CineBUZZ - Cinema News Report - 22 June 2012

Highlights of This Week's Report

- What is a NOC ?
- D-Cinema Projection for Small Venues
- EEC - A Deployment/Service Provider
-Ultra Stereo Intros LSS-100
-Deployment - It's All Greek to Me

NOCs remotely monitor  cinema operating systems

Network Operating Centers
A network operating center is a 24/7/365 facility which remotely monitors clients' digital systems making sure they are operating properly, getting timely maintenance, and receiving all necessary software updates.  Additionally, the NOC provides comprehensive remote monitoring and management of devices to ensure required compliance with specific site operation - such as with the Virtual Print Fee Program in the case of cinemas.

NOCs are high-tech operating and monitoring facilities that allow technicians to address operating problems and remotely fix those problems immediately and, in addition, spot and identify potential operating issues and problems.   If the problem can not be solved remotely the NOC will notify the client designated technical provider for on-site service.

Not new to the digital domain, NOCs have been in use by the military and in many industries for years, but are relatively new to the cinema exhibition industry.  As time goes on, you will see more and more NOCs being used as system electronics become more sophisticated.  The goal is a NOC is to prevent or limit operational down-time and to monitor equipment and its operation around-the-clock.

NEC's new NC900C Projector
Later this year, NEC sill be launching a compact, industry certified, D-Cinema projector - the NC900C.  It will be the first projection to incorporate the new S2K chip set from Texas Instruments and is the perfect solution for very small cinema auditoriums or screening rooms.

The NC900C will be the first D-Cinema projector with dual lamp capability which provides more operating reliability.  It has no external exhaust which makes for easy placement or wall/ceiling mounting, accepts 3D systems and supports high-frame-rate projection.  Inputs include: HDMI, HDSDI 3G for alternative content. It also incorporates an integrated RAID 5 Server system with a 1.5TB capacity.
The NC900C will be available in late 2012, no pricing as yet.

EEC - Deployment/Service Provider

Entertainment Equipment Corp. provides end-to-end solutions and deployment of Digital Cinema to movie exhibitors.  Starting with free on-site visits to determine each cinema's specific needs and requirements when converting to digital projection and ending with theatre staff training, EEC runs the gamut in providing superior service and equipment.
Representing all of the major digital cinema equipment manufacturers, EEC recommends and presents each client all of the available alternatives and options regarding digital projection equipment, sound upgrades, VPF participation, pricing, and financing options.  Leaving the final decisions to the cinema client, EEC has been and will continue to be 'product neutral".  If asked, we state our opinion based upon field experience with products and their performance and upon client testimonials regarding prior purchases which are monitored very closely.
Digital Cinema conversion is now inevitable and the decisions surrounding the process are complex and the financial consequences both significant and long-term. Therefore, it is imperative that each cinema owner work with a trusted deployment provider that has the requisite capabilities, resources, and technical knowledge to assist in the decision process and then be able to implement those decisions with a full compliment of  installation, training and after sale services.

USL's LSS-100 Is A 'Must-Have' For Cinemas

Showcased at CineEurope last week was Ultra Stereo Lab's newest innovation - the LSS-100 Projection and Audio Analyzer.  This product allows cinemas the ability to continuously monitor on-screen technical performance - screen luminance, color accuracy, and sound levels  - allowing for a constant superior movie presentation.  "We are excited to demonstrate our latest innovation that allows exhibitors to understand how each auditorium is performing on a global level with projection and sound" , says Jack Cashin, USL's President & Chief Technical Officer. 

The wall/ceiling mountable LSS-100 includes a microphone to measure SPL (sound pressure level) while also monitoring the quality of reflected on-screen light and color quality.  Cinema Mucho Gusto, which rarely makes product endorsements, is recommending the LSS-100, as it ensures an optimal level of movie presentation quality which is a 'must-do' by exhibitors in this very competitive entertainment marketplace that currently exists. For more information check our the following:
www.uslinc.com:8880/ftp/LSS-100/LSS-100manual1120501'pdf.  Although pricing has not been set the unit should retail for well under $900.


D-Cinema Deployment A Myriad of Questions/Concerns

Digital deployment requires the equipment/service provider to perform a site visit to each cinema.  These mandatory visits are two fold: first, to gather vital information on the physical and performance aspects of the cinema, and second, to answer the myriad of questions and concerns by the cinema owner/operator regarding the conversion.

In making many of these visits over the last several years I have found that the 12 most often asked questions/concerns are the following:

1. What is the best equipment to purchase, I've heard a lot of different stories?
2. How much is the conversion going to cost?
3. When will 35mm prints no longer be available?
4. What is the VPF and how does it work?
5. How much money will I receive if I opt for the VPF Program?
6. Is financing available, and do you have recommendations?
7. Can I use my existing sound system?
8. What about 3D. How much more will it cost and what are my options?
9. Can I use the System for alternative content and how will this work?
10. What about 2k vs. 4k resolution?
11. How long will the installation take?
12. What is the useful life of the equipment?

