COPYRIGHT vs. PIRACY

New  Copyright Alert System Will Track and Punish

The media giants, in conjunction with, internet service providers (ISPs) are about to institute a massive program to stifle on-line piracy.  The program, entitled the Copyright Alert System (CAS), is to be operational by the end of March.

Spearheaded by the Center for Copyright Information, a consortia consisting of the  Motion Picture Assoc. of America, the Recording Industry Assoc. of America, and a variety of music makers and TV and movie producers, as well as ISPs : AT&T, Cablevision, Comcast, TimeWarner Cable, and Verizon, the CAS is intended to target parents who may not be aware that their children are media pirates.

The CAS is  'six' strikes and you are out! Yes, six.  The first strike is to simply warn offenders that illegal file-sharing has been detected on their account and leads them to legitimate sources for obtaining on-line content.  By the fifth strike however much more drastic actions take place.  For example, after the "fifth violation" Verizon will lower the users Internet connection to a max speed of 256 kilobits/second for up to 3 days (a very slow connect speed).  Time Warner subscribers will receive worse punishment - a suspended account until the offenders calls TW and speaks with a customer service rep about the error of their ways and what further punishment awaits any new offenses.  This is a sea change in the attitude of the ISPs as in the past their policy and retort to copyright holders was, 'it's not our problem'.

Critics of the Copyright Alert System point to several major issues.  One, being that the open WiFi nodes, which users keep open to let anyone in the local area use for free, ie Starbucks, would have to be excluded from the alert system.  Second, the Alert system does nothing to stop hard-core pirates, in part, because it only targets peer-to-peer applications. Professional pirates don't even use Bit Torrent any longer but have moved onto file-locker sites. Acknowledges Gigi Sohn, a CCI Board Member, "It's not about stopping the hard-core uploader/downloader.  It's about educating a new generation of music and TV fans."  What?

My Opinion

Copyright, like current Patent laws, have become absurd to an extreme. These laws do not offer much protection, particularly at the international level, and both need massive reform and overhaul.  Instituting the Copyright Alert System as a means to "educate" the next generation of teens to the unlawful practice of copying copyrighted content is a bad idea on many levels - not the least of which is that the vast majority of people in the U.S. pay for the songs, movies, and TV shows they watch over the net - wether through iTunes, Netflix, Spotify, AmazonPlus etc.  Yes, there is piracy at the fringe but the hard-core pirates are too hard for big media to deter and prosecute so they look at the smaller fry - it's really silly and make big media and the ISPs look really petty.

Best and Happy Movie Going!
Jim Lavorato

CinemaBUZZ WEEKLY REPORT - 8 February 2013

Avengers: Top Grosser for 2012

BOXOFFICE Gets More TOP HEAVY

In keeping with a trend, now over a decade old, the U.S. cinema boxoffice for 2012 was even more skewed toward the top grossing films then in past years.

For 2012 the total domestic box office was $10.8 billion of which the top 25 films represented $5.6 billion or 52% of that total.  The top 50 films generated $7.6 billion or 70% of total gross.  There were 657 movies released last year; therefore, the remaining 607 releases generated only 30% of the total boxoffice take.  Wow!

This top heavy boxoffice favors action/fantasy movies. The top three films: The Avengers, The Dark Knight Rises, and The Hunger Games were also all action hero films. These were followed by Skyfall, The Hobbit, Breaking Dawn 2, and Spider Man, in that order. These top seven films generated, by themselves, over 24% of total 2012 boxoffice gross.  Fantasy, action, violence, with over-the-top special effects is what lures moviegoers into the local cinema and not much else.

BIG PROFITS For MOVIES

 "Movies will be priced based upon the size of the device they are viewed on" said Jeff Katzenberg, CEO of DreamWorks last week at the Founders Forum conference on digital media. "People will pay be the square inch. If a cell phone version of a movie is 75 cents you'll get 350 million people in India to pay that."

So, the theory is that you would pay much less to view a movie on a cell phone or other device than you would going to the local cinema.  This revenue may be the future but I believe the giant revenue generator for distributors (studios and other content developers/streamers) is the day-and-date release of movies across all delivery modes on a worldwide basis.  Would this model hurt cinemas ? Yes, but only at those cinemas that fail to exhibit movies in the way they should be presented - with an excellent on-screen image, terrific sound, an exciting and inviting environment, and thoughtful and innovative concession and other services.

I have often stated that the living room is the major competitor for cinemas, in the future it will also be smart phones, tablets, and PCs.  The potential revenue stream for the studios and other content makers under the above business model is too large to be ignored and the exclusive theatrical release window will become a memory.

The studios will be compelled to find new revenue sources even at the expense of severing long-held industry traditions like the first dibs theatrical release.  Katzenberg may be right but he doesn't push the logic far enough or wide enough.

Paperman - Full Animated Short Film

'Paperman' Will Get Oscar for Best Short Animation

Disney's 'Paperman' is one of the best short films ever - animated or otherwise.  Only 7 minutes in duration it is the story of young and innocent love and achieves its success without dialogue or color (for the most part).

What gives Paperman its great visual draw is not only a great story line and terrific graphics but a new technique in designing animated films which allows artists the ability to draw directly over the top of computer rendered sequences.

Paperman debuted as a front piece for the movie Wreck-It-Ralph and the response to the short was viral.  My bets on Paperman to easily win this year's Best Short Animation Oscar.

CineBUZZ REPORT - 31 January 2013

CHINA MAY LIFT BAN ON VIDEO CONSOLES

X-box, Wii, and PlayStations are ban in China

It is a little known fact, but China has had a ban on the sale of video gaming consoles for over a decade.  You can not purchase an Xbox, Wii, or PlayStation console in China.  This ban was initially instituted because of the government's "fears of the potential harm to the physical and mental development of the young" .

Seven Chinese ministries collectively ban the manufacture, sale, and import of gaming consoles for and by the Chinese public since 2000.  Now there are signs that the ban may finally be lifted.

