How digital cinema can make a difference (unleash your archive!)


UKFC logo The always readable Andreas Fuchs has an excelent piece in the latest issue of Film Journal International on the difference that the UK Film Council’s Digital Screen Network has made. It was never intended to help the Hollywood blockbusters, though arguably it got the ball rolling in UK for digital cinema, but the benefits have been tangible where they were intended. From the article:

Last year, “The Summer of British Film” used the Digital Screen Network to bring back classic British films. Seven films from Goldfinger to Withnail & I were shown digitally in 136 cinemas each Tuesday over a period of as many weeks. “We tied in with the BBC’s ‘British Film Forever’ series of documentaries, which looked at seven different film genres the preceding Saturday,” Stolz explains. “Each program genre under discussion was then illustrated [with] a classic British film in cinemas.” This initiative was “a great success and demonstrated the possibilities of digital programming, attracting cinema audiences of over 62,000. We received extremely enthusiastic responses from members of the public who were delighted to see these classic films back on the big screen. This summer we are supporting two distributors in releasing classics from the legendary British filmmaker David Lean.”

Although any one of Sir David’s films certainly more than matters, it was Warner Bros. which had already opened its vaults on that particular note. From mid-May onwards, the first “Movies That Matter” festival brought 15 marvelous titles for one-week engagements into 30 Vue Cinemas across the U.K. (www.warnermtm.co.uk). Starting in Casablanca and bloody well ending for Bonnie and Clyde, with highlights like The Wizard of Oz in between and East of Eden and North by Northwest further pointing in the right directions, the press notes promised them all to be “remastered to flawless, crystal-clear 2K-resolution digital cinema, the highest quality standard in cinemas today.”

Sadly the UKFC’s example has not been adopted very widely. With the exception of the anyways exceptional Norway, only Canada and Australia has adopted something similar, though these went arguably wrong by going for lower end e-cinema networks.

Popularity: 59% [?]

China claims cinema-laser first, but details sketchy


Paul Simon sang about ‘the are the days of lasers in the jungle’, but these days it is cinemas in China where lasers are putting an appearance. Or so an article in THR.com would have us believe:

 ”Beijing Phoebus Vision Co. provided us with the world’s first set of laser-screening instruments” Han Jie, spokeswoman with Beijing UME said Monday.

The projector was installed in an existing 120-seat hall in the Chinese capital at a cost of about 1.2 million yuan ($176,000).

“It is the first laser-screening set in the world,” a Beijing Phoebus Vision spokesman said. Han said that UME’s normal cinema projectors cost about 700,000 yuan ($102,000).

Several companies, including Mitsubishi, have demonstrated laser projection systems, said industry analyst Matt Brennensholtz of Norwalk, Conn.-based research firm Insight Media. These systems are usually very costly, he added.

“I’m not aware of anybody that’s used a laser projector in a movie theater before,” Brennensholtz said. “There were a number of tests, but I’ve never head of a public theater where you pay your ticket and go in and see one of these.”

A Google search for Phoebus Vision does not yield any results other than the THR.com article itself. That an unknown company should have come out of nowhere and perfected laser technology is not impossible, but it is highly unlikely.

The only time lasers have been used for a paying audience was at the 2005 Expo in Japan where Sony demonstrated the GLV projector (based on techonlogy developed by Silicon Light Machine) in the ‘Sony Dream Theatre’ (PDF link here) that it has since kept under wraps while it promoted its SXRD 4K projector.

There is no mention of the brightness, resolution or even of the laser are direct projection CRT-style or whether they are just used as a light source. So for now this one is to be taken with a big pinch of salt.

Popularity: 51% [?]

RealD and Cinepolis see Latin America in 3D


Cinepolis logo Mexican exhibitor Cinepolis has big 3D plans for the whole of Latin america. Its deal with RealD envisions 500 screens to be converted in the next few years. From the press release:

The rollout of these 500 RealD 3D screens has already begun with six new screens installed for the release of Journey to the Center of the Earth, and will continue through 2010. The partnership makes RealD the exclusive choice of Cinepolis for digital 3D and creates a strong platform in the market for the upcoming slate of over thirty major studio 3D releases in 2009 and 2010.

