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Topic: Carmike installing 2300 Christie/AIX DLP systems

Jarryd Beard
Expert Film Handler

Posts: 229
From: Hellertown, PA
Registered: Jul 2004

posted 12-20-2005 01:48 AM

Source: www.carmikeinvestors.com (PDF File)

quote:
CARMIKE CINEMAS CONTRACTS TO INSTALL 2,300 DIGITAL CINEMA PROJECTION SYSTEMS FROM CHRISTIE/AIX
MORRISTOWN, N.J. and COLUMBUS, GA. – December 19, 2005 – Access Integrated Technologies, Inc. (“AccessIT”) (AMEX: AIX) and Carmike Cinemas, Inc. (“Carmike”) (NasdaqNM: CKEC) jointly announced today that Carmike, the third largest national movie theatre circuit has executed a contract with AccessIT’s Christie/AIX subsidiary, for the installation of up to 2,300 Digital Cinema projection systems throughout the United States. With this agreement, Carmike and Christie/AIX will begin installing 2K DCI-compliant DLP Cinema® projectors. The rollout is scheduled to begin in January, 2006 and to be completed by October 31, 2007.
“We are proud to have the opportunity to work with Carmike, not only one of the nation’s largest theatre chains, but also one of the most forward-looking,” commented Bud Mayo, President and Chief Executive Officer of AccessIT. “It would be hard to exaggerate the significance of today’s development as a major milestone for the industry and for our respective companies, and we are privileged to be a partner in this important undertaking. Working together, Carmike, Christie and AccessIT are committed to elevating the movie going experience and to bringing the many benefits of digital to audiences in the months ahead.”
Michael W. Patrick, Chairman of the Board, President and CEO of Carmike Cinemas, Inc. added, “We are eagerly looking forward to launching this rollout with Christie/AIX. Digital Cinema is the future of exhibition, combining eye-popping image quality that will dazzle moviegoers with unmatched programming flexibility. This flexibility will enable our company to capitalize on new programming options such as 3-D, live sporting events, and other alternative content while continuing to present traditional movies with the best picture and sound possible for even the longest of runs.”
"The contract with Carmike is truly a tipping point for Digital Cinema. As a progressive company with clear vision, Carmike has identified Digital Cinema as the next growth and revenue opportunity for their business. We are very pleased that they have chosen DLP Cinema® from Christie, a proven technology, to bring the digital experience to the heartland of America," stated Jack Kline, President and COO, Christie USA. "The collaborative efforts of DCI, the studios and the exhibition community confirm that Digital Cinema is no longer just a dream--it's real, and it's here to stay."
AccessIT's Christie/AIX unit serves as the funding vehicle and administrator for the company's 4,000-screen digital cinema rollout plan expanded significantly from the total originally announced in June 2005. Christie/AIX will act as the financing intermediary between content-owners -- major studios and independent distributors, among others -- and exhibitors who will receive turnkey, DCI-compliant Digital Cinema systems including 2K projectors and related hardware and software. Bear, Stearns & Co. acts as the financial advisor to AccessIT.
A series of key developments preceded today’s announcement; notably, formal contracts with The Walt Disney Company, Twentieth Century Fox, Universal Pictures, Sony Pictures Entertainment and most recently DreamWorks SKG. Initial deployments in the plan began in late October in theatres in Detroit, Michigan, owned by Emagine Entertainment, Inc. and at
multiple locations in San Diego and Riverside County (CA) multiplexes owned by Ultrastar Theaters, Inc. Completion on these first 150 systems is anticipated before the close of the year.
In a related development, to provide equity funding for this large-scale deployment, AccessIT intends to move forward with the filing of a common stock shelf registration in the very near future.
Access Integrated Technologies, Inc. (AccessIT) is an industry leader in offering a fully managed storage and electronic delivery service for owners and distributors of digital content to movie theaters and other venues. Supported by its robust platform of fail-safe Internet data centers, AccessIT is able to leverage the market-leading role of its Theatrical Distribution System (TDS) with its innovative digital delivery capabilities and in-theatre software systems to provide the highest level of technology available to enable the emerging Digital Cinema industry to transition from film without changing workflows. For more information on AccessIT, visit www.accessitx.com.
Christie is a leader in visual solutions for world-class organizations, offering diverse applications for business, entertainment, and industry. A leading innovator in film projection since 1929 and a pioneer in projection systems since 1979, Christie has established a global reputation as a total service provider and the world's single source manufacturer of a variety of display technologies and solutions. Christie offers comprehensive solutions for cinema, large audience venues, control rooms, business presentations, training facilities, 3D and Virtual Reality, simulation and education as well as industrial and government environments. For more information on Christie's cinema solutions and to find a theatre with Christie DLP Cinema® projectors, visit www.christiedigital.com.
Carmike Cinemas, Inc. is a premiere motion picture exhibitor in the United States with 307 theatres and 2,469 screens in 37 states, as of September 30, 2005. Carmike's focus for its theatre locations is small to mid-sized communities with populations of fewer than 100,000. Carmike's common stock is traded on the NASDAQ National Market under the ticker symbol "CKEC." For more information visit Carmike's website, www.carmike.com.

