Category Archives: Business

India’s Reliance MediaWorks Takes Over UFO’s E-Cinema Operation

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This past week the digital cinema pipeline into movie theatres in India became a little more narrow - figuratively, not literally or technically. On Thursday Reliance MediaWorks (formerly Adlabs), one of India’s largest entertainment services companies announced a “strategic alliance” with UFO Moviez, a company billed as the world’s largest digital cinema network in the press release.

This is the kind of business news that usually doesn’t make a huge impact whether in trade papers or in the mainstream media. However, it’s actually a significant announcement. What it means is that a most digital content mastering being done for the Indian market will now be conducted under one roof. Besides being the film lab which handles 80% of all Bollywood releases, RMW is also home to one of India’s largest digital intermediate facilities. Previous digital mastering for pan-Indian films was split between the two companies with RMW handling JPEG200 DCI content and UFO taking care of non-DCI e-cinema content.

Real Image is another company offering digital mastering in India, handling both d-cinema and e-cinema to support the sale of its servers for both markets. What the alliance between RMW and UFO does is swing the balance of digital mastering work squarely in RMW’s favor while leaving a question mark over the future of Real Image’s mastering efforts.

Under the agreement UFO will set up an additional encoding and encryption facility on RMW’s premises and effectively turn over the work to their new partner.  Read More »

SmartJog Continues Partnership Spree With XDC and Fox


SmartJog Logo.jpgIs it just me, or has anyone else noticed that SmartJog has been on a roll lately when it comes to partnerships? After announcing an agreement with Ymagis in February, they formed a partnership with XDC just before ShoWest and earlier this week entered into a deal with Twentieth Century Fox to deliver digital cinema content.

The agreement with XDC mirrors the one SmartJog signed with Ymagis in that XDC will deploy SmartJog’s technology in theatres it has contracted with. Specifically, each cinema will receive a SmartJog Gateway server which will act as a central library storage device that receives the content. The two companies will integrate their solutions to better automate the delivery of digital cinema content. What wasn’t clear from the press release was whether XDC would eventually integrate SmartJog’s technology directly into their own theatre management system (TMS).

SmartJog’s solution will enable XDC, which operates primarily in Europe, to deliver digital content into its theatres directly from their mastering facility in Liège, Belgium. Additionally, XDC will also be able to deliver content to any of the more than 160 cinema complexes in SmartJog’s digital cinema network throughout Europe. Commenting on the agreement, Fabrice Testa, XDC’s Vice President Sales and Business Development was quoted in the release:

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L.A. Times’ Patrick Goldstein Debates Release Windows

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Patrick Goldstein of the L.A. Times

If you’ve never read Patrick Goldstein in the Los Angeles Times, you’re really missing out. Especially this past Tuesday when the subject of his weekly column, The Big Picture, was none other than release windows.

Goldstein has been writing his column for as long as I can remember and it is one of my favorite reads each week. When he started blogging back in 2008, a form of journalism he had previously criticized, I made sure to keep up with his daily posts. As the tagline on his blog states, Goldstein covers the “collision of entertainment, media and pop culture”.

On Tuesday Goldstein was covering the collision of exhibitors and distributors over theatrical release windows and some of his observations are worth mentioning. Some of his well-made points I agree with, others I do not.

The columnist cites the recent release of “Alice In Wonderland” as a “dramatic tipping point in film history”, but not because its box office success has confirmed that audiences will come to see 3D movies even when they aren’t made by James Cameron. What Goldstein believes earned Tim Burton’s version of “Alice” a place in movie history is that “It finally put the nail in the coffin of movie theater owners’ mindlessly stubborn resistance to shorter DVD windows.”

In case readers weren’t paying attention to the recent tussle over “Alice’s” DVD release window, Goldstein fills them in on the history of Disney’s decision to release the film on DVD only three months after its theatrical bow. He then goes on to detail the record breaking box office returns the film earned; biggest U.S. non-sequel opening weekend of all time with USD $116 million and a current worldwide gross of USD $366.2 million. Given the amount of press coverage over Disney’s disputed release plans for “Alice” Goldstein figures most audiences knew the film was being released on DVD in just 12 weeks. Read More »

SmartJog and Ymagis Team Up To Deliver D-Cinema Content

Ymagis and SmartJog Partner

SmartJog and Ymagis issued a joint press release yesterday announcing they had reached a non-exclusive partnership agreement and will integrate their technologies to offer theatre owners a more robust digital cinema offering. The pairing seems as if it would be complimentary given that SmartJog specializes in high speed delivery of digital content and Ymagis focuses on digital cinema deployment.

