CINEMAS NEED TO USE PHONE TECHNOLOGY

GOOD/HID Access Reader Just Takes a Swipe

If you read CMG with any regularity you are acutely aware that I am a huge proponent of the use of Smartphones technology by cinemas for everything from admission and concession sales - to - inventory control.

Now another use can be taken advantage of by cinemas - Security !  Recenty, Good Technology, a Sunnyvale, CA security software company teamed up with HID Global, a manufacturer of physical access readers, to produce and market security access door locks - turning the Smartphone into a "key" with just a swipe near the reader/lock.

Calling it the "world's first NFC (near field-communication) enabled system for the use of Smartphones for physical access to buildings and offices " Good choose the Samsung Galaxy S III Smartphone for its application.  Using secure NFC microSD cards in the phones, users are sent physical access credentials (ie keys) 'wirelessly'  via HID's Secure Identity Service, which also lets the system administrator (cinema owner) manage and monitor credentials and identities tied to specific phones. 

What this means is that you can 'push or revoke' credentials over the air to each user,
For example, allowing access to a certain facility (or certain doors within that facility)
or providing a one day or even one time access only, or provide an employee or manager full access to the facility 24/7, or allowing access only on the days that an employee works, say Monday, Wednesday, Friday and no other days.  Another benefit is that there are no physical keys to worry about, to forget, to lose. When an employee leaves access is simply revoked wirelessly.

Using the Smartphone adds another layer of security because users not only need to obtain the appropriate credential but they need to know that phone's  password to use it as the key.  Additionally, no one is going to forget their phone, because it is their phone. If they forget it, they will always go back and get it.  The speed comes from the fact that all users are never slowed down or inconvenienced when reaching a doorway and not being able to access it (because they forgot their phone).  If  the phone is lost or stolen, first one would need the code to unlock the phone and second, the access credentials can be revoked instantaneously.

This use of Smartphone technology is not only smart but inexpensive and the control it provides over individuals' access to a facility and premises is truly remarkable.


Best
Jim Lavorato
Comments welcomed !

HOLLYWOOD REWORKS REVENUE STREAM

P. Dauman, Viacom CEO

DVD sales of new released movies (one of Hollywood's main revenue streams) continues to tumble - forcing the major studios to completely rethink their movie making/distribution model.  As multi-platform 'pay for view' takes a firmer hold on the consumer the studios are re-casting how they fund movies.

This redo of a movie's revenue stream has taken hold in Hollywood.  "Greenlighting a feature film, Paramount now restructures deals made with actors, producers, and directors to better reflect a 'partnership' relationship' on the economies of a film rather than a high upfront cost", Viacom CEO Philippe Dauman, told CGM.

"We don't mind sharing the upside of a movie with talent as long as we don't have a downside, or we have a sharing of risk" says Dauman.  "It is no longer feasible for a studio to make huge upfront payments to talent with an increase uncertainty on the back end due to faltering DVD sales."


Until recently, the big share of a movie's profits rested with the sale of DVDs and not the box office, but as consumers have moved (very quickly) to internet downloading of content the studios have scrambled to re-think how they contract with talent and, just as importantly, maneuvering to get a larger piece of the digital streaming pie.

"The way we look at the movie business is that we want to create great films and we want to manage the downside, the risk/reward equation if you will". Dauman said. "We're looking at all sorts of revenue opportunities".

Best and Happy Movie Going!
Jim Lavorato

USING "THE" TECHNOLOGY

Dolby's 'Digital Plus' - Hits The Mark

Conversion to digital projection presents new business opportunities for cinemas. A few days ago I blogged on the movie program available to cinemas from the National Geographic Society.  Programming is also available from the NY Metropolitan Opera Company and there are and will be many others offering content to cinemas.

Amazon's Kindle Fire HD w/Digital Plus

Cinema exhibitors, however small, should take advantage of this alternative content (to movies) for expanding their customer base.  Adopting, and more importantly, using the new digital technology affords great opportunity for many businesses that were traditionally mainly  in the movie business.  Case in point: Dolby Laboratories.

Not content to rely solely on the audio or cinema industries to determine its future, Dolby has embraced digital technology and expanded it reach - developing new markets in which to expand and grow.

As audio quality took a back seat to HD displays on mobile devices - Dolby realized opportunity and jumped on it.  Last Thursday, Amazon introduced the Kindle Fire HD tablet with Dolby's new Digital Plus audio.  "Dolby's Digital Plus is every impressive, says, Tim Bajarin of Creative Strategies, "it will make audio the next battlefront in tablets as all of the current tablets have inferior sound." 

