with a private party for over a thousand guests on July 7. Located in the coastal town of Oostende (Ostend), the newest and 11th Kinepolis complex in the country has eight stadium auditoria with 1,755 seats and 41 spaces to accommodate wheelchairs and 260 more for cars and bicycles. This being public-transportation-minded Europe, a dedicated stop on the coastal tram line was specifically added to what Kinepolis describes as “a unique, user-friendly location” near the Wellington Racetrack. After the success of its plexes in Ghent (1981), Brussels (1988), Antwerp (1993), Hasselt (1996), Liège (1997), Kortrijk (1997, currently being remodeled), Leuven (1997), Braine l'Alleud (2000) and Brugge (2006), Kinepolis has invested another 11 million euros (US$15.2 mil.) in Oostende. With an anticipated annual attendance of 350,000, corporate communications calls the cinema “promising” in that the “revolutionary concept” introduced in Brugge last year has not only been “tested and improved,” but is also “a conceptual reference for the other Kinepolis complexes and the international cinema market in general.” Among the “cutting-edge innovations” that Kinepolis implemented in Brugge (FJI September 2006) are the open foyer concept, where everyone can come and enjoy the offerings that include film and games corners and a lounge bar called “C and Sea.” The Kinepolis shop offers a wide range of drinks, snacks and retail items—from fruit salads, pizza and popcorn to t-shirts, film posters and books. Innovatively priced seat booking makes tickets cheaper on the web and at the self-service kiosks. In conjunction with a unique ticket monitoring system that “matches the number of tickets sold against the number of people in the auditorium” (see our Quick Sensor story in the June 2007 issue) and digital signage throughout, Kinepolis creates an “accurate, efficient and user-friendly” environment. “Film digitization improves sound and image quality,” the company continues, “and opens up new entertainment options such as XL Gaming (large-screen video games) and company convention facilities.” With the opening activities, guests could also take a peek at “the latest application of digital cinema.” Not only has Oostende been equipped with Barco DP-3000 and DP-1500 projectors that were just introduced at ShoWest, but one auditorium has already presented the latest Dolby Digital 3D technology (FJI May 2007). While Barco said this “will enable Kinepolis to create the radically new 3D cinema experience for its visitors,” the enterprising exhibitor already has plans for at least one digital 3D house at every single one of its 23 multiplexes. Though “overall timing is not yet defined,” per corporate communications manager Miriam Dassonville, “it is important to notice that Kinepolis plans Beowulf to be its first 3D film.” With all the talk about stereoscopic and/or otherwise digital images, the aural dimension of digital sound has somewhat taken a backseat of late. Not at Kinepolis, though, where every single auditorium received the THX seal of approval. THX oversaw the design and construction phase, making sure that “each cinema was precisely engineered to meet THX requirements, focusing on auditorium acoustics, surround sound performance, as well as audience viewing angles and projection technology,” the technology provider stated. THX public-relations manager Graham McKenna added, “Kinepolis really understands how to leverage the THX brand to differentiate from other non-THX competitors, and they have really championed THX certification across Europe as one of our strongest partners” with more than 250 out of close to THX-certified screens in the territory. Unlike “some theatre chains [that] opt to have one or two of their larger auditoria certified, which is perfect for showcasing the blockbuster or most popular films,” McKenna continues, “Kinepolis has embraced THX certification in all rooms across many of their multiplexes.” At the Oostende site, in particular, “we started working with Kinepolis during the early design stages,” McKenna notes. “This meant evaluating all of their architectural blueprints to ensure each auditorium could meet the THX specifications for both sound and visual quality. We then helped their design team select the right equipment for each auditorium.” Based on the size and shape of each room, “there are four separate floor plans” in Oostende, all of which were equipped with the appropriate products. For the first time ever, the QSC Basis system was used in a THX-certified cinema. The network control of Basis 922az and 914lz, McKenna explains, “enables the Kinepolis technical team to better monitor the sound system for component performance, and lets them respond to any technical issues faster and more precisely.” Speaking of performance, despite a drop of seven percent to 10.7 million moviegoers circuit-wide for January through June 2007, Kinepolis had an optimistic outlook during the July 11 earnings report. On a non-adjusted basis, including newly opened and transferred properties, business was even down nine percent, which the company attributed to “the mediocre range of films on offer until mid-May and the warm weather, particularly in April.” The Kinepolis top five in the first half of the year were Pirates of the Caribbean: At World’s End, Spider-Man 3, Night at the Museum, Shrek the Third and 300. Kinepolis Nancy in France (2005) and Kinepolis Granada in Spain (2004) “recorded remarkable growth,” with 25% and 16%, respectively, as Lomme outdid Madrid and Antwerp as the highest-attended with 1.218 million visitors. Next on the Kinepolis agenda is a new eight-screen and 1,440-seat cinema at the Mediacité development in Liège (details available in last month’s European Update). Provided the recently submitted permit procedures run smoothly, the new Kinepolis complex, together with Mediacité, is scheduled to open sometime in 2009.

