posted 03-31-2004 11:02 AM                       

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MOVIES AT HOME DIRECT FROM HOLLYWOOD

George Lucas, long a proponent of digital movie making and distribution, has infuriated cinema owners and film distributors in Australia (and around the world) with his April 1 announcement that by the end of 2004 technology will be in place to beam movies digitally – with superb sound and image – directly into homes equipped with standard satellite dishes used for pay tv reception. “It’s obscene,” says one exec, as Andrew L. Urban reports.

Imagine it: you have a small satellite dish attached to your roof and a remote control pointed at a set-top unit with flashing lights. You (with family and/or friends) consult the newspaper for the latest movie ads and select the just completed blockbuster, Indiana Jones 4 – The Return of The Kingdom and punch in the code number. In 3.6 seconds, the movie begins playing on your fabulous home entertainment system in all the glory of better than-DVD digital quality. Your account has been debited with US$9.

"sound quality is often worse than in my backyard dunny"

This scenario, played out in millions of homes anywhere in the world – from Mombasa to Melbourne, from Budapest to Beijing – is “scaring the living daylights out of the cinema owners and film distributors who have been bleeding the public’s purse dry for years as they deliver sub-standard film prints to fading theatres, where sound quality is often worse than in my backyard dunny,” says Sydney entertainment sound specialist Ben Hooft.

For Lucas, sound has always been crucial: "For George, it's 50% of the experience," says Star Wars producer Rick McCallum. "He's always been obsessed by the soundtrack - his soundtracks are complex pieces of art." Not surprising, really, since Lucas started out as a sound recordist and went on to become a documentary filmmaker. He tackled the camera "and finally found his true passion: editing," says McCallum. "Francis Coppola taught him to write - but now he knows every facet of filmmaking."

Driven by his disappointment that the soundtracks of his films are never shown – heard – to best advantage, Lucas issued an ultimatum to his team: never mind satellite delivery to theatres around the world, let’s get it directly into their homes. NOW! (In an interview with Urban Cinefile in 2000, Rick McCallum predicted satellite delivered films into cinemas by 2005.)

His team responded – as has a furious Australian film distribution executive, who (having begun looking for alternative employment in the digital field), prefers to remain anonymous: “George Lucas is not only threatening thousands of jobs, perhaps millions around the world, but a whole lifestyle we have developed in Australia, of going to the movies as a social event. The sound and picture quality is a furphy: George wants to make history – and a few extra billion dollars as the outsider to Hollywood who captures the first truly global distribution monopoly. It’s obscene.”

And billions is probably right: even at just US$9 per delivery, a film like Indiana Jones 4 could gross US$1 billion in a matter of days, with a fraction of the cost of prints and advertising around the world. Of course, the flipside means that distributors and cinema operators don’t get to earn revenue from handling the movie.

"techno-crazed stunt"

The senior executives at the major Australian chains (Hoyts, Village, Greater Union and BCC) have issued a joint statement condemning the initiative as a “techno-crazed stunt feeding the egos of the nerds who came up with this stupid idea and threatening to destroy the very traditions of cinema.”

But some movie people are happy: Troy Lum, head of the relatively new but highly successful Hopscotch film distribution company specialising in art house and cross over films of high quality and popular appeal (eg Bowling for Columbine, The Barbarian Invasions) says it’s good news for independent cinemas and specialist film distributors who will press the appeal of the communal film experience. “We will have the only movies showing in cinemas; it’s wonderful.”

Lucas says, “the public wins,” but insiders want to know, at what cost.

Published April 1, 2004

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posted 03-31-2004 11:32 AM                       

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For Lucas, sound has always been crucial: "For George, it's 50% of the experience," says Star Wars producer Rick McCallum. "He's always been obsessed by the soundtrack - his soundtracks are complex pieces of art."

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posted 03-31-2004 02:46 PM                       

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UltraStar becomes first exhibitor in North America to use Texas Instruments DLP Cinema™ Technology for Pre-Show

Las Vegas, NV – March 24, 2004: American Cinema Advertising Network (ACAN) today announced it has signed UltraStar Cinemas of San Diego, CA to a long term Pre-Show Advertising and Media Asset Marketing agreement. Under the agreement ACAN will supply projectors utilizing Texas Instruments DLP Cinema™ technology for digital pre-show advertising content, alternative programming and digital theatrical trailers and feature films.

“UltraStar Cinemas will be the first exhibitor in North America to be equipped with the necessary equipment (DLP Cinema™) to show all digital programming using one projector, including movies. The quality of the theatrical presentation should be the absolute best, including the pre-show. Anything less is a dis-service to the advertiser and an insult to the audience,” said Alex Gorovitz, President and CEO of ACAN.