What this means is that when Ymagis installs digital cinema equipment at one of their theatres, they will also be deploying SmartJog’s digital content delivery solution. During the first phase of the partnership, the SmartJog Gateway will be integrated into the Ymagis Cinema Central Server, which is a theatre management system. Content will arrive through the SmartJog Gateway and be handed off to the Ymagis TMS. This solution requires a theatre to make room for a separate piece of network connected equipment. The second phase of the partnership will integrate the software which runs the SmartJog Gateway directly into the Ymagis Cinema Central Server, allowing for content to be delivered straight to the TMS without need for additional hardware.

One bonus that comes with the partnership is that the two companies will be able to share their respective content delivery networks. This means Ymagis would be able to send content to any theatre in SmartJog’s network, even if the exhibitor wasn’t signed up with them. Both companies are based in France so it’s no shock that integration and deployment will begin in that country. Most, if not all, of the exhibitors Ymagis works with are in Europe.

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TI’s 4K Announcement Causes Waves - Wither 2K Now?


The announcement on Celluloid Junkie that Texas Instruments is developing 4K projector solutions is causing waves throughout the industry. The story was picked up by both THR.com (DLP making the jump to 4K) and Variety (TI leaping into 4K fray), which despite their headline both acknowledge that TI was effectively forced into this situation by the Sony tie up with Regal and AMC.Perhaps the best other coverage came from Eric Taub in the New York Times:

TI has always said that 2K is good enough, with tests showing that consumers can’t see the difference.

TI has been against 4K, until they were for it. On Thursday, the company announced that it would now market 4K technology, which will be incorporated into their next-generation projector technology to be manufactured by a variety of partners.

The company will continue to sell 2K projectors to the majority of its customers, according to Nancy Fares, business manager for TI’s DLP Cinema Products Group.

Ms. Fares said that this is not a case of TI trying to play catchup to Sony, which recently announced a number of large contracts to install its 4K projectors in AMC, Muvico, and Regal Entertainment cinemas. Texas Instruments has been working on 4K technology for two years, she said.

And when TI said that most consumers can’t see the difference between a 2K and 4K image, the company is sticking to its guns.

Their 4K technology will only be installed in about 20 percent of its customers’ theaters, the “brightest and biggest” with screens 70 feet and larger in size.

TI has meanwhile put out a press release providing details:

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It’s Official: TI Targets 4K; Cinemark Makes Deal


dlp_logo1It’s official: On the heels of our previous Celluloid Junkie post on this subject, TI announced that it plans to develop 4K as an extension of its next-gen DLP Cinema projection technology.

The new platform—which TI said would comply with the DCI spec—is slated to launch at the end of the year and initially support 2K. TI aims to offer 4K sometime in 2010.

Meanwhile, Barco inked a deal to deploy TI’s developing 4K technology to the Cinemark theater chain—a notable move, as additional DCIP members Regal and AMC both recently announced deals with Sony.

“Regal and AMC are no stranger to DLP Cinema,” said Nancy Fares, business manager for DLP Cinema Products Group. “I hope this will give them an option to think about.”

Fares reported that a 1.2 inch 4K chip would be developed and released first, “but there are not limitations.” She added that TI would also continue 2K development. 4K, she said, would offer choices, including support for 2D screens as big as 100 feet, and 3D screens as big as 75 feet. It’s not expected that the developing technology will be able to be retrofitted to the current system.

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Daily Cinema Roundup-Thursday 27 May


shrek–With his contract recently extended until 2013 and “Monsters Vs. Aliens” one of the year’s top grossing films so far, DreamWorks Animation CEO Jeffrey Katzenberg has now revealed plans to release five feature films every two years, adding an additional film every other year to its existing two picture a year release schedule.
With today’s news, DWA’s release slate through 2012 now includes eight feature films, including five original films and three sequels based on the company’s existing franchises, Shrek, Madagascar and Kung Fu Panda. And as previously announced, all DWA features will be produced in 3D.
This commitment to 3D content should come as good news for stakeholders, but it could also mean added pressure on theater owners to install digital cinema and 3D capabilities, as well as on those working to advance 3D for the home market.

