Have We Turned That Corner?

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Wed, 02/24/2010 - 19:00 -- Nick Dager

For years now people involved in exhibition have been gathering at various industry events expecting to hear that the Digital Cinema Implementation Partners finally have their funding and will finally begin to convert the three largest movie chains in the world to digital cinema. And for years at every event the word has been that the funding is just around the corner. Now comes ShoWest 2010 which is being held later this month in Las Vegas and the chances are good that the news from DCIP will again be some variation of just around the corner. Yet despite that many people are ready to pronounce the digital rollout all but over. What am I missing? Most people and I include myself in this group look at the digital cinema situation and see a tremendous amount of work yet to be done. But there are many people who have said that basically the heavy lifting in digital cinema is all but over this despite the fact that some 70 percent of North America and as much as 90 percent of the rest of the world still hasn’t made the transition. That dynamic is likely to serve as a backdrop for this event. Two things are certain to be discussed – 3D and 4K – but other issues will also get attention. For most exhibitors especially those who haven’t made the transition yet the issue will be how to pay for it. For those who have already made the transition an issue building momentum is how to service and maintain the new technology. As the general manager of one of the largest chains told me “The digital industry and equipment are so new that everything is evolving almost on a daily basis. I get the feeling that the manufacturers are learning as we all are (on the fly) and that many issues are first-time issues. It's going to be a while into the conversion before many of the lingering problems are ironed out.” The convention runs from Monday March 15th through Thursday March 18th. Many of these topics will be covered in seminars presentations and panel discussions throughout the week. On Monday there will be a seminar entitled Exhibition Speaks Out: New Challenges and Best Practices. This will be accompanied by a presentation on new and innovative theatres. On Tuesday Dan Glickman chairman and CEO of the Motion Picture Association of America and John Fithian president and CEO of the National Association of Theatre Owners will give their annual state of the industry addresses. Other Tuesday panels include Theatre and Booth Preparation for Digital Cinema and Increase Profits Through Menu Expansion and Renovation. Wednesday’s presentations include Marketing a Film on the Grass Roots Level: Exhibition and Distribution Share Their Thoughts; Green Screen: Environmental Advances in the World of Cinema and a demonstration by Technicolor of its new film-based 3D system. During the week Fithian will introduce the association’s newest executive to exhibitors. Veteran trade association executive Gary S. Klein is now the association’s vice president and general counsel.   Klein will join the management team at NATO’s Washington D.C. headquarters and will provide legal and policy advice to NATO its staff executive board and members. Key substantive areas of focus will include the industry’s transition to digital technologies preservation of the theatrical release window the effort to combat movie theft and oversight of the movie rating system.  Klein assumed his duties February 16th.
  “NATO is very fortunate to have the services of someone with the depth and breadth of legal and trade association experience that Gary Klein brings to us ” says Fithian when he made the announcement last month. “The movie theater industry faces exciting and challenging opportunities and we look forward to Gary’s counsel in navigating them.”
 
 Most recently Klein served as associate administrator office of government-wide policy in the general services administration. From 2003-2006 he was senior vice president government and legal and regulatory affairs/general counsel for the Toy Industry Association and from 1997-2003 vice president government and legal affairs/general counsel for the Consumer Electronics Association.
  
Klein has Hollywood experience as well. Before embarking on his career in government and industry he spent seven years writing for television comedies and was a member of the Writers Guild of America. Screenings are always a special part of ShoWest and two movies in particular seem likely to draw crowds this year: Disney-Pixar’s Toy Story 3 and Walt Disney Pictures’/Jerry Bruckheimer Films’ Prince of Persia; The Sands of Time.                                                            “We are thrilled that Disney has decided to bring two outstanding films to ShoWest 2010 ” says Robert Sunshine managing director of the event. “The opportunity to showcase the story of Prince of Persia and the beloved characters of Toy Story 3 in front of the important professionals of the motion picture industry and owners of theatres demonstrates the significance of this audience to forthcoming blockbusters; and we expect that Disney will only exceed our expectations as they have in years past.” Awards are always a highlight of this event and this year’s conference is no exception. Two that are noteworthy: Jerry Bruckheimer will receive the ShoWest 2010 Lifetime Achievement Award and the ShoWest Big Ten Award will be presented to Pixar Animation Studios for their extraordinary achievement of creating ten beloved blockbusters in a row. The exhibition hall is always a focal point of the show and some companies have offered a glimpse of what they will be featuring there. Texas Instruments will be celebrating the fact that the Academy Board of Governors recently gave the 2009 Scientific and Engineering Award to four of the people responsible for the color accuracy of Texas Instruments DLP Cinema projectors. DLP was honored for its contributions furthering the design and refinement of the DLP Cinema projector achieving a level of performance which enables color-accurate digital intermediate previews of motion pictures. Sony Electronics’ Digital Cinema Solutions and Services group will announced that it has entered into a non-exclusive digital cinema deployment agreement with Warner Bros. Studios that will provide operational and financial resources to exhibitors to encourage them to feature Sony’s 4K SXRD projection technology in both 2D and 3D digital cinema-enabled screens across the United States and Canada. Future plans include other key international markets. “Our relationship with Sony will help theatre owners upgrade their equipment economically and efficiently encourage the conversion to digital projection and increase the availability of high-quality 2D and 3D cinema to our audiences ” says Dan Fellman president domestic distribution Warner Bros. Pictures. “This agreement made possible through the diligent efforts of Warner Bros. technical operations president Darcy Antonellis will enable consumers to benefit from new and dynamic entertainment experiences.”