Best and Happy Movie Going!
Jim Lavorato

CINEMA : COPING WITH THE DIGITAL DOMAIN

Chinese will produce more quality films

Hollywood has been downplaying the rise of online outlets for movies, television, and video content.  The fear has been that movies and television were headed for the same loss of audience and distribution suffered by the print and music businesses - as millions of consumers now read news online and access music digitally.  This theory has proved true to some extent with the rise of such entities as Netflix and Redbox, which have cut into DVD sales and ruined retail video outlets, such as Blockbuster.

For the most part, regarding film and video content, Hollywood is coping with the digital disruption quite well. First, video content is not easily shared like music.  The file size of a movie or TV show is enormous vs. a song.  That makes it much more difficult to copy and distribute. Second, media companies learned from the mistakes they made in the publishing and music businesses and have adapted.  For example, Hulu - a popular online TV channel (created by Disney, Fox, and Universal) -streams a wide-range of movies and TV shows available for free viewing with advertising support or with membership fees for premium content.  Hulu is working well for its studio owners in terms of revenue and as an alternative to Netflix and other online content streamers.

Redbox: foe of the cinema and DVD sales

Regarding movie exhibitors, theatre owners have kept close tabs (on their own and through blogs like Cinema Much Gusto) on the rise of internet or on-demand films offered by cable networks and others and how the Studios are reacting.  So far, the Studios have given cinemas an open and exclusive distribution window and this policy has worked will - as the old business model continues to reap profits.  This is particularly true in the overseas markets, which are expanding at a rate of 7% per year and provide the double benefit of countries, like China, becoming move aggressive in protecting movie copyrights and enforcing piracy laws as they now have a vested interest in expanding and protecting their indigenous movie business and cinemas. Digital cinema projection has also helped.  Cinemas can now easily and quickly install new pre-feature advertising and have a greater opportunity to exhibit alternative content.

So, for the time being, I believe, movie theatres will continue to benefit from their exclusive distribution window on filmed content as Hollywood has no compelling reason to change the current situation.

Best & Happy Movie Going !
Jim Lavorato

REMEMBER THE ALAMO !

The Alamo and 1982 - What's The Connection

The Alamo Drafthouse Theatres, a small cinema chain HQ'd in Houston, TX, is one of EEC's clients.  The Drafthouse operates as a cinema/restaurant but does it with unique twists and approaches to film exhibition which is unlike any other cinema.  For example, Alamo regularly commissions famous graphic designers to 'reimagine' movie posters for films and then prints up its own one-sheets (trade name for posters for you movie film buffs). This summer, in celebration of their 30th anniversary the Alamo will be featuring movies of 1982.  '82 was a great year for films - Thriller, Conan The Barbarian, Mad Max 2, Rocky III, Poltergeist, Star Trek II, E.T., Tron all premiered.

Says, Tim League, founder of Alamo Drafthouse, "I was only 12 in '82 but I remember seeing many of these movies at the local cinema. The Drafthouse will mimic '82 exactly, even running the original trailers for these films."  Even the films that didn't succeed that year at the box office have settled into their place in film history.  For example, The Thing. And yes, 3D was around.

The Alamo Drafthouse Theatres provide a rare entertainment experience that combines Hollywood first-run and art films with great Tex-Mex food and one-of-a-kind programming events which places the Drafthouse in a class all its own.  Named "Best Theatre Ever" by Time Magazine, the Drafthouse chain has built a brand and reputation as a movie lover's oasis, and is a prime example I point to when other exhibitors ask how they can survive in the future.  Surviving is going to take a lot of thought, hard work, and initiative.

Thinking 30 years back and playing off that theme is the sort of
showmanship that every cinema operator should be doing.  The
key is to brand your cinema as a unique entertainment space that
is a fun and exciting place to visit.  The competition for eyeballs is getting harder and harder. In the future, just running movies will no longer be enough, exhibitors will have to be much more creative, much more customer oriented, and much more selective with the services and products they provide .

Drafthouse posters are great and many times best the originals. This one of
Blazing Saddles is eye catching, amusing, and very creative advertising.  

A Drafthouse 'Reimagined' Poster of Blazing Saddles

Piranha Bites First !

'Piranha' Bites First With Day/Date Release

Premise: With ever better home entertainment systems (including 3D) for the first time, this weekend, the Theatre-only release window is shutting as the Weinstein Company's Piranha 3DD is being released at both cinemas, cable/satellite TV and internet video on demand on the same day.

Dimension Films (owned by Weinstein) stated that the film was going to be offered on VOD for $6.99
($7.99 for 3D version) starting Friday with purchasers having 30 days to watch it.  The movie will also be rentable through Amazon Instant Video, Facebook, Google Play/You Tube, iTunes, Xbox Live, and other internet outlets. 

These days, for movies to go wide release (say over 1,000 cinema screens) requires a huge marketing budget and the studio needs to create brand awareness for the movie - that is why the studios love franchise films, and make endless numbers of sequels and remakes.  Don't forget, when a film is based on a comic book character, top-selling novel or play, the marketing is built in.  But for the average film the going is very tough particularly if there is no 'star' power.  Thus the day and date release strategy, which you will be seeing more and more - as the big money lies in the cable and VOD 'box office'.

