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Thursday, July 12, 2007

MANAGING A CINEMA FORWARD

ASSESSING THE LANDSCAPE

Effective managers today need to be constantly expanding on their expertise. For example, those in the cinema industry should be absorbing information on the digital domain, advertising trends, telecommunication and data processing advancements, the entertainment and leisure industries, food and commodities markets, etc. However, good managers should possess a filter which forces them to discard input that is opinion or point-of-view, and instead search for events which spark trends. This allows one to obtain clues with which you may make inferences on events and trends that may impact your business and also give you the right view of the landscape you’re working in.

Listed below are some current trends:

· In developed countries, populations are getting older, but also more diverse.
· Consumer businesses, no matter how large, are community-centric.
· Today all businesses must specialize in marketing and development.
· Companies must be organized for maximum advantage with flatter structures. Pyramid structures increase frictional loss and are energy consuming.
· Staff is the value added for any business and staff development a key success factor in today’s talent driven economies.

TODAY’S CORE SKILL SET

Whether your field is cinema management or any other consumer industry, today’s environment requires a specific skill set. Managers must:

· Possess a high tolerance for ambiguity. They must have a capacity for understanding uncertainty and know that things are capable of being understood in more ways than one.
· Have a generic curiosity. They should be constantly wondering about how business works, what impacts it and how to improve it.
· Assess their own nature and biases and be able to discount its effect on their decision-making.
· Be strategic thinkers not strategic planners.
· Place coaching skills as a top personal strength.
· Be talent driven. They must strive to hire dynamos and pay and train them well. When hiring, think in terms of roles or functions rather than specific job placement.

MOVING FORWARD

After assessing the landscape, keeping abreast of trends and establishing a set of core skills, now you need to hone prioritization, empower staff while providing guidance, and emphasize in-house and outside training which focuses on areas that need development. If the organization is structured correctly, the cinema manager is the key person who will move the cinema forward.

Monday, June 25, 2007

ENTER THE DRAGON

Two decades, perhaps less, how long before China becomes a force in worldwide entertainment? Competition with the U.S. is inevitable. The Dragon will expand into global entertainment with the cinema – the King of Mass Media – as its ultimate target.

China is currently spending billions on a massive branding mission to make its companies and products as well known as Apple, Coke and Sony. The Chinese Communist Party (CCP) has a derived national development agenda termed “Advanced Product Force” which is intended to promote communistic social harmony while employing capitalist business practices.

To accomplish this act, the CCP must be forward thinking economically while maintaining control over China’s 1.3 billion inhabitants who are diverse in terms of language, customs, social development and prosperity.

An example of the implementation of the Advanced Products Force is the Haier Group, a large Chinese durable goods manufacturer who has spent two years and tens of millions of dollars developing a line of flat panel LCD products. Haier finalized an agreement with the National Basketball Association to runway their HDTVs at basketball games and NBA promotions across the U.S. Haier is focused on consumer electronics, a difficult global market to penetrate and one where branding is essential, especially now that prices for LCD TVs have dropped so much that consumers choose brands (Sony, Panasonic) over price.

The Chinese realize that producing a quality product and marketing it require very different skills. Along with electronics, they are zeroing in on industrial and consumer durable goods markets and the entertainment industry, which has significant national import. Entertainment products have high margins, long life cycles and tremendous export value. For example, the U.S.’s arts and entertainment export revenues run neck-and-neck with its aerospace industry. Entertainment (particularly the cinema) is at the cutting edge and pushes the envelope with regard to digital imaging, microchip and computer processing advancements, connectivity development and other high-end technologies. With over one-fifth of the world’s population, China is also aware that a vibrant entertainment industry connotes a country’s prosperity, influence and social sophistication, which will prompt the nation to develop a homegrown cinema industry over importing Hollywood films.

Piracy is rampant in China with first-run Hollywood movies available from street vendors in DVD format in every city and town. Although cinema attendance has been shrinking, an agreement between Warner Bros. and Dalien Wanda (a Chinese developer) may lead to the opening thirty new multiplexes over the next two years. As the Chinese population prospers, people will opt to view a movie at a cinema over a low quality DVD.

Leaving behind the Hong Kong chop-socky films of the 70’s and 80’s, modern-era Chinese cinema began developing in the 90’s into the well financed, sophisticated, fantasy laden morality plays of today. Films like Crouching Tiger, Hidden Dragon (2000) and Hero (2002) have had wide international distribution and earned critical acclaim, but the U.S. studios maintain control over global movie distribution. The Chinese know they need to open up to more Hollywood-produced film imports, but they want to develop and control the production side and internal distribution while slowly exporting Chinese made films and cultures to the rest of the world.

As a new member of the World Trade Organization, China has had joint ventures with Hollywood, producing films shot entirely in China that are scheduled for release in both countries. Films made exclusively for distribution in China are also scheduled for production, which should nurture the Chinese film industry and provide the CCP a reason to clamp down on piracy.

For the last decade China’s economy has been growing at an unprecedented rate, but to continue growing, it will have to develop new products in addition to taking market share away from well established and well financed global competitors.

Their strategy is to move up the economic food chain into high yielding, high tech products and services. The entertainment industry is high yielding, but also high risk. Evidence of this is China’s development of its island Macau into a world-class gaming and resort destination. Almost all of the Las Vegas casino/resort developers have or are constructing mega-casinos in Macau, which exceeded Las Vegas in terms of monthly casino gaming revenues in January 2007.

The CCP is using the “leap frog” effect, leaping over old technology in order to develop China’s economy, which is most clearly seen in mobile communications. In 2003, there were 269 million cell phones in China, 498 million are expected by 2008. The Chinese will “leap frog” in all products and markets they enter, certainly in the entertainment industry. Modern cinema sound technology will aid the Chinese in this endeavor. Any movie can now be screened in native language if the soundtrack is mastered with a DTS timecode. This timecode is synced to a formatted DVD soundtrack which is then played back during film’s presentation, meaning a film in Mandarin can be exhibited at a U.S. cinema in English, eliminating the cost and nuisance of subtitling.

Reshaping a feudal, agrarian society into a high tech manufacturing and services economy over several decades is unprecedented, but the trick to it is developing, instituting and managing a new and youthful socio-economic phenomenon before it matures and the pace of growth slows dramatically. If the CCP imposes on individual expression or human rights, it could lead to the stifling of economic growth and civil unrest. Contentious policies have yet to foster widespread discontent. For example, Chinese citizens are allowed to protest against government policies, but only as individuals, not organized groups.
A society’s maturity and influence is measured in large part by its arts and entertainment, and in the 21st century this means electronic arts and entertainment; cinema, music, gaming, sports and literature at the core and supported by high-end audio/visual components and the Internet. China’s formal debut in global entertainment will be its hosting of the 2008 Summer Olympics. That’s when the world will get a preview of how the Chinese will try to influence global entertainment.