According to this press release and other news articles from the LA Times and the Washington Post, ALL of Carmike's screens will be upgraded within the next two years. The deal is estimated at $300 millon and supposedly represents the first chain to contract 100% deployment.

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Darryl Spicer
Film God

Posts: 3250
From: Lexington, KY, USA
Registered: Dec 2000

posted 12-20-2005 09:41 AM

Soon to become one of the nations smallest chains if they go through with that deal. Not saying that DLP is bad but, A lot of Carmike locations are pure dumps some are good but some are not. The big issue is who is going to pay for it. My answer is the customers because they are going to jack up the ticket prices with service fees and what not. Then attendance numbers will start to drop and theatres that are dumps will close. Who ever the salesman was on this deal was smoke screened. To be honest I like the deal that NCM is trying to come up with a lot more than this Accessit thing.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 12-20-2005 11:00 AM

Okay....

I'm a bit dumbfounded by this news development. Dumbfounded on a number of points.

The first, most obvious point is how will these digital projection systems pay for themselves? I assume this volume deal will at least give Carmike a good volume discount. Many of Carmike's screens are in smaller markets. Here in Oklahoma, the 8-plex in Lawton and the new 15-plex near the Tulsa suburb of Broken Arrow are their best theaters in this state (edit - I think the Broken Arrow theater is still under construction). Not many of the company's theaters are located in large cities.

The next point is posed as a question: why do a circuit-wide install based on 2K when 4K systems are just on the horizon? 2K might be "good enough" in a lot of respects, especially for some of the smaller screens operated by Carmike. But the hazard remains in that it is not demonstrably different or superior to HDTV. Sales on HDTV sets are predicted to be strong in 2006 and companies like Samsung have very aggressive plans to push down prices. HD is moving into the mainstream. I think it is crucial for commercial theaters to have systems that run on a standard well above what can be seen in a home environment.

quote: Darryl Spicer
A lot of Carmike locations are pure dumps some are good but some are not.

That statement can be applied to most movie theater chains. Some of Carmike's locations are pretty old and may need to be closed and/or replaced with new theaters to do digital video projection. The biggest problem is with the sound end of the deal. Many old theaters have walls too thin to contain digital surround sound. Carmike has been upgrading many of its theaters to feature stadium seating and installing digital sound systems where they can.

Obviously Carmike's newest theaters and locations in the best condition would stand to get DLP systems first. I'm not sure how the location I frequently visit in Lawton will be treated in this transition. The theater is 11 years old, but still in very good shape, has DTS on every screen and was recently converted to staduim seating. I'll still be surprised if this newly announced deal puts any DLP systems in Lawton before 2007 though.

Final question I would have: what will happen to the 35mm systems? Will they remain in place, perhaps to use as a backup? Or will Carmike make a really serious gamble and go video only?

[ 12-20-2005, 12:19 PM: Message edited by: Bobby Henderson ]

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Richard Fowler
Film God

Posts: 2392
From: Ft. Lauderdale, FL, USA
Registered: Jun 2001

posted 12-20-2005 11:45 AM

Carmike was the first circuit to electronically interconnect their cinema for sales and boxoffice and concession to the home office through a network...so going the digital route would not be an unusual game plan for their operation.

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Dustin Mitchell
Phenomenal Film Handler

Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000

posted 12-20-2005 11:15 PM

The wording of the articles may be eroneous. I've heard through different sources that the plan is actually to install digital projectors in the largest or two largest houses at every location. Notice the article says 'up to' 2,300.

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Allison Parsons
Jedi Master Film Handler

Posts: 630
From: East Peoria, IL
Registered: Oct 2004

posted 12-20-2005 11:45 PM

quote:
for the installation of up to 2,300 Digital Cinema projection systems throughout the United States

...which will totally skip my theater....

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Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 12-21-2005 01:17 AM

quote: Bobby Henderson
why do a circuit-wide install based on 2K when 4K systems are just on the horizon?

Bobby,

Do you know something I don't know? TI doesn't seem to have shown any interest in developing 4k. I hope that you are right!

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Sam Graham
AKA: "The Evil Sam Graham". Wackiness ensues.