DWA’s schedule includes:
“How to Train Your Dragon,” based on the book by Cressida Cowell, will be released on March 26, 2010. It will star a cast that includes Jay Baruchel, Gerard Butler, America Ferrera, Jonah Hill and Christopher Mintz-Plasse.
“Shrek Forever After” will be released on May 21, 2010. It features the original cast, including Mike Myers, Eddie Murphy, Cameron Diaz and Antonio Banderas.
“Oobermind” (formerly “Master Mind”) will be released on November 5, 2010. It will star Robert Downey Jr. and Tina Fey.
“Kung Fu Panda: The Kaboom of Doom” will be released on June 3, 2011. Returning is a voice cast that includes Jack Black, Angelina Jolie, Dustin Hoffman, Jackie Chan, Seth Rogen, Lucy Liu and David Cross.
“The Guardians” (working title), based on the forthcoming books by William Joyce, will be released on November 4, 2011.
“Puss In Boots” (working title) will be released on March 30, 2012 and star Antonio Banderas as Puss In Boots and Salma Hayek as Kitty, Puss’ love interest.
–The next Madagascar sequel is due to be released on May 25, 2012. It will find the zoo animals continuing to get back to New York. This time the road takes them through Europe.
–On Nov. 2, 2012, DWA plans to release one of three original projects currently in pre-production at the studio.

–There is more on this news announcement in a Reuters article, reporting that Katzenberg spoke yesterday at the Cowen and Co. Technology and Media and Telecom Conference and predicted that he could get its production budgets down to $130 million (including 3D) for the 2011 films. (“Monsters Vs. Aliens” was estimated to cost $175 million.) The Reuters article also said that Katzenberg expects a positive shift it distribution costs, come 2012 when DWA’s distribution contract with Paramount expires.

–In related box office news, at press time DWA’s debut 3D title “Monsters Vs. Aliens” is just shy of an impressive $194 million in the domestic box office—the highest grossing digital 3D release to date. It had also been the biggest money maker of the year so far, but today it was just passed by the Starship Enterprise. “Star Trek” reached $194.8 million. “Monsters” will surrender the majority of 3D screens this weekend to Disney/Pixar’s “Up.”

images2Dolby announced new 3D installations this week: The Empire Leicester Square in London has become Europe’s first auditorium to use the new Dolby 3D Digital Cinema large screen system.
The company reported that the new Dolby 3D large screen solution combined with Barco’s digital cinema twin-projector allows exhibitors to project Dolby 3D onto standard, non-silver screens ranging from 12.5 to 21 metres, surpassing the previous size limit of 12 metres. The Empire Leicester Square, one of the UK’s oldest and largest cinema venues, offers a 20-metre screen.
In related news, Dolby reported that Sundance Kabuki Cinemas in San Francisco has installed Dolby 3D Digital Cinema in its 160-seat auditorium, in time for Disney/Pixar’s “Up” opening.

images-1–Universal Studios Home Entertainment will release director Henry Selick’s stop-motion animated feature “Coraline” on Blu-ray Hi-Def combo pack, 2-Disc Collector’s Edition DVD and single disc DVD on July 21.
All editions feature both the 2-D and 3-D versions of the film and four pairs of 3-D glasses, making “Coraline” the next 3D home release to watch. In theatres, digital 3D release “Coraline” made $75. 2 million in North America and $85.2 million worldwide.

Digital Faces Critical (Archiving) Dilemma


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“The Digital Dilemma”—a 2007 report from AMPAS’ SciTech Council that examines the challenges of archiving and accessing digital motion picture materials—was the subject of the SMPTE’s Hollywood Section May meeting, held at the Academy’s Linwood Dunn Theatre in Hollywood.

The report concludes that there is no long-term strategy for archiving and preserving digital assets that doesn’t require large capital investment.

Andy Maltz, director of the SciTech Council, reported that in 2008 the worldwide box office reached $20 billion, but he estimated that only 0.0015% of that amount was spent on addressing this dilemma. He emphasized that much more needs to be done.

During the evening, Maltz presented an overview of the report and an update on its impact since its release. He generated applause and laughter from an audience that has been inundated with 3D format talk when—in outlining the discussion objectives—he quipped “there will be nothing about stereoscopic movies tonight.”

Actually, he wasn’t entirely correct. He addressed AMPAS’ need to preserve digital content, citing as an example the increasing number of 3D titles that originate from and are/will be released in the digital realm. He also cited the ASC/DCI Standard Evaluation Material (Stem) and all Oscar-nominated films, which are archived by the Academy.

“Current technologies and practices are inadequate,” he said. “Periodically you will need to copy the digital media. Storage technology and operating technology will become obsolete.”