However, the Piranha's  across-the-board release is the first by a major studio.  Remember last year as Universal attempted to release Tower Heist in VOD just three weeks after the theatrical release and was threatened with a boycott of the film by several exhibition circuits.  But for Weinstein, the Piranha 3DD strategy makes sense.  A sequel to Piranha 3D, released in 2010 to an underwhelming cinema box office, 3DD will probably double its production cost by going with  same day cinema -TV-internet release. And expect more of the same from studio/distributors in the future.

This day-and-date release scenario was predicted in this blog two years ago, to much ballyhoo and "no/no' finger pointing but now it has come true. 5 to 10 years from now, most movies will be released in this fashion.  It makes economic sense for the content providers to go 'really wide release' with their products and they will.

Best and Happy Movie Going!
Jim Lavorato

WEEKLY CineBUZZ REPORT - May 24 2012

Highlights of the Week's Report:

- Movies Go Foreign First
- Biggest Cinema of All
-Virtual Print Fee Program Highlights
- Chinese Conglom Buys AMC Theatres

Spanish Poster: Ice Age 4

Foreign Market Huge for Hollywood

In a complete 180 from a decades long tradition, the Hollywood studios are finding it more lucrative to release would-be blockbusters to the international market before the U.S. - and with good reason.
The non-U.S. movie market has grown to 70% of total movie grosses from less than 50% a decade ago, making that market much more profitable and, unlike the U.S., global admissions are growing at 7% per year.

The latest example is The Avengers (Disney) which opened wide internationally nine days before the U.S. release and had already grossed over $250 million.  Battleship (Universal) had been in release overseas over a month before hitting U.S. screens and had amassed over $215 million at the foreign box.  Prometheous (Fox), and Ice Age: Continental Drift (Fox) both anticipated to be big earners are scheduled for premier releases off-shore.

The studios also benefit by foreign first releases as this practice has the added benefit of diminishing piracy in foreign locales.  Given movie going trends we're likely to see more and more of this continental drift as foreign first releases of big earners become common place.

A Really BIG Cinema

With 3.3 billion admission last year vs. the U.S.s 1.3 billion, Bollywood far outshines Hollywood in size and the Indian box office is growing at a current rate of 10%.  This growth is due primarily to digital cinema which Indian exhibitors have marketed so as to convey the idea of a flawless presentation (which was not always the case with Indian film presentations). Also pushing higher attendance is the Indian notion that not all 3D movies have to be high-impact, action films but are accepting 3D in regular Indian movies.

Multiplexing arrived in India only seven or eight years ago but as shopping malls are exploding across India so are cinemas.  In tandem with this growth, the Indian production studios have linked up with Hollywood studios, such as Fox and Viacom (Paramount) to improve their production skills and sophistication.  It may be that in the future Indian movies cross over and have major release in the U.S.

Virtual Print Fee Program

  

AMC/Wanda Deal Signing in Beijing

Wanda Acquires AMC

In one of this year's largest acquisition deals, Dalian Wanda, a large Chinese commercial and hospitality property owner, purchased  AMC Entertainment for a staggering $2.6 billion this week.  AMC, which is privately owned by Apollo Global, Bain Capital, and the Carlyle Group (all venture capital firms) and others, is  the second largest movie exhibitor in the U.S., after Regal Entertainment.

Wanda, which is involved in movie distribution and production, will now have a distribution outlet for its products in the U.S. and represents the latest in deals between the movie entertainment industry and Chinese companies.  Just last week, News Corp. which owns Fox Entertainment bought a 19.9% stake in Bona Film Group, one of China's largest film distributors.  And, as previously report in this blog, in February, DreamWorks inked a deal to form a production company with state-owned China Media Capital and Shanghai Media Group.

The Chinese believe  that movies carry  high significance in cultural terms, and want to control the Chinese film industry.  The best way to do this is to buy into Hollywood and the three facets of the business: production, distribution, and exhibition - and they are willing to pay dearly for this.  The AMC purchase is a perfect example,  With over $2 billion in debt the AMC movie chain is, like the other large cinema circuits, a marginal business with few opportunities for continued growth.  It has no control of product (films) and very little control on pricing (either admission or concession). However, the purchase makes sense for the Wanda Group as it 'completes' its vertical integration within the movie industry and provides a large U.S. distribution point for its productions.


Best and Happy Movie Going!
Jim Lavorato





  

WEEKLY CineBUZZ REPORT - 12 May 2012

Highlights of the Week's Report:
- Iconic Kodak Theatre Renamed Dolby Theatre
- Some Cinemas Do U-Turn on In-Theatre Cell Texting
- Sony's New Access Subtitling "Glasses"
- SMPTE on 3D

Kodak Gives Up Rights to 'Oscar' Theatre
Kodak gave up the naming rights to the Oscar venue last week. In bankruptcy court, a Kodak spokesperson said it would save the company $3.6million per year. In turn, Dolby signed a 20 year deal for naming rights to the Hollywood and Highland located Theatre and the Motion Picture Academy of Arts and Sciences has agreed that the Oscars will be hosted at the Dolby Theatre through 2033.
The Hollywood and Highland complex houses retail, dining, entertainment establishments, and a hotel; additionally, it is adjacent to the historic Grauman's Chinese Theatre, ABC's TV studio, and the Disney El Capitan movie palace.
Kodak had designed and built the Theatre specifically for the Oscars: the stage, backstage, sound system, and other infrastructure were all oriented to the Academy night award presentations.  It is a very glamorous yet very functional venue in an extremely accessible location.
Given Kodak's current financial situation the naming rights fees can be put to better use elsewhere in the company and I predict Kodak will return as a viable and profitable organization.  As for Dolby, it's a great way to keep their brand in the spotlight (literally) and keeps the sponsorship in the Hollywood family of companies.