Dolby accomplished this feat by developing new software that is custom tuned for each mobile device being introduced with Digital Plus - making the downloading of the software as an application a non-starter.  Amazon, by incorporating Digital Plus into the Fire HD has "thrown down the gauntlet, this is a new level of differentiation and users will love it", says Bajarin.

Amazon exec, Dave Limp called Dolby Digital Plus "a perfect complement to the sound system we designed into the Kindle Fire.  Customers have told us they want great sound for movies, music, and games."
Dolby equates quality audio for mobile devices as following in the footsteps of its technology advances going from stereo, to theatre sound, to home audio systems.  To extend that to mobile devices was the next step. Digital Plus incorporates volume leveling, a surround virtualizer, and a dialog enhancer.

Dolby Laboratories (DLB) is publicly traded. At a current share price of $34.50 and given the potential to have its Digital Plus audio software included into every mobile device to be produced, it may be a terrific buy.

Best
Jim Lavorato
I welcome your comments

WEEKLY CineBUZZ REPORT - 12 September 2012

Highlights Of This Week's Report:

- Five of Six Studios Sign On to M-GO
- Dalian Wanda: AMC Purchase Only Start of $10b Investment
- 'Lawrence of Arabia' to Hit Screens on Oct.10th.
- Going To A Higher Frame Rate
- Fox Narrows Theatrical Release Window

M-GO Gets OK From Studios

M-GO, a mobile device entertainment application, backed by Technicolor and DreamWorks Animation has signed on five of the six major studios to offer content day and date with DVD/BluRay releases. WBs, Fox, Sony, Paramount, and Universal will all offer new release and catalog content for both rentals and electronic sell-through.  Disney has not signed on, as yet.

M-GO will be available as a down-load via iTunes and Google Play, will be pre-loaded on Samsung 2012 HDTVs, Blu-Ray players and Intel Ultrabooks.  M-GO will also serve as an UltraViolet retailer, offering streaming and downloading of titles enabled with the 'buy one/play anywhere' cloud based  UltraViolet system.


Chinese Media Giant "Dalian Wanda' Looks to Invest Big in U.S.

Wang Jianlin, CEO

Just having completed it $2.6 billion acquisition of the AMC cinema chain of theatres, Wang Jianlin, Chairman & President of Chinese media giant Dalian Wanda said the the company plans to invest $10 billion in the coming years - with hotels, retail stores, and cinemas at the top of the buy list. Film production is also on the to do list.

Wang hinted about a possible film production fund or joint venture with a major studio.  When asked why he is attracted to the U.S. when there is so much opportunity in China's cinema business, he stated "We can't put all the eggs in one basket."

'Lawrence' Makes Encore

Sony Pictures and NCM Fathom Events is marking the 50th Anniversary of 'Lawrence of Arabia" with a digitally restored version available nationwide at cinemas on October 4th.  This will precede Sony's release of a limited-edition four-disc set on November 13th in a fully-restored Blu-Ray with UltraViolet.

'Lawrence of Arabia' won seven Academy Awards including Best Picture in 1962 and is listed as number 7 on the American Film Institutes's "100 Greatest Movies of All Time".  The restoration is from the original 65mm negative and the presentation features an introduction by Omar Sharif, one of the film's stars.


Moving To A Higher Frame Rate

Hollywood wants to move to a higher frame rate for motion pictures, particularly 3D films. Why and What is meant by HFR.

Film and digitally based movies are projected at 24 frames per second (fps). This has been the standard for film projection for decades, however, the move to a frame rate higher than 24 was not feasible: first, because to move to a 48 fps required twice as much film, and second , it would have necessitated a complete retrofit of all of the 35mm projection systems worldwide.  Now, with digital cinema projection a higher frame rate is possible.

Hollywood supports a 48 fps for 2D movies, but for 3D it becomes more problematic as the effective frame rate for 3D is double the number - to 96 fps, which poses technical issues regarding networking and data compression.  That amount of data could be accommodated on a hard drive but would not be feasible for electronic distribution of movies.

The whole purpose of a HFR is to improve the viewing experience - reducing motion blur and increasing the clarity of the on-screen image.  As it stands, the industry is moving towards a standards criteria for 2D at 48 fps, we'll see what happens for 3D.