Posts: 1431
From: Waukee, IA
Registered: Dec 2004

posted 12-21-2005 10:54 AM

Sony has announced a 4K SXRD-based digital cinema projection system.

=====

SOURCE: Sony Electronics (Press Release) 12/8/05

Sony system to be included in digital cinema beta test
Continues growing support of 4K as a new digital cinema standard

PARK RIDGE, N.J. -- Furthering the industry appreciation of 4K resolution as the ultimate in digital projection technology, Technicolor, part of the Services division of Thomson, SA, is including Sony's SXRD™ (Silicon X-tal Reflective Display) 4K digital projection system in its digital cinema beta test in early 2006.

The Sony projectors (models SRX-R110 and SRX-R105), which began shipping last month, are the first commercially available devices utilizing 4K technology. The Sony digital cinema projection system is DCI-compliant, and delivers a 4096x2160 pixel resolution to produce four times the pixel count of current high-definition televisions.

Technicolor's inclusion of the Sony 4K digital cinema projection system as part of its digital cinema deployment underscores the importance of offering theater owners and patrons a range of high-quality digital entertainment options.

"The goal of digital cinema is to offer an entertainment experience that can't be had at home, even with the best of home theater systems," said Joe Berchtold, President of Technicolor Electronic Distribution Services. "Sony's 4K SXRD projector is a device that can deliver on this promise, and will provide theatergoers a more satisfying and dynamic cinema experience. That's why we're including the Sony projector in our beta test next year and eventually expect to deploy a meaningful number of them in the marketplace."

Sony plans to begin producing 100 SXRD projectors per month by January. In addition to theater operators, customers include postproduction facilities, movie studios and rental houses. Non-cinema applications are likely to be in lecture halls and auditoriums, as well as in simulation and command-and-control situations where multiple, simultaneous views may be required for monitoring and surveillance.

"Delivering a more satisfying theater experience for patrons requires the active participation of manufacturers, studios, exhibitors and solutions providers like Technicolor," said John Scarcella, President of Sony Electronics' Broadcast and Business Solutions Company. "Only by working together can we provide a form of entertainment that consumers can't get at home, and this support from Technicolor is the perfect example of the industry cooperation necessary for digital cinema to succeed."

====

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Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 12-21-2005 11:22 AM

I know about the sony's but they are only capable of lighting a screen up to 45 feet. Also, if the consumer products are any indication, DLP has much tighter pixel spacing than sxrd. You can clearly see the grid on lcd based projection TVs. It is much harder to spot on a DLP based projection TV. There is almost no black between pixels on DLP.

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Bobby Henderson
"Ask me about Trajan."

Posts: 10973
From: Lawton, OK, USA
Registered: Apr 2001

posted 12-21-2005 12:46 PM

quote: Lyle Romer
Do you know something I don't know? TI doesn't seem to have shown any interest in developing 4k.

When I spoke of 4K I was speaking in reference to Sony's system and development efforts other companies are pursuing. TI doesn't seem to be working on anything like that at all. Considering the difficulties involved with spinning micromirrors it is amazing TI could even develop a 2K chip at all.

But that's to be expected since DLP micromirror chips are essentially designed as a consumer electronics product to sell by the millions. And that's also the underlying hazard with DLP chips too. A commercial theater with 2K DLP chips in its projector will be using the same chips featured in a 1080P HDTV in some guy's living room. That's a pretty big problem.

quote: Lyle Romer
I know about the sony's but they are only capable of lighting a screen up to 45 feet.

Is this to assume DLP-based video projectors can go any higher? Given the decade old example of commercial theaters using 35mm equipment to project onto giant screens that really need 70mm for a sufficiently bright image, I honestly have to wonder if anyone even gives a damn about what kind of projection is appropriate for a given screen size.

quote: Lyle Romer
DLP has much tighter pixel spacing than sxrd.

How do you figure? Are you saying DLP has a higher native resolution than Sony's SXRD? More often than not the DLP sets have a lower native resolution than other TVs in the same price range. And I've seen plenty of DLP TV sets where you could easily see the pixel grid. It's a big problem on those dopey "EDTV" sets with 480 X 852 resolution. I have seen a variety of Sony VEGA and Grand VEGA 1080P SXRD TV sets that looked really impressive.

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David Stambaugh
Film God

Posts: 4021
From: Eugene, Oregon
Registered: Jan 2002

posted 12-21-2005 01:02 PM

quote: Lyle Romer
DLP has much tighter pixel spacing than sxrd

That is incorrect. SXRD has very tight pixel spacing, tighter than DLP or LCD.

SXRD has the "world's smallest inter-pixel spacing" according to Sony.