Microsoft introduced its Kinect console (a controller-free game console) to the Chinese mainland last October.  This put a crack in the game console ban as the Kinect system was not used for playing games but for other purposes, such as medical treatment and education. "We hope to launch the X-box into China as soon as possible, we are awaiting government approval", says Zhang Yaqin, Microsoft's Head of Asia-Pacific R&D, "I think the government will lift the sale ban sooner than later."

It is ironic that China has a ban on the sale of gaming consoles as it is the world's largest manufacturer of  the X-Box and other consoles.


THE MOUSE THAT ROARED : TINY ANTIGUA TO ALLOW PIRACY OF U.S. INTELLECTUAL PROPERTY

On Monday, the U.S. Trade Commission warned the tiny Caribbean countries of Antigua and Barbuda that there suspension of U.S. copyright and patents would not be tolerated by the U.S. government as the suspension would authorize the "theft of intellectual property like movies and music."

The strong statement came after Antigua announced it would enact the suspension unless the United States took its demands for compensation more seriously in a ruling Antigua won at the World Trade Organization (WTO).    Antigua, a former British colony, with few natural resources has been at odds with the U.S. since the late 1990's when it began building an internet gambling industry.  The U.S. has ban on-line gambling.  Antigua argued that the U.S. laws banning internet gambling violated global trade rules and won a key victory on this matter in 2005 when the WTO ruled that the U.S. laws discriminated against foreign companies.  When the U.S. failed to repeal the law, the WTO in 2007, gave Antigua the right to retaliate by waiving intellectual property rights protections.

Mark Mendel, an attorney for Antigua, said "The Americans never negotiated with us. That's the thing about what they say that makes us so upset."  For its part, Nkenge Harmon, U.S. Trade Representative, stated "Antigua would be unwise to proceed with the plan to authorized the theft of intellectual property. Government authorized piracy would undermine chances for a settlement.  It also would serve as a major impediment to foreign investment in the Antiguan economy, particularly in high-tech industries."

My guess is that Antigua will not move forward with its threat and the U.S. will find ways to assist Antigua in replacing lost income for on-line gambling. Trip to the Caribbean anyone?

STAR WARS SAGA LOOKS TO THE FUTURE

Last year, the release of Star Wars: The Phantom Menace 3D was a box-office bomb.  It only generated $43 million in its 16 week run.  Possibly due to this lackluster gross, the other two prequels to the saga - Attack of the Clones and Revenge of the Sith will not be released in 3D versions.  In fact, the scheduled September and October release dates for these two movies has been postponed.

Disney, which now owns the Star Wars franchise, has a new 7th episode in production and may not want to muddy the waters by releasing older, over viewed episodes. In addition to the new 7th movie in the saga, Disney has plans for #8 and #9 episodes.



Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed

CineBUZZ REPORT - 24 January 2013

MEDIA DODGES BULLET

Movies, TV shows, and Video Games were excluded from the White House announcement last week regarding new initiatives to reduce gun violence in the wake of recent school shootings.

The President did direct the Center of Disease Control to "conduct studies on the causes of violence, including the impact of media" - but these are long-term investigations and pose no threat to big media.  Most of the actions were directed against guns and back-ground checks for gun purchases.  In fact, there was no harsh rhetoric aimed at media violence, and the media-related portion of the anti-violence proposals was confined to a single graph.  Citing the movie, TV, and game rating systems and parental controls that, "the vast majority of Americans know about".

The National Academy of Sciences will also be asked to undertake a 'comprehensive study' of the impact of violent content, including games and programming on children.
Funding for this will have to be approved by Congress.

Statistics are funny.  Last year, Chicago, Illinois (President Obama's home town and state) had the highest murder rate in the U.S. at over 500.  Illinois has some of the strictest gun control laws in the nation. Hmmmm.  Did you know that more murders were committed with hammers than rifles in the U.S. in 2012.  Go figure.

DISNEY TESTS EARLY PAY-PER-VIEW vs. DVD RELEASE

Disney has decided to test the concept of online release before the DVD release of the film Wreck-It Ralph.  The goal is to see if Disney can boost home video viewing revenue on digital platforms before the disc release.

Disney plans to release HD and digital 3D versions of the film on February 12th before two and four disc combo packs of the film are available on DVD and Blu-ray on March 5 at retailers.

This move by Disney is the latest in its experiment with online distribution methods for its films.  Last month, it signed a deal with Netflix which will allow the content streamer exclusivity to classic Disney films and offer all Disney movies eight months after their theatrical release.

GIVING DOGS THERE 'THEATRICAL' DUE

There is a school of thought that postulates that every movie ever made could be improved by replacing the original stars with dogs - talking dogs.  And as weird as this may seem, I think there is some merit to it.

So, Django Unchained becomes Django Unleased and Argo becomes Arffgo. Why not?  Let's give credit where it is due and man's 'best friend'  a chance at fame and fortune.

TRENDS IN HOME ENTERTAINMENT FOR 2013

THE major competitor for movie exhibitors is the 'living room'.  Without doubt home entertainment, and its relentless technological development, is the number one threat to cinema owners/operators.  Therefore, CMG closely follows the trends and developments taking place in the home entertainment arena.  For 2013 there are a number of trends that you should be aware of.

#1  While their introduction has been delayed several times, OLED TVs (organic light emitting diode) will began shipping in 2013.  LG and Samsung will start shipping large screen OLEDs in the first quarter and other manufacturers will follow. So, what's the big deal with OLED you ask.  Well, OLEDs use a layer of electroluminescent film which is made up of an organic compound.  Because the display works without a backlight, as the typical LCD display, OLEDs are thinner and lighter, and provide a higher contrast ratio with deeper blacks.  In other words, an improved image.