Monday, August 6, 2007

Digital cinema standard is coming soon

Digital cinema standard is coming soon

Plans eye more d-screens than traditional by end of '10

By Carolyn Giardina

Aug 6, 2007

The number of digital-cinema screens in the U.S. could exceed the number of traditional screens employing film projection within four years. That is, if a series of deployment plans that are expected to be under way by early 2008 stay on track. A survey by The Hollywood Reporter showed that the proposed plans call for more than 20,000 digital-cinema screen installations in the U.S. and Canada by the end of 2010. "Once beta markets feel ready, installation will accelerate," said John Fithian, president of the National Association of Theatre Owners. "We believe that will occur in 2008." Still, there remain a limited number of suppliers as well as standards-and-compliance issues, all of which could be among the factors that could cause delays. Currently, there are about 3,000 digital screens installed domestically out of a total screen count estimated at about 37,000. Most of those are part of the Christie/AIX program, which aims to deploy 4,000 digital screens. The AccessIT unit already has completed the rollout of about 2,800 screens with such exhibitors as Marquee Cinemas, Neighborhood Cinema Group, Celebration Cinema, Cinema West, Cinetopia, Emagine, UltraStar, Galaxy, Rave, Carmike Cinemas and AccessIT's Pavilion Digital Showcase Cinema. Deployment of the 4,000 screens is expected to be completed by November.

Meanwhile, AccessIT continues to work on new exhibitor deals while beginning discussions with studios toward an additional phase of deployment -- where the target would be 10,000 screens by the end of 2010, according to Chuck Goldwater, president of AccessIT's media services group. Other efforts are moving forward concurrently. Technicolor Digital Cinema has a beta program under way with about 200 installations, and deployment is expected to begin by early next year. Technicolor's plan calls for the installation of 5,000 screens in North America within three years, said Joe Berchtold, president of theatrical services at Technicolor. "In 2007, we've seen a real stability of the technology that has been in place," he said. "Therefore I think 2008 is when we'll start to see the real momentum in the industry behind the conversion." Deployment also is imminent at Digital Cinema Implementation Partners, a joint venture owned by AMC Entertainment, Cinemark USA and Regal Entertainment Group that represents more than 14,000 screens in the U.S. and Canada. Formed in February, DCIP is working on deals with the aim of beginning to transition its screens in early 2008. DCIP chairman Travis Reid expects to complete deployment of digital screens to the three chains in three to four years, depending on technology availability. He estimated that at least 75% of the screens would be digital by the end of 2010. Also looking at the beginning of next year as a goal to begin rollout is Cinema Buying Group, which operates as a separate entity under the NATO banner. It has about 4,000 screens committed to go digital, and that number might climb to more than 5,000 in the U.S. and Canada by summer's end. The organization is accepting proposals that would be reviewed in the fall during ShowEast, CBG managing director Wayne Anderson said. It is possible that some theaters are counted in more than one of the deployment projections, when considering numbers. Still, these efforts seem to bode well for digital-cinema proponents as well as the 3-D movement. Leading 3-D provider Real D's chairman and CEO Michael Lewis said, "From Real D's perspective, the 2-D rollout will determine the size of the Real D platform (rollout)." Concluded Fithian: "(Digital cinema) is the biggest technological transition in our industry since the advent of sound, and it is much more complicated. This rollout will take somewhere between five to 10 years."

http://www.dcinematoday.com/dc/extURLs.aspx?ID=291

Monday, July 30, 2007

Digital age ushers in epic cinema changes - The latest screens allow you to play video games, watch football or learn eye surgery.