4K SXRD Specs

quote:
[Key Features]
1.1. High-quality pictures through resolution, brightness and contrast that are higher than the original Full HD.

[High resolution: 8.85 mega pixels (4K: 4096H X 2160V)]
Sony was able to achieve high-resolution by optimizing the driving circuit in each pixel. The total pixel area was reduced by 10 percent by reducing the size of each pixel from 9µm to 8.5µm, while maintaining the inter-pixel spacing of 0.35µm. As such, 8.85 mega pixels were integrated into the area of measuring 1.55 inches diagonally across. Furthermore, Sony has radically designed the Driving Circuit Technology and Sony's original write signal on technology, which enables the creation of smooth images by driving 8,850,000 pixels accurately onto a silicon circuit. These advances facilitated a high-grade, high-resolution picture quality previously unseen on fixed-pixel projection devices, with outstanding cinematic quality and image smoothness that can be enjoyed free from the grainy "mesh" effect noticeable on conventional projectors, even on over 300 inch size screen.

[Brightness: four times the original]
The brightness of projectors is directly proportional to the size of a panel when the luminance of the lamp is the same. The newly developed 1.55 inch panel (increased from 0.78 inch) directly aids in widening the illumination area by four times. Additionally, this succeeded in increasing the reflection rate from 65% to 72%.
As a result, Sony is able to provide projectors for cinema with enough brightness where high brightness level is required.

[High contrast: 4000 : 1]
By adopting vertically aligned liquid crystals material, thin liquid crystal cell gap and inorganic alignment layer to the liquid crystal cell, SXRD achieves its high contrast. Furthermore, by optimizing alignment layer fabrication process, it ensures the original alignment layer durability and still achieves the contrast of 4000 : 1.

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Mark Gulbrandsen
Resident Trollmaster

Posts: 16657
From: Music City
Registered: Jun 99

posted 12-21-2005 01:27 PM

quote: Darryl Spicer
A lot of Carmike locations are pure dumps some are good but some are not.

That sure fits Carmike to a Tee..... they have more dumps than all other chains combined.... even the new locations are nothing to write home about unless you enjoy watching damaged film go by, dirty auditoriums, and awful sound...... Many of our customers feel that if there has to be competition Carmike is the one since they are no competition at all...

Mark

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Lyle Romer
Phenomenal Film Handler

Posts: 1400
From: Davie, FL, USA
Registered: May 2002

posted 12-21-2005 05:17 PM

quote: Bobby Henderson
Is this to assume DLP-based video projectors can go any higher?

According to the christie and barco specs, yes. Christie says the CP2000 will meet SMPTE luminance spec up to a 75 foot wide screen. Barco says the DP100 can do the same on screens up to 65 feet with a 1.8 gain screen. In another thread John Pytlak said that the Barco projector properly lit the large screens at AMC pleasure Island which are around 65 feet in scope.

quote: Lyle Romer
DLP has much tighter pixel spacing than sxrd
quote: David Stambaugh
That is incorrect. SXRD has very tight pixel spacing, tighter than DLP or LCD.

You left out the beginning of my statement which was "if the consumer products are any indication." The Sony SXRD TV's that I have seen have clearly visible black lines. This is not to say that the 4k SXRD isn't better. I hope Sony can either develop a projector to put out more light or license somebody to develop one for them using the 4k SXRD that can illuminate a large screen (they are limited around 40 feet right now according to Sony). 4K is necessary for the industry. It just seems that DLP has all the momentum and there isn't a roadmap for 4k DLP.

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David Stambaugh
Film God

Posts: 4021
From: Eugene, Oregon
Registered: Jan 2002

posted 12-21-2005 06:06 PM

Lyle, maybe you're mixing up SXRD and LCD?

quote:
Also, if the consumer products are any indication, DLP has much tighter pixel spacing than sxrd. You can clearly see the grid on lcd based projection TVs.

There's a jump from SXRD to LCD in there, 2 different technologies. The pixel structure on LCD sets is indeed very easy to see. I can't easily see a black grid around pixels on SXRD sets like I can on LCD sets.

I just did some googling, can't find any specs on 1080p DLP interpixel spacing (anyone else know?). Sony at least publishes that spec and they claim it's smaller/better than other technologies. Seems like that would be an easy thing for TI to refute if it's not true.

Note that I'm not arguing that Sony will get anywhere in the professional cinema market. That remains to be seen.

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Scott Norwood
Film God

Posts: 8146
From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99

posted 12-21-2005 06:57 PM

Are there SMPTE specs for screen luminance for DLP yet? Or is everyone using 12 fl (or some other value) as being basically equivalent to 16 fl with film?

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