Tag Archives: Digital Cinema

Sundance Goes Digital With Assistance From Barco

Sundance Film FestivalWhen Barco emailed a press release last Thursday with the subject “Sundance Film Festival expands digital cinema footprint with Barco projectors” I initially figured it must be an error. Sundance is held in Park City, Utah and takes place in January each year. If Barco was looking to get press for this year’s festival they are a little late and if they were trying to get ahead on next year’s event they are way too early.

In fact, the release was about the 2012 festival. Turns out Barco is not only helping theatre owners convert to digital, but they are also giving a hand to film festivals who will ultimately have to adopt the technology. For this past year’s festival Barco provided four additional digital cinema projectors to go with a number of others Sundance was using previously.

You may be wondering why we’re paying any attention to a corporate announcement that comes six weeks after the event in its subject line. Yet the real importance of the release is not necessarily that Barco is supplying film festivals with digital projectors (though it’s great that they are). Rather it is the meaning found between the words and sentences of the press notice that truly matters. It’s not written in black and white, but more of an invisible gray.

For those who may not be familiar with the Sundance Film Festival (i.e. non-film buffs or intelligent life forms from other planets), it is the premiere independent film festival in North America. Along with those in Berlin, Cannes, Telluride, Toronoto and Venice, it is one of the largest such festivals held each year. It has become known as the launching pad for such filmmakers as Darren Aranofsky, the Coen Brothers, Spike Lee, Christopher Nolan, Robert Rodriguez, David O. Russell, Bryan Singer, Kevin Smith, Quentin Tarantino and countless others. “Precious”, “Blood Simple”, “Little Miss Sunshine”, “sex, lies, and videotape”, “Reservoir Dogs”, “The Blair Witch Project”, “American Splendor” and “Super Size Me” are just a few of the indie-films which were first shown to the public at Sundance.

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Is Cinedigm A Digital Cinema Bellwether?

The time before, during and after any motion picture industry trade show is one filled with an endless stream of press releases. Any journalist covering the space receives dozens, if not hundreds, of emails from marketing departments and publicists during these periods filled with press releases. At some point, it becomes easy to read between the lines of such press releases, to determine which ones are truly important. But if one were to take a step back, it can also be easy to spot industry trends through the releases certain companies publish.

This was certainly the case at CinemaCon this past March, especially when it came to press releases distributed by Cinedigm. In the weeks leading up to the conference, the digital cinema deployment entity announced agreements with such exhibitors as Cinemaworld and B&B Theatres. AMC Theatres chose the company’s exhibition management system to help run their North American venues.

Then, during CinemaCon, announcements came that Goodrich Quality Theatres, Guzzo Cinemas, and Wehrenberg Theatres were all entering into deployment agreements with Cinedigm. This was interspersed with news about deals with Sonic Equipment Company and content distribution in Latin America. Shortly after the convention Cinedigm reported they had also signed Clearview Cinemas up to a deployment agreement.

Earlier this week Cinedigm thankfully aggregated much of the news about their deployment agreements into a single press release so that folks like me could keep all the information straight. It turns out I had good reason to take notice of how busy Cinedigm’s PR department has been lately – during the last quarter they signed deployment agreements with 32 exhibitors accounting for 1,402 screens at 142 sites. This is the largest number of exhibitors and screens signed during any quarter of the company’s history.

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Cinema Digitaal Selects Arts Alliance Media For Netherlands D-Cinema Rollout

Cinema Digitaal and Arts Alliance Media

Cinema Digitaal, the organization overseeing the rollout of digital cinema in the Netherlands, has selected Arts Alliance Media to as their integrator to convert more than 500 screens throughout the country to digital.

Under the exclusive arrangement AAM will install and maintain digital cinema equipment and technology in a wide range of cinemas encompassing large exhibition chains and smaller art house venues. Circuits not participating in the rollout include Pathe, Euroscoop and Utopolis, as they will be handling their own conversions.

AAM will also provide their VPF deals with five Hollywood studios and is in the process of finalizing similar deals with the 14 local distributors that make up the NVF.