 Warner Bros. is the sixth major studio to sign a virtual print fee agreement with Sony’s digital cinema group joining Walt Disney Twentieth Century Fox Paramount Pictures Universal Pictures and Sony Pictures Entertainment.

 “We’re excited to be working with Warner as part of the industry’s ongoing digital transition ” says Mike Fidler senior vice president of Sony’s DCSS group. “They understand the value of 4K SXRD technology along with providing an integrated range of services to exhibitors – from equipment installation maintenance and digital signage as well as a diverse line-up of alternate content to enhance their customers’ in-theatre experience.” 

Sony’s 4K SXRD projection technology also supports the deployment of alternative content – including gaming sporting events and music concerts – in order to develop more revenue-generating opportunities for exhibitors. In a related development Warner Bros. Pictures International has entered into a comprehensive digital cinema deployment agreement directly with Digital Deployment Associates Limited to advance the conversion to digital cinema in Odeon sites throughout the UK. Under the agreement Warner Bros. will supply digital feature films to DCI-compliant digital projection systems installed at all Odeon sites and the studio will make financial contributions supporting the digital conversion. Veronika Kwan-Rubinek president distribution WBPI and Rupert Gavin CEO of Odeon and UCI Cinemas Group made the announcement jointly. “We are thrilled to have concluded a digital partnership with Odeon who share a common commitment to enhancing the theatrical experience ” says Kwan-Rubinek. “As we continue to roll out a slate of films that range from intimate settings to massive scope and scale the digital transition provides us with the perfect opportunity to leverage the newest technologies so that audiences can experience these motion pictures in the highest quality possible.” “Odeon and UCI Cinemas Group is pleased to work directly with Warner Bros. as together we pursue the advantages of digital to the widest audience possible ” says Gavin. “And while we are starting with them in the UK this deal clearly presages deals we are now working on with our other European territories. We look forward to bringing fully digital cinemas to guests in all seven of the markets Odeon and UCI Cinemas Group serves by the end of 2010.” Christie will confirm full production shipping and installation of its latest generation of 4K-ready DLP Cinema projectors the Christie Solaria series which began with the Christie CP2220.   Shipments began early in January to North and South America Europe and Asia and are now installed and showing feature films worldwide including Australia Canada Korea and the United States. “Our manufacturing facilities are in full production ensuring that we keep pace with this overwhelming demand for the new Christie Series 2 projectors ” says Craig Sholder vice president of entertainment solutions at Christie.  “With the spectacular success of 3D movies like Avatar exhibitors realize that digital cinema is no longer an option it is a strategic imperative. The Solaria Series is the most practical cost-effective solution today based on time-tested highly reliable DLP Cinema technology.”
 