The press release then goes on to quote Jeffrey Katzenberg and Disney before remembering to sample the opinions of the two companies that made the deal happen, showing you where the TRUE power of 3D lies today (content, content and, yes, more content). THR.com’s take is that:

Cinepolis and RealD are co-financing the venture, though Cinepolis declined to disclose financial details when contacted Thursday.

The deal provides a major platform for 3-D cinema in Latin America as Cinepolis continues to expand in the region. Cinepolis rival Cinemark also has a partnership with RealD.

and

Cinepolis, owned by the Ramirez family, currently has more than 1,800 screens. In recent years, as Mexico’s exhibition market has grown more saturated, the exhibitor has expanded into Guatemala, Panama, El Salvador, Costa Rica, Honduras and Colombia. Moving forward, Cinepolis is eyeing Brazil’s underserved exhibition market.

So at the present screen count, one out of every 3.6 screens will be 3D. This is clearly a bit too high, so it is likely to come about when Cinepolis has increased its footprint across Latin America. It must also mean that the screens will embrace digital cinema in 2D first, though whether Cinepolis will finance this itself or with a third party provider is nit clear. This means that the deal might not be contingent on something like the delayed DCIP deal holding up Regal and Cinemark’s 3D plans.

Popularity: 61% [?]

Cinemas: “Recession? Bring it on!”


coffee recession

Recession is now a fact, but cinemas appear fairly nonplussed. Is this wishful thinking or actually born out by past experience? The UK’s The Guardian seems to think the latter, pointing out that box office takings rose in five out of the last seven recessions in the US:

“Hollywood gets bump from slump” was the trade bible Variety’s front-page headline, and industry analysts believe the relatively low cost of going to the cinema and the prospect of offering an escape from financial concerns for two hours will give cinema chains some resilience.

In Britain, box office revenues and cinema attendances continued to rise throughout the late 1980s and early 90s as the multiplex revolution swept through the country and going to see a movie again became a viable, low-cost leisure option for millions.

“Box office revenues definitely came up in the early 90s. As far as I can see there’s very little evidence to show cinema attendance suffers in a recession. If anything, it does quite well,” said David Hancock, head of film and cinema at Screen Digest.

This sentiment was echoed by the heads of both NATO and Regal cinemas in a recent interview in THR.com:

THR: Exhibition tends to be recession-resistant, but wouldn’t a spreading recession hurt concession sales?

Campbell: This is the most affordable out-of-home entertainment option that consumers have available, but at some point, do people stop buying concessions? I don’t think so. At some point, people may be a little more selective in some of their purchases, but at this point in time we haven’t seen that.

THR: Do hard times hurt smaller chains and mom-and-pop exhibitors more?

Fithian: I don’t believe there is a different impact on smaller chains in hard economic times. In fact, it is often the consumers in smaller markets who are most challenged during recessions. So they don’t take the vacation. Higher gas prices mean they don’t go for long drives to theme parks or other places. They stay closer to home, and when people stay closer to home, they tend to go to the cinema more often.

The optimism seems to be backed up by numbers from screen advertising in the US, again from THR.com:

CAC president and chairman Stu Ballatt predicted that the industry’s double-digit percentage growth path would continue “for the next few years at least.”

He said a sluggish U.S. economy does not seem to slow marketers’ willingness to put money into cinema promotions. For example, Ballatt cited increased activity across many sectors, with cinema ad spending by packaged goods and retail companies showing particularly strong growth during the past six to 12 months.

Cinemas and Hollywood are ‘fortunate’ in the sense that the past couple of years stagnation and even slump (once you look at actual attendance, as opposed to BO growth) could be blamed on poor films, whereas this summer’s crop has performed better - and this is before the fantastic Dark Knight opens (we’ve seen it and we know it is going to make Iron Man look like Tin Man when it comes to both critical and audience acclaim).