#2 LCDs will continue to grow in size. Forget the 84 and 90 inch models look for most manufacturers to offer models well over 100 inches.  Panasonic intro'd a 12 foot model last year (that's a 144 inch screen).  These models won't come cheap but the average TV sold in 2013 will be at least 65 inches or above.  Besides getting larger these TVs will put the nail in the coffin of digital front projectors.

#3 Remote controls get SMART for 2013.  New remotes aren't just for changing channels or adjusting volume.  They will do lots more: like voice and gesture control along with face recognition.  Voice remote will become the standard as 2013 will mark the year the Remote came of age.

#4 2013 will see the mass introduction of the Ultra High Def (UHD) TV with its 3840x2160 resolution.  Presently only available in large format 84 inch models by LG and Sony (and priced in the $17,000 range) this year we'll see UHD models in the 55 inch size for $4,000 - not cheap but readily affordable to the 'high end' consumer.
Note: one of the problems plaguing UHD is available content.  CMG doesn't expect the studios to start distributing Ultra High Def  Blu-rays discs, for example, until sales of UHD-TVs reach the million unit mark.

#5 TVs with Built-in Cameras.  CMG predicts more and more TVs will incorporate HD cameras and microphones along with Internet connectivity for Skype and other facial recognition/communication services.  Cameras will become the norm on all sized models of  TVs.

#6  A new HDMI Standard is looming for 2013, so just when you thought HDMI 1.4a was the way to go for video and sound hookup - Presto HDMI 2.0 appears. Why a new standard, well for one thing, the new HDMI can handle far higher bandwidth and thus higher frame rates, and Ultra High Def TV and its demands.

#7 Apple iTV will be intro'd along with Intel's TV network.  The heart of these systems is that they will have their own networks, allowing the average family to 'cut the cord' and bypass cable or satellite providers.  The Apple iTVs will feature a thinner, border-less screen with wider viewing angles, new multi-function remote, and very sophisticated user interface.

These are the Trends CMG sees for 2013. Cinema exhibitors take note, and when you think of D-Cinema conversion think of this competition and how your theatre needs to have a WOW factor to get consumers out of their living rooms and into your theatre.

Best and Happy Movie Going!
Jim Lavorato

HAPPY NEW YEAR !

Yes, another new year has arrived. A new year - a new day - a fresh start. Time for a change?  About 45% of Americans make a New Year's resolution, but only 8% keep them.  Women are 10% more likely to succeed in keeping their resolutions than men.

And, 47% of all resolutions target self-improvement.

The Top 10 Resolutions for 2013 are:
-Drink Less Alcohol
-Eat Healthy Food
-Get a Better Job
-Lose Weight/Get Fit
-Manage Stress
-Quit Smoking
-Reuse,Recycle,Reduce
-Save Money/Manage Debt
-Take A Trip
-Volunteer Time to Help Others

Moviegoers have voted.  The 10 Most Overlooked Films of 2012 were:
-Being Flynn
-Hello I Must Be Going
-Jeff Who Lives At Home
-Haywire
-ParaNorman
-Lawless
-Save The Date
-Sever Psychopaths
-Goon
-2 Days In New York

The 10 Most Disappointing Films of 2012:
-Dark Shadows
-Prometheus
-The Watch
-Brave
-Savages
-John Carter
-Flight
-Looper
-The Bourne Legacy
-Les Miserables

Best Wishes for a Great New Year!
Jim Lavorato

2012 SETS RECORD BOXOFFICE

2012 was the highest grossing year for movies on record, and ticket sales actually increased - which has not occurred since 2009! The U.S. box office grossed over $10.8 billion, a 6% increase over 2011, with admissions up 5% at 1.3 billion.

Not surprising, CMG predicted a stellar summer and winter box office, but the fall grosses also held up as good film product was steady and kept moviegoers coming.

Can 2013 equal or exceed 2012 ?  CMG believes so, for two reasons: people are looking to escape and the product roster looks great.

There will be a new Star Trek, Superman, The Hobbit-Part II, and Iron Man 3. There will be a new Thor, Fast & Furious 6, Hangover III, Hunger Games II, and lots more. Not to mention a plethora of  alternative content that will become more and more accessible as digital cinema becomes the norm.  2013 will be killer for the box office.

What do you think? Let us have your thoughts and comments.

Best and Happy Movie Going!
Jim Lavorato

KODAK - FINALIZES SALE OF PATENTS

In CMG's continuing coverage of the Kodak story, last week showed a way out and new life for the 'old gal'.

On Wednesday, Kodak agreed to sell and license its digital imaging patents for $525 million.  A consortium organized by Intellectual Ventures Management, LLC, and RPX Corp. were the purchasers.  The Bankruptcy Court must approve the transaction but once approved will lead the way to Kodak's emergence for Chapter 11 bankruptcy which it entered into in January of this year.

The funds provide for exit financing and resolution of U.S. retiree non-pension benefits and liabilities.  The $525 million will be paid by 12 intellectual property licensees organized by Intellectual Ventures Mgnt. and RPX, whose names were not disclosed but filed reports indicate that Apple and Google were among the group of 12.

"The proposed transaction enables Kodak to repay a substantial amount of its debtor-in-possession loan, and provide new financing for its commercial imaging business for growth and success," said Antonio Perez, Kodak Chairman & CEO.

The sale of the 1,100 patents includes 700 patents covering image capture, processing, and transmission technologies related to the design and operation of digital cameras and other devices, including smartphones and tablets.  The remaining 400 patents cover image analysis, manipulation and tagging, and network-based services - such as image storage, access, and fulfillment.

Hopefully Kodak will reinvent itself as a viable and profitable entity and become the dominent player in the commercial imaging business through innovation and research.

High Frame Rate - What's All The Fuss

The hot topic within the Hollywood production community is High Frame Rates (HFR).  Shooting and exhibiting movies at frame rates from 48 frames per second (fps) to 60 fps and even up to 120 fps.  But, why? Why use HFRs ?  Will the average moviegoer even notice the difference ?