Fox Narrows Cinema Release Window

Fox plans on releasing "Prometheus" in a high-definition on-line version about three weeks before its release on DVD or VOD.  This move will shorten the waiting time between theatrical release and normal video release.

Consumers are purchasing more of their movie entertainment via on-line outlets like Amazon, Google Play, and iTunes and Fox wants to take advantage of this trend. 

Prometheus will be available for digital download on Sept 18th well in advance of its October 11th DVD release date.  Fox is calling its electronic movie sale "Digital HD or DHD", and plans on offering many more movies via this marketing mode.  The DHD movies will be available in about 50 countries worldwide.

Best and Happy Movie Going!
Jim Lavorato
We welcome your comments.

NATIONAL GEOGRAPHIC CINEMA VENTURES

'Flying Monsters' - a NGS Movie for Cinemas

The NGS Offers Cinemas Outstanding Content

The National Geographic Society has a movie section that specializes in distributing content to movie theatres - called Cinema Ventures.

The array of available movies is extensive and available to all cinemas that are Digital Cinema ready.  This is one way for cinemas to expand their audience and exhibit alternative content that is relevant and different.  Available on BluRay disc or DVDs these movies can play directly through a cinema's D-Cinema projection system producing a very high quality on-screen presentation.

The NGS is very well known and respected and their movies offer top-notch entertainment for children and adults. Please contact them as this represents a great opportunity for cinemas to demonstrate the diverse content that their investment in digital cinema affords their customers.

For more information on NGS's Cinema Ventures contact:
Mark Katz or John Wickstrom
Cinema Ventures, National Geographic Society Entertainment
161 6th Avenue, 15 Floor
New York, NY 10013
212-224-8479 or 913-648-5886
mkatz@ngs.org or jwickstr@ngsorg

CineBUZZ REPORT - 1 September 2012

HIGHLIGHTS OF THIS REPORT

- New York May Nix Sales Tax on Digital Flix
- Dine-In Theatres - Have They Gone Too Far ?
- Coming To Your Wrist - Movie Viewing
- 3D Glasses Cleaning Made Easy
- Minimum Wage Increase - Good or Bad ?
- Potter's Magic No Match For Hunger

NO SALES TAX ON DIGITAL MOVIES

The New York State Division Tax Appeals Court recently ruled and determined that the delivery of digital movies on hard drives would not cause the transaction to be taxable under the New York Sales Tax law primarily because the hard drives were not necessary for the display of the movies. New York State imposes its sales tax on retail sales of tangible personal property, thus in order for sales tax to apply, there must be a transfer of title or possession or both of the property.

Traditionally, movies have been viewed as constituting tangible personal property because the 35mm film they were recorded on was "corporeal" and therefore licenses to exhibit movies on the film have been subject to New York sales tax.  However, digital movies delivered electronically are intangible property, and receipts from licenses of them are thus not subject to NY Sales Tax.

The ruling found the, "hard drives, unlike traditional film, were not necessary to each (or even any) instance of displaying the content, and that the hard drive was not itself the desired object of the transaction."  The ruling further found that exhibitors, "did not take title to the hard drives, but rather immediately returned them to the distributor after uploading the movies."

The New York State Department of Taxation & Finance has 30 days from the Appeals Court determination date to file an exception (appeal) to the ruling.

This is great news for New York exhibs and the ruling should hold up against appeal, if filed.

UPDATE: It was learned yesterday that the NYS Department of  Taxation would not be filing for an appeal of the sales tax ruling.

DINE-IN THEATRES - HAVE THEY GONE TOO FAR?

CMG has preached on the benefits of expanding/embellishing cinemas' concession offerings for many years.  We now can test this theory in the extreme as AMC Entertainment (the U.S. movie chain now owned by Chinese media company Dalian Wanda) opened its seventh Dine-In Theatre - a 13 screen venture located within the confines of AMC's Easton Town 30plex in Columbus, Ohio.

The new 13 Dine-In auditoriums are converted/remodeled regular auditoriums, and demonstrate AMC's commitment to the Dine-In strategy as the loss, of each converted auditorium's seating capacity averaged 50%.  To further delineate their commitment,  AMC has two separate types of Dine-Ins. Nine of the 13 converted auditoriums are termed "Fork & Screen" auds. - which are family-friendly and allow children under 18 admittance if accompanied by an adult.  The other four auds. are termed, "Cinema Suites" and are only for the 21 and above crowd.

