ZON Lusomundo selects Barco's digital cinema projectors for XDC's deployment of 213 screens in Portugal

Kuurne, Belgium, 24 July 2009. Barco, a global leader in digital cinema projectors, is proud to announce that it has been chosen by ZON Lusomundo, the largest cinema chain in Portugal, for the deployment of 213 digital cinema systems. By the end of 2010, 28 of ZON Lusomundo's cinema complexes will be equipped with Barco digital cinema projectors.

XDC, a leading digital cinema service company in Europe, and ZON Lusomundo have signed an exclusive agreement for the deployment of 213 full digital cinema systems in ZON Lusomundo's theatres in Portugal. Under the terms of the agreement, XDC will exclusively install Barco's DCI-compliant 2K digital projectors in combination with their CineStore® Solo G3 D-Cinema server and a fully integrated and networked solution in each complex.

“We are very proud that Barco's digital cinema projectors have been chosen to bring digital cinema to Portugal,” comments Alain Solomon, vice president digital cinema division. “This confirms again the outstanding quality of our digital cinema projectors and services. As more cinemas will be going digital in the future, we look forward to contributing even more to the digital cinema evolution across Europe.”

Serge Plasch, Chief Executive Officer XDC says, “We are pleased to be able to work with Barco for this deployment deal. We have a longstanding business partner history with Barco and are familiar with their digital cinema projectors. We know that Barco delivers the reliability and the service we are looking for to provide to our exhibitors.“

Luis Roboredo Mota Managing Director of ZON Lusomundo cinemas states, “We will be among the most innovative cinema operators in the world. With Barco's digital cinema projectors, not only will we be offering our spectators even better picture quality, we will also be able to extend our programming to alternative content at all of our theatres with more recorded and live 3D shows, live satellite events such as opera, concerts, and sports. In addition, going digital will allow us to become a more efficient company, lowering our operating costs whilst at the same time generating significant improvements in customer service.”

With the DP series, Barco has developed a modular digital cinema projector platform offering a cost effective solution at everyone's desire and for every screen size. To support its rapidly growing digital cinema installed base, Barco has launched a Certified Service Partner program to establish a worldwide support network with the highest quality local service and support.

All of Barco's digital cinema projectors are based on the pioneering DLP Cinema® technology from Texas Instruments, guaranteeing perfect re-production of film, time and time again, and ensure movie goers enjoy the highest quality film experience with consistent picture brightness, contrast and vibrant colors.

About XDC International
As far as today, XDC has installed more than 500 digital screens in 10 European countries and is the leading service company, dedicated to building a pan-European digital cinema network. XDC provides end-to-end digital cinema solutions including equipment supply, financing (VPF, leasing, …), training, installation and maintenance, as well as content processing and delivery. The company is the first entity to have VPF digital cinema deployment agreements with all the 6 major US studios Warner, Fox, Universal, Paramount, Sony and Disney for a total of 8,000 digital screens in 22 European countries. Besides its financing program with ING Lease, XDC is setting up a global financing of 100 millions Euros with Fortis Bank to allow the VPF roll out of 2,000 digital screens for its European deployment program. Today, XDC has signed VPF deals with exhibitors for more than 750 screens spread over European countries (Austria, Portugal, Belgium, The Netherlands, Hungary, Czech Republic, Slovakia and Poland) and has received commitment for 250 screens from exhibitors Germany, Switzerland, Spain,

XDC Digital Content Lab has been processing more than 500 different titles, and offers a full service including mastering, duplication, key management, 24/7 helpdesk, extranet tracking, physical/virtual delivery. Last but not least, XDC is also very active in Alternative Content by offering a full service from booking and promotion up to delivery, reporting and box office collection. XDC is a 47.2% subsidiary of EVS Broadcast Equipment (Nyse Euronext EVS.BR) and is supported by several leading financial investors. More info available at www.xdcinema.com.
XDC Marketing & Communication Department - Tel.: +32 4 364 12 00 - Email: marcom@xdcinema.com

About ZON
ZON Multimedia is the leading Pay TV operator in Portugal with over 1.5 million subscribers and 100% geographical Pay TV coverage with over 3 million homes passed with a next generation hybrid fibre coaxial network. Using the ZON NetCabo brand, ZON is the second largest Internet provider with the fastest Internet speeds in Portugal of up to 100 Mbps. With the launch of Voice and Mobile services (ZON Phone and ZON Mobile), ZON is now a Quadruple Play operator offering more comprehensive and attractive choices to its customers, meeting all their telecommunications and entertainment needs. ZON has an audiovisuals distribution and cinema exhibition business, ZON Lusomundo Audiovisuais and ZON Lusomundo Cinemas. These businesses negotiate exclusive rights to distribute DVDs and cinema exhibition of films, holding the largest cinema network in the country with over 200 screens. ZON is also a partner in a content joint-venture which produces the leading premium sports channel in Portugal Sport TV and produces the four leading Pay TV movie channels – TV Cine.

Cinedigm Announces Agreement With Emagine for Phase 2 Deployment Program

http://investor.cinedigm.com/releaseDetail.cfm?ReleaseID=398613

 

Theatre Circuit First to Leverage Self-Financing to Bring Digital Cinema to Audiences

 

MORRISTOWN, NJ, Jul 23, 2009 (MARKETWIRE via COMTEX News Network) -- Cinedigm Digital Cinema Corp. (NASDAQ: CIDM) (formerly AccessIT), the leader in the digital cinema industry, today announced Emagine Entertainment, Inc. ("Emagine"), a Michigan-based cinema chain, will participate in Cinedigm's Phase 2 digital cinema deployment program and will be the first exhibitor to do so through self-financing. Emagine is one of Cinedigm's first Phase 1 deployment program exhibitor partners and has been utilizing their networked digital cinema systems since late 2005.

 

In Phase 2, Cinedigm will provide networked digital cinema systems, including Christie DLP Cinema(R) projectors, to the ten screens at Emagine's new Woodhaven, Michigan location. Christie Managed Services will be providing the long-term service agreement for this theatre. Under this new agreement, Emagine will become a senior lender to Cinedigm's Phase 2 deployment subsidiary. Cinedigm's subsidiary will make regular payments to Emagine based on an agreed-upon schedule similar to those of other long-term lenders.

 

"We've had great success with Cinedigm's digital cinema systems. Their technology has enabled us to bring unique, cutting-edge programming to our customers. Events like the live 3-D showings of the BCS and NBA games help set Emagine apart from competitors and is the reason we want to expand our relationship with Cinedigm to our new location," said Paul Glantz, founder of Emagine. "We're pleased that Cinedigm has worked with us to create this self-financing option which enables us to invest further in a business that is revolutionizing the movie-going experience."

 

"Emagine is breaking new ground with us, creating an innovative financing template for Cinedigm's rollout. This trend of self-funding by theatre owners is important given the ongoing growth of the theatre industry and the current lack of financing from traditional channels. We are confident that with the help of partners like Emagine, our Phase 2 deployment will continue to progress as planned," said Bud Mayo, chairman and CEO of Cinedigm.

