1. Grasping the European D Cinema Nettle David Monk CEO, European Digital Cinema Forum

2. European Digital Cinema Forum A membership organisation interested in the deployment of Digital Cinema technology. Broad membership of people from all aspects of Cinema. Exhibition, Studios, Distributors,, Mnfrs … A network of interested parties who share opportunities, problems and issues.

3. The European Issue - Complexity European Community now comprises some 27 countries: Language, culture, geography, currency, economic wealth all influence Cinema business. Natural complexity is mimicked in the supply and movie distribution infrastructure.

4. EC Countries Austria (since 1995-01-01) (EUR) Belgium (EUR) Bulgaria (since 2007-01-01) Cyprus (Greek part) (since 2004-05- 01) (EUR: 2008-01-01) Czech Republic (since 2004-05-01) Denmark Estonia (since 2004-05-01) Finland (since 1995-01-01) (EUR) France (EUR) Germany (EUR) Greece (EUR) Hungary (since 2004-05-01) Ireland (EUR) Italy (EUR) Latvia (since 2004-05-01) Lithuania (since 2004-05-01) Luxembourg (EUR) Malta (since 2004-05-01) (EUR: 2008-01-01) Netherlands (EUR) Poland (since 2004-05-01) Portugal (EUR) Romania (since 2007-01-01) Slovakia (since 2004-05-01) Slovenia (since 2004-05-01) (EUR) Spain (EUR) Sweden (since 1995-01-01) United Kingdom of Great Britain and Northern Ireland

5. D Cinema – European History Started in 2000 with Technicolor/Disney tests in : France, Germany, Belgium, Spain, UK. First European Digital Movie was Toy Story 2 Reliability proven. UK Film Council DSN project (240 screens) not about Digital but specialist film and audience development.

6. European Opportunity No shortage of appetite or vision about the benefits of D Cinema. Plenty of demand. Deployment has been paced by : Availability of Digital Releases Commercial arrangements to guarantee product supply with major studios. Geographic Rollout Priorities.

7. Underlying Anxieties - Exhibition Availability of competitive funding plan. Reduced operating flexibility – key management. Potential reporting obligations. Loss of control –‘ DCI Compliance ’ Creeping DCI Specification. Real running costs?

8. Underlying Anxieties - Distribution Threat of ‘ transmitted media ’ Satellite, Cable, RF. Initial lack of knowledge about digital. Policy set at Head Office. Responsibility in the region. Complication of mixed ‘ digital/film ’ bookings. Playout strategies.

9. Underlying Anxieties - Studios Setting a fair VPF deal considering: Recycled prints. Local content mix. Other users – Alternative Content providers. US experience. New builds. Incremental Short Term Costs. Long Term Implications. Critical Mass. Expanding operational complexity of releases.

10. Myths Europe needs its own standard for D Cinema. National Governments will subsidise some or all of the D Cinema rollout. Distribution is threatened by D Cinema. Key Management is an excuse to capture exhibition control by studios. Better to wait than start too early. Image quality is a key care-about.

11. Real Concerns Exhibition needs a competitive choice of plans. (All) Specification uncertainty is a barrier to lower costs.(Mnfrs, Studios, Exhibition) Theatre Management System software is weakness for all digital installations.(Exhibition) Case for Central Key Management needs resolution. (FR/GER) ‘ Certification ’ and standards control is a hot potato. (FR/EC) Economic solution for the smaller theatres needs work. (GOVs) Time to cut new deals in Studios. Critical to keep the cinema experience unique, special and competitive with other leisure choices. (All)

12. What ’ s Driving D Cin. in Europe? 3 Things have generated a new imperative for D Cinema in Europe. 3D 3D Box Office results from Meet the Robinsons, Beowulf, Hannah Montana are setting the Digital agenda. Studio endorsements are compelling.

13. Role of EDCF Help sort the myth from the reality. Bring interested parties together. Participate in EC level debate and discussion on rollout plans and needs. Publish Guides on 3D and Alternative Content presentation. Actively support work of ISDCF & SMPTE. Find the opportunites in the problems …