The Dine-Ins serve up burgers, sandwiches, salads, pizza, and quesadillas, in addition to regular concession fare.  The food is touted as being top quality with pricing, for most menu items, in the $10-15 range.

Good strategy or has AMC gone too far?  The Dine-In concept is not new (see CMG post of September 2011 on Platinum Cinema Suites in Singapore) but devoting 13 auditoriums to the idea may be overkill - do that many moviegoers want to dine and watch a movie?  We'll keep you informed as to their market success.


MOVIE VIEWING ON YOUR WRIST - it's just a matter of time.


Wristwatches that just tell time are fast disappearing.  SmartWatches will be the future, not only of time-telling but a mode of getting a lot of information.  Companies like Apple, Sony, Nike and loads of others hope that you will be strapping a 'device' on your wrist very soon.

The new devices won't replace SmartPhones but rather connect to them, but they will provide far more information than the most advanced watch or chronometer.  For example, the Sony SmartWatch (pictured above) can display emails, Twitter posts, other text and images  all 'pulled' from an Android phone.  "The wrist becomes a remote screen where you now have the ability to control your phone with a number of different applications," states Stephen Sneeden, Sony's Product Marketing Manager. " By virtue of the intelligence of the smartphone, it's going to help redefine what goes on your wrist." 

Big issue: the new SmartWatches must strike a balance between technology and fashion in order to entice a broader audience, particularly those under 21, who have given up on the wristwatch. The wrist is used for fashion and expression not just funcion - the two will have to be merged for the SmartWatches to really catch on.

My take: Consumers do not buy multiple SmartPhones, but multiple wrist devices - well that may be a different story and one the manufactuers, I'm sure, are drooling over.


3D GLASSES CLEANING MADE EASY

Esther Hormatz of the Dietrich Theatre, in Tuckhannock, PA recently informed me that they clean their Dolby 3D glasses using a normal dish washer, and "it works great."

"We weren't sure if the glasses would get tossed about, but they don't. The unit has a heat boost cycle, and a shorter wash cycle." says Esther. " We use the dishwasher packets with bleach, and spot free rinse. We don't let them dry inside the washer. After the wash, the kids immediately take them out and lay them on the counter to dry".  The glasses are given a quick wipe with a microfiber cloth which the staff performs between shows.

"We are very satisfied with the regular dishwasher" states Esther, "and it cost a lot less than the washers made specifically for washing glasses and the required special holding racks, which still require the simple dry wiping with a cloth".

Thanks Esther for the great information and excellent advice.  I'll be using this info. as a selling point, as the Dolby 3D System provides, by far, the best on-screen 3D image.


INCREASING THE MINIMUM WAGE: GOOD/BAD FOR EXHIBS.

The federal minimum wage stands at $7.25/hour.  Usually, efforts to raise the minimum wage has drawn fierce opposition from small business, but the U.S. income equality issue will make opposing the raising of the rate very difficult this time around.

The current proposed legislation would boost the federal rate in three 85 cent increments, to $9.80 an hour, over three years, then adjust it annually to keep pace with the cost of living.  Those favoring the increase argue that employees who are paid more work harder and stay on the job longer.  But the timing for increasing labor costs couldn't be worse, particularly for movie exhibitors - which are dealing with digital conversion and most of which can't raise prices to offset higher wages .Currently  18 states have minimum wage rates that are higher than the federal rate (New York is at the $7.25 federal rate) five states have no minimim.

My take:  The minimum federal rate increase will be enacted after the Presidential election but not to the extend as proposed, but at a lesser amount.

'HUNGER GAMES' BEATS 'HARRY POTTER'

Amazon reported that on-line sales of the three novels that make up The Hunger Games triology surpassed the seven books that made up the 'Harry Potter' series. This makes the Suzanne Collins saga the best selling book series (cum movie franchise) of all time on Amazon - both ebook and print sales. It is estimated that there have been more than 50 million copies of the three books sold - print or digital versions.

Hopefully these record sales will translate to record box office admissions as the second film in the tri-movie franchise is released.


Best and Happy Movie Going!
Jim Lavorato

We encourage your input and response

FALL (HOLIDAY) MOVIES BEST IN YEARS

By my count, there will be 98 major movies released during the September-to-December period and it looks to be one of the best fall seasons EVER !