 

"Cinedigm is pleased that our first exhibitor from our Phase 1 deployment has engaged us for Phase 2. We have valued our relationship with Emagine over the years and look forward to adding their new location to the growing number of screens contracted to our Phase 2 program for up to 10,000 digital cinema projection systems," said Chuck Goldwater, president of Cinedigm's Media Services Group.

 

Cinedigm's Digital Cinema division is the industry-leading deployment program for Digital Cinema that provides the funding, installation support and administration for the company's studio-supported Digital Cinema rollout plans.

 

To date, Cinedigm has contracted for and completed the rollout of nearly 4,000 systems in forty-one states with exhibitors including Atlas Theatres, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Dickinson Theatres, Emagine, Galaxy Cinema, Marquee Cinemas, Krikorian Premiere Theatres, MJR Theatres, Neighborhood Cinema Group, Premiere Cinema Corp., Rave Motion Picture Theatres, Showplace Cinemas, UltraStar, and Cinedigm's own Pavilion Digital Showcase Theatre.

 

Its Phase 2 plan for up to an additional 10,000 screens will provide networked, turnkey Digital Cinema systems in conformance with DCI specifications.

Barco Financial Results - continues to generate good cash flows. Big contracts for digital cinema bode well for the future

http://www.digitalcinemainfo.com/barcodigitalcinema_07_22_09.php

July 22, 2009

Source: Barco

Click here for financial charts and more information

Barco announced results for the three and six-month periods ended 30 June, 2009.

Commenting on the results of 2Q09 Mr Van Zele, CEO, re-emphasized that Barco's strategy to focus on cash generation and a healthy balance sheet continued to bear fruit in 2Q09. Free cash flow generated in 2Q09 was 12.4 million euro, 8.2 million euro more than in the same quarter of 2008, thanks to a positive operating cash flow of 8.5 million euro and continued reduction of working capital. Also operating expenses were reduced by 11.8 million euro in 2Q09, bringing the total cost reduction for 1H09 to 26 million euro. At the end of the quarter Barco had a net cash position of 36.9 million euro, up from 24 million euro at the end of the previous quarter.

Sales were down 12 million euro or 6.8% versus the same quarter of last year, but nevertheless up 20 million euro compared to 1Q09. All operating divisions grew their sales compared to the previous quarter except for the medical division, where sales remained flat.

Barco's total order book at the end of the quarter remained healthy at 336.7 million euro, up 1.6% from last year. This order book does not yet reflect several big digital cinema contracts that have been signed during the quarter and that will help to offset the shortfalls in the events market. These contracts have a potential sales value over the next couple of years in excess of 250 million euro.

The company's incoming orders for the quarter were down 22.7% to 140.7 million euro, excluding recent big wins in digital cinema. This is a shortfall of 41.7 million euro compared to 2Q08, primarily in the events and the traffic and surveillance markets.

Gross profit margin was lower year-on-year and continued to be below target, mainly due to substantial inventory write-offs. However, it was improving versus 1Q09. EBITDA was 8.4 million euro compared to 21.4 million euro in 2Q08. Reported EBIT was minus 5.5 million euro for the quarter, depressed by non-cash charges such as reduced capitalization and increased inventory write-offs. Without these non-cash charges EBIT would have been positive for the quarter.

Mr Van Zele concluded his comments on the 2Q09 results by stating that the economic environment is expected to remain difficult in the second half of the year. Nevertheless Barco has a very healthy balance sheet and intends to keep it that way. Furthermore the ongoing management attention for increasing operational excellence will continue to bear fruit. For the remainder of 2009 he also expects the digital cinema market to further offset the decline in sales in other markets which are currently suffering from the economic crisis.

Mr Van Zele also announced that Barco had recently signed an 85 million euro revolving credit facility with key relationship banks. This agreement extends existing maturities with two and a half years.

DIVISIONAL RESULTS FOR 2Q09

Media & Entertainment division

Sales in the Media & Entertainment division remained almost flat in 2Q09 compared to the same quarter the year before. Sales are stabilizing and bottoming out in the video & lighting and media segments, but remain weak in the events segment. Sales in the digital cinema market again almost doubled compared to 2Q08 but were still hampered by supply chain shortages. Compared to 1Q09 sales for the division grew by 15.7%.

Order intake is down 26.7% for the division compared to 2Q08 with a clear downward trend in orders from rental companies. Order intake remains stable in fixed installations. In the digital cinema market orders are depending on financing structures. The latter being further developed, very large frame agreements have been made with key integrators and exhibitors worldwide.

The order book at the end of June was 79.4 million euro, up 2.8% from the year before.

Gross profit decreased strongly year-on-year due to a drop in gross margin, which results to a large extent from a shift towards lower margin products and the forced sell-off of media inventory. Furthermore there were also accelerated inventory write-offs in the media segment. EBIT for 2Q09 was at minus 7.8 million euro compared to minus 0.9 million euro the year before. Cost containment actions are ongoing. A further reduction in staff has been carried through and resources are re-allocated between the various market segments served by the Media & Entertainment division.

 

Sensio Expands its 3D Live Network for Digital Cinema in Europe - Participates in Eutelsat's first Paying 3D Live Concert

http://www.digitalcinemainfo.com/sensiotechnologies_07_22_09.php

July 22, 2009

Source: Sensio Technologies

SENSIO Technologies announced the continued expansion of its 3D live roll-out in high definition for digital cinemas throughout Europe. The announcement was made following a flawless 3D live satellite broadcast of the Julien Clerc concert on July 16th to four locations across France. Julien Clerc is a leading French entertainer with a broad following throughout France and Europe.

The concert was broadcast live to multiple digital theatres in high definition 3D along with high quality and crisp images. Fans were amazed with the level of quality and comfort of 3D viewing and enjoyed a real immersive 3D experience. The event was broadcast by OpenSky, who purchased and installed International Datacasting Corporation’s (“IDC”) Pro Cinema 3D live Decoders equipped with leading SENSIO 3D technology. This equipment is an add-on to the existing digital cinema broadcast network previously provided to them by IDC.

As part of their digital cinema service offering, OpenSky has formed the 3D Stereoscopic group (3DSG), a partnership with dBW Communication and Eutelsat for the end-to-end production and distribution of 3D live events across Europe.

“Our technology is deployed worldwide, through various satellite enabled theatre networks in America, Europe and Asia, which confirms our position as the global leader in becoming the de facto standard. The global network we are creating enables 3D live broadcasting around the world, and we are extremely proud to have been selected by Eutelsat, one of the world’s leading satellite operators, for the continued expansion of the SENSIO®3D enabled digital network”, said Nicholas Routhier, SENSIO’s President and CEO.

 

 

UK Film Council Publishes Statistical Yearbook on UK Film

http://www.digitalcinemainfo.com/ukfilmcouncil_07_20_09.php

 

July 20, 2009

Source: UK Film Council

-British films bank $4 billion at 2008 global box office
-UK films take 15% of global box office and 31% of UK box office
-UK has more digital screens than any other European country
-Best first half year UK film production figures since 2004
-Number of indigenous productions up on last year

British films banked $4.2 billion worldwide last year, according to the latest statistics published today by the UK Film Council.