The technology to advance the HFR concept exists.  Most digital movie cameras can easily be adjusted to accommodate shooting in HFRs and all Series II digital cinema projectors and servers can accommodate at least a 48fps playback.  But the question remains.  Does running more frames through a lens actually improve the viewing experience ?

The 35mm film standard of 24fps was developed because the studios didn't want to pay for more film that using a higher frame rate required.  For example, at 48fps twice the film would be required for the same movie released in 24fps.  The reason 24fps was chosen was because 16fps (the original standard of silent films) was not fast enough to support sound on film.

Hollywood proponents of a HFR standard claim that it eliminates strobing during near lens pan shots and provides a smoothness to physical movement denied to 24fps images.  But some Hollywood production honchos question HFR's universal applicability.  Some, like famed cinematographer, Doug Trumbull find that HFRs "look a little too vivid" and that real action in high contrast sunlight starts to "look hyper real".  Trumbull's recommendation is to use HFR selectively, using it for action shots but returning the motion blur of 24fps when appropriate. " You can use HFR throughout the movie, changing frame rates for every scene, every object, every pixel, just as you would for brightness or color timing" , says Trumbull. For many viewers, HFR looks 'too real'.  For others, it looks 'too much like video' and not like a regular film.

Ready For HFR

It appears that Hollywood's production folks and their content aequisition equipment are ready to accommodate high frame rates, it's just a matter of its value and need. Is a higher frame rate better? Yes. Does it make a huge difference from the viewers perspective? Probably not.


Best and Happy Movie Going
Jim Lavorato
Comments Welcomed

EXHIBITORS' 12 DAYS of CHRISTMAS

Tis that time of the Year when dreams come true and sugar plums dance in your head, or if you are a movie exhibitor your wish list may look like this:

On the first day of Christmas my true love gave to me .........
A Boxoffice Line A Block Long
Two ... Popper Popping
Three... 'Avitar' Sequels
Four ... 'Twilight' Sagas
Five Thousand ... Gift Cards
Six Hundred ...Fandango Admissions
Seven ... Concession Combos
Eight ... Free Digital Conversions
Nine ... Midnight Showings
Ten ... Premium 3D Movies
Eleven ... Pre-feature Promos
Twelve ... Blockbuster Hits

Happy Dreams and Merry Christmas !

Best!
Jim Lavorato

FILM BOOKERS - DO THEY HAVE A FUTURE?

Does the independent film booker have a role to play in the digital cinema age?  Will the film booking business model follow the fate of the video store or travel agency - or will they continue to operate unscathed by the digital domain?

My thought is that film bookers will have to dramatically change their modus operendi - or they will become victims to the relentless change the cinema industry is undergoing in its digital transition.

Film bookers are paid by theatre owners to make distribution contracts with movie studios on their behalf.  Historically, the most important term of the contract was the percentage of ticket sales that went back to the studio.  The booker also negotiated the commitment that applies to each movie.  The commitment being the minimum number of weeks that a theatre must screen the movie.

The purpose of a film booker is to advocate for his client (the theatre owner). To accomplish this the booker has to have a very good working knowledge of what movies 'play well' based upon each theatre's demographic.  They must also 'spot' sleepers (movies with unrecognized potential) to maximize their client's profits. Traditionally, the job of the booker also included the overseeing of the shipment of the film to the theatre (the cost of which is incurred by the theatre owner).

Film bookers aren't required to be licensed and work under a variety of arrangements. For example, it is very uncommon for a film booker (unlike a talent agent) to work for a percentage of ticket sales.  It is much more common for a film booker to either be a salaried, in-house employee for a cinema chain or be an independent booker.  Independent bookers charge a flat fee for their service - usually so much per screen per week or per movie.

The 'edge' bookers have is that they are booking for any number of cinemas which should give them 'buying power' with the studios.  However, that power has diminished with the industry's transition to digital operation to a point where 'buying power' is almost non-existent.  More and more, there is no negotiation between the booker and the distributors.  The distributor simple sets the terms and its "take it or leave it".  Even the traditional 'gross split' which went in favor of the exhibitor as the movie played-out is gone.  Replaced now by the 'aggregate' rule - whereby a flat percentage of ticket sales is charged for the entire run of the movie.  The aggregate is very prevalent and used more and more on major films.

Given this scenario, and as the cinema industry becomes more dependent on the digital domain, why would a theatre owner require the passe services of a  film booker? Currently, most movies are distributed via hard drive to theatres by the studios or surrogates like Technicolor.  It costs the studios $5 for the hard drive. In the future, movies will most likely be distributed via satellite or over the internet which cost 5 cents.  Could not the studios present a menu of movies and other content to theatre owners which, in turn, would select from that menu (play list) the content they want to exhibit?  The play list would be specific to each cinema, ie first run, second run etc. The terms would be set for each movie (as they are now) by the studios without negotiation. There would be no limit on availability of  'prints' and no need for a booker, as it would only take the theatre owner minutes to 'book' a movie.

The future seems clear.  Traditional film booking agencies will have to embrace new services and expand their product portfolio to survive. They will have to become more relevant by offering new and (in most cases) untried services and systems directly tied to the revenue stream of their theatre clients.  The good-old-days of  booking movies for a fee will no longer be a viable business - or for that matter, even exist.

Best
Jim Lavorato
Comment Welcomed 

CineBuzz REPORT - 14 December 2012

HIGHLIGHTS OF THIS WEEK'S REPORT

- Cathay Cineplexes/Tops In Cinema Marketing
- GDC Teams Up With Chinese Partner
- NEC Takes 'TOP' Projector Honors, Also Latest On Small Venue NC-900
- 'UltraViolet' - To Triple Number Of  'Digital Locker'  Users In 2013

NOTE To CMG Readers: Sorry for the pause in posting. As of late, business and personal committents distracted me from CMG, but I am back and ready for a holiday blitz. Thanks for your patience.