 Manager Vince Butler of Claco Equipment and Service (a specialist in new cinema installations upgrades and maintenance of both the projection booth and auditoriums) says “In order to remain competitive exhibitors have to be proactive when deciding which projector to buy today and upgradeability to the right 4K technology is important.  The main advantage of Christie DLP 4K versus LCOS 4K is its light output capabilities. The DLP chip can handle the heat build-up better. LCOS technology does not allow for extreme heat to be dissipated and this can affect the light output in larger venues.”
  Integrity Entertainment Systems an authorized digital-cinema reseller for Christie placed hundreds of orders for the new Solaria Series 2 projector which it will install throughout the United States.  Integrity president Gary Engvold says  “Some of our customers specifically requested Christie’s next generation of cinema projectors because they offer a 4K upgrade option. It’s inevitable that 4K is the future of cinema but I truly believe that Christie DLP Cinema projectors are the best choice for our industry because they produce more light with less energy.  In fact the energy and lamp savings from using Christie versus the LCOS technology over a ten-year period is huge.  It’s almost enough to pay for the projector itself.”
   “It’s all about choice ” says Craig Sholder. “With Christie Series 2 projectors exhibitors can choose from the widest range of components including external or integrated media blocks to complete their systems.  They can also create a top-of-the-line 3D solution using any of the leading 3D technologies on the market. Christie is committed to supporting its customers and protecting their technology investment.” Christie recently announced the sale of Solaria 2K series projector to Cineplex’s Galaxy Cinemas North Bay in North Bay Ontario. The system was installed in time for the opening of Avatar. RealD is highlighting its announcement that it is supporting digital cinema projectors by offering a designated holder for the RealD XL Cinema System. Now RealD’s XL larger-screen technology can be mounted in the front of DCP projectors. The optical array of the 3D system is on a rail which the company says will make it simple to slide it off the lens to project 2D content. Xpand will announce that it has appointed Jonathan Ross as the company’s first worldwide president of content and distribution. Ross previously managed international digital cinema deployment and operations for 20th Century Fox during such recent global blockbusters as Avatar and Ice Age 3 in 3D. Ross brings more than 18 years experience in operational managerial production creative strategic planning and new business development positions across the film television cable and new media industries both internationally and domestically. Prior to his most recent position with 20th Century Fox Ross served as the assistant general sales manager of theatrical distribution for Fox Searchlight Pictures where he helped to distribute such critically acclaimed box-office hits as Little Miss Sunshine Juno and Slumdog Millionaire. At Xpand Ross will be responsible for generating content from third-party producers and developers that will be compatible with Xpand’s industry-leading line of 3D active-shutter glasses. Ross will also work closely with technology OEMs and integrators globally to ensure that a steady supply of entertainment and alternative content is made available to a vast range of products and services using Xpand’s proprietary 3D solutions. “3D is here to stay and Xpand’s global domination of the 3D active-shutter glasses market speaks to the company’s superior technology and commitment to innovation ” Ross says. “My goal is to help transform Xpand into a household brand name and make it synonymous with 3D like Google has become to search or Xerox is to the photocopy. I look forward to further consolidating Xpand’s leadership position across markets where 3D is being utilized today and in the future including theatrical broadcast home entertainment consumer electronics corporate gaming Internet and mobile educational and many more.” “With the skyrocketing popularity of 3D technology Xpand is challenged with establishing and maintaining relationships with the content creation community as more and more 3D content is being developed ” says Maria Costeira CEO of Xpand. “Jonathan Ross is an immensely accomplished and talented professional who will bring a wealth of experience to our company and will benefit us greatly as we continue to work closely with content developers around the world.” Alcons will introduce a reference-quality sound reproduction system with fully matched loudspeaker processing and amplifier components. It is designed to offer the most realistic (surround) sound-for-picture reproduction possible making it the ideal choice for high-end home theatre theatres  digital cinema mix/screening rooms post-production facilities dubbing stages and quality-conscious cinemas with less than 100 seats or room depth less than 45 feet (15 meters). The CRMS Cinema Ribbon Monitor System is a hybrid 3-way main- /2-way surround-system. Each system consists of a separate mid-high frequency section featuring one RBN401 pro-ribbon driver HF with non-vented 8-inch MF and a low frequency 15-inch LF section with low power-compression 4-inch voice-coil. The MHF section is specifically designed to act both as MHF section for the main/front system as well as full-range surround system. The company says this design results in a very uniform and high-resolution sound stage throughout the entire listening area. Oculus3D will unveil its first product the OculR system what the company says is a low-cost 3D lens and print format for the installed base of 35mm movie projectors. The OculR system eliminates the need for exhibitors to purchase a new digital system to play 3D films. The OculR system also does not require exhibitors to pay per-seat or per-show royalty fees.   The OculR3D system consists of the OculR lens for the theater’s 35mm projector a silver movie screen and plastic frame linear polarizer eyewear. “The team at Oculus3D has created a cost-competitive and projectionist-friendly 3D film-based delivery system that bypasses the problems of the resurrected discredited and obsolete over/under film-based approach of the 80’s that plays inside-out images much of the time ” says Lenny Lipton president and chief science officer Oculus3D.    Oculus3D estimates that it can get theater owners up and running with the OculR system (the lens and upgraded movie screen) for approximately $20 000 - $25 000 per screen.