For the latest information on film please see our 2009 Statistical Yearbook http://www.ukfilmcouncil.org.uk/yearbook

Based on box office revenues, almost one in six film viewings at the cinema around the world last year was of a British film, equalling 15% of the global box office and accumulating $4.2 billion in ticket sales, nearly a billion dollars more than in 2007. The Dark Knight was the best performing UK qualifying film at the worldwide box office, earning almost $1 billion, whilst in Europe the top British film was the UK/USA production Mamma Mia!, which attracted more than 34 million admissions.

Compiled by the UK Film Council’s Research and Statistics Unit, the Statistical Yearbook presents the most comprehensive picture of film in the UK and the performance of British films abroad during 2008.

John Woodward, Chief Executive Officer of the UK Film Council, said:

“Billions at the box office and billions back to the UK economy – these are big numbers which underline the value of the UK film industry and the strength of our cultural talent. They also highlight just how important it is that we build on the many hard-won achievements and continue to invest in the long-term future of British film.

“From Harry Potter to Slumdog Millionaire and from James Bond to In the Loop, let’s celebrate the financial benefits these films bring and the British creative skill involved in making them. Similarly, the healthy return of inward investment and the increase in the number of indigenous productions in the first half of 2009 show the underlying health of the British film industry.

“The one downside – and as the UK Film Council has consistently said – is the worrying drop in co-productions, once again reinforcing the need to revisit the film tax relief, which currently stifles UK filmmakers from building international film partnerships and disadvantages them when filming abroad.”

Film Minister Siôn Simon said:

“Film is one of the UK's great success stories of recent years. We are incredibly good at producing creative talent in the UK and the Government continues to work hard to ensure that the infrastructure, support and funding systems are in place to allow this talent to thrive. It should be clear to anyone from recent awards and box office successes that we are in the middle of a bumper time for British film, and today's remarkably buoyant set of statistics are clear evidence of that. We should all be proud of how well UK film is doing on the domestic and world stage at the moment, but the greatest credit should of course go to the production and acting talent that make this possible.”

Box-office success

At home British films were a massive hit, accounting for 31% of the tickets sold in the UK, up from 29% in 2007. Five of the top 20 films at the UK box office in 2008 were British, led by Mamma Mia!, which earned more than £69 million to become the highest grossing film of all time at the UK box office. The other top British films were Quantum of Solace (£51 million), The Dark Knight (£49 million), Chronicles of Narnia: Prince Caspian (£12 million) and Sweeney Todd (£11 million).

The top 20 performing UK films – which also includes independent British films such as Adulthood, The Duchess and The Other Boleyn Girl – grossed £266 million at the UK box office, a record achievement and £22 million more than in 2007. UK films topped the weekend box office charts for 16 weeks in 2008.

Despite the onset of the ‘credit crunch’ in late 2008, cinema-going has remained one of the most popular forms of entertainment in the UK, with an increase in both box office and admissions. Box office receipts totalled £850 million, a rise of 3.5% on 2007’s £821 million and a 50% increase since the UK Film Council was created in 2000. In addition, audiences for film on DVD and television also remained strong. The average British viewer watched 63 films on television over the year.

Summer cinema admissions in the UK hit 54 million, the highest since 1969, thanks to blockbusters Mamma Mia! and The Dark Knight. Admissions for the year climbed to 164 million, in contrast to some other countries which reported a fall in admissions – Spain (down 8%), Italy (down 4%) and the US (down 2%). Overall UK audiences had a far greater choice of films last year, with 527 films released, 34% more than ten years ago.

British talent and creativity

British creativity is the source of many of the top 200 global box office successes between 2001 and 2008, with 31 of the top 200 films based on stories and characters created by UK writers. Together those films have earned more than $15 billion at the worldwide box office. Eight of the top 20 global box office successes of the last eight years are based on novels by British writers, and more than half of the top 200 films released worldwide since 2001 have featured UK actors in lead or prominent supporting roles.

This success is bolstered by the tally of awards won by Brits. In 2008 alone, British films and talent scooped 32 awards, including Daniel Day-Lewis and Tilda Swinton’s Oscars® and BAFTAs for their leading and supporting roles in There Will Be Blood and Michael Clayton, costume design and visual effects Oscars® for The Golden Compass and awards for Steve McQueen’s Hunger at the Cannes, Toronto and Venice Film Festivals. James Marsh’s Man on Wire picked up two awards at the 2008 Sundance Film Festival, going on to win an Oscar® in 2009. British films and talent have now won 205 awards at the major awards events and film festivals between 2001 and 2008, representing 14% of the total of all major awards.

Film production

Alongside its Statistical Yearbook, the UK Film Council also publishes today the UK film production statistics for the first half of 2009. The numbers indicate the healthy return of inward investment films to UK studios in 2009, giving the UK its best first half year (H1) production figures since 2004. The total UK spend value in H1 2009 was £535.1 million, compared with £363 million in H1 2008.

Of the £535.1 million total, £436.2 million was accounted for by inward investment films such as Harry Potter and the Deathly Hallows Part 1, Clash of the Titans and Gulliver’s Travels.

Of this total, £89.9 million was accounted for by 33 UK domestic productions – an increase in the number of indigenous productions since H1 2008. UK domestic titles include Centurion, Nowhere Boy and It’s a Wonderful Afterlife. A significant trend in the UK production statistics is the fall in average and median budgets for UK domestic films. The average budget for UK domestic films has fallen from £5.6 million in 2003 to £3.3 million in H1 2009. Over the same period, the median domestic UK film budget has fallen from £2.9 million to £1.3 million, reflecting the tougher investment climate affecting UK domestic films and the need for efficiencies across the board.

Three co-productions – Outcast, Mr Nice and The Ghost – contributed a UK spend value of £8.9 million, down from previous years and a further reflection of the impact on co-productions of the new UK film tax relief which is limited to production spend on UK shores and therefore excludes spend on filming for UK films at international locations.

Other statistics in the yearbook include:

In 2007, the UK film industry had a total turnover of nearly £6.1 billion and its contribution to the UK GDP was £2.5 billion, 0.2% of the total.

The UK film industry exported £1,050 million worth of services in 2007, an all time high and a 50% increase compared to 2001. This was made up of £646 million in royalties and £403 million in film production services.

The UK film trade surplus (earnings from our exports outweighing expenditure on imports) in 2007 was £232 million.

The UK had 3,610 cinema screens (96 more than 2007) in 726 cinemas (one less cinema than in 2007) and 310 digital screens, the highest number in Europe, and 20% of the European total. 240 of these are part of the UK Film Council’s Digital Screen Network.

There was a massive growth in digital screens internationally, particularly in North America, with the global total rising to 8,797 compared to only 848 in 2005.