Cinema Digitaal was founded by the Dutch Association of Cinema Operators (Nederlandse Vereniging van Bioscoopexploitanten, NVB), the Dutch Film Distributors’ Association (Nederlandse Vereniging van Filmdistributeurs, NVF) and the EYE Film Institute. The Dutch government is funding 14 percent of the project with additional funds coming from the Netherlands Film Fund (Nederlands Fonds voor de Film) and bank financing.

With no VPF deals of their own, Cinema Digitaal needed to partner with an entity that had such agreements covering the Netherlands. Thus, it was really a choice between AAM, XDC and Ymagis.

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CinemaCon 2011: Digital Funding Partnership Pacts With XDC For D-Cinema Deployment In UK

Cinema Exhibitors' Association and XDC

At the outset of CinemaCon this past Monday Steve Perrin gave an interesting presentation titled “Harnessing The Power of the VPF”. As the Chief Executive of Digital Funding Partnership (DFP) Perrin is in a position to know a thing or two about virtual print fees. He’ll have some help in this department now that DFP has entered into an agreement with XDC for the deployment of digital cinema in theatres throughout the United Kingdom.

The Cinema Exhibitors’ Association created DFP in 2009 to help small and mid-sized theatre owners in the UK secure funding for digital cinema conversions. The group is a legal entity consisting of approximately 400 screens at 130 mainstream and specialized cinemas operated by more than 100 theatre owners.

Perrin spent more than a year studying the country’s booking patterns, box office receipts and endless market data in an attempt to determine whether VPF deals would work for independent cinemas in the UK. In doing so he confirmed that VPFs work best for large theatre circuits which play mostly mainstream content. Smaller cinemas showing less mainstream content at varying turn rates are not as attractive to local or international distributors, making it difficult, if not impossible, for theatre owners to gain access to VPF deals.

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CinemaCon 2011: Fithian Urges NATO Members To Begin Digital Transition

John Fithian At CinemaCon 2011

John Fithian At CinemaCon 2011

John Fithian, President of the National Association of Theatre Owners, gave his annual State of the Industry address yesterday at the trade group’s inaugural CinemaCon convention in Las Vegas. His speech covered all the necessary points while reiterating some of the comments about the digital cinema transition which Fithian has made to smaller groups over the past several months.

He began with a handful of statistics that highlighted some economic figures, including a global box office which climbed 30% over the past five years to reach USD $31.8 billion in 2010. North American box office receipts rose 15% to USD $10.6 billion in that same period, while inflation only rose 8%. In what was perhaps a jab at the studios rumored plans to begin offering new films via premium video-on-demand, Fithian compared these numbers to home video sales, which have declined 13% during the past five years.

Fithian also provided an update on North America’s digital cinema roll out, telling the audience of over 2,000 delegates that almost 16,000 screens, out of a total of 39,000 had been converted to digital. Nearly 9,000 of those screens are equipped for 3D projection. After running through more industry numbers than most could ever remember, Fithian paused as he came to the most important point in his speech:

“For any exhibitor who can hear my voice who hasn’t begun your digital transition, I urge you to get moving. The distribution and exhibition industries achieved history when we agreed to technical standards and a virtual print fee model to enable this transition. But the VPFs won’t last forever. Domestically, you must be installed by the end of 2012 if you want to qualify. Equally significantly, based on our assessment of the roll-out schedule and our conversations with our distribution partners, I believe that film prints could be unavailable as early as the end of 2013. Simply put, if you don’t make the decision to get on the digital train soon, you will be making the decision to get out of the business.”

Fithian went on to remark that admissions had climbed in each of the last four decades and that 3D grosses in 2010 made up 21% of total receipts, doubling the amount such films earned in 2009. However, his earlier comments about the ongoing digital cinema transition is what most of the show’s attendees focused on after Fithian’s speech concluded. Was it true that all cinema owners had to convert their screens to digital before 2012 to qualify for a VPF? Are studios really going to stop distributing 35mm film prints after 2013?

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Digital Faces Critical (Archiving) Dilemma

digital_dilemma_cover1

“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).