Thursday, May 31, 2007

SIZZLING SUMMER SPURS RECORD 2007 BOX OFFICE

This summer the cinema industry will witness its biggest box office in history. Driven by the fantasy and comedy genre films - which are voraciously consumed by audiences worldwide - Cinema Mucho Gusto is predicting that the 2007 box office will top $25 billiin globally and hit $10 billion in the U.S. And better still, that the $2+ billion increase over last year will be due principally to increased attendance vs. higher admission pricing.

We are also predicting that cinema's activities including: pre-feature entertainment, digital film festivals, video gaming activities, auditorium rentals, etc. will continue to enjoy strong growth and we anticpate revenue from these activities growing by 15-20% in 2007 and annually through 2010.

Monday, May 21, 2007

THE SPLICE IS RIGHT

Beginning June 1, EEC will launch "The Splice Is Right," a web blog devoted to facilitating transactions between buyers and sellers of cinema equipment and services. If you are in need of cinema projection or sound equipment, concession equipment, lobby accessories, as well as spare parts or want to sell any of these items, you will be able to log on to accomplish transactions. We will keep you posted on its impending premiere.

PIRACY: HURTING OR HELPING HOLLYWOOD?

According to the June 2007 issue of The Atlantic, all it takes is one culprit in New Jersey to share a newly released film with 30,000 people globally. The culprit directly recorded the film reels onto eDonkey, a person-to-person file sharing network.

While file sharing has steadily grown over the past decade, downloading movies is at a minimum level due to the amount of time it requi

Friday, April 27, 2007

Customer Service: The Inexpensive Upgrade

When preparing notes for my last employee meeting, I wanted less of reviewing policy, and more of a theme that my staff could reflect upon. Then it struck me: I was so accustomed to working in a movie theater, that I almost forgot what it was like to go to one.

In an attempt to regain customer consciousness, I visited a competing theater. There was a long line at the box office and after finally making it to the front, there was no smile or warm greeting to convey an unsaid thank you for my patience. The attendant at the concession stand had no line, but possessed an attitude of annoyance, like I was pestering him by placing an order. My pretzel bites were hard and the focus on the film was soft.

All of my complaints were results of poor customer service. Not just the manor of how you interact with patrons, customer service encompasses every aspect of your daily operations. From the accuracy and articulation of your recording, to the temperature of your auditoriums, customer service is the unseen entity that gives your theater its image. The bad experience I had at the competing theater was good for my meeting.

"Sure, you get to eat popcorn every time you work," I said to my staff. "You make it, sling it and sweep it." I wanted my staff to remember what made the movie going experience so fun, and to keep in mind that the popcorn to our customers is a treat, something to look forward to. The meeting then became a pep talk, "Let's neatly fill the bags with as much popcorn as you can, and always scoop from the top, so no one gets any crumbs. Let's give people the best popcorn in town!"

As corny as that sounds, motivating your staff is critical to customer service. You can have ear bleeding digital surround sound and seats modeled after those on Air Force One, but if you have cold cheese for your nachos and the ladies' room has no toilet paper, you're lacking good customer service. Especially with all the other entertainment options available to consumers. Superb customer service gains repeat business.

To ensure your customer service machine operates smoothly, keep yourself in the center of it.

A staff is only as motivated, friendly and competent as the manager who leads it. You are the model that your employees follow. You set the standard of service for your theater. I always tell my assistants that they should be able to do everything ten times better and faster than a floor staff member. A higher state of service exists when managers act as both coach and teammate, taking part in the work that the whole team needs to accomplish.

Working as a team is but one way to keep your staff happy. Remind your staff that you value their work by giving verbal pats on the back. "You did a great job of moving that line quickly." Make "thank you" a part of your daily repertoire and acknowledge your employees' efforts. While these ideas are not revelatory, you will notice results if your continually implement them. Happy employees are friendlier and care more about the needs of your patrons, which creates an ideal customer service environment. Happy customers means less complaints and that equals less stress for your staff.

Theater managers have the dual burden of operating both an entertainment venue and a food service enterprise, the former showcasing a product that is out of your hands. While you have no control over a film's quality, you have total control over the quality of customer service. "The movie was awful," a customer recently said to me, "but the popcorn was terrific!"

Tracy Janis
District Manager, Dipson Theatres

Friday, March 30, 2007

SELLING DIGITAL CINEMA/ WHAT ELSE IS THERE?

A recent Dolby Labs newsletter headlines D-Cinema. And states, "a milestone year for the digital cinema industry". I'm not sure what the digital cinema industry is. What I am sure about is the fact that Dolby, a publicly traded company( with a share price in the $33 - 38 dollar range, and a high current price/earnings ratio of 38) is put into the box of every other public company. To improve sales and profit margins on a regular and in most cases, quarterly basis, so as to endear themselves to the Wall Street analysts who follow and rate their performance. What drives a stock's price is earnings and/or its earnings potential. In Dolby's case it is currently the marketing and sales of its D-Cinema based products to the movie exhibition side of its business that will contribute to its overall growth and profitability- as the sales of sound processors and peripheral products to theatre exhibitors is not growing as it once did.

I'm not faulting Dolby. There Digital Cinema products are stellar and perform extremely well. Additionally, Dolby has one of the greatest brands and certainly an insiders place in Hollywood - one which is well earned and deserved.

It is only natural that Dolby push its D-Cinema products. The recent JPEG2000 upgrade tweeked its share price up but with P/E in the high 30's Wall Street will be looking for higher sales and earnings.


Jim Lavorato

CORN and GAS vs.THE CINEMA

The price of corn has skyrocketed on the futures markets and farmers are increasing their acreage of corn to an all time record. Why, because of the promise of ethanol as a replacement for gasoline. To make matters worse, this summer, gas is expected to rise to the $3/gallon price as crude oil hits the $70/barrel mark.

So cinema exhibitors get hit with a double whammy. Higher popcorn prices and higher gas prices, both of which impact theatres negitively. What's the answer, if any.

Watch your popcorn suppliers pricing, and if possible purchase corn now for stock through the summer or better still contract with the supplier for set pricing now with delivery later.

Look closely at your popcorn pricing. If possible nudge up your pricing or recast your pricing to force more moviegoers to purchase middle or large sized popcorn portions. Make these sizes the value buy, force customers to the middle price popcorn size.

Think up promotions: Gas discounts on concession purchases. For example $1 off on all concession purchases over $10. Offering Pic n' Play concession giveaways. Colaborating with local gas stations for fillups and a movie. Be creative.

The price increases for gas and corn will impact every movie exhibitors bottom line. So take action now. The roster of summer films looks very good but you need to be proactive and begin to impliment tactics to offset the gas/corn issue.