2008 was the year in which 3D began to make an impact; 69 UK screens were 3D capable, a huge increase from just 5 in 2006. This figure is expected to rise significantly with the increase in 3D releases. The top performing 3D title in the UK was Journey to the Centre of the Earth.

Alternative content events screened in UK cinemas have more than doubled to 67 from 31 in 2007. Events ranged from live or recorded operas, pop music concerts, as well as film screenings with live ‘virtual’ premieres and Q&A sessions, such as the Lottery-funded premiere of The Age of Stupid.

For the first time, the Yearbook has looked at the top films of all time and adjusted them for inflation. Whilst Mamma Mia!’s actual UK box office leads with £69 million to date, adjustments for inflation show that Titanic is still the UK’s highest grossing film of all time with nearly £86 million in 2007/08 terms.

The total size of the film audience in the UK last year was estimated to be 4.7 billion. Over 70% (3.5 billion) of the total was the audience for film on television, followed by 22% watching film on DVD and video. Film on multi-channel television also showed a 51% rise in popularity.

Films in 31 different foreign languages were released in 2008, spread across 188 films and earning £27 million at the box office. Hindi was the most common foreign language in terms of the number of releases.

The top four foreign language films were The Orphanage (Spanish), Rab Ne Bana De Jodi (Hindi), Singh is King (Hindi) and I’ve Loved You So Long (French).

Comedy is consistently the UK’s most popular genre with UK audiences and took £222 million, accounting for 24% of the box office share. Musicals, including the massive hit Mamma Mia!, took an average of £113.2 million per cinema, more than any other genre.

British films are particularly popular with the over 55s, including The Duchess, Mamma Mia! and In Bruges. Top films for women were Penelope, Wild Child and Angus, Thongs and Perfect Snogging (all UK films), while men opted for Iron Man, Hellboy II: The Golden Army and Yes Man.

Film tastes vary across the regions. Adulthood was particularly popular amongst London audiences, whilst Chronicles of Narnia: Prince Caspian was a hit with the Midlands, High School Musical 3 was a favourite in Tees/Yorkshire and Scottish audiences preferred Juno, How to Lose Friends and Alienate People and Twilight.
A record 258 million films on DVD were sold, whilst DVD rentals at 79 million were 19% down on 2007). Mamma Mia! was the top over-the-counter rental title and the highest selling DVD, followed by The Dark Knight.

The value of the UK film VOD market in 2008 was estimated at £120 million.

· The share of female screenwriters of UK films increased to 17% in 2008 from 15% in 2007, and the share of directors rose to 12%, up from 6% in 2007.

· The UK saw 25 inward investment films go into production last year, including Prince of Persia: The Sands of Time, Quantum of Solace, The Wolfman, Nine and The Fantastic Mr Fox, with a production spend of £338.2 million. 66 domestic UK films went into production, with a spend of £192 million, including The Boat that Rocked, Green Zone and Dorian Gray. Co-productions included Chèri, Bright Star and Looking for Eric.

In 2008 there were nearly 8,000 film and video production companies, 435 distributors and 230 exhibitors. The number of both small and large companies grew: in 2008 there were 150 production companies with a turnover of £5 million or more, compared with only 45 in 1996.

For the latest information on film please see our 2009 Statistical Yearbook www.ukfilmcouncil.org.uk/yearbook

 

SM Cinema and DCI Jump-Starts Philippine Dcinema Rollout

http://www.digitalcinemainfo.com/SM-Cinema_07_20_09.php

July 20, 2009

Source: Business of Cinema

SM Cinema and DCI have decided to initiate the roll-out of DCinema installations in the Philippines. Through this move, SM revolutionizes the movie industry with the SM Digital Theater. Aside from having the screen and speaker strategically designed to make every seat the best seat in the house, movies will be seen in ultimate perfection in the projection and unparalleled quality in vision and sound.

SM Digital Theater shows high-quality 2D/3D digital films in a regular cinema. SM Digital Theaters have shown Blockbuster Hollywood Digital contents and digital educational alternative contents.

This technical arrangement was made by the joint efforts of SM and DCI. DCI is a local company which pioneered and initiated the efforts of trying to bring Digital Cinema Technology in the Philippines 5 years ago. Though its acceptability was not that much due to initial high costs of investments, Philippine exhibitors have accepted that this new technology would create bigger changes on how movies would be presented to the general movie fan.

Over time, SM and DCI finally ventured into the Digital Cinema in 2007. After which the SM Owners and Management have fully supported the roll-out for many more SM Digital Theaters which would be strategically distributed all over the country.

By August 2009, SM shall have a total of 12 SM Digital Theaters and looks forward to converting at least 100 screens in a 3 years rollout plan.

Other players in the industry that followed after SM are: Araneta Cinemas, Robinsons Cinemas, Ayala Cinemas, The Cabanas Cinemas and Greenhills Theaters.

 

Flood of new screens in Central Europe will float admissions to new highs

http://www.digitalcinemainfo.com/dodonaresearch_07_14_09.php

July 14, 2009

Source: Dodona Research

More than 72 million cinema-goers spent €287 million visiting cinemas in Central Europe in 2008 according to a new report* from analysts Dodona Research. The 3,157 screens in these countries (Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia) are roughly equivalent to the number in Canada or Japan, though not yet generating similar levels of box office, due to lower ticket prices and capacity utilisation.

But unprecedented levels of investment could change this situation. Noting that the current stated plans of exhibitors active in the region are even more ambitious, Dodona estimates that the number of cinema screens in Bulgaria could double by 2013, while in Romania today's screen count of 122 is expected to expand to 350 by the same date. According to report author, Alisdair Ritchie: 'In the 20 years that our firm has been monitoring the cinema market, right from the start of the multiplex boom, there has never before been expansion in any country of this scale and rapidity. Obviously there are dangers in such breakneck expansion, but on balance a nation of more than 20 million people can probably absorb the new screens.'

Thus admissions in Romania are forecast to climb from 3.46 million in 2008 to 9.5 million by 2013. By the latter year a number of countries in the region are expected to see per capita levels of attendance on a par with some much richer Western European countries. The 1.5 cinema visits per head of population expected in the Czech Republic, Hungary and Slovenia by 2013 compare with simlar levels today in Germany, the Netherlands and Portugal – and a figure of around one in Greece.

The report also notes that Central Europe has, following a slow start, joined the digital cinema bandwagon. As elsewhere, the potential of 3D movies is what is mostly driving new digital installations. However, two exhibitors – the Czech, Hungarian and Slovak circuit Palace Cinemas, and Multikino in Poland - have announced their intention to convert their entire circuits to digital projection, which may prove the catalyst for a movement towards complete conversion in some countries of the region.

By 2013 the analysts expect 20 million more cinema-goers than last year and for these 92 million visitors to spend 20% more per ticket purchased – an uplift helped by the premiums introduced for tickets to 3D performances. These are expected to add 6% or more to box office from 2009 onwards.