Cathay: Bests All Exhibitors In Marketing Their Theatres

Cathay Cineplexes, a mid-sized cinema chain based in Singapore has, far and away, the best cinema promotions.  Their promotions are relevant, thoughtful, cater to their cinema customers desires, while bringing in new moviegoers to their venues.  Entertainment Equipment, the company I manage, has been a consultant to Cathay in the past - providing training on a variety of management and technical issues.

After getting to know Cathay and how they manage, I was awe struck by their dedication to marketing and promotion.  For example, their latest promotion (see insert) states, "Watch Films At Cathay Cineplexes and Win Your Exclusive Backstage Pass To Europe".  Well, straight away your interest is aroused.  What are they taking about?  Exclusive Backstage Pass? Europe? You must read on!  The tag line (which is terrific)  states: "You Have One Life, One Shot - Make It Count".

This is great promotion and enticement. It sells tickets but also, and more importantly, cements the connection with their customers, while offering something their competition doesn't.  All cinemas should take note of Cathay's promotions and begin to market as they do.


GDC Gets New Cinema Partner

Huayi Brothers Media Group, one of China's leading private film production companies, reported that it had acquired  a 9 percent stake in digital cinema equipment and solution provider GDC Technology Ltd for $20.92 million - which  effectively values GDC at slightly over $232 million. The Huayi Group, known for its quality film productions, entered the cinema exhibition business in 2010 and currently has 12 cinemas in China.

"In recent years, the number of cinemas (in China) has increased rapidly, intensifying competition in that sector.  Huayi Brothers, as a latecomer to the movie exhibition business, increases it potential to develop better than its cinema rivals with GDC's technological support" states, Cai Ling, a Chinese cultural industry consultant.

According to the latest statistics, there are 11,835 movie screens in China, 90% of which are digital.  Of that total, 8,565 are equipped for 3D playback.  This compares to about 40,000 movie screens in the U.S.

Most U.S. exhibitors know GDC as a producer/seller of DCI complient digital cinema servers and as a VPF integrator. GDC is a portfolio company of the venture capital and investment firm the Carlyle Group.


NEC 'TOPS' In Digital Projectors

Every year, Pacific Media Associates, a worldwide consulting firm on digital projection and products, compiles and reports a list of the 'Top Digital Projector Brands'. Pacific Media uses sell-through data from dealers and project integrators, and customer response analysis to compile its list. This year, NEC won top honors with its NP-PA550W High End projector and its NP-V260X mainstream digital projector.

NEC was cited as having the best performing digital projectors vs. all other manufacturers.  That record of achievement is passed on to its line of digital cinema projectors - where the top performing, least problematic, projectors have been the NECs.

In other NEC news, the new NC-900C small venue digital cinema projector - for cinemas with screens up to 24ft. wide - may be a winner.  The NC-900 comes complete with a lens and lamp. Early next year, the package will also include an integrated media server.  The NC-900s offer High Frame Rate capability, and have the ability to run 3D features and alternative content.  "NEC is committed to having large and small screened cinemas convert to digital cinema technology," said Jim Reisteter, General Manager of Digital Cinema Solutions for NEC.  "Our NC-900C projector gives venues with small screens, the ability to delight their patrons with pristine images and a meaningful theatre experience."

UltraViolet Finally Gets Traction

I have discussed UltraViolet in several prior posts.  To refresh, UV is an alliance of leading entertainment and technology companies, retailers, and internet providers (www.uvvu.com  that provide a vehicle for consumers to collect, access, and enjoy movies and TV shows in the cloud via on-line stores, video apps, and mobile and other devices.  The media is stored in each consumer's 'individual digital locker' for on-demand playback and use.

UltraViolet was conceived and brought to life over three years ago but without much success, as the marketing of UV was dismal, now it has gotten its stride. Consumer awareness has now reached 50% and over 7 million users have subscribed.  "Awareness has really risen over the past year", says Lexine Wong, SVP for worldwide marketing at Sony Home Entertainment.  "The industry remains united in marketing UV, for example, all DVD and Blu-Ray releases carry stickers which explain
UltraViolet's cloud-based digital storage lockers and how they work. This has been a great marketing tool. Additionally, for example, Sony Pictures Gift Store offers 500 UltraViolet enabled digital titles to gift during this holiday season." Wong further says she expects expanded marketing efforts involving the movie studios and retail partners to be forthcoming.

The UltraViolet alliance is forecasting to have over 21 million  U.S. subscribers by year-end 2013, and expects this growth trend to be as robust in the international market.

UltraViolet is the future for home entertainment and media collecting and viewing on larger and better home TV and sound systems.  Movie exhibitors - take note - your cinema presentations need to have the WOW factor to compete against this trend. So, when converting to digital cinema don't go the least expensive, smallest, or just-get-by purchase.  Think of the future and who your competition will be, and as the sun will rise tomorrow, the exclusive theatrical window for movie releases will eventually close.

Best and Happy Movie Going!
Jim Lavorato
Comments Welcomed

WEEKLY CineBUZZ REPORT - 18 November 2012

HIGHLIGHTS OF THIS WEEK'S REPORT

- Cinemark Theatre Circuit Sued by Shooting Victims
- Barco Enters World of Sound
- NEC's New Small Venue D-Cinema Projector
- "That's All I Can Stands"

Cinemark Century 16 Where Shootings Occurred

Cinemark Sued By Shooting Victims

Cinemark, the third largest cinema exhibitor in the U.S., has been sued by victims of the July 20th shooting at their Century 16plex in Aurora, Colorado were 12 cinema patrons were killed and 58 wounded.  The suit was filed on behalf of 3 of the surviving victims and other law suits are anticipated.

The suits allege that Cinemark, 'failed to provide security personnel for the midnight screening of  The Dark Night Rises, the exterior doors to the theatre did not have any alarm or security system that would have alerted the staff that someone had surreptitiously left the theatre or that the door in the back of the theatre was being kept open.' 