Good luck!
Jim Lavorato

Friday, February 23, 2007

2006 CINEMA STATS.

The 2006 numbers are in and the Boxoffice improved over 2005 - a dreadful year. Domestic B.O. was up 3% over '05 at $9.1b, while overseas did even better, increasing over 11% to $14.6b.
However, the numbers are still quite skewed, as the Top 10 films of the year generated 24.5% of total Domestic B.O. The Top 25 films alone accounting for 42.7% of total domestic B.O. for the year. And the genre of films pretty much was in line with the prior 5 year trend. With audience preference toward Fantasy/Drama and Comedy/Drama movies. Of the Top ten films in 2006, 7 were Fantasy, 1 Comedy, and 2 Dramas. Of the Top 25 there were 7 Fantasy, 11 Comedy, 6 Drama, and 1 Horror.

Although holding its own in the cut-throat world of entertainment, the cinema will remain a static performer. The 2007 crop of films appears to have promise but the fact remains that audiences are completely content driven and - as the stats support - genre driven as well.

The 2007 B.O. should show marginal improvement over '06 - which at $23.7b was certainly not stellar; however, the foreign markets will continue to outpace the domestic B.O. in terms of both organic and incremental growth. With 62% of total 2006 B.O. the overseas markets are where its at for the studios, as these markets continue to have strong growth. It's also where future potential is greatest, and where predicting audience film perference is much less challenging.

Jim Lavorato

Sunday, February 11, 2007

NEW BLOG LOOK

We have updated Cinema Mucho Gusto and have a new look. Which we hope will serve you better and make our Blog more interesting visually.

Tuesday, January 16, 2007

LIVE FROM THE CES

A visit to the CES never fails to stimulate the senses. You get caught up in with the energy and buzz which is always present. And every year you marvel at the immensity of this Convention. Seeing and experiencing everything at the CES is no longer an option. You have to pick and choose what interests or excites and plot out a travel route.

THINGS I SAW ON MY TRAVELS

Sony's Blu-ray vs. Toshiba's HD DVD High Definition DVD warring formats. Not to worry LG (the large Korean electronics firm) introduced the Super Multi Blue, a DVD player designed to play both Blue-ray and HD-DVD discs. Peace at last?

Sling Media showcased the SlingCatcher, a device that transmits multimedia images from the Web to TV set. Cost: Under $200 by mid-2007.

Texas Instruments announced that many of its OEM partners, including: Samsung, RCA, Mitsubishi, Panasonic, NuVision, Toshiba, etc. will be offering "slim DLP HDTVs" and that LED-based DLP and HDTVs are coming to market, which are touted to have a contrast ratio of 100,000 to 1! DLP is proven to be a great technology for both projection and HDTV use.

Similar to Sling, Dell introduced a digital home entertainment suite that sends HD video to Dell TV monitors. Dell also unveiled a new PC specifically designed for Game Players, with a liquid and ceramic cooling system. Cost: $5,499,

Sharp Electronics showcased the world's largest LCD display. At 108 inches.

Not to be outdone, Optoma BigVizion demonstrated a 100 inch DLP based display and has plans to introduce a 120 inch model later this year. Designed for the professional home theatre market the 120 incher will carry a price of $49,999.

Apple, as every one knows, introduced the iPhone. Although Apple may not be able to use the name iPhone (which has been copywrite owned by Cisco Systems for many years) Apple did get a lot of buzz but the Apple iPhone is not unlike other smart phones, such as Motorola's Q phone, which are already on the market.

TidBit: Samsung was the number one seller of digital TVs in the U.S. last year.

TidBit: DLP has 43% of display market. LCD and Plasma 57%.

As displays get larger and less expensive, video projectors are getting better and smaller. Projectors are being used for not only TV and movies, but for gaming, showing photos, presentations, sales and marketing calls & demos, etc., etc.

A number of point of purchase displays using portable digital projectors were showcased at the CES. Additionally, palm-sized DLP projectors were shown by Samsung,
Toshiba, and LG. These are low cost, extremely compact projectors which can be linked to cell phones, PDAs, PCs, etc. Samsung's Pocket Imager can fit in the hand.
Can link to a DVD player or DVD in laptop, Smart Phone, and provide up to a 54" image. Cost: $799 w/carry case.

Not to be outdone, Toshiba introduced the palm-sized TDPFF1AU that can provide an image up to 68 inches diagonal and comes complete with a foldable 23 inch screen, and a rechargeable 2-3 hour battery. It is compatible with phones, DVD players, digital cameras, laptops, game consoles, and USB memory sticks. Cost: $699. Let the games begin.

CES launched mygreenelectronics.org to assist companies and individuals in recycling tech devices and equipment.

TidBit: Within the next several years, Web-to-TV interfacing will be widespread. You can see it coming.

Tidbit: Funniest product at the show: Combo iPod dock station and toilet paper holder. Cost: I didn't get a price. As I don't own an iPod. Now what about a mini flat panel and toilet paper.....Hmmmm. Let's not go there.

By the way all the products mentioned and lots of others currently on the market can be purchased through Entertainment Equipment, just call 800-448-1656 or email.

Best - Jim Lavorato

Wednesday, December 13, 2006

CINEMA BUYING GROUP: A FAILURE FROM THE GET-GO!

The so-called Cinema Buying Group - the brain-child of the National Association of Theatre Owners (NATO) and some misguided cinema owners/operators - was a misconceived and terrible notion from its inception.

The CBG does not offer best industry practices, does not offer best suppliers, does not offer best service, does not offer advice, does not offer training, does not offer expertise, and has no industry recognition.

I'm not sure how many exhibitors joined the original (for profit) CBG - but it is now going to be "reconstituted" as a not-for-profit entity under the NATO corporate umbrella, according to G. Kendrick Macdowell, NATO VP & General Counsel. Why? To save on costs (insurance, accounting, legal, etc.) and "thereby greatly simplify CBG's organizational and financial burdens" states NATO's Macdowell.

Why join? The original premise for the creation of the CBG was to form a buying cooperative so independent cinema operators could purchase D-Cinema Projection Equipment in quantity and thus pay less because they would be buying in volume. Since this has and will not happen, for a whole variety of reasons, the CBG has religated itself to purchasing projection booth supplies and spare parts, xenon lamps, and concession supplies/parts from a total of five so-called "prefered suppliers". These five suppliers do not offer the best products or services in the cinema industry, and using this ridiculous CBG endorsement is really just a means for them to end-run their competing - and superior - cinema equipment manufacturers and suppliers/dealers.

For, at least 75 years, there has been a symbiotic relationship that has served the cinema industry extremely well - that is the relationship between the theatre owners, the equipment suppliers/dealers/service providers, and the equipment manufacturers.

Exhibitors beware! Like cartels, cooperatives (especially those based solely on the motive of lower prices) don't work well for their members. Thinking you can go on the cheap and purchase a quality xenon lamp, popcorn, or splicing tape to save a few bucks is very short-sighted thinking. What exhibitors (like all other businesses) need are strong and trusting relationships with their suppliers/dealers. This is the only way to get the best products suited to your cinema, the best expertise and customer service and the best technical advice, service, maintenance and installation, not to mention training. Disregarding this type of relationship for one with a co-op makes no business sense.