*Cinemagoing Central Europe £995 from Dodona Research for more information and to buy now (mention Digital Cinema Buyers Guide)

 

Warner Bros. Pictures' Where the Wild Things Are to be released in IMAX

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

 

IMAX Audiences to Experience Spike Jonze's Highly Anticipated Adaptation of Maurice Sendak's Classic Book

 

LOS ANGELES, July 22 /PRNewswire-FirstCall/ - Warner Bros. Pictures and IMAX Corporation (NASDAQ: IMAX; TSX: IMX) today announced that Where the Wild Things Are, directed by Spike Jonze (Adaptation, Being John Malkovich) and produced by Playtone (Tom Hanks and Gary Goetzman), will be simultaneously released to both IMAX(R) and conventional theatres on October 16, 2009. Where the Wild Things Are, which chronicles the timeless adventures of a young boy's imaginary journey to a land of "Wild Things," will be digitally re-mastered into the unparalleled image and sound quality of The IMAX Experience(R) with proprietary IMAX DMR(R) (Digital Re-mastering) technology.

 

Where the Wild Things Are is based on the classic book by Maurice Sendak. Winner of the 1964 Caldecott Medal for "Most Distinguished Picture Book of the Year," the popular adventure tale continues to captivate audiences of every generation after four decades.

 

"We're excited to provide audiences and fans of such a beloved adventure the chance to experience it in IMAX," said Dan Fellman, President of Domestic Distribution, Warner Bros. Pictures. "The imagery and sound in IMAX will help further immerse audiences directly into the land of Wild Things and we look forward to sharing it with them."

 

"Where the Wild Things Are is an ideal addition to IMAX's fall film slate," said IMAX CEO Richard L. Gelfond. "We see this film as playing to audiences of all ages, and as our network continues to expand, we're pleased to reach more moviegoers than ever before with a classic story told in an unparalleled format."

 

"This title plays well to IMAX's goal of providing moviegoers with an out-of-this-world adventure they cannot experience anywhere else," added Greg Foster, Chairman and President of IMAX Filmed Entertainment. "We are thrilled to once again partner with Warner Bros. Pictures, our good friends at Playtone who we've shared so much success with over the years, and now Spike Jonze on his highly imaginative movie adaptation of this classic story."

 

From director Spike Jonze and written by Spike Jonze Dave Eggers (Away We Go), comes a cinematic twist on one of the most acclaimed adventure stories of all time. Where the Wild Things Are," features Catherine Keener, Forest Whitaker, James Gandolfini, Mark Ruffalo, Max Records, Lauren Ambrose, Chris Cooper and Catherine O'Hara.

 

New Routes to 3D Content During D Cinema Day at IBC 09

http://www.2-pop.com/article/84922

Jul 22 2009 2:36PM

Monday, September 14th is officially D Cinema Day at IBC 09, and in the morning the focus will be firmly on stereoscopic 3D for the cinema. Chaired by 3D film producer and session architect Phil Streather, CEO of pioneering giant-screen movie production company Principal Large Format, the morning’s programme will guide delegates through the complete process of 3D movie-making; from pre-visualization, through stereo 3D acquisition and on to stereo 3D editing.

“If 3D is going to drive our industry forward, then we are going to need fantastic 3D content, and plenty of it,” comments Streather, whose 3D Masterclass at IBC 08 drew hundreds of attendees.

D Cinema Day Executive Producer, Dave Monk says, “We are delighted to have Phil’s input on this session. He is one of the most knowledgeable producer/consultants working in Europe today and he has opened his little black book and pulled together a world class set of speakers.”

Continues Streather, “The purpose of our programme on D-Cinema Day at IBC 09 is to ensure that people are aware of the latest tools in 3D content creation and editing, how they can be used, and what benefits they can bring to a project. Fantastic though it is not everybody can afford a Quantel Pablo with the stereo tool set. But there are alternatives out there that are more accessible to smaller or independent production companies, and our aim is to showcase some of them to an audience that might so far have limited or no experience of 3D movie-making. The more people who can have access to tools to make good 3D the better.

“Thus the morning aligns to a narrative that will have a beginning, a middle, and an end: a beginner’s guide, followed by tutorials on how to previzualise 3D before shooting, how to shoot, and finally how to edit.”

Part 1: Primer

The session begins with a primer offered by Bernard Mendiburu, renowned LA-based CGI stereographer whose credits include OMeet The Robinsons’ and OMonsters vs. Aliens’. A respected industry consultant and author of the newly published book, O3D Movie Making: Stereoscopic Digital Cinema From Script To Screen’, Mendiburu will offer an overview of the latest developments in 3D workflow which will enable delegates to get the best from the three presentations that follow.

Part 2: Pre-visualisation

The second part of the session will be led by Ken Schafer, President of Innoventive Software, who will look at pre-visualization. A provider of cutting-edge software solutions for the film and television industries since 1991, Schafer will demonstrate how Innoventive Software’s latest package, FrameForge Previz Studio 3, allows users to prep live-action stereo 3D shoots.

Part 3: Image capture

The session’s third presentation will be by the acclaimed stereographer Steve Schklair, CEO of 3ality Digital, who returns to IBC to demonstrate the tools that are needed to capture the very best stereo images. Schklair, whose most recent work includes overseeing the production, post-production and completion of OU2 3D’ at the 3ality Digital studio in Burbank,
California, will use projected images from live cameras positioned outside the Auditorium to demonstrate alignment, misalignment, image correction, intertaxial and convergence shifting, and much more.

Part 4: Editing

Editing and image manipulation take on new importance in the 3D movie-making process, with stereoscopic depth and acquisition inconsistencies needing to be processed to ensure viewer comfort and the proper deployment of dramatic effect. The morning’s final presentation, hosted by David Newman, CTO of CineForm, will demonstrate how the company’s neo3D plug-in for Final Cut Pro can manipulate images, correct vertical misalignment, perform Horizontal
Image Translation and more; all using the revolutionary and virtually lossless CineForm codec, as used on the Oscar-winning "Slumdog Millionaire."
Commenting further on the programme, Phil Streather adds: “The second, third and fourth sessions will be a complete antidote to the theoretical, PowerPoint-based approach of so many industry seminars. Using the IBC Big Screen in the RAI Auditorium, which holds 3,000 people, our speakers – who are all professionals at the top of their game – will demonstrate the latest 3D imaging techniques in real time, using real-world content, in a real cinematic environment. This will give delegates an opportunity to see not just how stereoscopic effects can be created, but also some of the problems
they may typically encounter along the way – along with appropriate solutions.”

The programme will end with a round-table Q&A session chaired by Streather and attended by all four speakers, during which delegates will get the chance to discuss the most pressing issues surrounding 3D movie-making.

“After they’ve attended this session, we just don’t want delegates to get started making 3D content,” concludes Streather. “We want them to create movies that are effective, appealing, impactful, future proof and, above all, profitable.”

To register for the session, please visit: www.ibc.org.