July 30, 2006

By Matthew Goodman

THIS Saturday some young film fans won’t be going to the cinema simply to watch Cars, Disney’s new animated film about motor racing; they’ll be able to race them, too.

At Shepherds Bush in west London and six other Vue cinemas around Britain, youngsters will be able to play the computer game based on the new movie on the big screen.

Two players will be able to race each other at the same time, and there will be prizes for the fastest lap at the end of the day. Afterwards, they can, of course, buy a ticket to watch the movie itself.

“I don’t care how good your home-entertainment system is,” said Steve Knibbs, chief operating officer of Vue Entertainment. “Compare that with playing on a 40-foot screen with people watching you.”

The ability to lay on an event such as this is the result of the installation of digital projectors in cinemas.

Traditional analogue equipment is able only to project reels of film on to the big screen. But digital projectors open up a range of new possibilities. For instance, they allow exhibitors to provide video games or broadcast live events, such as football matches or pop concerts. They could even be used by companies for sales demonstrations or lectures.

They also allow cinemas to become more flexible with the films they show. A piece of celluloid for an analogue projector is heavy, unwieldy and expensive to produce. Digital films are much easier, like changing a cartridge on a video-games console, and a fraction of the cost to produce. For a chain such as Cineworld, which prides itself on screening films tailored to its local customer base, such as showing Bollywood movies in areas with large Indian populations, it will make life much easier.

While the technology for digital cinema has been around for years, it is only now starting to take a foothold in the UK. Of approximately 3,500 cinema screens in Britain, about 260 have been converted to digital. Worldwide, there are 849 digital screens. By 2010, it is forecast there will be 17,000.

Although the main benefit in switching to digital will be for the Hollywood studios, the prospect of generating extra revenue from showing concerts or sports events is appealing to the big chains, such as Cineworld, Odeon and Vue.

Cinemas have been slow to test such “alternative content” extensively. David Hancock, a senior analyst at Screen Digest, a consultancy, said: “One reason is that there has not been much high-definition programming produced and to get the benefit, content needs to be available in high definition. That’s why the World Cup worked this summer.”

Companies that have experimented with alternative content have been pleased with the results to date.

Gerald Buckle, Odeon’s vice- president of business affairs, reports that screenings of World Cup football matches at some of its cinemas doubled the average customer numbers it would expect from normal film usage over the year.

“Our average occupancy for film screenings is 10% to 15% across the year. The World Cup screenings had occupancy levels of about 30%,” he said.

A performance like this would seem to make the decision of whether or not to invest in digital screens a no-brainer.

But there are drawbacks. Buckle points out that big-ticket events, such as the World Cup or rock concerts do not come along very often, so the benefits are minimal, particularly given the amount of effort that has to go into marketing such screenings.

Proponents of digital cinema argue that it just needs a little more thought and imagination.

Howard Kiedaisch, of Arts Alliance Media, which has a contract with the UK Film Council to install and run the first 238 digital screens in Britain, said: “Cinema chains have to come up with a continuous programme of content.

“That doesn’t mean putting on something every day, but enough so they know the cinema becomes a destination for them. If, for example, you show football matches on a regular basis, you build awareness for when the World Cup comes round again.”

Some applications already used by digital cinemas are surprising. In Belgium, for example, doctors were able to watch an eye-surgery demonstration.

This opens up exciting possibilities, but it is likely to be a relatively small part of exhibitors’ business.

Knibbs at Vue Entertainment said: “Will alternative content overtake film in 10 years? No. Will it be a decent proportion of our business? Yes.”

The real beneficiaries will be the studios, which will have lower distribution costs. Once the Film Council-funded projectors are installed, the debate will switch to who will have to pay for the rest of the equipment.

Just the ticket

CINEMAS may be hoping to benefit from new income streams, but West End theatres are already booming.

Despite the terrorist attacks in London, 2005 was a record year for the capital’s big theatres, with box-office takings up to £375m — and 2006 could be even better, according to Richard Pulford, chief executive of the Society of London Theatre.

Ambassador Theatre Group, the West End’s largest operator, is likely to move into profit this year, while newcomer Nimax Theatres, which bought four theatres from Andrew Lloyd Webber last year, is also on course to be in the black after its first year of operation.

