A Presentation to UNIC DIGITAL CINEMA January 2006

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Presentation transcript:

A Presentation to UNIC DIGITAL CINEMA January 2006 After several attempts to launch digital cinema in the past, significant progress by the industry has occurred and it appears that the time for digital cinema has finally arrived. However, as with the launch of any new technology, certain challenges are expected during initial deployment. This is especially true in the case where a new technology is replacing a century-old film technology. During this presentation, I will touch on some of the expected challenges for distribution of digital features. NEXT SLIDE Digital Distribution Challenges Technicolor Digital Cinema has been involved in D Cinema from the first field evaluation program with Walt Disney and Texas Instruments over 5 years ago.  Since then, the company has provided movies in digital format for the majority of studios and also managed networks of digital cinema systems. It is the company’s intention to remain at the forefront of D Cinema deployment in close harmony with its studio and distribution and exhibition customers around the world.  D Cinema provides many new opportunities to provide content with different sound tracks, sub titles and local versions.   TDC President and Technicolor Chief Technology Officer, Ahmad Ouri, will discuss the upcoming capabilities and plans in a global DCI compliant context.

Introduction Technicolor Digital Cinema (TDC) Digital Rollout Overview Common Exhibitor Questions - Answered Screen Advertising’s Role Summary January, 2006

Technicolor Digital Cinema January, 2006

Technicolor Digital Cinema Technicolor Digital Cinema is the industry leader in the worldwide provision of digital cinema services to the motion picture industry TDC operates in the following areas: Installation of Digital Cinema Systems: TDC has installed 76 systems in 17 circuits worldwide, and is set to install 5,000 systems across North America over the next few years, and 15,000 systems over the coming decade Preparation of Digital Cinema Distribution Masters: TDC has managed over 100 digital releases for 8 Studios since 2000 Distribution of Digital Content: Managing the encoding, encryption, delivery, key management and upload of features Digital Screen Advertising: Operates SkyArc, Screenvision US’s platform for digital cinema advertising January, 2006

Current Focus TDC has developed a digital business model which works for all parties in the motion picture chain – equitable sharing of cost, delivering performance and content security TDC now has definitive agreements with 5 US studios – Dreamworks, Fox, Sony, Universal, and Warner Bros. and is in late stage negotiation with a further 2, accounting for 75% of the 2005 US Box Office A 180-240 screen beta test will be launched in early 2006 and, a full US rollout thereafter TDC is approaching this business model on an open standards basis, aiming to become a single point of accountability for both studios and exhibitors in the digital era January, 2006

TDC Europe TDC recognises that some European markets could digitise more quickly than the US, due to the different industry dynamics in each country Technicolor has the expertise in content preparation and distribution, and is a trusted partner to studios, distributors, and exhibitors Leveraging this reputation and core competence, TDC has established a European business parallel to the US digital cinema initiative Technicolor currently has multiple facilities in London and locations in Rome, Paris, and Madrid January, 2006

Digital Rollout Business Model January, 2006

Technicolor Rollout Principles To minimise the disturbance to existing business models and relationships. That is, Technicolor shall not act as a gatekeeper: All service providers can access all screens Content owners are free to select distribution service providers Apply core technologies based on industry standards (DCI, SMPTE, etc), this allows for: Multiple vendors and system configurations (Christie, Barco, NEC, Sony) Upgrades over time (eg, 2K to 4K) Provide cost-effective financial solutions: Minimising cost through scale Maximising efficiency through common equipment for features and advertising Establish parallel long term agreements between stakeholders, ensuring a common interest for the life of the project January, 2006

Technicolor Solution Enable the Rollout Offer Fulfilment Services Manage deployment – preparation and roll-out Provide maintenance solutions Procure equipment and systems Theatre management system Offer Fulfilment Services Content preparation Network operations Distribution management Key management/security Technicolor will enable the industry, and subsequently support the transition by offering the required services in the digital era January, 2006