About Principal Large Format

Principal Large Format (PLF) was founded in 1998 by present CEO Phil Streather. PLF is a production company dedicated to developing and producing award winning 3D Giant Screen (IMAX) features, 3D Theatrical Documentary features and 3D HDTV.

www.plf.cc

 

Barco's 1,000th digital cinema projector installation confirms leading market position in China

http://www.barco.com/digitalcinema/en/pressreleases/show.asp?index=2367

 

Kuurne, Belgium, 22 July 2009. Barco, a global leader in digital cinema technology, is proud to announce that it has completed its 1,000th digital cinema projector installation in China. This again confirms Barco’s solid position in the Asian Pacific digital cinema market in general, and China in particular where the company has a market share of more than 80%.

 

Ever since the beginning of digital cinema in China, Barco has been working closely together with GDC Technology to provide one-stop digital cinema solutions to exhibitors. Since the announcement of the partnership in March 2007, both companies have worked on a number of successful deals and will continue to do so in the future. Only recently, major deals with prime exhibitors like Jinyi, Hengdian and the China Film Group were announced for a total of more than 200 digital cinema projectors.

 

“China is one of the fastest growing cinema markets in the world and Barco is proud to be part of its transition to digital,” comments Frank Christiaens, Barco’s President Greater China. “Barco has a long term commitment towards the digital cinema market and has made severe efforts towards the China market. We very much value our existing partnerships and our customers’ confidence in Barco digital cinema projectors.”

 

“China has always been at the forefront in digital innovation. Already in 2006, Barco signed a historic deal with Dadi Digital Cinemas and we have a market share of more than 80% in China”, says Alain Solomon, VP of Barco’s Digital Cinema business. “Our Chinese customers especially value our reliability and low total cost of ownership, resulting from the modular design and use of standard lamps in our projector design.”

 

Barco's digital cinema projectors are based on the pioneering DLP Cinema® technology from Texas Instruments, guaranteeing perfect reproduction of cinema content time and time again, ensuring moviegoers enjoy the highest quality film experience with consistent picture brightness, contrast and vibrant colors.

Spain's Xpand to distribute 3-D pics

http://www.variety.com/article/VR1118005626.html?categoryid=1050&cs=1

 

Move follows launch in Slovenia

 

By EMILIANO DE PABLOS, JOHN HOPEWELL

 

MADRID — Digital 3-D system company Xpand has teamed with Barcelona-based firm Vercine to launch a new film distribution operation in Spain from September.

The still-unnamed distrib aims to handle four to five 3-D film titles a year in the burgeoning Spanish 3-D theatrical market. For Xpand this will be its second move into film distribution, having entered Central Europe's Slovenia earlier this year.

 

"We want to demonstrate our commitment to the development of 3-D technology," said Xpand CEO Maria Costeira.

 

Xpand is the brand name of European company X6D, which last year acquired Oregon-based stereoscopic manufacturing company NuVision Technologies.

With offices in California, Slovenia and Israel, Xpand was the official 3-D digital system provider at this year's Cannes Film Festival. The Xpand technology is used on more than 800 3-D screens worldwide.

 

As a distributor in Spain, Xpand will offer 3-D pics in the three competing 3-D formats — RealD, Dolby 3-D and XpanD.

 

Ignacio Puebla's consulting firm Vercine will work with Xpand in the daily management of the new distrib, selecting new products and defining the business strategy and marketing for each film launch.

First two titles to be released in 2009 by Xpand in Spain are animated pics: "Garfield's Pet Force 3-D," taken from U.K.'s sales agent Velvet Octopus, and "Battle for Terra 3-D," sold by L.A-based IM Global.

 

Other upcoming 3-D pic bows include "Around the World in 50 Years," acquired from StudioCanal, and made by European 3-D film pioneer nWave Pictures.

"A key challenge for 3-D indie film distributors is accessing product — above all live-action pics, which mainly are in the hands of big studios," said Puebla.

 

3-D runs help 'Ice Age 3' rule world

http://www.variety.com/article/VR1118006122.html?categoryid=13&cs=1&nid=2566

 

Fox sequel grosses $332.6 million in 10 days

By PAMELA MCCLINTOCK

Twentieth Century Fox's "Ice Age: Dawn of the Dinosaurs" has quickly hatched into one of the most powerful players of the year at the foreign box office, grossing a boffo $332.6 million in its first 10 days.

 

For the July 10-12 weekend -- its second sesh -- the 3-D toon grossed $101.9 million from 12,057 runs in 101 markets to stay No. 1 internationally.

Overseas auds are proving every bit as willing as moviegoers in the U.S. to pay a premium for 3-D films. Of the 11,652 screens that "Dawn of the Dinosaurs" opened on, only 2,126 were 3-D screens, or 18%. Yet the 3-D playdates generated $51 million in ticket sales, or 34% of the total opening gross.

The dazzling overall results underscore the revenue potential of 3-D titles, as well as the value of a family franchises like Ice Age, of which "Dawn of the Dinosaurs" is the third installment.

"Dawn of the Dinosaurs" should ultimately gross more than any summer tentpole besides "Harry Potter and the Half-Blood Prince." It's already passing Sony's "Angels and Demons" ($334 million to date) and should soon overtake Paramount's "Transformers: Revenge of the Fallen" ($365.1 million to date).

Theater owners also say the return on the investment they made to install 3-D screens has been quicker than expected.

Moviegoers in France remained delighted with the animated dinos. The pic's French cume through July 12th was a hefty $34.6 million.

"Dawn of the Dinosaurs" also continued to dominate the box office in Germany, dropping a mere 7% in its sophomore frame to $14.9 million, as rainy weather and summer holidays helped boost the overall cume to $37.8 million, the highest of any territory.

In Spain, "Dawn of the Dinosaurs" stayed at No. 1 in its second frame. Better yet, grosses from 3-D screens dropped just 36%, while grosses from 2-D screens slid 45%. Exhibs say this provides more evidence 3-D pics not only gross more, but give the film longer plays. Total cume in Spain is $17.2 million. Central and South America are likewise dino strongholds"Transformers: Revenge of the Fallen" placed No. 2 for the frame, grossing $32.7 million from 8,210 locations in 60 markets in its fourth week. The pic has already caught up with the first "Transformers," which grossed $369.3 million at the international B.O.

The most buzzed-about title in the U.K. and Europe was Sacha Baron Cohen's mockumentary "Bruno," from Universal. The film is the Brit comedian's follow-up to "Borat," which did runaway biz at the foreign box office, including a gross of $46.1 million in the U.K.

"Bruno" did solid, but not spectacular, business in its first sesh internationally, grossing $19.8 million from 1,459 locations for Universal. The pic grossed another $5 million in territories where Mandate and Sony are distributing.

In the U.K., "Bruno" opened to $14.1 million. Throughout opening weekend, exhibs reported they had to turn away teenagers as a result of the film getting an "18" rating by the British Board of Film Classification. On the Monday following the film's debut, Universal Pictures Intl. announced it was resubmitting the film in order to get a "15" rating, meaning anyone 15 and older can buy a ticket. U said it was willing to cut the three scenes that had earned the more restrictive rating. Both versions of "Bruno" will play simultaneously once the watered-down version is released on July 24.