Theatre bosses have had a string of big hits and, with further blockbusters, such as Porgy & Bess, Dirty Dancing and Spamalot, coming out this autumn, they are feeling optimistic about the rest of the year.

http://business.timesonline.co.uk/tol/business/industry_sectors/media/article1084105.ece

Thursday, July 19, 2007

Saving the cineplex

Saving the cineplex

Can an entrepreneur persuade movie houses to go digital before it is too late?

FORTUNE Small Business Magazine

By Maggie Overfelt

July 19 2007: 4:35 PM EDT


Morristown, N.J. (FSB Magazine) -- Upstairs in one of the dark, dusty projection rooms at Brooklyn's Pavilion Digital Cinema, owner Bud Mayo watches an employee struggle to lift a 50-pound reel of 35-millimeter film out of its giant metal canister. After placing the film on a shelf the size of a tractor wheel, the projectionist will manually splice reels, inserting ads and trailers that will get fed into a bulky projector. The process can take as long as four hours. Mayo shifts his weight. He's impatient, and with good reason. Near the projector sits a sleek network server system it looks like a stack of industrial hard drives - that can do this entire job almost instantly, with a few clicks of the mouse. That server is the heart of Mayo's new digital projection system, and Mayo says it will do more than just save time. It might just save the nation's movie theaters.

Mayo, 65, should be retired by now. But seven years ago the former IBM computer salesman, Wall Street banker, and independent-theater owner pulled himself away from the golf course after watching major movie chains such as United Artists descend into bankruptcy in the mid-1990s. The solution, Mayo felt, was obvious: digital distribution and projection, a nascent technology that Mayo predicted could reduce costs and boost revenues. And so he began his quest, founding Access Integrated Technologies (accessitx.com) in Morristown, N.J., with the goal of dragging movie houses into the Digital Age. "Someone had to be first," he says quietly.

Current Issue

In an era of declining box office sales and competition from home entertainment systems, movie theaters see digital projection as a way to increase revenues. For example, to fill empty seats during a slow movie run, theaters can use digital projection to show live concerts and sporting events, such as the Super Bowl or a performance from the Metropolitan Opera. It's also more effective for showing alternative movie formats. "In digital, 3-D movies are much crisper and don't cause eye fatigue," says Carl Wagner, vice president of film for Rave Motion Pictures in Dallas and an AccessIT customer.

Digital benefits studios also. A digital movie is a 300-gigabyte computer file that studios encrypt and send via satellite. Traditionally, processing and shipping one 35-millimeter film runs around $1,500. The same movie can be transported digitally for about one-fifth the cost, potentially saving studios $3 billion a year. Once the theater downloads the file onto a server, staffers use AccessIT's software to manage the movie on an iPod-like playlist, adding content such as previews by dragging and dropping files. When the system is in place, theater owners can show any digital files they choose, not just movies. They can also attract more customers by adjusting the price of tickets or the offerings onscreen to match consumer demand. "In 2005, Hollywood made about $9 billion, and that's with theaters running at 15% capacity," says Mayo.

Despite the advantages of digital projection, only about 2,000 of the nation's 37,000 theaters have converted. The greatest stumbling block has been price: Going digital used to cost between $75,000 and $100,000 a screen. That's a hefty sum for theater owners to bear, especially when the bulk of the financial benefit goes to the studios.

Before developing any technology, Mayo sat down with studios and proposed that they redirect most of the money they save on film printing and delivery to theaters to help subsidize the cost of new equipment. Today AccessIT holds an 11-year agreement with all seven major studios, which pay the firm about $1,000 for each digital movie. In turn, AccessIT finances the projector rollout for its customers, offering movie houses the entire AccessIT package - satellite dish, software, servers, and projectors - for about $10,000 a screen annually, plus a one-time fee to install the software. "Until AccessIT, there wasn't any program that made it cost-effective for theaters to abandon millions of dollars' worth of film equipment," says John Ellison, president of UltraStar Cinemas in San Diego.