The suit also states that 'there was no system in place for the theatre staff to monitor parking areas and external doors behind the theatre and that the multiplex had been the site of previous assaults and robberies, including a prior shooting'.

Cinemark representatives could not be reached for comment; however, the circuit plans to reopen the theatre in the beginning of 2013 although no set date has been given.

In a related story, a man in Bolivar, Missouri was arrested and charged in connection with threats to shoot up a theatre during a presentation of  'Twilight - Breaking Dawn.
Blaec Lammers, 20, was arrested at a Sonic Drive In Restaurant after his mother tipped authorities that her son had purchased weapons and may be planning a movie theatre shooting. 

When questioned, Lammers told police his intention was to target movie patrons at a Sunday night showing of the movie (which he had purchased a ticket for) along with a possible attack on people at the nearby Walmart where more ammunition would be available.  Lammers had purchased several rifles and 400 runs of ammunition. He has been charged with first-degree assault, making a terrorist threat, and numerous firearms violations. He is being held on $500,000 bond pending trial.


Barco Announces New Cinema Sound System

Belgium based Barco, known for its digital projectors, announced its new cinema audio system - the Auro 11.1 and the agreement it has signed with DreamWorks Animation in which the Auro system will be used for mixing and for playback at cinemas for the next 15 DreamWorks animated films

"We are thrilled with the Studio's long-term endorsement of the Barco Auro 11.1 sound format.  Barco is committed to not only developing digital cinema projection but we are making critical advances in cinema sound," said Wim Buyens, CEO of Barco's Entertainment Division.  The Auro 11.1 system creates sound in three distinct layers: surround, height, and overhead and features 11.1 channels of sound.

Similar to the new Dolby Atmos 11.1 sound system, the Auro system  is intended to envelope the cinema audience with life-like sound.

NEC's New NC900C Small Venue Digital Cinema Projector

There has been much talk about D-Cinema projectors for smaller venues such as, screening rooms, small cinema auditoriums, art houses, etc. becoming available.
Well, they are now available and the NEC NC900C is the best thus far.

The NC900C is DCI compliant and comes prepackaged with lens and server (including an integrated media block).  It has dual 350watt lamps and projects a 2048x1080 resolution (2k) on screens up to 21ft wide.  Its is 3D capable and can handle high-frame rates, and like its larger brothers it carries a two year warranty.

If interested in the NC900C contact EEC (800-448-1656) for more information.

Popeye Returns To The Big Screen

Popeye, the sailor man, has to battle his nemeses, Bluto, to save his girl friend, Olive Oyl, by using spinach to enhance his strength.  Sony Pictures has plans to bring Popeye back to the big screen. Slated to be released in 3D (probably in 2014).  Popeye, (who first appeared in a comic strip in 1929) should be a good box office draw.

One of the all time favorite cartoon characters, Popeye is a hero - and reflects his attitude with his famous saying, "That's all I can stands, I can't stands no more".

Best,
Jim Lavorato
Comments Welcomed

EEC Launches D-CinemaRemote

On-line Service Access System for Digital Cinema Systems

Entertainment Equipment Corp. announced today the launch of D-CinemaRemote, an on-line service access system for its digital cinema customers which enables remote management of their digital cinema equipment (projection and sound) ensuring maximum performance and uptime.

"D-CinemaRemote eliminates the need for a cinema technician to be present to check system status issues and solve operational problems, now we can solve many problems remotely - single screen or multiplex," said Jim Lavorato, President of EEC. "It  promotes operating efficiency and pro-active technical maintenance."

D-CinemaRemote is the industry's best, easiest-to-use, and accessible remote service system.  It is the latest addition to EEC's ever-improving commitment to provide the best customer service in the cinema industry. "D-CinemaRemote represents a new and exciting addition to EEC's product/service portfolio" says Lavorato.

In addition to D-CinemaRemote, EEC's services include: Cinema Training Central with its complete compliment of cinema training seminars and workshops; sales, installation, and after-sales service of all makes/models of D-Cinema projection, 3D equipment, and cinema sound systems & components; and Theatre Management Services such as: day-to-day theatre management, cinema planning and design, and marketing & planning management.

WEEKLY CineBUZZ REPORT - 10 October 2012

HIGHLIGHTS OF THE WEEK'S REPORT

- Special Report: Day-and-Date Release of Films Across Media Formats
- Dolby: Taking Cinema Sound To New Levels
- Oscar Predictions: Out on the Thin Branches

CINEMA INDUSTRY - ONE STEP CLOSER TO SIMULTANEOUS RELEASE

"Arbitrage", a movie collaboration between LionsGate Entertainment and Roadside Attractions was released simultaneously in cinemas and on video-on-demand via iTunes, AmazonPlus, and through cable and satellite pay-per-view channels.

According to LionsGate, "Arbitrage's" VOD sales reached $11 million as of last week, while at cinemas it had grossed $7.3 million. These are very solid numbers for a low budget, independently distributed movie and indicates that for some films day-and-date release via cinemas and VOD makes economic sense.  I believe this trend will become the norm and puts cinemas on notice that the exhibition business is in for major change and adjustment going forward.

"This is a model that we have been in front of - to make both theatrical and VOD work at the same time", said Howard Cohen co-president of Roadside Attractions. Distributors, such as Roadside, that specialize in VOD releases can now tout pay-per-view profits when they try to acquire movies at film festivals and other markets.
Unlike box office grosses, that are typically (on average) split 55/45 between distributor and cinema owner, VOD grosses are split 70/30 and sometimes more in favor of the distributor. "For example, Roadside and LionsGate paid $2 million for the domestic distribution rights to "Arbitrage" at this year's Sundance Film Festival; then spent about $2.5 million promoting the film's theatrical pre-release.  However, the marketing expenses associated with the VOD release were only several hundred thousand dollars", Steve Beeks, President of LionsGate's motion picture group told CMG.