After the U.K., Australia and Germany were the top grossing territories for "Borat," at $14.6 million and $13.5 million, respectively. "Bruno" opened with $2.9 million from 470 in Germany, equaling the first weekend take of his "Borat." In Spain, the pic bowed on a generous 307 and nabbed $882,445, placing third for the frame. "Borat" grossed $3 million in its November 2006 bow.

The weekend was the last one before the onslaught of "Harry Potter and the Half-Blood Prince." Warner Bros. opened the sixth installment in the blockbuster franchise day and date around the globe July 15. Early results showed the film scoring the best midnight gross of all time -- $22.2 million -- at the domestic B.O. alone. Many box observers expect "Half-Blood Prince" to be the biggest international performer of the summer.

David Hayhurst in Paris, Emilio Mayorga in Barcelona, Ed Meza in Berlin, Mark Schilling in Tokyo and Nick Vivarelli in Rome contributed to this report.

 

Digital Cinema in Russia in the First Half of...

According to Nevafilm Research, by July 1, 2009 there were 127 sites in 54 cities operating 162 DLP Cinema screens; a remarkable increase considering the first digital systems began opening in Russia only two years ago. Even more significant is that almost all digital screens are 3D (only two screens still without this opportunity). It is a turning point for the market of cinema equipment: the amount of new digital screens rises increasingly. So, if the first 50 digital screens in Russia were opened during almost 2 years (21 months), the other 50 took just 8 months, and another 50 - 3 months. Along with this 3D exhibition is a main driver for national cinema operators installing digital cinema equipment. That is, according to our forecasts the market growth rate will slow down by autumn.

1/4 of all Russian digital screens are located in Moscow - 42 screens in 26 sites. Moscow is followed by Saint-Petersburg - 13 screens in 10 sites. 7 digital screens are in Ufa. Krasnodar, Krasnoyarsk and Novosibirsk have 5 digital screens in each. Tyumen, Vladivostok and have 4 screens in each. Today digital cinema equipment is installed in every tenth movie theatre in Russia. Cinema Park network holds the position of leader in Russian digital cinema exhibition market - 29 screens of its chain are digitally equipped. Rising Star Media is on the second place with 12 digital screens. It is followed by Luxor and Karo Film cinema operators - each has 8 digital screens. Kinomax and Formula Kino have 6 screens each, Illuzion operates 5 screens. 42 digital screens belong to independent cinemas. As for companies that provide digital cinema equipment installation and integration services, in the middle of 2009 the leaders are Nevafilm - 33% of all digitally equipped cinemas, Kinoproject and Cinemeccanica - 18% each, and ASK - 11%.

Most popular digital projector brand in Russia is still Christie. It dominates with 55% share of the market (though within 3 months it has drop by 3%). Cinemeccanica holds 21% (also drop by 5%), NEC - 12% (+2%), Barco - 10% (+4%), and newcomer Kinoton - 2%.

Dolby has a priority in Russian market as digital cinema server and 3D system provider with 65% and 64% shares respectively. The market of digital cinema servers is also presented by Doremi Cinema, which has 33% market share (-3% within 3 months). There are also Kodak and Qube - 1% each. As for Digital 3D systems, the market leader Dolby, which share has increased by 2% since April, is followed by Xpand that occupies 26% (-5% within 3 month) of the market. RealD has entered Russian digital cinema market and since April its share increased by 4% to 7%. There are also few digital 3D systems from MasterImage, Dual Projection and IMAX. And just two screens are still without 3D technology (one in Moscow and one in Magadan). The number of digital releases in Russia is growing. In the first half of 2009 52 movies have been released digitally in Russian cinemas, including Ice Age: Dawn of the Dinosaurs 3D, released in Russia on July 1, 2009 (vs 63 in a whole Y2008). Among them are 7 movies of local production. 7 movies were screened in Digital 3D. The slate of digital 3D movies for the rest of the year includes Sea Monsters: a Prehistoric Adventure, Oceans 3D: Into the Deep, Little Hercules in 3D, G-Force 3D, Final Destination: Death Trip 3D, Rolly and Elf: Unbelievable Adventures 3D, Toy Story 3D, Cloudy with a Chance of Meatballs 3D, A Christmas Carol 3D, The Descent: Part 2 3D, Avatar. It is necessary to note that Digital 3D is the main driver of digital cinema opening in Russia.

In the first half of 2009 the first practices of alternative content distribution and presentation in digital cinemas took place. Nevafilm Company has launched Nevafilm Emotion, a new department specializing in theatrical distribution of alternative content, special events and live broadcasts in cinemas - the first of its kind in the country. It has successfully organized the first alter-event for digital cinemas in Russia - Iron Maiden Day on April 21st with the screening of Iron Maiden: Flight 666 (42 digital screens in 35 cities) and on May 26 - Tribute to Pavarotti: One Amazing Weekend in Petra (30 screens/23 cities) in cooperation with More2Screen. The nearest project will start in August 15, 2009 - special screenings in digital of Last Hero. 20 Years Later documentary dedicated to cult Russian rock musician Victor Tsoi. Opera and ballet programs will be presented in digital cinemas of the country. 2009/2010 season will feature series of performances prerecorded in High Definition in Mariinskiy Theatre in Saint-Petersburg and 8 operas from LaScala. Svetlana Mudrova, Nevafilm

Cinema's hidden dimension - Riding the 3D gravy train

http://www.guardian.co.uk/film/2009/jul/03/why-3d-cinema-tickets-are-expensive

 

Your kids want it, your cinema wants it, Hollywood wants it: 3D is taking over. Even Cannes opened with Up, Disney's latest eye-popper. And with 14 3D releases before the year is out, the craze is set to continue. But this trend comes with a fourth dimension: cost. As your recession-bitten wallet recovers, there's a fresh set of bite marks from an average add-on of £2 per ticket. Entry to 3D films can now cost up to £16 for an adult and £10 for a child.

So why are 3D movie tickets so expensive? Well, it's not because of the special glasses you need, which only cost about 45p a pair - and the studios have been covering that cost, anyway. The pricy part to the exhibitor is the projection: the 3D effect is created by your brain combining two different images, one for each eye. So you either need two projectors, or a neat way of doing it with one. And that's where technology comes in.

Cinema, these days, is gradually going digital - it's cheaper than celluloid and gives better picture quality. The cost of a new digital projector is about £30,000. But that still only gives you one image. The clever part is a little lens add-on, which clips onto the front of the projector and splits the image in two via polarised light, giving the 3D effect. But where can one get such a high-class clip-on? A small Beverly Hills-based company called RealD.

RealD have supplied 300 or so of the UK's 3D-equipped screens, with another 300 scheduled to be made ready by the end of 2009. By the time they've finished, RealD will have put up a total of 1,000 3D-ready screens across the country, for Odeon, Vue, Cineworld and other chains. Although it is cagey about the details, RealD give cinemas their technology on a "revenue share model". A simple royalty per ticket, which pays for the technology, is the reason for the hiked-up prices. We are footing the bill for the cinemas to upgrade.