The Cinema Buying Group is done. It was a bad concept from the get-go and offers no real benefit to the cinema industry let alone NATO members. Its creators demonstrated a total lack of appreciation and understanding of the cinema industry and its workings and the relationship between the exhibitors, the dealers/suppliers, and the equipment manufacturers. The CBG will fade away, as it should, without fanfare or recognition and retire to the annuls of cinema history.

Thursday, November 30, 2006

THE DIGITAL CINEMA STORY

THE DIGITAL CINEMA STORY
HOLLYWOOD DRAMA DOESN'T GET ANY BETTER THAN THIS
BY JAMES LAVORATO


It's a complex and provocative story rife with high stakes drama and a cast to rival any Hollywood blockbuster. Intricately woven into its plot are all of the major movie studios (and their global media parents), the world's largest electronics firms, leading edge digital imaging and microchip technology, the worldwide cinema exhibition business, billions of dollars, Hollywood's biggest movers and shakers, and, arguably, the very existence of the cinema as we know it.

Digital Cinema (the name given to digitally exhibited movies at theatres) has been in serious development since the mid 1990's and many believe it is now at the breakout point. But is the cinema ready for the systemic and seminal changes that the adaption of digital technology will instigate? It's time to unravel the complexities of this intriguing saga and see if we can determine how it will evolve -and (perhaps more importantly)the impact it will have on the entertainment industry.

THE TECHNOLOGY - NOW YOU SEE IT/NOW YOU DON'T

Until recently, there were two imaging technologies that supported Digital Cinema. Texas Instruments' DLP and JVC's D-ILA. Both systems currently offer what is referred to as 2K image resolution. Sony then introduced a 4K imaging system - SXRD -which, more or less, threw a spanner into the D-Cinema works. Termed 4K for the number of horizontal pixels per frame (4096 horizontal pixels x 2160 vertical pixels)the SXRD system offers 4 times the quality of 2K by more than doubling the per frame pixel density.

Without going into all the nuances of each technology, following is a brief overview of each.

JVC's D-ILA (Digital Image Light Amplification)

Developed by Hughes Electronic's in the 1980's for military displays, Hughes later partnered with JVC to refine the technology. D-ILA uses a derivative of a chip technology termed LCoS (Liquid Crystal on Silicon) and a holographic color filter. Capable of producing a 4K display to rival Sony, JVC is currently working with Aurora Semiconductor to produce an advanced LCoS chip for higher resolution projection.

TEXAS INSTRUMENT'S DLP (Digital Light Processing)

Sometimes referred to as a DMD (digital micro-mirror device) the DLP chip contains millions of tiny mirrors which switch on and off thousands of times per second either reflecting light or not. Capable of very high resolutions (some estimate as high as 10,000 lines) the DLP system currently uses three DMD chips (red, green, blue) to generate all the required colors for the 2K DLP D-Cinema projectors. A four chip system is likely in the future with one chip dedicated to the gray scale (i.e. black level) for improved contrast. In time, DLP may be capable of producing true 6K to 8K 35mm film resolution, but this will come at a high cost.

SONY'S SXRD (Silicon X-tal Reflective Display)

The Sony SXRD 4K projectors use GLV or grated light valve technology. GLV (a DMD derivative) uses red, green, and blue lasers reflected off ribbon patterns on a chip.

Below is a comparison of the current image resolutions:

35mm Film - 6-to-8K resolution
SXRD - 4K
DLP and D-ILA - 2K
HDTV - 1K

There are currently about 1000 D-Cinema installations worldwide - which represent less than 1% of total screen count - and the majority of these theatres have redundant 35mm film projectors as well. To my knowledge, there has been no long term use of a D-Cinema projection system operating as would a 35mm projector at a multiplex cinema or "grind house" (as they are referred to in the industry). That is, operating 12-14 hours per day, every day. So, whether or not the current generation of D-Cinema equipment could hold up under these conditions is unknown.

Digital Cinema Initiatives (DCI) was the creation of the Hollywood studios whose main function was to recommend universal standards for the Digital Cinema Distribution Master (DCDM) file, (the format by which every digital film is to be distributed) in what are called Digital Cinema Packages (DCP).

The DCI was to set the specifications for all "theatrical" films and other "alternative" content (such as, in-theatre sports, concerts, and other pre-feature entertainment) to be distributed and exhibited at cinemas via DCI compliant D-Cinema equipment. DCI was to fulfill this task and then disband - which it has. In a nutshell, DCI proposed three D-Cinema projection formats:

- 2K projection at 24 frames per second
- 4K projection at 24 frames per second
- 2K projection at 48 frames per second

For the full read on DCI D-Cinema System Specifications go to: www.dcimovies.com/DCI_Digital_Cinema_System_Spec_ul.pdf.

FOOTING THE BILL

D-Cinema is a potential cost saver (no need to process or distribute film prints throughout the world) not a revenue generator. Since the cost savings (estimates range from $1-$3 billion annually) accrue solely to the studios, financing the film-to-digital conversion has always been a sticky issue, as the expense of the required D-Cinema projection equipment (currently estimated at $90,000-$120,000 per movie auditorium) and its continued upkeep and maintenance falls on the exhibition (theatre owners) side of the industry.

Currently, film distributors (principally the studios) charge the cost of the production of film prints against each movie (each movie is accounted for as a separate product). This cost varies depending upon the movie's length and the number of release prints struck. Typically, each film print costs between $1,500-$2,500 to produce with exhibitors paying for shipping to and from their theatres. However, that formula doesn't work with D-Cinema for a variety of reasons, one being that it would take the studios far too long to write off the large investment D-Cinema is currently burdened with.

Several financial schemes - such as issuing bonds against the film production savings, charging virtual film fees, having the exhibitor carry a subsidized mortgage-type instrument - have surfaced. But none have been adopted.

To make matters worse, given the quick atrophy of the digital projection equipment, first (and probably second or even third generation) adopters may well require replacement equipment.

"Star Wars Episode II: Attack of the Clones" (in the summer of 2002) was, the first commercially released digital movie using the current D-Cinema technology. At that time, I happened to be doing consulting work for a small theatre chain (UltraStar Cinemas) based in San Diego. Because of my and the theatre owners' interest in D-Cinema I negotiated, on behalf of UltraStar, a deal with the Boeing Company. The arrangement was for Boeing to install six D-Cinema platforms at four UltraStar theatre locations (which, at that time, represented the highest concentration of D-Cinema installations in the world).

Boeing's interest was in testing the transmission and encryption mechanisms of their communication satellite network. The test worked flawlessly; however, when completed, the inclusive cost of the six platforms had totaled $3 million and within six months the equipment was obsolete. For Boeing, the proof of concept of their transmission capability and encryption technology was worth every penny as that knowledge could be utilized by other industries (such as the medical industry) even if the cinema industry never availed itself of it.