Now, I may be going out on a limb but when a previewed the release slate I saw a number of really good box office grossers, so I don't think I'll miss the mark and may hit a bull's eye with my prediction. My picks are as follows:

SEPTEMBER - 27 MAJOR RELEASES

Big Grosser Picks : Finding Nemo 3D, The Master, Resident Evil:Retribution, Trouble with the Curve, Hotel Transylvania, End of Watch, Looper.

Sleeper Picks: Bachelorette, The Inbetweeners, The Perks of Being a Wallflower, Don't Back Down.

OCTOBER - 30 MAJOR RELEASES

Big Grosser Picks: Frankenweenie, Taken 2, Argo, Here Comes the Boom, Seven Psychopaths, Killing Them Softly, Paranormal Activity 4.

Sleeper Picks: Pitch Perfect, Smashed, Cloud Atlas.

NOVEMBER - 23 MAJOR RELEASES

Big Grosser Picks: Wreck-It-Ralph, Lincoln, Skyfall, Twilight:Breaking Dawn-P2, Life of Pi, Silver Linings Playbook.

Sleeper Picks: Flight, Rise of the Guardians, Chasing Ice

DECEMBER - 18 MAJOR RELEASES
Big Grosser Picks: The Hobbit: An Unexpected Journey, Les Miserables, Monsters Inc. 3D, Zero Dark Thirty, This Is 40, Parental Guidance.

Sleeper Picks: Hyde Park on Hudson, Jack Reacher, On the Road, The Guilt Trip.

Of the 98 major releases 9 will be in 3D: Finding Nemo 3D, Resident Evil:Retribution, Hotel Transylvania, Frankenweenie, Wreck-It-Ralph, Life of Pi, Rise of the Guardians, The Hobbit, and Monsters, Inc. 3D.

A great roster of films for the Fall of 2012 so it should be a very merry holiday season for distribs and exhibs alike.

Best and Happy Movie Going!
Jim Lavorato

CineBUZZ REPORT - 5 August 2012

HIGH LITES OF THIS WEEK'S REPORT

- WB BATTLES PIRATES ON AMAZON
- GOOGLE WALLET Goes BIG For CINEMAS
- EEC AND NOISE STUDIOS FORM AFFILIATION
- HOBBIT To Use SPECIAL EDITION 3D GLASSES

WB Targets Pirates Using AMAZON
Last week Warner Bros. filed suit in U.S. District Court in California alleging that third-party sellers are retailing counterfeit and unauthorized copies of WB movies through Amazon on-line.
In its suit, WB states that it "has suffered and continues to suffer irreparable harm and damage through these illegal sales."  The suits were filed against Amazon seller Todd Beckman and 10 other co-defendants with an additional 19 lawsuits filed against other sellers.  WB claims there are more than 2 million independent sellers using Amazon.com as there sales vehicle.
WB claims the defendants sell the counterfeit and pirated copies of movies in several formats, including: video cassettes, laser discs, DVDs, compact discs, and BluRay discs.  Amazon declined to comment on WB's allegations.  CMG will keep you informed.



Google Wallet System

GOOGLE WALLET Now Good With All Credit Cards

Last year CMG reported on the value of equipping cinemas with the ability to accept payment for admissions and concession sales via smartphones - and saying that the Google Wallet was one of the best payment systems for this.  Since that time, the use of smartphones for retail payments by consumers has soared.
The Wallet is now one of the largest apps used for phone payments and it just expanded - as it can now be used with all credit cards.  Originally, only Citibank customers with a MasterCard could use the Wallet service, but last week Google enhanced Wallet so it can now be used with any credit card and allows users to access credit card data and the capability to disable Wallet on-line should your phone be lost or stolen. Google Wallet competes against Square, LevelUp, and Pay Pal but with its new enhancements Wallet is the most user-friendly system.
For there part, to take advantage of a phone payment system, cinemas need to install point-of-sale systems that include near-field-communications (NFC). NFC allows cash registers to communicate wirelessly with smartphones.  About 200,000 retail outlets in the U.S. currently use Google Wallet - including McDonald's, WalMart, Whole Foods, and Macys - which also use Wallet to provide users with store coupons and rewards.

EEC Forms ALLIANCE With NOISE STUDIOS

Entertainment Equipment Corp. and NOISE Studios have formed a representative agreement, whereby NOISE will sell, install, and service cinema audio products throughout the Middle East and North Africa. with the assistance of EEC.
Located in Cairo, NOISE Studios currently markets, installs, and services audio systems to commercial and entertainment venues. "Given it's international business experience, the addition of the cinema market - through its affiliation with Entertainment Equipment -  will further strengthen NOISE's market depth, reputation, and brand" says, Mohamed Omar, President, NOISE Studios.