So far, AccessIT is the only company that offers a complete digital system for theater owners. That presents an opportunity for Mayo, but one that won't last long. Technicolor (technicolor.com) is developing a competing product that it hopes to provide to some 5,000 screens by 2010. Concentrating on independent theaters and regional chains, AccessIT converted 1,538 screens last year and is moving at a pace of about 266 theaters a month. The firm has also won over content providers; Walt Disney Studios signed on in 2005 as the first studio to supply films compatible with AccessIT's technology. Twentieth Century Fox and Universal followed. And AccessIT recently won a contract to license its distribution software to IMAX.

But that may not be enough to protect Mayo from the impending competition. Michael Karagosian, digital cinema consultant for the National Association of Theater Owners, says that most owners may wait until the technology is proven before diving in. "AccessIT sells to the early adopter," he says.

AccessIT's competitors argue that the upstart is moving too quickly. Technicolor favors a slow rollout, so it can fix the glitches that come with digital technology. On the rare occasion that a digital projection fails, the screen goes dark, and it can take time to identify and fix the problem. "Film might get a bit out of focus, but it doesn't stop the show," says Joe Berchtold, president of Technicolor Theatrical Services. "But when you have a situation where the screen goes dark with digital, you're gambling with the livelihood of the studios and exhibitors. That doesn't make sense for us." AccessIT customers, Berchtold, and Mayo say that today in about 99 of 100 movie showings systems do not fail.

In any case, Mayo isn't slowing down. "Bud is at the forefront of this movement," says Paul Glantz, owner of Emagine Entertainment in Troy, Mich., and an AccessIT customer. "If another company came to me and said, 'Here's what I've got for you,' it would be hard to convince me that it's a better opportunity."

http://www.dcinematoday.com/dc/extURLs.aspx?ID=290

Thursday, July 12, 2007

ISDCF KDM Working Group Distribution.

To: ISDCF KDM Working Group Distribution.

From: Peter Walford

Date: 12 July 2007

Subject: KDM Considerations in French and German National Film Agency Digital Cinema Proposals

Government and industry have a tradition of closer cooperation in Europe than is common in the United States. In France and Germany, a special tax on cinema receipts is used to fund their national film agencies, which in turn provide some financial support and guidance for their cinema industries. These agencies currently have a strong focus on the transition to digital cinema. In addition to assisting the different industry segments, their goal is to ensure maintenance of the creative diversity of the European film offering and to ensure the viability and diversity of the many small theaters in their countries.

This note summarizes the KDM related aspects of current proposals from these agencies and of studies commissioned by them. Its purpose is to foster information exchange and assist ISDCF in considering European issues and business organization in their deliberations and recommendations. It is based on the following documents published on the film agencies' websites:

Germany:

"System Specification for Digital Cinema in Germany", Dr. Siegfried Fößel et al., Fraunhofer Institute, commissioned by German Federal Film Board,30 March 2007. [In German].

http://www.ffa.de/start/download.php?file=/digitaleskino/FFA_Systemspezifikationen_V1.01.pdf

France:

" Digital projection in cinema. Provisionnal document of the CNC (national centre of cinematography)", June 2007. [in English]

http://www.cnc.fr/CNC_GALLERY_CONTENT/DOCUMENTS/UK/publications/digital_projection.pdf

"FAREWELL TO FILM? What Is at Stake in Digital Projection?", Daniel Goudineau, August 2006, commission by CNC.

http://www.cnc.fr/CNC_GALLERY_CONTENT/DOCUMENTS/rapports/rapportGoudineau.pdf [In French].

http://www.cnc.fr/CNC_GALLERY_CONTENT/DOCUMENTS/rapports/Goudineau_Version_abregee_anglais.pdf [abridged version in English].

Some of the recommendations in these documents (such as the establishment of a national database of server public certificates) would be controversial in the US. These things will not necessarily happen - they are part of an ongoing dialogue, and their applicability may be limited to local or European productions. The arrangements made by Hollywood studios and other US entities may be quite different, and each company should definitely rely on the information provided by their local people in Europe.

However, it will be beneficial to the entire industry if ISDCF considers these European business and technical issues in preparing their recommendations. The ISDCF reports and recommendations should be applicable and and adoptable internationally as well as domestically in the US. This will lead to the fastest rollout of digital cinema by reducing uncoordinated and incompatible development and business practices in different countries. It will also reduce cost by avoiding burdening exhibitors and other parties with multiple solutions to the same problem. The work of ISDCF is very much appreciated in Europe, as indicated by the following quote from the June 2007 document of the French CNC:

" ..two crucial questions concerning the interoperability of equipment and film recording supports have only been very partially addressed by the SMPTE's work...