Some Cinemas Give OK to Patron Texting
In a reversal of policy some cinemas are now endorsing a policy to allow texting during the movie presentation.  At a time when teenagers are visiting the cinema less and less it might be time to relax the bans on cell phone use during youth-oriented films.
For me, customer etiquette at cinemas is a big deal.  You are viewing the movie in a room with many others and expect to view the movie unencumbered by other patrons' activities - be it talking, texting, unnecessary moving about, etc. However, young people don't see it that way and could care less if someone is texting during the movie. And they may be right. Lets face it, exhibitors have embraced and are heavy users of communication technology, so don't be hypocritical exhibitors.  Consumers use cellphones to find cinemas, obtain show times, share their movie experience, buy admission tickets and concession, watch trailers, etc. all on their mobile devices. So, can you really use the technology when its convenient and profitable for you and ban it when its not?
Everything is changing regarding movie exhibition and so might what it means to go to the movies.  But than again, isn't going to the movies all about escapism.  Leaving the real world and for a few hours entering a world of fantasy and emotion - isn't that what you pay admission for? To be able to unplug the tether of the cellphone and all of the 'obligations' attached to it, and indulge in undisturbed fantasy.
See, you can argue both sides of the issue -  it's all personal. However, going forward if you are viewing a Harry Potter, Avengers, or Twilight, be tolerant because the person next to you (your daughter or son) may just be texting.

Sony's New Access Glasses

Sony Provides 'Access' to Moviegoers
At CinemaCon I was introduced to Sony's new Access Subtitling System. Access consists of special glasses ( in my case, worn over my own glasses) that display closed-captioned text in up to six languages.  Capable of accommodating both 2D and 3D (via a clip-on filter) these glasses were great.
This is a huge step up in allowing hearing impaired individuals an enhanced movie entertainment experience, while eliminating the need for on media subtitling in various languages.  Good job Sony.

The History of 3D
Let's see now, 3D has been around how long ?  Oh, let's say 100 years, give or take - really !  Yes, really.  The first patent for stereoscopic motion-pictures was filed in 1898 by C. Francis Jenkins, who wrote the book on 3D.  This and other facts, data, and information are compiled in a new 550 page book published by the Society of Motion Picture Television Engineers (which itself will turn 100 in 2016).
I don't usually recommend books or other publications in CMG but if you have the least bit of interest in 3D technology and how it has progressed through the decades this is the book to get. Soft-cover is $89 (less $20 if you are a SMPTE member).  It's also available for download from Amazon.

Best and Happy Movie Going!
Jim Lavorato

FROM HARD DRIVES - to - SATELLITES

For the first commercial release of a digital movie, Star Wars - Attack of the Clones, in 2001 the mode of digital transmission was via satellite.

Movies Delivered From Space

At that time, Entertainment Equipment Corp. was working with Boeing Company (which owned the satellites), Texas Instruments, and Ultra Star Cinemas on the install of six D-Cinema platforms in the San Diego area.  The transmission and subsequent exhibition of the Clones operated flawlessly.

In their wisdom, the Hollywood studios decided to use hard drives for movie distribution and pushed satellite transmission to the back-burner.  Now there appears to be a move back to satellite delivery. 

Finalized movies are sent out by the studios in the form of Digital Cinema Packages (DCPs) which are collections of encrypted files.  These DCPs are sent out for duplication and distribution by Technicolor or Deluxe.  However, for satellite distribution the DCP is sent to a satellite transmission service provider (such as Boeing)  - which can distribute the movie to one exhibitor (directly to their D-cinema server) or to ten thousand exhibitors and do it very inexpensively (much less than the cost of hard drives, their delivery, and re-send).  As with hard drives, the exhibitor receives a Key Delivery Message (KDM) which allows for the "unlocking" of the transmitted movie file and also specifies a specific duration of  "play" time of that movie.

The benefit of satellite transmission is lower distribution cost but also the capability of distributing alternative content easily and efficiently, whether a "live feed" or pre-recorded entertainment.

Air Force Uses COVERsats

Speaking of Satellites

Since the original test I was involved in over ten years ago, satellite transmission and reception have vastly improved.  Technicolor offers satellite delivery via a satellite service provider direct to exhibitors using modern satellite dishes that have a very small physical footprint.  The new dishes can be outfitted with COVERsats which prevent most signal outages caused by rain, snow, and ice.  A COVERsat is wrapped over the face of the dish creating a steep and slippery surface which prevents the accumulations of ice and snow.  Also available are HEATsats, a satellite antenna heater which will completely prevent signal problems from ice and snow.

Given their advantages over hard drive distribution, satellites may be in every movie exhibitors' future.

Best and Happy Movie Going!
Jim Lavorato

EXHIBITORS:WHY NOT GO BIG WITH QRs

QRs can be customized

We are clearly in the age of connection, where access to information is as close as your smartphone, tablet, or other device - and this provides us power.

