|
|
This topic comprises 4 pages: 1 2 3 4
|
|
Author
|
Topic: Major studios in deal to convert to digital movie projection
|
Laurie Higgins
Film Handler
Posts: 45
From: Norcross, GA, USA
Registered: Jun 2008
|
posted 10-08-2008 08:26 PM
LA Times, Oct. 2, 2008
Major studios in deal to convert to digital movie projection
The agreement to help defray the cost of the $1-billion switch ends protracted squabbling with theater chains over who would pay for it.
Digital cinema took a major leap forward as five Hollywood studios pledged their support -- and their cash -- to a $1-billion plan to convert old-fashioned 35-mm film projectors to more modern technology in thousands of theaters throughout North America.
A consortium of major theater chains announced the deal Wednesday, signaling an end to the protracted squabbling over who would pay to convert 20,000 screens to digital projection. The deal announcement was timed to coincide with ShowEast, a major trade show for theater owners and the studios that opens Oct. 13 in Orlando, Fla.
"It's the first tangible, major step towards a very widespread conversion to digital projection in the United States and Canada," said Travis Reid, chief executive of Digital Cinema Implementation Partners, a joint venture owned by theater giants AMC Entertainment Inc., Cinemark Holdings Inc. and Regal Entertainment Group.
Until recently, News Corp.'s 20th Century Fox and Viacom Inc.'s Paramount Pictures had been the sole studios signed on to help finance the conversion. With Wednesday's announcement, Walt Disney Motion Pictures, Universal Studios and Lionsgate Films added their backing. People close to the situation say the two remaining major studios, Warner Bros. and Sony Pictures, are in discussions.
The five studios agreed to help defray the estimated $70,000-per-screen cost of the digital conversion by paying the theater consortium a "virtual print fee" of $800 to $1,000 per film, per screen. That amount is less than the estimated $1,100 to $2,100 it costs studios now to strike and distribute a film print.
These financial commitments -- along with the promise to supply theaters with digital "films" -- were the critical mass the consortium sought to raise $1 billion on debt markets, in a financing package led by JPMorgan Chase & Co. and to be paid over eight to 10 years. The chaos on Wall Street, however, makes uncertain how quickly the funds can be raised.
"We still hope and believe it's achievable to finalize the financing in the fourth quarter of this year," Reid said.
Julian Levin, executive vice president of digital exhibition for 20th Century Fox, acknowledged that the recent turmoil in the credit markets is cause for concern.
"I'm hopeful that the financial climate will get stabilized, [and credit] will loosen up a little so that the funds can flow and become available for the conversion," Levin said.
The studios have pushed for the change for nearly a decade. Digital projection would eventually save the industry as much as an estimated $3 billion a year on the cost of making and distributing films, a process that is little changed since the days of silent-film stars Mary Pickford and Buster Keaton.
"That's a no-brainer money savings," said Lloyd Walmsley, an analyst with Thomas Weisel Partners.
Digital projection would also hasten the deployment of 3-D in theaters.
Studio executives have embraced the technology, saying it offers a new viewing experience that's compelling enough to coax people out of their living rooms and staunch declining theater attendance. Indeed, Walt Disney Co., 20th Century Fox and DreamWorks Animation SKG each have committed to releasing upcoming animated films in 3-D.
Three-dimensional movies, such as Disney's recent "Hannah Montana & Miley Cyrus: Best of Both Worlds Concert," brought in $31.1 million its opening weekend -- and it was released only in 3-D. Theaters can also charge a premium for tickets, something they have so far been able to do only at the concession stand. Nonetheless, some dismiss the technology, first popularized with in the 1950s with the spear-in-your-eye jungle flick "Bwana Devil" as cinematic novelty.
"Simply put, it's not a gimmick," said Chuck Viane, president of domestic distribution for Walt Disney Studios. "It is truly a medium by which filmmakers can bring life to their movies and enhance the actual experience."
| IP: Logged
|
|
|
|
|
|
|
|
|
|
|
|
Frank Angel
Film God
Posts: 5305
From: Brooklyn NY USA
Registered: Dec 1999
|
posted 10-09-2008 02:01 PM
quote: Laurie Higgins
"Simply put, it's not a gimmick," said Chuck Viane, president of domestic distribution for Walt Disney Studios. "It is truly a medium by which filmmakers can bring life to their movies and enhance the actual experience."
Simply put, the Mouse should think before it speaks. Another one of their execs also made a pronouncement that proved to be totally wrong (Cook said that 1.3K digital was "good enough" -- clearly he knew not of what he spoke). And so is this statement. Simply put, 3D is a gimmick. As much as I love 3D, it seems that it is not a natural way people like to watch movies. And someone needs to remind Viane that 0the 3D novelty made THE HOUSE OF WAX a huge blockbuster hit in its day, much like HANNA MONTANNA and I would even bet money that pulled in a lot more total number of people than HM.
As much as those 50's 3D titles were wildly successful, that didn't turn out to be the good yardstick by which you could have predicted how much staying power 3D would have. The hard fact is that inspite of its initial popularity, 3D was dead in a matter of just a few years. Imagine how really screwed all those exhibitors must have felt after they were left looking at their silver screens and selsyn motors once it was clear that the studios and the public were finished with 3D.
Today the economic stakes are much higher with these digital installs. To say that 3D is the reason to invest in them seems foolish. Not that there would be other reasons an exhibitor should consider investing in digital, but 3D alone is questionable.
Also, let's not forget that we are in an economical situation at this moment in time where squeezing that estimated 1 BILLION dollars out of banks may be a lot harder than anyone thinks, no matter how much the studios drool over the prospect of an all digital world.
| IP: Logged
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All times are Central (GMT -6:00)
|
This topic comprises 4 pages: 1 2 3 4
|
Powered by Infopop Corporation
UBB.classicTM
6.3.1.2
The Film-Tech Forums are designed for various members related to the cinema industry to express their opinions, viewpoints and testimonials on various products, services and events based upon speculation, personal knowledge and factual information through use, therefore all views represented here allow no liability upon the publishers of this web site and the owners of said views assume no liability for any ill will resulting from these postings. The posts made here are for educational as well as entertainment purposes and as such anyone viewing this portion of the website must accept these views as statements of the author of that opinion
and agrees to release the authors from any and all liability.
|
Home
![[Wink]](wink.gif)
![[thumbsup]](graemlins/thumbsup.gif)
.
Printer-friendly view of this topic