However, given the very tight schedule, the best solution is probably to take action by defining the good practices to be maintained between professionals in liaison with the American association ISDCF"

Proposals common to both French and German recommendations

A. National certificate database. This would contain the public certificates of all equipment installed in cinemas required to generate KDMs. Note that the French and German databases are independent of each other. Particular characteristics:

  1. Each database managed by trusted independent organization, either the national film agency itself or service provider contracted by national film agency.
  2. Certificates supplied by installer company or exhibitor.
  3. Real-time secure update mechanism required.
  4. Database accessible to all entities requiring access to certificates - exhibitors, distributors, installers, KDM service providers,...
  5. Indexed by theater.
  6. Redundant system with 24/7 operations support.
  7. Certificates can be cached by entities generating KDMs.
  8. Internet-accessible index of cinemas with Digital projection capability [French proposal only].

B. Government-managed certification of entities. Companies that produce and transport DCPs and companies that generate KDMs should be certified to ensure interoperability and trust:

  1. French proposal favors creation of national test platform open to industry with publication of results.
  2. German proposal. National film agency certifies post houses and DCP producers for color correction, DCDM construction, DCP generation. Agency can then match certified companies to the particular requirements of companies seeking providers.

C. KDMs should be provided to allow DCP playout in all auditoriums of the theater. Logs can be used by distributor to verify screenings correspond with distribution agreement.

Selected proposals from German recommendation.

A. KDM Service Providers. The Fraunhofer specification envisions that exhibition KDMs would be created and managed by a [limited] number of specialized companies known as KDM Service Providers: "Central, independent entities equally recognized by all parties should be entrusted with KDM generation. The gatekeeper function from one party is to be avoided." Particular characteristics:

  1. KDM Service Provider commissioned by distributor, who specifies KDM validity.periods.
  2. Content keys sent to KDM Service Provider in "studio" KDM encrypted with KDM Service Provider public-key. Specification includes some security requirements for systems that extract content keys from "studio" KDMs, such as system not accessible from open network, etc.
  3. KDM Service Provider generates KDMs for theaters, using "content authenticator" field to refer to certificate of production house that generated DCP.
  4. KDM Service Provider uses equipment certificates retrieved from national certificate database to generate KDMs.
  5. Logs are uploaded to KDM Service Provider which processes them and distribute results to distributor, content provider and/or other rights owners.

B. KDM distribution technologies:

  1. Internet.
  2. Push through analogue or ISDN connection.
  3. Good old USB sticks.

C. KDMs should be sent 48 hours before schedule screening and KDM window should open 24 hours before screening.

Selected proposals from French recommendation.

The 2006 Goudineau report commissioned by the CNC was a thorough analysis of requirements for the transition to digital cinema in the French cinema business environment. Daniel Goudineau, Director of France Televisions, was given extensive resources for the report and interviewed a large number of experts from all sectors of the French cinema industry as well as experts from elsewhere in Europe and the USA. The report very much helped focus the French industry on the coming transition. However, some of its recommendations are being revisited as the industry learns more and considers other alternatives. In comparison, the June 2007 interim report prepared by CNC staff is considerably more modest in scope.

The Goudineau report recommended that the CNC issue an RFP and select a single central service provider to generate all exhibitor KDMs for France. However, the June 2007 interim CNC report notes that there is no “minimum consensus” for this approach and that legislation would probably be required to make it possible. The interim report includes some specific requirements for companies that generate KDMs but does not go so far as the German specification in recommending that only specialized KDM Service Providers perform this function.

A. The interim report slightly favors a model where the exhibitor has more responsibility for ordering and financing required services and equipment, with government regulation ensuring the quality of the supplier companies.

B. Exhibitors should be responsible for providing log files to distributors. Exhibitors could delegate this to service providers.

Monday, July 2, 2007

AccessIT: The Big Digital Picture

http://seekingalpha.com/article/39779-accessit-the-big-digital-picture

posted on: July 02, 2007 about stocks: AIXD

It would seem as though digital entertainment pervades our lives these days, from DVDs to digital satellite and cable television. But one medium still relies on old-fashioned silver halide film: the movies shown in your local theater.