Besides the technical issues a financial agreement between Boeing and UltraStar was structured and agreed to by both parties.

- UltraStar was charged a minimal cost per D-Cinema platform of $300/month
- UltraStar agreed to pay Boeing 10 cents per ticket on all digital prsentations
- Boeing reserved the right to exhibit advertising and alternative content with a
50/50 split
- Boeing paid for the equipment and the cost of installation

A similar arrangement, however, would not be feasible for the entire industry given the large upfront cost and lengthy time of payback.

3D "ADDS" ANOTHER DIMENSION

Although D-Cinema may not be a revenue generator, 3D films might, as the 3D effect cannot be replicated elsewhere (most notably in the home). Around for decades, 3D may get a free ride if the industry moves to digital. Remember the DCI proposed formats? Well the 2K at 48 frames per second could be used for 3D movie presentations.

All well and good, but 3D has problems of its own. The ideal would be autostereoscopic 3D which doesn't require glasses, but that technology is currently only available on small digital displays because of the limited sweet spot (where the viewer must sit in order to get the 3D effect). So, glasses will be required. There are several types of 3D glasses but all are cumbersome and the best are expensive to purchase and maintain.

Big proponents of 3D movies are filmmakers James Cameron, George Lucas, and Peter Jackson. They feel 3D may well "save the cinema". In fact, Lucas wants to re-release both "Star Wars" trilogies in digital 3D. And In-Three, Inc., a California based company, is here to help him. In-Three has perfected a process termed "dimensionalization". This process restores depth in films shot in 2D. A rival firm, Three Dimensional Media Group also has a 2D-to-3D conversion process. These 2D-to-3D conversions work but are extremely labor intensive. The human touch is required because too much or too little depth will give viewers a headache (literally). Currently, it takes six people to judge each converted frame. Cost? About $4.5 million for a feature film (although this can vary greatly depending upon such factors as the film's length and scenic complexities). However, this could be an option for re-releases of older movies or for those currently being shot in 2D.

PROS AND CONS

With approximately 10 million seats, and operating at a chilling 12-15% utilization rate, U.S. cinema exhibition needs to bolster attendance - however it can. In 2005, global box-office attendance was down 7% from 8.4 billion to 7.8 billion admissions. Total worldwide box-office was $22 billion, certainly not a small number, but highly skewed toward certain genre - namely, escape/fantasy and comedy/drama movies. For example, of the top 10 grossing films (which generated a whopping 25% of total box-office) 8 were fantasy, and 2 comedy/drama. In the U.S., the number was even more skewed, with the top 10 grossing 27% of total box-office.

Although D-Cinema won't help box-office revenues, it will drastically change the landscape for the industry players and clearly presents advantages and disadvantages to each. For example, it would allow the studios to tap into the estimated $600 - 800 million in pre-feature advertising revenue, which is now going to U.S. exhibitors, and is expected to continue to have rapid growth.

Listed in Exhibit I are some of the advantages and disadvantages to the various industry players.

DAZED & CONFUSED

Rumor has it that.....Christie Digital (parent Ushio Electronics, Japan) and its subsidiary Access Technologies say they will roll-out 4000 DLP based systems by 2008.....Warner Bros. (parent TimeWarner) announces plans to test JVC's upcoming 4K projector in Japan to test transmission of DCMD from L.A. to the Far East via fiber.....Sony announced a deal to install their SXRD 4K projectors in Landmark Theatres which wants to integrate independent films with Hollywood mainstream features.....Thomson announced a deal with DreamWorks, Sony Pictures, Universal, Warner Brothers and other studios to install 15,000 (principally SXRD units) throughout the U.S. and Canada over the next 10 years, with 5,000 in the 2006/7 period.

To add to the confusion, a business model using a watered-down version of D-Cinema already exists. Emerging Cinemas, a New York City based firm, specializes in digitally distributing and exhibiting a variety of content. Its play list consists of first-run foreign, independent, docus, and film fest movies. Internet based, Emerging's business model (like D-Cinema) works well from a technical standpoint; however, whether or not its content has the widespread appeal to generate a profitable box-office remains to be seen.

So, the big issues surrounding the movie industry's convergence to digital technology remain unanswered. Should industries always adopt advanced technology and does that adoption add value? In the future, more and more companies will be asking that question. It just so happens it's being asked in the movie industry right now.

EXHIBIT I - DIGITAL CINEMA GAME PLAYERS ADVANTAGES AND DISADVANTAGES

Studios (Distributors) - Advantages

- Saving on film prints & distribution
- Conduit for ad and pre-feature entertainment revenue
- Streaming "non-movie" content into cinemas, i.e. concerts
- Retains distribution control
- Potential use for 3D movies
- Fights content piracy
- Easier day & date releases - globally

Studios (Distributors) - Disadvantages

- Not a revenue generator
- Antitrust/Legal issues
- Possible loss of distribution control
- Loss of exhibition outlets
- Dual movie inventories (digital & film) for unknown period of time
- Atrophy of digital equipment
- Funding complexities & high cost
- Lengthy conversion time frame

Exhibitors - Advantages

- Ease of projection operation
- Potential use for 3D movies
- Ability to exhibit premium "alternative" content
- Expands possibilities for increasing theatre utilization
- Opportunity to become content providers

Exhibitors - Disadvantages

- Funding complexities & cost to convert
- Partial loss of current ad and pre-feature entertainment revenue to distributors
- Potential high cost of equipment maintenance, spare parts, electrical power
- Risk to early adopters
- No box-office revenue enhancement
- Requires very high-end components

D-Cinema Equipment Manufacturers - Advantages

- Spurs innovation
- High sales opportunity
- Technological cross-fertilization of product lines

D-Cinema Equipment Manufacturers - Disadvantages

- Too long a transition period
- High cost of equipment
- May need to finance or partially finance conversion
- Long conversion time

Cinema Equipment Suppliers - Advantages

- Expanded installation/service business
- Post-conversion maintenance business
- Expanded sales of ancillary A/V products
- Rejuvenated sales opportunity to static industry

Cinema Equipment Suppliers - Disadvantages

- Cost to train service staff
- Few opportunities to sell 35mm equipment due to D-Cinema overhang
- Exhibitors not inclined to expand or invest in unknown environment

The Moviegoer - Advantages

- No price increase for possibly improved movie presentation
- Potential to view currently unavailable "alternative" content
- Helps satisfy thirst for entertainment variety

The Moviegoer - Disadvantages

- More lengthy pre-feature ads and promotions
- Doesn't address other movie attendance issues, i.e. cell phones, etc.
- No perceived on-screen image enhancement












Thursday, November 16, 2006

CINEMA TRAINING CENTRAL 2007 TRAINING SCHEDULES

CTC 2007 WORKSHOPS AND SEMINARS ARE SCHEDULED FOR: MARCH 26 - 28,
MAY 7 - 11, SEPTEMBER 17 - 21 AND NOVEMBER 12 - 14.
TRAINING PROGRAMS WILL INCLUDE:
  • Managing A Cinema (2 Day Workshop)
  • Concessions: Where The Money Is (1 Day Workshop)
  • Digital Film Festivals - Why Have Them & How (1 Day Workshop)
  • Pre-Feature Entertainment & Alternative Content - Why Embrace It (1 Day Seminar)
  • Digital Cinema - Present & Future (1 Day Seminar)
  • Marketing Your Cinema (1 Day Workshop)
  • Modern Theatre Design & Planning (1 Day Seminar)
  • Primary Technical Training (2 Day Workshop)
  • Intermediate Technical Training (2 Day Workshop)
  • Advanced Audio Technical Training (3 Day Workshop)
  • Advanced Projection Technical Training (3 Day Workshop)
  • In-Home Cinema - Designing/Equipping/Installing (1 Day Workshop)

All workshops and seminars start at 9:00 am and end at 4:00 pm each day.