Not that we seem to mind - at least, according to the figures. In fact, cinema attendance for the first quarter of 2009 is up 7.5% on last year. The highest grossing film so far this year is Dreamworks' 3D animation Monsters V Aliens, which has taken £21m at the UK box office, topping even Star Trek's current total (£20.9m). Family animations are favourites for conversion to 3D, with Disney especially throwing its weight behind the format, but even the routine slasher movie My Bloody Valentine was a hit in 3D, outperforming its 2D partner to the tune of £6m against £700,000. With numbers like that, no wonder the industry is excited.

But the increased ticket price does skew the results. In 2008, the average UK ticket price was £5.18. But with its premium mark-up, 3D tickets are up at the £7 mark. So while 2-D Monsters vs Aliens grossed £2.16m from 463 screens on its opening weekend, the 3D version took £2.18m from just 174 screens.

So how much of that goes to RealD? It won't say, but Forbes reported that in the US the royalty per ticket is 30p. If it is that little here, then the cinemas are not just covering the costs of installing 3D, they are also taking a fresh cut for themselves.

Don't expect 3D to go away anytime soon. It is, remember, piracy-proof, since trying to record it just leads to wobbly camera footage. It's the perfect formula for the future: beat piracy, appeal to the kids, and raise the prices. As RealD puts it: "The important takeaway from today's 3D is that everyone wins." Except the person paying for the tickets.

 

Cinemas are not using 3D movies to rip off audiences

http://www.guardian.co.uk/commentisfree/2009/jul/16/3d

Phil Clapp

The Guardian, Thursday 16 July 2009

Ticket prices reflect the cost of investment, and it's totally reasonable to charge an extra £2

Ivan Radford attempts to rustle up controversy about ticket prices for 3D films (Cinema's hidden dimension: riding the 3D gravy train). "It's the perfect formula for the future," he claims. "Beat piracy, appeal to the kids, and raise the prices."

Radford accepts that digitisation of the British cinema sector, now well underway, offers the potential benefit of "better picture quality" (the days of a film looking tired and scratched two weeks after release will become a thing of the past). But it also provides audiences with the opportunity to experience "alternative content" – live concerts, opera, theatre and sport as well as jaw-dropping 3D cinema – and such developments inevitably come at a cost.

The article claims that "the cost of a new digital projector is about £30,000": in fact a state-of-the-art digital cinema projector generally costs anything from £50,000 upwards, with the required upgrade to show 3D content a significant sum on top.

The observation that "we [the audience] are footing the bill for cinemas to upgrade", and that cinemas are "taking a cut" of the box office from 3D films implies that this is some kind of underhand move by cinema operators. The truth is that those companies which have sought to provide their audiences with the cutting-edge experience of digital 3D have, to date, met the bulk of these costs from their own pockets. It is the understandable desire to recoup this investment that underpins the uplift in ticket prices.

In this regard, cinemas are no different from other entertainment and leisure industries whose pricing policies reflect the additional costs of providing a premium service. Given that cinema prices averaged £5.18 last year, which the article acknowledges, and given the levels of investment involved, an average premium of £2 per ticket seems admirably modest.

Radford also points the finger at RealD – the leading provider of digital 3D in Britain – as the source of the increase in ticket prices. In truth, there are a number of competing systems, each with different costs and business models. This is no monopoly situation – such a competitive market benefits the customer now and will continue to do so.

And members of the public continue to vote with their feet. Even in a recession, cinema attendances continue to grow, with admissions for the first five months of this year 16% higher than for the same period in 2008, itself a strong year.

Digital 3D cinema is a key element of that story. The 3D films we see on our screens today are materially different – not just in terms of technology but also the calibre of the creative talent behind the camera – from those experienced by previous generations. Radford is certainly correct in his assertion that we "should not expect digital 3D cinema to go away anytime soon".

This month's opening of Ice Age 3: Dawn of the Dinosaurs shows every sign of repeating the pattern of each recent digital 3D film, where admissions have been at least double those of the more traditional presentation. • Phil Clapp is chief executive of the Cinema Exhibitors' Association phil.clapp@cinemauk.org.uk

 

3-D starting to look flat at the box office

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/07/3d-starting-to-look-flat-at-the-box-office.html

 

06:24 PM PT, Jul 8 2009

As more movies play in digital 3-D, there’s evidence that audiences are becoming less interested in the ballyhooed format that many in Hollywood have predicted will stem the long-term erosion of theater attendance.

Box office data for “Ice Age: Dawn of the Dinosaurs,” which opened last Wednesday, shows that theaters with at least one screen playing the film in 3-D generated on average, 1.4x  as much in ticket sales as those that only showed the picture the old fashioned 2-D way. (A breakdown by individual screens within multiplexes was not available.)

The higher gross represents a mix of ticket price surcharges, which are typically $2 to $3 for digital 3-D, and higher attendance.

The ratio of grosses in theaters with 3-D screens to those that are 2-D only has declined significantly and fairly consistently since “My Bloody Valentine,” the first film this year to play on a mix of both, suggesting audience interest in the new format is waning.

Here’s how much higher ticket sales were for theaters with 3-D screens compared with theaters with only 2-D screens on the opening weekends for the five major releases so far this year (the numbers are based on studio estimates, as reported by The Times, Boxofficemojo.com and Variety):

• “My Bloody Valentine 3-D”: 6.4x
• “Coraline”: 3x
• “Monsters vs Aliens”: 2.1x
• “Up”: 2.2x
• “Ice Age: Dawn of the Dinosaurs”: 1.4x

Those figures, of course, don't fully represent the financial advantage of 3-D screens compared with 2-D screens, because many theaters feature both;  1,620 of "Ice Age's" 4,099 U.S. and Canadian locations played the film in 3-D, but 1,205 of those also played it in 2-D. Average grosses within those 1,205 probably were dragged down somewhat by their 2-D screens.

Nonetheless, as an apples-to-apples comparison, the decline in 3-D's advantage is significant and curious. It's partially due, no doubt, to the rising number of theaters equipped with 3-D screens. January's "My Bloody Valentine" was in 1,033 of them. By the time "Monsters vs. Aliens" came out in March, there were 1,550. "Ice Age" was on 1,620.

The more theaters with 3-D screens there are in a given region, the more they may split audiences interested in the technology and thus lower their average gross.

It's also possible that as 3-D releases increase in frequency -- "Up" came out four and a half weeks before "Ice Age," "G-Force" follows just three weeks later -- audiences become a little less enchanted by what they get for their extra money. Other upcoming releases using the technology include August's "The Final Destination," September's "Cloudy With a Chance of Meatballs," October's re-release of "Toy Story" and "Toy Story 2," November's "A Christmas Carol" and December's "Avatar."

There's certainly no sure evidence that films are consistently doing better as a result of 3-D. While many factors affected the movie's performance, including the Fourth of July falling on a Saturday, it's notable that "Dawn of the Dinosaurs" earned less domestically in its first five days than the 2-D "Ice Age: the Meltdown," grossed its first three days in March of 2006.

-- Ben Fritz