Access Integrated Technology Inc. (AIXD), launched in March of 2000, is trying to change that. AccessIT is the leader in installing digital equipment into theaters. Now it’s moving into distributing digital films to its equipment in the theaters. It acquired a private company, Big Picture, for about $4 million last quarter. Big Picture produces alternative digital entertainment, such as animated films and sports and concert events, enabling theaters to provide alternative programming to targeted audiences during slow times that normally attract very small audiences.

While most major research firms have so far ignored the space, several analysts covering the company believe the potential is huge. “I’m a believer in digital cinema,” says Jeff Van Rhee with Craig-Callum Capital. “There is absolutely an audience out there for alternative content.”

But AccessIT’s future could be bigger than an iMax double feature. It has distribution contracts with News Corp.’s 20th Century Fox (NWS), Viacom, Inc.’s (VIA) Paramount Pictures and General Electric Company’s (GE) Universal Studios. The studios currently help fund the theaters’ transition to digital, paying a fee every time a digital film is shown. So far AccessIT distributes mostly small films, but its executives have made it clear that transmitting feature films is on the digital horizon, predicting film distribution will be its largest revenue producer in five to seven years.

AccessIT has installed systems for 2,600 theater screens and is on track to reach its promised 4,000 screens by the end of next year. Currently, most of the films are delivered on DVDs, but AccessIT is also installing satellite dishes on the theaters, allowing it to beam films directly to them. The company promises to reach at least another 4,000 screens by 2011, but Mark Harding with Maxim Group believes it could hit an additional 10,000 screens by then. Its few competitors have installed equipment for just a few hundred screens. “AccessIT has a solid head start on its competition,” says Harding.

One big potential competitor is National CineMedia Inc. (NCMI), a joint venture between three of the largest theater chains in the business, AMC Entertainment, Inc., Cinemark USA, Inc. and Regal Entertainment Group (RGC). National CineMedia distributes mostly low end digital equipment, and most of its content is advertising for the screen and lobby kiosks. But it also has bigger plans. It is upgrading its equipment to devices capable of showing feature films, and has so far upgraded its machines for about 100 of the 12,000 screens it serves. With National CineMedia’s major theater backing, AccessIT’s ability to infiltrate new theaters could start to look as limited as the distribution of a foreign-language film.

AccessIt has also had trouble turning a profit. In its fourth quarter ended in March, revenues were $17.3 million, more than triple its revenues the same quarter last year, but its net loss nearly quadrupled to $11.3 million, or $0.47 per share. Analysts had expected a net loss of $0.24 per share. After a big run in 2005 and 2006, when it reached about $15 per share, the stock hit $5.23, its current 52-week low, at the beginning of April 2007.

National CineMedia, by contrast, went public at $21 just last February. It reported revenues of $56 million for its March quarter, double those of a year ago, and a net loss of $3.2 million, about a third its loss from last year. Its stock reached a peak of $29.80 in early June and now trades at about $28. NCMI’s market cap is $1.17 billion, nearly 21 times quarterly revenues, while AccessIt’s is $185 million, about 11 times revenues.

Still, AccessIT’s Q4 loss was due primarily to non-cash expenses, such as depreciation from the equipment it owns and installs in theaters, amortization of intangible assets and disposition of assets. Much of that was due to discontinuing its Data Centers line of business, co-location sites to house computer and telecommunications equipment for corporations.

Without the write offs, AccessIT is profitable. EBITDA earnings for the quarter were $3.4 million (National CineMedia’s EBITDA earnings were $24 million). Investors noticed: since it released its earnings on June 20, AccessIt’s stock has increased from about $7 to $8. Profits should improve from increased distribution of alternative entertainment. Craig-Hallum’s Van Rhee estimates that if it averages just 15 showings on 4,000 screens per year, as the company expects, it can generate $60 million in cash annually, compared with $400,000 last quarter.

For those betting that distribution of films, rather than equipment, is the big picture for digital cinema, AcessIT could have the advantage. By pitting its major studio partners against NationalCinema’s major theater partners, AccessIt could eventually prove to be the real blockbuster.

Disclosure: Access Integrated Technology Inc. is in the portfolio of Rising Star Stocks, an independent investment advisory published by Business Financial Publishing, the owner of SmallCapInvestor.com