For a virtual tour of CTC go to our website (gotoeec.com).
Regular tuition rates: 1 Day Programs - $295, 2 Day - $395, and 3 Day - $495. Discount tuition rates are available, please contact us for more information.
To receive a copy of the Cinema Training Central 2007 Guide please provide a ship-to address or call 800-448-1656.

Thursday, November 09, 2006

Since I've Been Away

Sorry for the pause in adding to Cinema Mucho Gusto. As it turns out there will be a number of new postings in the next several days. To update. There is be a 2007 Cinema Training Central Program Schedule, which is much expanded from prior years. An article entitled "The D-Cinema Story" which discusses the present state of Digital Cinema and its future, with a detailing of the advantages and disadvantages to all of the Cinema Industry players. And finally, an article on the role China will play in the entertainment industry over the next decade.
Look for these items and more. And it's good to be back.
Jim Lavorato

Wednesday, September 06, 2006

DIGITAL PROJECTOR LUMENS CALCULATION

Darryl Jones, of Eastman Kodak, informed us that a way to determine the required lumens for the selection of a digital projector is the following formula:

Image width x Image height x Foot Lamberts. For example: if the image is 20ft. wide by 12ft. high at 14 fl (normal light reflection on a matte white screen) then the calculation would be 20 x 12 x14 or 3360 lumens. So, a projector with a 3500 to 5000 lumen capacity would perform very well.

Thanks Darryl.

Monday, August 28, 2006

PLUG AND 'PRAY'

CHOOSING THE RIGHT DIGITAL PROJECTOR

Selecting and purchasing the appropriate digital projector for your cinema's pre/post feature entertainment, advertising, alternate content, and other uses can be daunting.

With hundreds of models from numerous manufacturers on the market it's difficult to make a selection as to which is best suited for your requirements and which offer the best value with those features.

BRIGHTNESS (Lumens)

The first decision will be how large a projector. This means, how many lumens (a measure of brightness) will be required - given the screen size and picture throw (distance from projector to screen) - to provide a very good (i.e. HDTV quality) on-screen image.

There are no fixed rules for determining brightness; however, I have found that to get a good, bright image on a typical matte white, peforated cinema screen requires about 50 - 100 lumens per foot of picture throw. For example, an auditorium with a throw of 50 ft. will require a projector with 2500 - 5000 lumens (and it's preferable to error on the high side). This will provide a bright image whether running a PowerPoint presentation (with house lights up) or a DVD movie presentation.

There are small, desk-top projectors on the market that advertise 3, 4, or even 5,000 lumen capability, but don't make the mistake of purchasing a small (less expensive) projector as the internal components, standard features, and expandability options you desire, may be lacking. Also, make sure the projector you select has a lot of internal cooling capability. Heat, dirt, and erratic power levels are the worst enemies of all digital projectors.

As noted, it's always better to error on the side of more lumens so as not to be operating the projector "full out" all the time. This will put less stress on the internal components and the optical system as well. Rule: It's better to purchase a 3,500 lumen projector and run it at 2,500 than a 2,500 lumen projector and run it at maximum capacity.

DIGITAL PROJECTOR MANUFACTURERS

Acer - Christie - IBM - Panasonic
ASK - Dell - InFocus - Philips
Barco - Epson - LG - Sanyo
BenQ - HP - NEC - Sony
Canon - Hitachi - Optima - ViewSonic

OPTICS

Determining the appropriate lens can be tricky. In the world of digital projection, as a general rule, dividing the image throw by the screen width will determine the lens size. For example, if the image throw is 50 ft. and the screen is 30 ft. wide the lens required is 1.62. Most cinemas require long-throw lenses and most of these have variable (zoom) focal lengths.

Be prepared, as most cinemas cannot use the standard lens which normally comes with the projector and in most cases will have to be upgraded to the rquired lens. Also, a projector with a motorized lens shift (vertical & horizontal) is best, particularly if placing the projector off the screen's center line of view.

CONNECTIONS

What content sources will you be interfacing with your projector, DVDs, VHS, laptop, HD video, BETA, USB Flashcards, High Speed Internet? Rule: Make sure the projector you are purchasing can accept a wide variety of source components. Additionally, a projector with internal switching and scaling features is well worth the extra cost if you plan on using various source components.

Best Bet: Don't purchase any projector unless it has at a minimum the following inputs: DVI (digital input) HDMI (high definition multimedia interface) composite video, s-video, and USB ports.

LAMPS

A multi-lamp modes feature is very desirable. A lamp economy mode will prolong a lamp's burn life. If you envision the projector getting a lot of use or you are exhibiting content you are charging for then it's imperative to purchase a projector with dual lamp capability.

REMEMBER

Never purchase a projector based solely on price. Plan ahead and use the information in this article to give you a start, to calculate: image size, minimum lumens required, lens sizing, minimum connection interfaces, and content source components.

Also check out the projector's required servicing and maintenance. As with all digital projectors the biggest problems stem from dust and dirt accumulation, inadequate cooling and improper maintenance.

By James Lavorato, excerpted from Summer 2006 issue of The Marquee magazine, published by Entertainment Equipment Corporation.


Wednesday, August 16, 2006

CINEMA TRAINING CENTRAL FLASH

TRAINING - MORE CRITICAL AT THIS TIME THAN EVER BEFORE

Relevant training for a cinema's management and staff is a critical necessity. Today, cinemas are at a fork in the road. They can proceed on the old path of simply exhibiting films or take a new road that will begin to transform their cinema into a multi-dimensional entertainment venue.

Training programs which focus on effectively marketing and branding your cinema, the introduction and management of new products and activities, the re-assessment and enhancement of concession and other revenue generators, and the profitable use and implementation of digital technology are vital.

To accomplish this requires learning new skills and techniques through expert training and counselling which is available only at Cinema Training Central.

