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D Cinema in Europe – Stalled?. An EDCF Overview David Monk, EDCF Gerald Buckle, Odeon Cinemas Michael Lambrechtsen, NFC. EDCF. Membership organisation with common interest in successful deployment of Digital Cinema. Includes: Exhibitors, Distributors, Studios, Analysts
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D Cinema in Europe – Stalled? An EDCF Overview David Monk, EDCF Gerald Buckle, Odeon Cinemas Michael Lambrechtsen, NFC
EDCF • Membership organisation with common interest in successful deployment of Digital Cinema. Includes: Exhibitors, Distributors, Studios, Analysts Consultants, Integrators, Technicians Cinema-goers.
D Cinema - Stalled? • Let’s take a quick look at the installation progress with the help of Screen Digest’s ongoing tracking database. • These will be installation of D Cinema systems in commercial theatres: • Our thanks to David Hancock & Screen Digest david.hancock@screendigest.com
D-cinema screen growth by world region All data taken from Screen Digest Cinema Intelligence service
Digital Cinema: areas of progress in Europe UK DE BE FR RU
Stalled? • Clearly not ‘stalled’ and some clear progress in certain countries like Russia, Belgium, UK, France • System Integrators also moving forward: • Arts Alliance July UK 250 France 60 40 Norway 16 Spain 5 Total 326 • XDC now offering a new VPF deal.
‘Stalled’ – Clearly Not but DisappointingWhy so? • It’s not because of worries about: • Image quality • Sound quality • Reliability & Dependability • Maintainability • Not fitting into the physical environment • Installation problems • Lack of digital content
It’s not because, Exhibitors don’t appreciate • Importance of competitive advantage. • Need to invest in future. • New Digital Entertainment opportunities in Live Events, Concerts, Stage Shows, Sport, etc • Further Multiplex Integration opportunities. • Programming flexibility of Digital Screens. • Opportunities in Pre-Show Marketing.
It’s not because, Studios don’t appreciate • Advantages of digital production. • Quality consistency • Format accuracy (colour and framing) • Threat of new entertainment competition. • Importance of bringing everyone forward on digital journey • Cinematographers & Post Production • Directors & Producers. • Need to produce digital content at extra cost. • Need for a single digital presentation specification.
It’s not because, Distributors don’t want to • Avoid escalating print costs. • Recognise the impact of consumer film demand on professional resources and technology development. • Reduce environmental impact of film processing. • Engage in new media opportunities. • See the opportunities for lower budget movies to deliver on big screens.
It’s not because there is no good Integrator support who … • Can provide the finance. • Manage the studio obligations. • Manage the technology risks. • Help with local content mastering • Install systems. • Provide training, help lines and maintenance.
Virtual Print Fee • Addresses the dilemma of how to legally share the financial benefits of print cost avoidance and more flexible screen presentation technology. • Financial mechanism accrues balancing funds on a movie by movie basis. • Works best for highest grossing screens. • Struggles for medium sized screens. • Doesn’t work for most small independents.
Geo Political Issues • Europeans are concerned about lack of inclusiveness in VPF model. • Community ‘owned’ cinemas moving forward with integrated plans – Norway. • France & Germany trying to leverage their cinema levy to produce an inclusive consensus. • Hoping for government support. • Needs EC competition law approval. • Consensus amongst the parties.
Commercial Drivers • Business owners worry about losing competitive advantage. • versus other entertainment • versus other cinema groups • missing new media opportunities • missing ‘stereoscopic’ exclusive window • Risk of VPF deals reducing in second wave. • Risk of being supply limited when mainstream go • Equipment, Optics, Installation resource.
Stereoscopic 3D • 3D movie opportunity is now creating an urgent imperative. • Studios under pressure from movie makers to unlock VPF negotiations. • Exhibitors under pressure to capitalisee on early demand and opportunity to lift box office. • Distributors stuck in middle. • Supply capacity will be an issue with 2009 releases.
Residual Issues • World financial crisis • Limited Competition in Europe • XDC now in the ballgame • No-one has all; six major studios (see XDC announcement at the show) • Direct Studio deals not practical for majority of circuits and owners. • Anxiety over ‘requirement’ changes • SMPTE conformity • Interpretation issues, varies by studio. • Current VPF deal is just not compelling!
Time to Invest in D Cinema? • Not stalled but slowed. • Financial situation making it harder. All other vectors are positive: • New technology lowering system costs • Studios pushing for deployment • Cinemagoers excited by Stereo 3D • Standards are closing. • Integrators can offer proven systems and mitigate the risks • Right time to invest in the future?
D Cinema in Europe – Stalled? An EDCF Overview David Monk, EDCF Gerald Buckle, Odeon Cinemas Michael Lambrechtsen, NFC