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Friday, October 02, 2009

Digital Cinema/3D Bulletin - Issue #101

This is the first Cinema Mucho Gusto Digital Cinema Bulletin. It is a new service for clients that have purchased a Digital Cinema projection system or have expressed interest in doing so. Each Bulletin will provide timely and pertinent information on D-Cinema and 3D technology, relevant industry news, and provide recommendations on new and existing equipment, products and services.

THE 3D OPTION - This Bulletin is devoted to discussing 3D Systems:

- All 3D Systems are optional additions to any Digital Cinema System.

- Currently there are five 3D Systems available. However, we consider only the Dolby, Master Image and Real-D to be viable purchase options. For a "Comparison Of Existing 3D Systems" - entequip@aol.com.
- We believe that the 3D movie presentation provides the impetus for the purchase of a Digital Cinema System, as having the 3D option enhances boxoffice attendance and additional concession sales.

- Early adopters of the 3D option may benefit at the expense of other movie exhibitors which do not offer a 3D presentation. However, we believe over time this competitive advantage will abate as:

- Hollywood may lose interest in distributing 3D films
- More exhibitors install 3D Systems
- The public's diminishing interest in 3D films and/or their premium admission
price

- Financing Digital Cinema & 3D Systems

- Outright purchasing of equipment - Dolby 3D
- Royalty deals:
- Real-D - 10 years exclusive with a Royalty paid to Real-D on each 3D
admission
- Master Image - $5,000+ either 45 cents/ticket sold for 5 yrs. or
$600/month for 5 yrs.
- Leasing:
- There are a number of leasing companies willing to finance D-Cinema/
3D equipment purchases - call for information.

- 3D Systems Recurring Costs:

- Annual Service of Equipment
- Maintenance/Repair Service - As needed
- Xenon Lamp Replacements - Varies w/Lamp Size & Usage
- System Software Upgrades - Varies w/Manufacturers

By Jim Lavorato







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