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Largest UK Cinema Chain Picks Vendors for 3D While Snubbing Third Party Integrators

logo_odeon The UK’s largest exhibitor Odeon (formed through the merger with UCI) has selected Real Image‘s Qube server and projectors from NEC to extend the company’s digital cinema and (particularly) digital 3D reach.

From the Qube press release:

Odeon and UCI Cinemas Choose Qube Servers Qube XP-D servers chosen in 111 screen 3D digital cinema rollout in Europe

The Qube XP-D digital cinema server has been chosen by ODEON and UCI Cinemas – Europe’s largest cinema operators – to be a part of their current 111 screen digitization plan across Europe.

Already playing Disney’s “Bolt” in digital 3D in Portugal for several weeks, Qube has recently commenced commercial digital 3D screenings across the UK with “My Bloody Valentine”.Photo: Qube XP-D

The digitization plan of ODEON and UCI Cinemas is in response to the significant number of digital 3D productions scheduled for release from 2009, ensuring that the audiences across Europe can enjoy the latest films in state-of-the-art cinema technology.

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One screen per multiplex, or, How is AAM converting CGR to digital cinema?

AAM CGR bragging

A press release from Arts Alliance Media (AAM) about their deployment with France CGR Cinémas is more interesting for what it reveals unintentionally than what it tries to trumpet. The headline of the press release is ‘CGR Cinemas and Arts Alliance Media Install the First All-Digital Multiplex in France at La Rochelle’, but it is the subtitle that hints at what’s more interesting about it: ‘Initial phase of CGR digital cinema rollout complete’.

The fact that an entire multiplex has been converted to digital is unremarkable. Not only are there scores of such multiplexes in the US, but AAM itself was involved in setting up an all-digital multiplex for Odeon in UK, and they are also not doing without 35mm projectors, as was the case with Vue in the UK. And yet that seems to be the key point of this press release:

Circuit George Raymond (CGR Cinémas), one of France’s largest cinema chains and Arts Alliance Media (AAM), Europe’s leading specialist in digital cinema technology, content and deployment have announced the installation of France’s first fully digital 12-plex cinema at La Rochelle. This is a significant milestone for the French motion picture industry and further proves the viability of the Virtual Print Fee (VPF) business model for Europe’s widespread transition to digital cinema.

But the more interesting fact is burried in the third paragraph:

To date, a total of 19 screens have been equipped with DCI-compliant 2K digital projection systems within 8 different CGR multiplexes across France in the cities of La Rochelle, Blagnac, Brignais, La Meziere, Lattes, Niort, Villenave d’Ornon and Torcy. At the La Rochelle site – the first one to be fully equipped in digital – a one-month extensive test and analysis phase has now begun, which will allow CGR and AAM to assess network interactivity software and data reliability solutions. To enable a smooth transition to digital, the 35mm projection systems remain in place, so each screen can play 35mm or digital prints, as needed.

So 19 screens in total, of which 12 are found in La Rochelle, leaves seven screens for the other seven CGR multiplexes, i.e. just one screen per multiplex.

CGR cinema map

From an operations perspective this is self defeating. AAM should know this from the UK Film Council’s Digital Screen Network experience, where the installation of just one screen per multiplex has led to inability to move any film playing in digital, restricting programming to dropping that film or ordering a 35mm print for a smaller screen. So the move only makes sense from the perspective of testing. This is mentioned further down in the press release:

Sébastien Bruel, CGR’s Technical Director said “We have worked closely with Alexandre Brouillat of AAM, and with CDS, our integrator partner, in order to design and install a technical infrastructure that supports and enhances our processes, from the delivery of content to the projection: it meets our highest expectations. This flagship installation will allow us to validate our network strategy, make sure our security requirements are met and set up our new operational processes before the next installations.” (italics added)

That explains the 12+screen, but not the other single installations. Moreover, AAM already has considerable experience from the DSN, as well as its UK Odeon installation and also dabbling in Norway. So why do they just put in one screen per multiplex, meaning that they will have to return to equip all other screens at a future point. The only explanation is that it does allow for digital 3D as well as showing opera and other forms of alternative content. Echoing the press release is a Variety article:

“This will open new perspectives to our group in terms of 3-D and alternative content, as well as faster and more flexible programming and increased efficiency,” enthused Jocelyn Bouyssy, CEO, CGR Cinemas.