For example, information is more and more being accessed via scanning codes.  The most common is the Product UPC code (known by us as the Bar Code).  Posted on any product, it provides a range of information from price to date of production.  However, over the last few years several other two-dimensional codes have surfaced.  These codes, made up of a mix of  precisely spaced black dots, lines, and shapes when scanned with a connected mobile device create an automated action of moving to a specific website, generating an e-mail, or dialing a phone number.



Giant QR displayed for customers to scan

Enter the World of Monster QRs

As you can see from the photo insert, QRs can be used as giant ads on the front or side walls of your cinema - for scanning by consumers as they go by.  It's inexpensive advertising, and takes the consumer to where you want them to be - at your on-line ticketing site.  It lets the young moviegoer know your a "with it" place to see a movie and its easy and convenient.
So go BIG with QRs.

WEEKLY CineBUZZ REPORT - 28 April 2012

This week's report is devoted to CinemaCon, the cinema industry's annual convention and trade show which I attended this week.  CinemaCon, in its second year under new management and moniker (formerly ShoWest), continues to have logistical confusion.  Trade show exhibitors are still spread over three floors in numerous suites and ballrooms making it very difficult, tiring, and time consuming for attendees.  That being said, the Show was beneficial and educational from my perspective- as a cinema equipment provider/installer and consultant.

Highlights Of The 2012 CinemaCon Show:

- Dolby's New "Atmosphere"  of Sound
- NEC - Best In Show
- Smart Bar - The Perfect Cinema Cocktail
- Christie's SKA-3D - An All In One Solution

Dolby's "Atmosphere"

A platform for unlimited sound possibilities rather than finite channel configuration & the ability to control any number of speakers or groups of speakers anywhere in the auditorium - Dolby's new Atmos system provides not directional sound but an "atmosphere of sound".

"We want the industry to know we are putting the weight of the company and our global brand behind Atmos", Doug Darrow, Dolby Senior VP Cinema, told me.  Atmos creates a sound atmosphere for the audience.  "Unlike a channel based sound system, Dolby wanted to give a solution that was unconstrained", stated Stuart Bowling, Dolby Senior Tech./Marketing Manager. "Atmos provides the ability to place sound literally anywhere in the auditorium where you want it to be for the audience".  With the flip of a joystick I was able to switch from standard 5.1 sound to Atmos generated 7.1 and compare the difference.  The Atmos is dimensionally far richer and the clarity of the sound exceptional.

For new cinema construction and sound upgrades Dolby recommends overhead speakers to be placed parallel and in alignment with the surround speakers. Says Bowling,  "If you have eight existing surround speakers on the side walls, you'd have eight overhead speakers as well on each side providing for wide sound dispersion.  Atmos moves away from channel based sound systems to an expandable sound platform. "

 For me, the best benefit of Atmos is that it provides a sound experience that will only be available in theatres, and developed so that very cinema - no matter size or sound configuration - can utilize the system.  Atmos elevates the cinema experience and will help in getting people out of their living rooms and into cinemas.

NEC Prototype - A Real Show Stopper

If there was one product that I would vote Best in Show, it would have to be NEC's prototype D-Cinema Laser Projector.  This laser-driven projector, as demonstrated, boasted 4k resolution at high frame rate in 3D - the ultimate in current technology.

The projector is small (about one half the size of a current Series II D-Cinema projector) simply because it has no lamphouse.  The laser generator is housed in a black box resting on the floor with two black cables running from it to the projector.  As Akhtar Mahmood, NEC Senior Service Engineering Manager explained to me, "the laser light is a separate unit which can achieve a light output of 68,000 lumens and lasts 25 - 30,000 hours at 100% output".

The on-screen image was - in a word - phenomenal.  Bright, sharp, and really life-like.  But don't hold your breath.  First, all of the laser projectors being demo'd  be they NEC or others must pass regulatory hurdles and then there are development and pricing issues.  According to Akhtar, "we are looking at least three to five years before commercial sells and maybe longer".

The Smart Bar

Pour The Perfect Cocktail

Serving adult drinks may be just what your cinema needs.  If so, you'll need a top-notch bartender.  Well, look no further - the Smart Bar will make the perfect cocktail (be it a gin & tonic, rum & coke, or margarita) automatically.  It measures and mixes up to 16 liquors in combination with 13 juices, sodas, or water, and its portable.

Using a touch screen and easy search to call up and mix hundreds of drink combinations the Smart Bar is easy and fool-proof.  It can be used for non-alcoholic beverages as well.

I like the Smart Bar because it can add a new and very profitable dimension to a cinema's concession menu at very little initial and on-going cost.  So, if your cinema's demographic would support alcoholic drinks and wine the Smart Bar may be something for you to consider.




SKA-3D A/V Processor

Christie's New SKA-3D All In One Processor

Dubbed the Swiss Army Knife of cinema processors, Christie's new SKA-3D combines Audio and Video processing in a single box.  The SKA-3D switches from A/V inputs including analog and digital audio from a D-Cinema server/integrated media block and 2D/3D alternative content sources, such as BluRay players, satellite receivers, PCs, or mobile devices.

Scheduled for limited release in the 2nd quarter the SKA-3D fills a real need in cinema A/V presentations.