As to current investment, the report suggested that it costs $1,059 to preserve one film archival master for one year. In contrast, it estimated that annual cost of preserving a 4K digital master to be $12,514.

The SciTech Council is now working on what it calls a Digital Motion Picture Archival Framework, which would include the development and standardization of a file format, directed research, education and a follow up report on “The Digital Dilemma” for indie filmmakers and executives at public archives.

A very worthwhile read, “The Digital Dilemma” report can be downloaded from the AMPAS web site (here).

The Commoditization of VPFs, or, Why Having a Deal With Hollywood Studios Isn’t The Big Deal It Used To Be

Scrabble Entertainment has announced virtual print fee (VPF) deals with five Hollywood studios (”Hello Scott from SPE, in the back.”) to roll out digital cinema in India.  This may be the last notable VPF deal for some time, if not for ever.

Scrabble has signed up Walt Disney Studios, Warner Bros., 20th Century Fox, plus Paramount and Universal, with only Sony Pictures yet to come on board. At the press conference in Las Vegas on the second day of ShoWest 2009, three of the studio representatives joined Scrabble’s CEO Ranjit Thakur on stage to praise his efforts. Tom Molter from Warner Bros said that WB has supplied more digital cinema titles internationally than any other studio (definitely true for India) and was looking forwards to doing more of this with Scrabble. Julian Levin from Fox praised Ranjit’s determination and effort, acknowledging that negotiating with the Hollywood studios is a “very difficult and complicated process.” Lastly Jason Brenek from Disney was happy that Scrabble digital cinema roll-out would include 3D installations, understandable given Disney’s 17 3D titles over the coming three years. Jack Klein from Christie was also up on stage. Christie is the 2K digital cinema projector supplier of choice for Scrabble, but what is not discussed is that Christie is said to have helped behind the scenes to facilitate the VPF deals for Scrabble. Universal and Paramount were not on stage, though they had signed up as well (Paramount’s logo was on the banners, though Universal’s was missing), though this may be due to the fact that both are represented jointly in India by the (elsewhere largely defunct) UIP, with Paramount branding, in India, meaning that there is some untangling to be done still.

Screen International covered the agreement:

Scrabble has signed contracts with Twentieth Century Fox, Warner Bros, Walt Disney Studios and Paramount Pictures that become effective on April 1, and the company is in the process of finalising deal points in the agreement with Universal Pictures. The agreements are based on the self financing virtual print fees model, which is essentially a pay-per-use or booking system. Read More »

DTS Digital Cinema Back From The Not-Quite-Dead With Qube Deal


DTS Digital Cinema and Qube Deal DTS Digital Cinema has been going through a bumpy ride in the past year, but appears to be seeing a light at the end of the tunnel.  One year ago DTS Inc. spun off its two non-licence division.  DTS Digital Images reverted to being Lowry Digital under the new ownership of Reliance/Adlabs.  DTS Digital Cinema had a question mark over it until it was eventually acquired by the United Kingdom’s Beaufort International Group.  Almost immediately the company closed down its server manufacturing arm and people in the industry started speculating - as we are prone to do - whether the company would survive.  [Full disclosure: the co-editor of Celluloid Junkie, J. Sperling Reich works for DTS DC, but we take care not to mix paying day jobs with non-paying blogging, so he kept a stoic silence about how the company was doing any time we talked.]

DTS Digital Cinema has now staged something of a small comeback through a smart deal with Real Image Media Technologies, the Indian makers of the Qube server. Here are the key bits from the press release:

DTS Digital Cinema and Qube Cinema have announced a co-branding strategic alliance to develop and market numerous digital cinema products including a digital cinema server, a theatre management system, an enhanced digital cinema mastering solution and other allied products. The alliance will bring together the best of both companies’ strengths to form a strong commercial and technology presence in the digital cinema marketplace.  Qube will bring to the relationship, their experience of having developed cutting edge digital cinema products such as the Qube XP-D digital cinema server, QubeMaster Pro encoding suite and the QubeCast media delivery system. Besides providing sales and marketing presence and expertise in many regions around the world, DTS Digital Cinema will lend the partnership experience in developing motion picture technology, such as 5.1 digital surround sound, as well as the content management software knowledge that helped develop their Theatre Management System, Satellite Delivery System and Digital Booking System. Together the two companies will develop numerous digital cinema products, starting with the DTS Digital Cinema DC-20 powered by Qube, a digital cinema server that meets DCI specifications and will be on display at ShoWest 2009. Read More »