CTC SEPTEMBER 2006 TRAINING PROGRAMS SCHEDULE

September 18 & 19 - Primary Technical Training (2 Days)
18 - 20 - Advanced Projection Training (3 Days)
18 & 19 - Operating A Cinema (2 Days)
19 - 21 - Advanced Audio Training (3 Days)
20 - Marketing Your Cinema (1 Day)
20 & 21 - Intermediate Technical Training (2 Days)
21 - Maximizing Concession Profits (1 Day)
22 - Alternative Content & Digital Cinema (1 Day)

22 - Modern Cinema Design & Planning (1 Day)

For information on registration, travel, lodging, and in-depth course descriptions, contact CTC at 800-448-1656 or email: entequip@aol.com.

CHANGES IN 2007
While enhancing and updating the core courses we will be adding new courses in 2007. Look for a number of surprises, including:

Tech Training Courses Specific To Women
Currently CTC's technical training courses are dominated by men - over 90% of all tech training participants are male. However, as more and more women are filling theatre management and operations positions it is critical that they obtain a working (if not thorough) knowledge of the technical and mechanical aspects of a cinema.

To address this, CTC will be offering technical training tailored for women. The courses will be designed by and taught by women and structured for women currently working in or wanting to enter the cinema exhibition industry.

Organizing & Managing A Digital Film Festival

Recently I was asked to be a judge at a new film festival - the Endless Mountains Digital Film Fest - managed by the Bradford County Regional Arts Council of Pennsylvania. The festival was sponsored by 5 cinemas in the region, as well as, businesses and the Pennsylvania Council on the Arts. Based upon the entries submitted - by individuals aged 12 to adult - this festival is destined to be a great success.

Because of what's involved in the setup, planning, marketing, and logistics of even a small film fest, a one-day training course on organizing and managing a digital film festival will be offered next year.

SUMMER 2006 ISSUE OF THE MARQUEE

The Summer 2006 issue of The Marquee is attached to this email as a pdf file. If you are on our regular mailing list a hard copy will be sent to you. If for some reason you cannot open or print the pdf file or if you would like to receive an original hard copy of The Marquee, please provide your post address.

Hope all is well.

Jim Lavorato - Entertainment Equipment Corporation

CREDITOR'S NOTE: When quoting any or all of the data in this 'Cinema Training Central FLASH' please credit "Entertainment Equipment Corporation". Copyright 2006 Entertainment Equipment Corporation and Cinema Training Central.
















Wednesday, July 12, 2006

"BEHAVE" YOURSELF

Is social behavior in cinemas getting worse or are social norms changing? If you polled cinema patrons and asked: "What do you consider to be good or bad behavior at a cinema?" I think you are going to get responses that may surprise you. Unlike the past, when social norms were much more homogeneous, what is considered acceptable behavior today varies widely between demographic groups.

For example, 15 year olds think nothing of using a cell phone, text messaging, or video game playing while in a cinema. They are very adroit at double or triple tasking and truly believe that text messaging while watching a movie is perfectly "normal and good" behavior. Remember, this group has grown up with PCs, cell phones, and iPODS. However, this teen behavior would be annoying, distracting, and certainly considered bad behavior to the thirty-something couple who came to the theatre to "enjoy" the movie.

Accordingly, the 30's couple may find laughing aloud or whispering during the film presentation to be perfectly acceptable behavior, and considered part of the movie-going experience. However, whispering and laughing might be considered very distracting to the senior's group, which also insists the theatre's sound system is too low or too high for their taste anyway.

The worst thing about bad behavior is that those that feel they have been offended don't always take their complaints to management, but express their displeasure by not coming back to the theatre. You also witness this non-confrontational posture when something goes wrong with the movie presentation. People will just sit in their seats and not get up to complain about the out-of-focus or frame image, the lack of sound, or a scope movie being played in flat format.

What can be done? Well, it's up to the theatre's management to set the rules for acceptable in-theatre behavior. Having ushers in the auditoriums - as was the custom years ago - goes a long way toward establishing the kind of behavior that is acceptable in theatres. Additionally, signage and pre-feature notices, i.e. "no cell phones, please" are good, but these work best if backed up with staff presence. With pre/post features, ads, and entertainment becoming meaningful income generators it becomes all the more important that partons feel comfortable in the cinema's surroundings. Of course, this takes more staff, expense and management commitment. Helpful aides, like cell phone signal blockers can be utilized but patrons must be alerted of their use.

In behavior enforcement preemptive measures must be taken. For example, inform boxoffice staff that a patron with a very small child or infant should be discouraged admission (there is nothing worse than a crying baby in a cinema). You can alleviate confrontation within the auditorium by preempting the trouble at the boxoffice.

Setting your cinema's behavior rules takes thought and perseverance but in the long run will be supported by even the most egregious patrons as they know they'll be enjoying a movie free from annoyance and distraction.

Thursday, June 22, 2006

3D "ADDS" ANOTHER DIMENSION

Although D-Cinema may not be a revenue generator, 3D film might, as the 3D effect cannot be replicated elsewhere (most notably in the home). Around for decades, 3D may get a free ride from the industry's migration to digital. The recently developed D-Cinema Standards include a 48 frame per second format, which is suitable for 3D.

All well and good, but 3D has problems of its own. The ideal would be auto-stereoscopic 3D which doesn't require glasses - but that technology is currently only available on small sized digital displays because of the limited sweet spot (where the viewer must sit in order to get the 3D effect). So, glasses will be required.

There are two types of 3D glasses: LCD shutterglasses or polarized anaglyph glasses. LCD shutterglasses (as their name implies) are synced with the projector to open and close each glass based upon whether the left or right image is on screen. Their drawback - shutterglasses cost between $200 - $300/pair and must be cleaned between viewings so each cinema would require multiple sets per auditorium - commonly at a 3:1 ratio. For example, with a 300 seat auditorium, 900 pairs of glasses are required. On to the second option.

Polarized glasses (those most people are familiar with) put a red lens over one eye and a green over the other to separate the left and right images. Typically with plastic or cardboard frames they are inexpensive and new innovations - such as clear lens and circular polarization - allow viewers to move their head while watching a movie. But these too are cumbersome, inconvenient, and hard to wear, particularly for patrons who wear corrective glasses.

Big proponents of 3D movies are filmmakers James Cameron, George Lucas, and Peter Jackson. They feel 3D may well "save the cinema". In fact, Lucas wants to re-release both Star Wars trilogies in digital 3D. And In-Three, Inc., a California based company, is here to help them. In-Three has perfected a process termed dimensionalization. This process restores depth in films shot in 2D. This 2D-to-3D conversion process works but is extremely labor intense. The human touch is required because too much or too little depth will give viewers a headache (literally). So, currently, it takes six people to judge each converted frame. Cost - about $4.5 million for a feature film (although this can vary greatly depending upon such factors as the film's length and scenic complexities). However, this could be an option for re-releases of older movies or for those currently being shot in 2D.

Although somewhat optimistic 3D may increase boxoffice attendance if the right content is presented. Disney's recent 3D film release of Chicken Little was certainly not a boxoffice smash.