Not long ago, VOD movies that didn't receive a theatrical release couldn't muster an audience and sometimes weren't viewed at all - this is changing!  "There is a huge change that's in the process of taking place - it's probably the biggest revolution in the history of the movie business" says film maker Barry Levinson, who won an Oscar for the "Rain Man", "VOD distribution provides an economical end run around the traditional exhibition model. With VOD, anyone can view a movie anywhere, at any given time - and that opens up lanes to movies that otherwise would be shut-out of the marketplace".  CMG couldn't agree more.

Many moons ago I wrote in this blog that films would eventually be released on all available media formats simultaneously - that time in slowing inching forward and that is why it is imperative that cinema owners convert to digital asap.  First, because they must ensure that their movie (and other content) presentations (both image and sound) are of high quality and a step above 'in-home' entertainment systems; and second, that cinemas take full advantage of the wide variety of presentation opportunities that 'digital cinema' offers.

Needless to say, the large cinema chains, including Regal and Cinemark have refused to exhibit movies that are released day-and-date on VOD - but they are fighting a losing battle.  The technology can not and will not stop, it is relentless.  It it up to each cinema owner to confront reality, embrace the technology, and USE IT!

DOLBY INTRO'S THE 'ATMOS' CINEMA SOUND SYSTEM

Last week Dolby Laboratories, Inc. premiered its long anticipated Atmos Cinema Sound System which is centered around the new CP850 Cinema Sound Processor.

The Atmos System takes cinema sound to a whole new level, unattainable on any home entertainment system.  The CP850 offers support for 64 speaker feeds. It supports Cinema Dolby Surround 7.1 and 5.1 digital playback, as well as, Dolby Digital Plus, Dolby Pro LogicII, Dolby TrueHD and Dolby E which covers all alternative content formats.

Along with each CP850, Dolby provides the Atmos Commissioning Service which provides a review of the cinema's sound system design to ensure that the speakers and amplifiers have the necessary performance and room coverage to deliver the high-quality Atmos experience.

For 2012, Atmos enabled films include: Brave, Rise of the Guardians, Taken 2, Chasing Mavericks, Life of Pi, and The Hobbit. 
For 2013 (thus far): Star Trek Into Darkness, Gravity, Pacific Rim

The Atmos System ushers in a new dimension in cinema sound that will afford theatres an opportunity to provide audiences an experience unattainable in any other entertainent venue.


CMG'S OSCAR PREDICTIONS

Is it too early to predict what movies will get the Oscar nod, not for CMG it isn't.
Our picks for 2012 are the following:

Best Picture: Lincoln (Hollywood loves history - real or not)
Best Actor: Daniel Day-Lewis (Lincoln)
Best Actress: Naomi Watts (Impossible)
Best Director: Steven Spielberg (Lincoln)
Best Musical: Les Miserables
Best Supporting Actor: Tommy Lee Jones (Lincoln)
Best Supporting Actress: Anne Hathaway (Les Miserables)

OK, folks - that's it!

Best & Happy Movie Going
Jim Lavorato
Comments Welcomed

CINEMAS MEET THE 'MET'

THE METROPOLITAN OPERA'S - HD- LIVE PROGRAM

In discussions with cinema exhibitors on their conversion to digital projection, the question of  presenting alternatives to movies usually arises given that they will no longer be tithered solely to the film reel.  One of the most successful of the alternative content providers to cinemas is the Metropolitan Opera Company's HD-Live Program.

Transmitted from the Lincoln Center in NYC, which is the largest (at 3800 seats) and most respected opera house in the world, the Met's HD-Live performances are carried by over 1900 cinemas in all 50 states and in 64 countries.

"The Met's future was on a downward course. We needed to reach more people with our art. That was the purpose and goal of the HD-Live Program and it proved to be a success beyond our wildest expectations,"  states Peter Gelb, the Met's General Manager and mastermind behind HD-Live, "It provided the huge boost in revenue that the Met really needed."  And with over 1600 full-time staff members and a 12 month production schedule the Met's annual budget exceeds $300 million. Full use is made of its stage, which is 150ft. deep and 10 stories high!  Says, Peter Gelb, "We run our productions like sporting events, not only in the way they are managed but also in the way we use today's broadcast technology."

Featuring 12 productions for the 2012-13 HD-Live season, the Met encourages cinema participation and transmission requirements are easily meet by the current digital cinema projection systems.  Launched in 2006, HD-Live at the Met has sold over 10 million tickets and has won both an Emmy and Peabody Awards.

The Met's HD-Live Program is one way cinema exhibitors can expand their market reach and get patrons into their theatre which may normally never attend movie presentations.  If interested simply go to the Met's website (www.metoperafamily.org)
and fill out the on-line Cinema Questionnaire.


Jim Lavorato
Comments Welcomed

WEEKLY CineBUZZ REPORT - 1 October 2012

HIGHLIGHTS OF THIS WEEKS REPORT

 - Disney Buys LucasFilms for $4+ Billion
 - Kodak's Future: Interview w/Ed Monahan
 -  SPECIAL REPORT:Cinema Exhibitors - Why They Need the 'WOW' Factor



GEORGE LUCAS GOES TO THE DARK SIDE ?

At 68, George Lucas is calling it quits and sold LucasFilms to Disney for $4.1 billion.
It's a good move for Disney which purchased Marvel Comics and all of their rights in 2009 for $3.96 billion.  Disney is clearly in the content purchase mode and Lucas's Star Wars franchise is an entertainment property of huge value.

Lucas will receive 40 million shares of Disney stock representing one-half the selling price and the remainder in cash. This will make him the second largest non-institutional shareholder right behind the Steve Jobs Trust  (the Apple honcho was the largest single Disney shareholder before his recent death).