WEEKLY CineBUZZ REPORT - 21 April 2012

Highlights of this Report:
- Hollywood Studios Extend VPF Program Sign-up Deadline
- Christie Digital Previews Laser Projector w/High Frame Rate
- Screenvision Releases New Prefeature Show & Mobile App
- Viacom Poll Shows Tablets Are Go-To Devices For Media Viewing
- "Wearables" - The Next Devices To Go Mainstream

 VPF: How It Works

Studios Extend VPF Deadline
On Thursday (4/19) the Hollywood studios participating in the Virtual Print Fee Program (VPF) extended the Program's sign-up deadline to September 30th. from the previous April 30th deadline.  This extension was anticipated and provides wiggle room for those exhibitors that still need to work out financing for their cinemas' digital conversion. 
As of year end 2011 there were approximately 14,000 screens in the U.S. that had not converted to digital projection - the studios believe this sign-up extension will help in getting those exhibs. to convert.


Christie Digital Demos High Frame Rate Laser D-Cinema Projector

Christie HFR Laser Projector

At their worldwide headquarters in Kitchener, Ontario Christie Digital (owned by Ushio Inc. of Japan) demonstrated their new D-Cinema Laser Projector which also incorporates the High Frame Rate (HFR) option that some Hollywood's honchos would like the studios to adopt. Note: the current frame rate is 24 frames per second the new, higher rate would be 48fps.
Christie's demo, was required, as they need to keep up with the digital projection technology.  Kodak demonstrated their laser projector last year and Barco followed suit with their entry several months ago (both of these were highlighted in CMG posts last month).  NEC will demo their projector shortly and I'm sure it will also highlight the HFR feature.
The cinema industry will have to adopt laser projection and the HFR. Why?  Because the industry can not stop digitally based projection and sound technology from advancing.  And the 'latest and greatest' must be marketed and sold - this is the way consumer-driven economies function and grow.

Limelight Preshow also available as mobile app 

Screenvision's 'Limelight' to Entice Moviegoers
Preshow advertising company Screenvision has developed an application for mobile devices that the company says will entice viewers to go to the cinema 20 minutes before showtime to watch ads and play interactive games.  Dubbed 'Limelight', the new show will replace Screenvision's current prefeature (and really out-dated) 35mm slide presentations which feature movie trivia and local ads.
Viewers can download the Limelight app - called Screenfanz - and view movie trailers, search for showtimes, check in at a theatre, and earn points toward free admissions and concession.
A giant leap for Screenvision, the purpose of the preshow show is to provide advertisers a means to have their ads mixed in with interactive content and be accessible via mobile devices.  Cinemas have always offered a good space to engage consumers with ads, given that moviegoers are a 'captive audience'.  The trick is you don't want to bore them with an out-of-date slide show.  Screenvision believes Limelight is not only entertaining but provides advertisers a new format to present their message. Screenvision estimates 8-10 million people per week view their current in-cinema preshow.  The new Limelight show and mobile app are intended to provide advertisers a better, more effective means to reach consumers who also happen to be moviegoers.

Tablets Overtake PCs

Tablets: the Go-To Devices for Media After TVs
Viacom (owner of Paramount Pictures) recently released the findings of a study which found that tablets have quickly become the preferred second choice (after traditional TVs) for viewing TV shows and movies.
The study found that tablets did not decrease the use of TVs but did reduce the time spent viewing content on PCs and smartphones. This is not surprising as tablets, such as the iPad can be wired into any TV for playback of TV shows and movies via free or low-cost apps.
About 22% of tablet owners watch full-length programming on their devices, with content streamers such as Netflix providing up to 24% of that content.  68.7 million tablets were sold worldwide in 2011. For this year the forecast is for 106 million units to be sold.  The highest users were in the 18-24 age group. 
The bright note of the study was that the increase use of tablets for movie viewing as not had any negative impact on cinema attendance by the public.

Apple's iBangle Wrist Computer

Wearables: The Next Wave In Mobility

Tattoos that vibrate when your cell phone rings. Dual-focus contact lenses with data displays. Termed wearables these communication devices are destined to have a huge impact on humanity and the way we work, play, and socialize.   Wearables will have enormous potential in health and fitness, navigation, social networking, business, the media, and is areas of human endeavor that we can't even imagine today.

Asus Waveface Web-based PC

How about reminding you of the latest movie via a trailer played on your watch or a GPS device embedded into your clothing.  Wearables are here now, it's just of matter of roll-out by the tech manufacturers.  You'll be hearing, seeing, and using wearables within the next 2 years.

Best and Happy Movie Going!
Jim Lavorato

ALTERNATIVE CONTENT IN CINEMAS - WILL IT EVER WORK?

13 years ago I pinned an article for Film Journal International entitled, "Theatres Become Viewing Venues" (September 1999) in which I stated that alternative content would (some day) be common place in cinemas and it would be delivered by various electronic means. In August of 2000, I wrote another piece for the Film Journal entitled "Broadcasting Sporting Events @ Theatres: A Digital Beta Test" whereby, Entertainment Equipment Corp. sponsored a demonstration where a Pittsburgh-area high school's football game (supplied by a local TV station) was projected via a conventional Panasonic video projector on a 40ft. wide cinema screen, and predicting that the day would come when cinemas would be used as venues for presenting relevant but local community content.  Needless to say, neither of these prognostications have yet come to be.