But there are those that doubt that cinemas will escape the brunt of the recession unscathed. Foremost amongst them The Guardian’s resident Hollywood contrarian Jon Patterson:

As for the benighted ticket-buyers, I wonder this time if they’ll display the same bovine sense of product loyalty the moguls depend on when times are tight. During the Depression, a movie ticket bought you a cartoon, a newsreel, a B feature and a marquee-topper - something like four hours of entertainment for a nickel (the price of a gallon of gas or a pack of smokes back then). A bargain if you needed to escape your troubles or just eat up dead unemployment time - and the movies were good enough that around 5bn tickets were sold between 1934 and Pearl Harbor. It was hard to feel Greatly Depressed when Astaire and Rogers, Gary Cooper, the Marx Brothers or Eddie Cantor were living it up on screen.

But things are different now, and films aren’t nearly the draw they were then. In 1938, the movies competed only with such distractions as booze, sex, God, the radio or political agitation; there was no streaming online video, no computer games, no 60in plasma TVs, no home-movie market whatsoever. If the economy collapsed tomorrow, would seeing Transformers 2 alleviate your misery or simply compound it? Dear viewer, you have options!

In the insurgent spirit of that turbulent decade, let’s call for a Netflix Revolution: we just stay home and watch as many movies as we like for 13 bucks a month. Those moguls could use a little sojourn in Hooverville - it might improve their movies, too.

Cineflix or Netflix - the choice is yours. Let’s see where the tally stands at the end of the summer.

Popularity: 33% [?]

Sony’s new 4K can now do 3D


Sony appears to have overcome one of the biggest drawbacks of its SXRD projector - the inability to do stereoscopics without resorting to two stacked projectors. The new wonder was unveiled at Cinema Expo. From THR.com:

Sony has unveiled a 4K digital projector with easy adaptability to 3-D projection. Previously, two of the pricey projectors were necessary to rig an auditorium for 4K 3-D, preventing the wide use of the high-resolution systems for 3-D exhibition.

Once considered the next-generation technology for digital cinema, Sony’s 4K systems have been struggling to overcome cost and manufacturing woes, and more conventional 2K d-cinema systems have remained the prevalent hardware in the marketplace. So Sony executives — hoping soon to remedy the additional 3-D headache — are demonstrating prototypes of the new 4K projectors with the aim of bringing the hardware to market by Christmas.

“It’s from the customer that you get the best feedback,” said Tore Mortensen, a Sony business manager now working with theater operators in Norway to test 3-D 4K projectors in four multiplexes.

Elsewhere at the confab Wednesday, Arts Alliance Media announced a 3-D addition to its alternative-programming offerings for d-cinema.

Interesting to see Tore being quoted, but then it is in Norway where the 4K SXRD has had the largest European installed base to date thanks to the NORDIC Project. [Full disclosure, I have worked in the past to assist the NORDIC project, which looks on course to help make Norway the first country to switch all of its cinemas to digital.]

Popularity: 27% [?]

India takes luxury cinema concept further


Do you balk at the prospect of paying $25/£12/€19/Rs 1,000 for a cinema ticket? Then the future of India’s premium cinema market is not one for you. Right now there is a race between the major cinema chains in India to see who can the offer the most luxurious cinema experience to the audience segment with enormous price elasticity. From liveMINT/WSJ.com:

Adlabs Cinemas, an arm of the Reliance-Anil Dhirubhai Ambani Group’s Adlabs Films Ltd, is raising the stakes in the battle for cinema goers’ wallets by launching a chain of stand-alone luxury lounges centred around film.

The cinema chain will open up to a dozen independent 6,000-10,000 sq. ft lounges over the next year, loosely based around the concept of its existing “ebony lounge” format that offers audiences reclining leather chairs and waiter service.

“Cinemas are our iconic statements,” says Tushar Dhingra, chief operating officer of Adlabs Cinemas. “We want to set a world benchmark for the cinematic experience. What we create has the potential to set a trend.”

“It is no-holds-barred. Anything can be done. The premium and mass markets in India are the sweet spot. They are largely unpenetrated, and we are well positioned to move in,” he added.