“We’ve been a leader in the adoption of digital cinema and are hopeful that other exhibitors will follow our lead by making the jump to DLP Cinema™ for all applications rather than giving in to the temptation of
using inferior non-DLP technology. “ACAN obviously shares our vision and commitment to superior digital presentation as evidenced by their willingness to provide this technology without any financial or technology risk” said Alan Grossberg, President and CEO of UltraStar Cinemas.

In addition, ACAN will be UltraStar’s exclusive sales representative for all Media Assets including
alternative content, special events, in-theatre signage, etc. “This consolidation allows advertisers to buy from UltraStar’s entire selection of media assets from one source which is important to the advertising community and therefore important to UltraStar” added Grossberg.

ACAN has assembled a team of leading companies in the execution of digital cinema for this project.
Texas Instruments, Digital Projection International,., WilTel Communications’ Vyvx division and EVS, Inc. “ACAN has selected teammates, which as individuals are experts is their respective fields, but more importantly as a team are a very power and cohesive group which will continue to successfully forge the
road to digital theatres, said Fred Garroy, General Manager of the Americas for EVS.

ACAN will utilize DPI/TI DLP Cinema™ projectors in 20 screens initially which represents more DLP
Cinema™ screens than any other exhibitor in North America. All 81 screens are expected to be converted within a year which will likely make UltraStar the first exhibitor in the world to be equipped for DLP Cinema™ and cinema grade servers for every screen. UltraStar currently has 6 Barco digital cinema
projectors which will be replaced with DPI units. “We are so pleased that a company and an exhibitor have finally stepped up to put into place high quality projection technology for the exhibition or all digital content” said Peter Nicholas, Director of Cinema Sales and Marketing for DigitalProjection Inc.

“With the announcement of 20 DLP Cinema screens UltraStar is moving forward with a significant deployment that shows their commitment to the best presentation quality for theatrical applications,” said Doug Darrow, Business Manager, and TI DLP Cinema™.

ACAN will utilize EVS for the storage, management, and playback of all digital content within the theatre, providing a single solution for UltraStar. “This is the future of digital theatres”, said James Campanella, Chief Systems Engineer of EVS. “Combining pre-show, alternative, and digital cinema content into one system provides the exhibitor with the most flexibility and enables them to leave no potential revenue source untapped. Utilizing digital cinema quality equipment for all aspects of the show raises the picture quality bar of pre-show and alternative content. EVS is very excited to once again be part of another digital cinema milestone”.

To deliver content - both file based and live video - to theaters across the country, ACAN will utilize WilTel Communications' Vyvx division, a market leader in providing fiber-optic and satellite transmission solutions to the media and entertainment industry for 15 years. On an annual basis, Vyvx provides broadcast transmission services for nearly 10,000 live sports events; transmits nearly 200,000 live video feeds, or the equivalent of more than 12 million video minutes; and nearly 3,000,000 national television and radio spot advertisements.

About Vyvx
Vyvx provides video delivery solutions over fiber optics and satellite to global advertising, sports, news, and entertainment customers. Vyvx offers a wide range of dedicated and occasional services and its electronic footprint reaches nearly 11,000 online television and radio stations, networks and cable head-ends, as well as more than 100 professional sports venues and all major media centers, movie studios and production facilities. Vyvx is a division of WilTel Communications, LLC, the operating subsidiary of WilTel Communications Group, Inc., which is a wholly owned subsidiary of Leucadia National Corporation. For more information, please go to www.vyvx.com.

About ACAN
ACAN, formerly Century Media Advertising, was founded in 1982 and has been a major provider or pre-show slide advertising representing exhibitors such as Loews, Mann, Village, Century, Village, and others. For more information, please go to www.movietheatreads.com.

About UltraStar
UltraStar Cinemas, headquarter in San Diego owns and operates 81 screens in 11 theatres in the San Diego DMA with 30 screens under development as well as 10 screens in Mexico with an additional 20 screens under development. UltraStar was assisted in the negotiations by Lawrence Cervantes of Performance Digital Cinema. For more information go to www.ultrastarmovies.com

About EVS
EVS is a business unit of EVS Broadcast Equipment which designs, develops and markets professional digital equipment for the Radio, Television and Cinema industries. The EVS Group employs more than 175 persons in 7 countries and sells its products to professionals of the sound and video sectors in more than 60 countries. For more information, please visit www.evs.tv.

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