Friday, May 26, 2006

DEFINING THE DIGITAL DOMAIN / "THE BIG BLUR"

The Digital Domain is getting more and more complex and the products and functions available are turning into what I call "THE BIG BLUR". Listed below are some definitions and linkings that my help your focus.

Content: Creation-Software-Production Technology

Connection (Distribution) : Hardware-Delivery Mode (Web,Cable, Satellite,Podcast, etc.)

Conveyance: Phone-PC-Setbox-TV-Cinema-iPOD

Gaming: Boxes-Online-PC
D-TV-Interactive TV-HDTV
Music: CD-Web-Radio-Satellite Radio-Concert-PodCast
Film-Digital Cinema
VOD-DVRs-Interactive TV
Video-DVD-HD/DVD
Cable-Broadcast-Satellite TV
Wireless-WiFi-Bluetooth
Cell Phone-Streaming-VOIP

Monday, May 08, 2006

FILM PIRACY HAS TURNED INTO GUERILLA WARFARE

Piracy in the theatre industry takes all forms. Camcorder piracy is a major threat to U.S. film distributors and exhibitors both at home and abroad, typically involving organized criminals that illegally record theatrical films with camcorders in some instances, even prior to their U.S. release. Once made, these copies appear in a matter of hours on the Internet on peer-to-peer networks, file transfer protocol (FTP) sites, or Internet Relay Chat (IRC) rooms.

At the same time, the pirates sell these master recordings to illicit "source labs" where they are illegally duplicated, packaged and prepared for sale on the black market, then distributed to bootleg "dealers" across the country and overseas. Consequently, the film appears in street markets around the world just days after the U.S. theatrical release and well before its international debut.

WAIT...It Gets Worse

The above scenario plays out every day - but wait - it gets worse. Cinema piracy has become guerilla warfare. So if you think your cinema is immune - it's not. And it's not all overseas or just in large urban areas. Even drive-in theatres are under attack.

Parking lot cinemas (more commonly referred to as Guerilla Drive-Ins) are popping up from Los Angeles to Ann Arbor. Cinema Guerillas commandeer parking lots to project films onto the outside walls of large building. Lawrence Bridges, the pioneer of parking lot cinemas, calls his illegal activity "a gift and tribute" to LA. When police arrive Mike Lesousky, the film's projectionist says, "we BS them." I say, "I've talked to the owner and he gave me permission." These Guerillas post their show times and locations on the internet. Kate McCabe, of Ann Arbor, says her group ("rad-art") likes to project movies onto the back walls of movie theatres. McCabe states, "That's real irony and gives us an emotional boost." In Chicago, Pilot (which terms itself a "movie collective") lights up interior warehouse walls with movie videos and Wes Modes of Santa Cruz says, "Just enjoying a movie for free is motivational."

Motivated to do what we're not sure. Guerilla Drive-Ins are currently only a fringe activity but should not be taken lightly by the cinema industry. Lawrence Bridges on his website www.12org. states you can bring a makeshift drive-in to your town. In fact, if he likes your project he'll fly you to LA for training and send you home with a video projector.

Characteristics Of Pirated DVD Product
  • Disc Burned not Replicated
  • Poor Quality Artwork
  • No Studio Logos on Disc
  • Multiple DVD Discs per Movie
  • Movie in Theatrical Release
  • No Overwrap Packaging
  • No Hologram Label or Security Sticker
The Motion Picture Association of America (MPAA) and its members are dedicated to ensuring that the sources of piracy are eradicated and to educating people about the gravity of the issue. Among the current measures to mitigate the level of illegal camcording activity are:
  • Investing in security
  • Changing legislation
  • Nationwide hot-line (800) 371-9884
  • Public education and training
  • Camcording jamming
  • Forensic watermarking
  • Advanced in-theatre camcorder detection
Another battle in the war is Optical Disc Piracy. This form of piracy refers to the illegal replication and subsequent sale, distribution, or trading of copies of motion pictures in digital video disc (DVD) or video compact disc (VCD) format. These illegal hard goods are then sold on web-sites, online auction sites like eBay, via e-mail solicitations and by street vendors at flea markets and swap meets. The most common format seen in the U.S. is the DVD.

The bottom line on piracy is that it's not some college kids in their dorms downloading a movie onto their PC's. This war is large, organized, and intent on seeing the industry disappear. To be replaced by what? What do these Guerillas think will replace a form of entertainment that has enlightened, motivated, thrilled, and charmed millions and millions for over 100 years.

Everyone involved in the cinema industry(0r for that matter any of the arts) should be proactive in the vigilance against entertainment content piracy. Be involved in your community and let people know and understand the signifigance of the problem and what they can do to help prevent it.

Reprinted from Entertainment Equipment's "The Marquee" magazine. For a copy or for more information on this topic, contact: Entertainment Equipment at www.gotoeec.com



Wednesday, May 03, 2006

Just The STATS/ Videogaming

The facts on videogaming and the cinema:
  • 60% of Americans (over 145 million) play videogames
  • Average age of videogamer is: 28
  • Over $6.4 billion of computer & videogame software was sold in '05
  • Online gaming, the fastest growing segment, is expected to reach $1.7 billion by '07
  • Nearly 50% of online gamers are women (attracted by the social nature of the games)
  • For '05: there were $3 billion of videogame consoles sold vs. $2 billion of DVD players
GAMING IS HUGE! So much so that we have advised clients on having video gaming tournaments in their cinemas to take advantage of this cultural iconoclast.

For information and advice on how to develop and manage video gaming at your cinema contact us for a VGT Kit.

FYI:Entertainment Software Rating Board (ESRB) Rating Symbols

EC
- Early Childhood - Titles rated EC (Early Childhood) have content that may be
suitable for ages 3 and older. Contains no material that parents would find inappropriate.

E - Everyone - Titles rated E (Everyone) have content that may be suitable for ages 6
and older. Titles in this category may contain minimal cartoon, fantasy, or mild violence
and/or infrequent use of mild language.

E10+ - Everyone 10+ - Titles rated E10+ (Everyone 10 and older) have content that may be suitable for ages 10 and older. Titles in this category may contain more
cartoon, fantasy or mild violence, mild language and/or minimal suggestive themes.

T - Teen - Titles rated T (Teen) have content that may be suitable for ages 13 and older.
Titles in this category may contain violence, suggestive themes, crude humor, minimal
blood, simulated gambling, and/or infrequent use of strong language.

M - Mature - Titles rated M (Mature) have content that may be suitable for persons ages
17 and older. Titles in this category may contain intense violence, blood and gore, sexual
content and/or strong language.

A - Adults Only - Titles rated AO (Adults Only) have content that should only be played
by persons 18 years and older. Titles in this category may include prolonged scenes of
intense violence and/or graphic sexual content and nudity.

RP - Rating Pending - Titles listed as RP (Rating Pending) have been submitted to the
ESRB and are awaiting final rating. (This symbol appears only in advertising prior to a
game's release.)