Adlabs Cinemas is far from alone and will be battling it out with the likes of Fame and PVR, though the latter has reservations about the prospects for the market:

Ajay Bijli, managing director of PVR Cinemas Ltd, says that although the top segment does represent an opportunity, the mass market will continue to provide the bulk of the company’s revenues. “I don’t think that stand-alone gold classes would work,” says Bijli. “It is just a way of catering to more than one audience. But, out of a cinema hall of 500 seats, only up to 40 seats would be gold class.”

I for one love the Adlabs Ebony Lounges, though sadly there are none where I live in Mumbai (yet!) and the Cinemax equivalent is just not as, well, luxurious. However, I find that the typical multiplex hall is as good if not better than what I was used to back in London.

If only it wasn’t for the dim projector. As you might have guessed, my local multiplex is not digital.

Popularity: 49% [?]

Sony US follows Sony Japan in alternative content


Cirque de Solei dilerium Sony Pictures has woken up to the fact that the big screen real estate will not be occupied 100 per cent by feature films in the future and that third party operators like AccessIT and Arts Alliance Media are getting in on the game. That is why they have launched their own division for alternative content entertainment. From Reuters:

The new venture, dubbed the Hot Ticket, will launch in August with a presentation of the final staging of the music and dance extravaganza “Delirium” from Cirque du Soleil, which closed its worldwide tour in London in April.

In September, the final performance in the 12-year Broadway run of the hit musical “Rent” will be presented.

“Our mandate will be to identify the one-of-a-kind, and sold-out events that people around the country most want to see … and present them to audiences everywhere,” Sony distribution president Rory Bruer said in a statement.

Hot Ticket presentations will be shown in high-definition format for limited engagements, starting out on roughly 400 to 500 screens in theaters across the country, with audiences paying roughly $20 a seat, Bruer said.

What most US and western media covering this announcement, such as LA times, have failed to pick up on in regurgitating the press release is that this type of venture was already announced by Sony Japan several months ago and covered here at CelluloidJunkie.com when it happened. Don’t be surprised if other Hollywood studios follow suit, with Disney already halfway there through the ‘Hannah Montana/Milly Cyrus’ concert film, wildlife films in cinemas and ESPN’s deal with AccessIT.

Popularity: 51% [?]

XDC Nabs Those Elusive VPF Deals - Including WB


XDC in Cannes 2008

There will be champagne rather than rose wine or Belgian beer being poured, toasted and drunk tonight in Cannes as XDC announces that they have secured VPF deals with four of the Hollywood studio, including the one that has eluded others, namely with Warner Bros. From Forbes.com:

Broadcast equipment manufacturer EVS said its unit XDC has signed agreements with Warner Bros. Entertainment Inc., Paramount Pictures Corp., Twentieth Century Fox Film Corp. and The Walt Disney Studios to invest up to 600 million euros in the deployment of up to 8,000 digital cinema installations in Europe.

The roll-out period under the agreement - which will see more than 65 percent of the value of projectors, servers, applications and services being co-financed — will last for a maximum of 5 years, with each digitised screen co-financed over a period of maximum 10 years.

The group also said agreements with two other studios, Universal Pictures and Sony Pictures are in a very advanced stage and are expected to close shortly.

Read More »

Popularity: 29% [?]

Regal’s 1,500 screen deal with RealD for 3D comes with BIG caveat


Audience 3D horror Regal likes 3D and is showing it in a big way by promising to install no less than 1,500 of its screens with RealD’s technology, meaning that more than one in ten of all its auditoria would be stereoscopically enabled. But this big hangs on a bigger IF that most of the press seem to skip over. Here is how a fairly long article on the Financial Times starts of:

Regal Entertainment, one of the largest US cinema chains, has struck a deal to install new technology that will sharply lift the number of screens capable of showing 3-D films and give Hollywood studios a more profitable outlet for their new releases.

Regal has signed an agreement with RealD, which makes 3-D projection technology, to install more than 1,500 3-D screens. The deal will lift the number of 3-D screens operated by RealD to more than 3,500.

