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DIGITAL CINEMA January 2006

A Presentation to UNIC. DIGITAL CINEMA January 2006. Introduction. Technicolor Digital Cinema (TDC) Digital Rollout Overview Common Exhibitor Questions - Answered Screen Advertising’s Role Summary. Technicolor Digital Cinema. Technicolor Digital Cinema.

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DIGITAL CINEMA January 2006

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  1. A Presentation to UNIC DIGITAL CINEMA January 2006

  2. Introduction • Technicolor Digital Cinema (TDC) • Digital Rollout Overview • Common Exhibitor Questions - Answered • Screen Advertising’s Role • Summary

  3. Technicolor Digital Cinema

  4. 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

  5. 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

  6. 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

  7. Digital Rollout Business Model

  8. 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

  9. Technicolor Solution • Enable the Rollout • 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

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