After 13 years it seems that the alternative content (AC) market may now be at the make of break stage.  What has been learned is that, as I predicted, the content has to have relevance to the local demographic to be successful.

The players in the alternative content field: NCM Fathom, Cinedigm, Emerging Pictures, BY Experience, and D&E are pushing hard but finding that delivery points that provide a consistent and loyal audience is difficult.

"Local marketing is where alternative content lives and dies," states D&E's Evan Saxon, "so the engagement of the exhibitor and the local audience is essential." 

What makes for success (just like TV or films) is a series (a franchise) - such as the opera or ballet.  One off showings are costly in terms of content and marketing and don't always pay off.  A series enables on-going marketing and more importantly time to build an audience. Consumers must view AC as not just a substitute for a movie, but relevant content that stands on its own.

Hollywood, for its part, hasn't really embraced AC, which is not surprising given the output of films (there will be well over 600 releases this year) and the non-predictability of the box office, coupled with the studios' preoccupation with the on-going challenge from the internet. Additionally, there are the alternative providers, such as Hulu, Netflix, Amazon, Google, just to name several that are providing ex-movie content of all sorts.  And unfortuneately, as some AC providers believe, 3D will not be their savior. YouTube already provides all of its HD downloads in 3D format.

From a Bruce Lee docu to the Nutcracker what matters most for AC providers is offering high quality content that is of relevance to a local audience - that scenario was proven 13 years ago and it still holds true today.

Best
Jim Lavorato

WEEKLY CineBUZZ REPORT - 9 April 2012

In This Week's Report:

 - Internet Outpaces Hollywood in 3D Format
 - Paramount Inks Deal with Google
 - Apple To Intro 3D Camera in Next iPhone ?
 - CinemaCon 2012, Anything New ?

YouTube Goes 3D - Big Time and Outpaces Hollywood.  As of last Thursday, users that access HD 1080p short-form videos posted on YouTube will be given the option (click on Quality settings) to view that video in 3D.

Beta tested since last September, Google (owner of YouTube) has developed a way to obtain the 3D effect by analyzing a video's "components" and developing a depth perception for each frame of the video.

Cross you eyes for the 3D Effect

It appears that many people are interested in bringing 3D content to YouTube - as it has converted "hundreds of thousands" of videos to 3D over the last several months.

So, with one click you can turn the 2D video you are viewing into a 3D presentation.  3D glasses are, kind of, required but at least half of the U.S. population should have a pair of glasses received from viewing a 3D movie over the last 5 years at the local cinema. YouTube 3D videos can accommodate every style of 3D glasses, and if not available, just cross your eyes ( yes,it works).


YouTube claims to have the most HD online content - 10% of all posted videos on YouTube can now be viewed in 3D.  So, Google has just offered another reason for the folks to stay in their living rooms and postpone that trip to the cinema.  We'll see and keep you posted.

Paramount Inks Deal With Google

Last Wednesday (4/4/12) Paramount Pictures agreed to allow YouTube (owned by Google) access to 500 films for online rental.  This makes Paramount the fifth major studio (Fox is now the only holdout) to join the YouTube online video store - that charges $2-4 per movie rental.

Online movie and pay-per-view options have brought on heavy competition between Google, Apple (iTunes), Amazon (Amazon Plus), and Netflix. The deal with Paramount, brings the YouTube movie library to 9,000 titles.  Renters are given up to 30 days to began watching the movie after purchase but must complete the viewing within 24 hours after starting.

Apple's 3D Glasses-free Camera Image

 Next iPhone to Sport 3D Camera

As Hollywood falters with 3D acceptance by the public, others (such as YouTube) have taken the format to new levels.  Not to be outdone, rumor has it that Apple's next iPhone will sport a 3D camera!  Apple has a patent filing for cameras that incorporate laser and light-detection and ranging sensors for determining depth as well as color accuracy. The pictures will be glasses-free.

If the 3D iPhone becomes reality it will be the second on the market, HTC's Evo phone is 3D capable, but Apple claims its camera will be a vast improvement over anything currently on the market - and you don't want to doubt Apple's ability to intro superior products.  The 3D cameras will also be standard on  iPads.

CinemaCon, Anything New?

CinemaCon (previously called ShoWest), the cinema industry's annual convention and trade show, will take place April 23-26 at Caesar's Palace in Las Vegas. Should I expect to see anything new?  Probably not.  I will however be looking for anything related to digital laser projection systems (the next phase in the development of digital cinema).  Now that the digital genie is out of the bottle, cinema exhibition is open to continued developments in the technology, which will be a big switch from film's 100+ year virtually unchanged run.

I'll be providing a full report on CinemaCon and the usual best and worst in Show.

Best and Happy Movie Going!
Jim Lavorato

DIGITAL CONVERSIONS - ADMISSIONS - 3D - WHAT'S THE LATEST

The Current Status of the U.S. Cinema?

