3D & D-Cinema - A Potent Boxoffice Combo

We have been marketing and installing D-Cinema/3D Systems. It appears that exhibitors who have decided to purchase a Digital Cinema Projection System are doing so only to take advantage of the 3D option. In fact, this year we have only sold and installed 3D/D-Cinema systems. Exhibitors are purchasing these combo Systems sparingly - only one or two per multiplex and placing them in their largest auditorium(s) - for use only when running 3D films.

Our system of choice is the Strong/NEC projector coupled with the Dolby Server and
3D System. We believe this combination presents the brightest and sharpest image - particularly for 3D. Although the Dolby viewing glasses must be purchased, after 25 uses they are paid for and the exhibitors can then retain any fee they are charging patrons for the viewing glasses, and there are no royalties or long-term agreements with the 3D system provider.

The 3D/D-Cinema Systems can be financed or leased. If interested, contact us for information on any of the Systems currently on the market.

SPEAKING OF 3D

What's the latest regarding 3D - well, it's all about the Home and both 3D - TVs and PCs.

In June, Nvidia, a PC graphics chip maker, introduced "3D Vision" - a $199 PC Upgrade Kit complete w/plug-in computer viewing glasses and while Samsung and Viewsonic currently make the highest quality 3D/PC monitors to go with Nvidia's 3D Vision all of the top PC vendors will introduce a 3D monitor in 2010. So, look for consumers to embrace 3D PCs first.

On the TV front, to make 3D viewing less expensive, TV manufacturers are not going to use the 3D technology currently in use at cinemas but a different technology called "active shutter". Active Shutter uses a set-top infrared emitter which transmits a signal to battery powered viewing glasses which turn on/off and give the perception of depth. The TV sets themselves will require very little upgrade.

3D TV could be the boost the Hollywood Studios need to revitalize the home video market. DVDs generate far more revenue and profits than the cinema; however, as of late DVDs have been steadily losing market share to pay-per-view and video on demand.

I believe 3D TV (using DVDs) and - without doubt - PCs will become a significant part of our video viewing and game playing over the next 3 - 5 years, and if successful, look for 3D TV broadcasting to reach homes within 5 - 7 years.