So a single or two digital screens in a multiplex would be good for showing 3D films and alternative content, which AAM is actively inserting itself into,

Either way, the press release promises 100 screens by July 2008, equivalent to a quarter of the circuits screens. Perhaps by then AAM will also have announced more cinema partners – at the current rate of announcement it will take them more than seven years to reach their goal of 7,000 screens – and also Warner Bros or some European distributors as VPF signatories to its plans. Expect some deals to be held back for RAAM and/or Cinema Expo.

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Disney digs ESPN sports with AccessIT

Trust Disney to have foresight and show initiative when it comes to alternative content in digital cinemas. While the NFL is sending cease and desist letters to Wisconsin cinemas showing Packer games, Disney has teamed up with AccessIT through its ESPN division to screen live HD college football games in Texas cinemas. From the press release:

This is the first time Disney, ESPN and AccessIT have joined forces to provide a live sporting event to paying audiences following tests last year. It is also the first event at which AccessIT’s CineLive(TM) technology, providing live 2-D and 3-D streaming of alternative content to theatres, will be employed for a major sports spectacle since the product was announced last fall.

“One of the many reasons we’ve supported AccessIT’s leadership in transitioning the industry to digital cinema is to be able to provide events such as this one to eager audiences,” said Chuck Viane, President, Walt Disney Studios Motion Pictures Distribution. “Fans get to enjoy the action of often sold-out games and the camaraderie of others without having to travel great distances, and each one gets the best seat in the house.”

Given Disney’s long history of digital 3D involvement – or Disney Digital 3D(TM), to give it its proper name – it should be no surprise if we are less than a year away from the first Disney/ESPN Digital 3D sporting event.

It reminds me of a digital cinema conference at least five years ago (a different eon in digital cinema terms) when I sat next to Bob Lambert, Disney’s Corporate Senior Vice President, Worldwide Media Technology and Development , listening to a panel discussion about alternative content. At one point he turned to me and said, “we’ve brought the cinema into the living room, it’s only natural that we take the living room back into the cinema now.” Surprised that a studio guy would be so cool about alternative content, I asked him if I could quote him on that. He thought about it for half a second, and said, “sure, why not.”

Now it helps that Disney happens to own ESPN, but mainly this has come about because there are a lot of very smart people working at Disney when it comes to digital. And Bob is a real mensch, as well as being one of the people who got digital cinema started way back in 1999, though like his then colleague Phil Barlow, is too modest to accept the full amount of credit that he deserves.

So a small amount of credit to Bob as well for the latest development.

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Aussies Want UK Cinema Advertiser

CSAUK/Irish cinema screen advertiser Carlton Screen Advertising (CSA) is officially in the chopping block with the most likely buyer being Pacific Equity Partners, which bought the exhibitor Australian cinema chain Hoyts last year. Having once been the biggest and most profitable screen advertiser in the world, CSA’s decline has been as steep and fast as it has been sad. Despite the OK-ish box office year 2007, CSA (2,900 screens in 500 sites) was not able to capitalize on the small growth as it was saddled with large up-front payments to some of the UK’s largest circuits. With one of these, Cineworld, being publicly quoted, CSA’s move to switch from 6-month up-front payment to month-by-month forced it to flag this to the stock market. This in turn forced CSA’s parent ITV to announce that the screen advertiser was indeed for sale – at a rock bottom price. As Sunday Times notes:

Once worth £80m, analysts now value CSA at nothing, despite healthy cinema attendances. ITV may even have to pay someone to take it off its hands.

The business is estimated to be liable for another £200m in upfront payments to customers, chiefly Odeon and Cineworld, to satisfy onerous advertising contracts that stretch to 2012.

Those agreements mean CSA has struggled to make money despite total cinema advertising income growing 10% to £170m last year, according to Nielsen figures.

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