It seems every time I speak with anyone associated with the industry - exhibitor, booker, distributor, manufacturer, or just run-of-the-mill rumor-monger or luminary - I'm confronted with a different set of "facts".  Being such, I thought it would be beneficial and enlightening to ferret through the litter and make proper hash out of the myriad of gestalt.
Let me start by stating that the U.S. cinema is currently in a steady state of performance.  The gross box office in 2011 totalled $10.2 billion, about 4% below 2010's $10.6 billion take. This downward glide was due entirely to lower admissions, which declined by 60 million (tickets sold) for 2011 and continued the decade-long trend of lower movie attendance by U.S. consumers.  Admissions totalled 1.28 billion (which equates to 3.9 admissions per U.S. citizen) at an average admission price of $7.93. 
Frequent moviegoers (those that visit  their local cinema at least once per month) accounted for 50% of all tickets sold and are the real drivers of the box office. These frequenters make-up roughly 10% of the U.S. population and are split virtually 50/50 between male and female moviegoers. These "frequent 10% ers" are in the 18-39 age group - with Caucasians and Hispanics responsible for 56% and 24% respectively of their total.
In 2011, the 25-39 age group went to the movies must often as the younger frequent moviegoers (in the 18-24 age group) posted a decline in attendance by over 1 million admissions. As that  group continues to gravitate to internet movie viewing and portends a trend that the cinema industry must address if it is to remain viable in the longer term.
DIGITAL CONVERSIONS & 3D
At 2011's end, there were 39,641 cinema screens in the U.S., of which 25,621 had been converted to digital projection.  Of these conversions, 12,620 (about half) were equipped for 3D playback.  The number of conversions accelerated in 2011 (there were 10,886 during the year) and the studios hope that the remaining (approx. 14,000 screens) will be converted by 2014.

The distributiors' Virtual Print Fee (VPF) Program is on-going and will most likely be extended beyond its expiration date of April's end (rumors are already circulating regarding the Program's extension) so as  to prod the remaining conversion holdouts.  It has always struck me sort as funny but I believe the VPF Program is backwards. The studios should have told exhibitors that if they wanted to convert to D-Cinema fine but if they didn't,  they would be charged a "print fee". Therefore, the inducement for the exhibitor to convert would be money savings and if they didn't the studios received reimbursement for the cost of the film print. Needless to say, the studios opted for the much less tolerable current VPF scheme whereby the studios reimbusrse the exhibitors once they convert.

Regarding 3D, half of all moviegoers in 2011 attended a 3D movie. Young people, aged 12-24, were most likely to attend a 3D movie, while only 15% of those over age 60 attended a 3D presentation. At present, 3D remains a mixed bag, as the format has failed to deliver on its potential - a faux pas that rests entirely at the doorstep of the studios, and which they are trying to correct.

There were 610 bonafide films released in 2011 of which 45 were 3D. As in prior years, the top 25 films dominated the U.S. box office, amassing $4.48 billion of the total $10.2 billion gross or 44%.  Of the top 25, 15 were PG-13s, 5 were PG, 3 Rs, and 2 G rated. Ten were released in 3D format.

International the Bright Star in the Movie Universe

As static as the U.S. cinema market is, the international scene is all about growth.  Overseas the box office totalled $22.4 billion or double the U.S. total and represented a 7% increase over 2010. The largest growth came from Latin America (24%) principally from Mexico and Brazil. Asia Pacific grew by 6% principally from China - which grew by 35% and moved it into 2nd place as the largest overseas movie market behind Japan. 

There are about 124,000 screens worldwide of which 61,000 are still film-based. Of the 63,000 that have converted to digital, 35,479 are 3D equipped. Growth of the international market, like the U.S., will slow over the next several years, and in turn become a steady state market as well. Again, the real threat for the cinema will come from the internet and the enhancement of the "living room" entertainment experience.

Best and Happy Movie Going!
Jim Lavorato

Sources for this article included: Cinema Mucho Gusto, Motion Picture Association of America, ScreenTrade Magazine, Google Media, The Numbers, Variety Magazine, and The Hollywood Reporter.

CINEMA LOBBIES NEED TO GO DIGITAL - TOO !

Not only their movie projection but cinemas need to digitize their lobbies as well - to better serve the digital-savvy patron.

For example, those moviegoers that have pre- purchased their tickets online should be greeted at the cinema entrance and ticket-verified via an iPad.  The lobby should be renamed, "the reception area" and for example, be revised to look like a WiFi coffee-shop (cafe).

Cinema Lobby Should Resemble Hotel.

Lobbies should be equipped with power outlets for charging laptops and other devices.  The reception area should be adjacent to the concession area (which should be enhanced to include special cafe type items) so patrons can snack while using the internet via free WiFi.  The goal is to give the patron a comfortable place to hangout so they don't have to visit Starbucks after the movie.  The idea is to bring new life to the cinema lobby, evolving from the stuffy, stark, and bright to the comfortable and living room like - evoking a positive and less formal atmosphere.

Going forward, the cinema's biggest competitor will be the living room, so you have to make the patron "feel at home" in a relaxed and tech savvy space.  People are more social today then ever before and cinemas need to be in that linked mix. It's not enough to offer traditional environments selling same old snacks. The cinema of the future needs to be more and investment in technology at all levels is rewarding because it boosts loyalty.  The once staid cinema lobby should become the substitute living room for patrons.