With cinemas able to charge higher ticket prices for 3-D titles, Hollywood studios are clamouring to release their films in the new technology. DreamWorks Animation will release all of its films in 3-D starting next year with Monsters vs Aliens . Walt Disney will also release 3-D films in 2009, as will Universal Pictures with James Cameron’s Avatar .

But what the FT confines to the fine print at the bottom of the article, Carolyn Giardina has the nous to highlight in the first paragraph of THR.com’s article about the deal:

Regal Entertainment Group and RealD have inked a deal to install 1,500 RealD 3-D systems in Regal theaters in the domestic market. Consummation, however, is contingent upon digital cinema deployment arrangements.

In order to have digital 3-D, a theater first requires a digital cinema installation. Digital cinema deployment deals generally rely on a virtual print fee model through which studios contribute an agreed fee per screen, per movie to offset exhibitors’ installation costs. However, many of these deals remain at an impasse.

So if DCIP does not get the VPF deal in place there will be no 1,500 RealD screens. And that is still a very big ‘if’. The $1bn+ deal that was supposed to have concluded by late 2007 now looks likely to miss the Q2 2008 deadline. As Pamela McClintock notes in Variety:

At one point, the consortium — Digital Cinema Implementation Partners — wanted all the major studios to agree. Now, it appears that the consortium is prepared to move ahead with only three of the studios aboard: Walt Disney, Paramount (which distributes DreamWorks Animation titles) and Fox. Insiders said they expect Sony and Universal to follow suit eventually, while Warner Bros. and DCIP are said to be far apart on terms.

Disney has been the pioneer in digital 3-D, although it is Katzenberg who has become the public ambassador of the fight to convert more.

This would be one studio less than even AccessIT’s second VPF deal. Once again it seems that Warner Bros is sitting this one out, have so far signed no VPF deal with either AccessIT, DCIP or Arts Alliance.

Moreover, no one is asking the question about how the 1,500 3D screens will get rolled out, particularly if it is to happen in time for the Monster/Avatar 3D movies of 2009. The preferred way to convert cinemas is a whole multiplex at a time, which is how Christie/AIX tackled Carmike, with swarms of engineers and installers settling on multiplexes in one town like locusts, finishing the job and moving on to the next one.

But 3D installs will be sprinkled a handful of screens (two or three per Regal multiplex by my estimate) in each site. So if the digital cinema and 3D install it s to go hand-in-hand then installers will have to return to convert all the non-3D digitla screens at a later point, which is neither cost effective or efficient, much like Arts Alliance is has converted CGR in France to-date. Remember that the upgrade of the entire DCIP circuit (Regal, AMC and Cineark is going to take at least three years if not longer.

Digital 3D will be a long time coming yet, it would seem.

UPDATE: Some of the best analysis comes once again from Screen Digest courtesy of analyst  Charlotte Jones:

Once the DCIP model is finalised, Regal could start conversion at (previously announced) rate of about 200 screens per month. There are now just 10 months before the release of Dreamworks Animation’s first 3D effort, Monsters vs Aliens in March 2009 and assuming roll-out began next month, this would give Regal, around 2,000 basic d-cinema screens of which an unspecified proportion would be 3D-enabled by this calendar benchmark. This scenario would be on top of the 134 3D screens Regal had deployed at end first quarter 2008.
While we do not believe that 3D’s incremental production costs, are a substantial issue for the US Studios, a slower take up then the 4,170 digital 3D screens we are predicting in the US market by end 2009, could result in a reduction of the premium revenues attainable from 3D screens or a further rescheduling of titles. The deal has been reported on a revenue-sharing basis with RealD, whereby initial capital costs are lowered or removed, in return for a share of premium revenues. In this respect, maintaining higher ticket pricing for 3D screenings will be essential to this arrangement.

It looks that, as with the fate of HD DVD vs. Blu Ray, the fate of DCIP, digital cinema and digital 3D currently rests with Warner Bros.

Popularity: 37% [?]