"For the past 35 years, one on my greatest pleasures has been to see Star Wars passed from one generation to the next.  It's now time for me to pass Star Wars on to a new generation of filmmakers", said Lucas about his decision to sell LucasFilms. Included in the deal are well known special-effects house Industrial Light & Magic, Skywalker Sound, and video game company LucasArts.

Disney CEO, Bob Iger stated that, "It is just fantastic for us to have the opportunity to  buy it, run it, and grow it.  We intend to aggressively expand the Star Wars film schedule. Following the release of Episode VII in 2015, and Episodes VIII and IX will probably follow on a cadence of every other year and then go from there".

After hitting an incredibly long home run with Star Wars, Lucas found an exit strategy with Disney which would keep his legacy alive and well for the long term and not turn to the dark (forgotten) side.

Ed Monahan

KODAK - WHAT'S NEXT

In an interview with Ed Monahan, Kodak's Head of Strategic Planning, CMG got some insight into Kodak's future.

CMG: Why did Kodak declare Barkruptcy in the first place?

EM: Kodak encountered the same difficulties a lot of other companies faced in the digital transformation.  In our case, it really took its toll on our perennial cash cows, and while we have done a lot to migrate to a digital portfolio and new business models, in the end we needed to re-organize under Chapter 11 to resolve our financial situation and start anew.

CMG: What's in Kodak's future as it emerges from Chapter 11?

EM: There is a lot of good going on at Kodak to prepare to emerge from Chapter 11. We are preparing to sell the Personalized Imaging business which includes our traditional film and paper business and the retail kiosk/thermal business. The new Kodak that emerges will largely focus on the commercial printing business and the Personalized Imaging business will be sold to generate capital towards that emergence.

CMG: Is there much intrinsic value in these businesses ?

EM: In terms of the traditional film and paper business we solidly believe in them and are excited about the prospect of their sale.  These are businesses which are part of a market structure that continues to generate sales and earnings, and will be attractive to prospective buyers.

CMG: When is the sale contemplated ?

EM: The selling of these businesses is viewed in a very positive light. We are hopeful to complete the sale by the middle of next year.  Kodak will then be in a position to serve our markets with leading products and innovation and make further advances into the digital ecosystem.  It is that digital ecosystem and digital lifestyle that will shape not only what Kodak does but what many companies do to win going forward.

CMG: Thanks Ed.


CINEMA EXHIBS: YOU NEED THE 'WOW' FACTOR

My mantra to cinema exhibitors (large and small) is that going forward your most significant, and relentless, competition will be the consumer's living room (aka media room, home theatre, family room, whatever).  When I hear exhibs tell me they want to convert to Digital Cinema but only require the smallest (re: least expensive) projector and definitely no sound upgrade (even if they currently have mono sound in their theatre) my heart drops.  Why? Because in the future their business, under this scenario,  is terminal.  That cinema  simply will not be able to compete in terms of presentation quality (image and sound) with a dark on-screen image and sub-par sound.  Exhibs, you need to have the 'WOW' factor in your presentation.  It has to be better, significantly better, than what people are viewing in their homes!

To their credit, after some discussion, most exhibitors that Entertainment Equipment deals with (and most are long-term customers) trust our judgment and understand that since they are making a significant investment regardless, their best course is to invest a little extra and give their patrons a movie presentation the likes of which is beyond their wildest expectations and one that cannot be replicated in their home- media room!

Exhibitors, if an equipment provider isn't telling you that purchasing an undersized D-Cinema projection system is not the way to go - than BEWARE , because they don't have you best interests at heart.

So, you ask "Why do I think this way?" 

Well, let's have a look.  The new normal in Hi-Def  TV purchases for home media is the 72" ( preferably called the 6 footer) screen - which is quickly becoming the 7 ft. (84") screen, These 7 footer will be on many a Christmas list this year, but it doesn't end there.  Several trends are emerging in 'home entertainment' that we need to explore.

First, is the Multiple Screen trend.  The use of dual and multiple screens is becoming more popular.  This can mean two or more flat-panels on the same wall or screens on various walls in a room - which is a popular arrangement in rooms that function as party or entertainment spaces.  Why, multiple screens?  Because our video choices are now so vast that people often don't want to be restricted to just one screen in a room.

Needless to say, a cinema has one screen, so the presentation must be damn good!.

Second, the Media Room is transforming.  What was once the '90s trend of a 'dedicated home theatre' with a 'cinema' look and fixed seating etc. has given way to
more comfort with sofas and chaise lounges.   People want a home theatre experience but don't want to limit the room to just one use and making it a multipurpose room ensures the systems installed are used more frequently and by more family members.

Third, Social Networking.  Multi-screen goes beyond traditional TV,  Smartphones and tablets are not only being used as TV remote controllers but as second viewing screens as well, with social media driving this trend.  Users are 'live' tweeting, posting, and texting while watching sporting events, movies, or TV shows.

Fourth, Networking Media. According to the Consumer Electronics Association, 25% of all U.S. homes now have an Internet connected Blu-Ray player and over 70% have a gaming console connected to there primary viewing screen.  The internet will become 'the source' for accessing content in the home.

Fifth, Sound. Sound is one-half the experience in viewing any content. And this is no exception in the home,  Better and higher sound quality continues to evolve and is being incorporated in home media systems.  The current trend is the use of floorstanding speakers rather than in-wall speakers.  Floor speakers deliver the best and clearest sound and they are mobile.  Another trend will be toward 'soundbars'. Not only aesthetically pleasing but good soundbars deliver the quality of full-range speakers and even incorporate subwoofers. 

In summary, Cinemas must have that 'WOW factor'  in all of their presentations.  In-home entertainment isn't at the cinema level - yet,  but cinemas have to do it right and when converting to Digital Cinema, well, that is the time to do it.  Digital cinema is the great equalizer, because it allows a single screen theatre in a small town the opportunity to present a movie or other content that is equal in image and sound quality to the 'best' cinema.


Best
Jim Lavorato
Comments Welcomed