" As in the Far East, the cinema is expanding rapidly in the Middle East and there is great opportunity for good companies to grow and prosper. Our venture with NOISE will expand our market reach and provides a real growth opportunity for us", states Jim Lavorato, President, Entertainment Equipment Corp.

Contact: Mohamed Omar, NOISE Studios
16 26 of July Street, Suite 3
Modandessin-Giza 12411
Cario, Egypt
2-02-3346-9023  or mail@noisestudios.net

"The Hobbit" To Use SPECIAL EDITION 3D Glasses

The Hobbit franchise will consist of three films which are scheduled to be released in a high-frame rate format of 48 frames per second and in 3D.  For this event, special edition 3D glasses are being producted (see insert).

Inspired by Middle Earth the first of the 3 films - The Hobbit: An Unexpected Journey is due to be released on December 4th.  It is rumored that The Hobbit trilogy will have the impact and imagery of Avatar.  Lets hope it does and matches Avatar's grosses as well,

Kodak's Patent Portfoilo - On The Block

This coming Monday, the bidding will take place on the purchase of Eastman Kodak's patent portfolio. The deadline for bid submission is 5pm EST.   Over 1,100 patents will be up for sale with the most sought being those related to digital-photo technology.

Kodak hopes the auction proceeds will surpass the $2.6 billion estimated auction value of the patents  and provide it enough money to pay off it creditors and allow it to be released from bankruptcy (which it entered into earlier this year).  Early indications are that a bidding war may be brewing with Apple and Microsoft teamed with patent purchaser Intellectual Venture Management pitted against Google, patent purchaser RPX Corp.,  Samsung, LG Electronics, and HTC (the cell phone manufacturer).

Kodak hopes the opposing groups will enter into a bidding war as was the case last year when the same groups fought over Nortel Networks patents which finally sold (to the Apple/Microsoft group) for over $4.2 billion - and were not of the scope or  importance of the Kodak patents. Unfortunately, for Kodak, last week the U.S. International Trade Commission invalidated one of Kodak's most valuable patents - the one governing how images are previewed by a digital camera.

Even with the ITC's determination, however, Kodak's patent portfolio is substancial and provides holders the potential to block competitors from releasing new products - particularly  smartphones and tablets.

We wish Kodak the best come Monday.


I'd like to have your thoughts.

Best and Happy Movie Going!
Jim Lavorato

CineBUZZ - CINEMA NEWS REPORT - 27 July 2012

HIGHLIGHTS OF THIS REPORT

- CLIP-ON 3D GLASSES
- HIGHER TAXES FOR CINEMA OWNERS ?
- EEC OFFERS PLATINUM DIGITAL BENEFITS
- VIDEO MULTI-TASKING

LG INTRO'S 3D CLIP-ONs

LG Electronics has introduced clip-on 3D glasses for those individuals that wear corrective lenses.  Priced at $20 retail, the glasses are a good product for cinemas to sell and demonstrate to moviegoers that 'their' cinema is aware of (and sensitive to)  the issues patrons face in viewing and enjoying the 3D experience.


HIGHER INCOME TAXES FOR CINEMA OWNERS ?
In the U.S., many independent cinema owners use the S-Corporation election for income calculation and reporting. S-Corps are 'flow through' company structures in that profits are distributed to the business owners who than pay income taxes at their individual tax rates.  Conversely, C-Corporations (which include most publicly traded businesses) pay taxes differently. Under the C-Corp structure taxes are paid twice - first as corporate income and again as income to investors as dividends.
Because of its taxation benefit and reporting simplicity the S-Corporation is the most frequently elected business structure; however, that may all change as the Obama Administration, in its quest to generate more federal revenue, has expressed interest in taxing S-Corps as C-Corps. - not a good scenario for independent cinema owners. Although nothing will take affect this year all bets are off after the upcoming elections.  The Romney camp has not commented on its stand regarding the S-Corp change.

EEC's PLATINUM SERVICE BEST IN INDUSTRY

Known in the cinema industry for its excellent sales and technical services Entertainment Equipment has added a Platinum Level of benefits for its Digital Cinema customers.  These unmatched benefits include:
  
- Automatic Product Warranty Extensions: EEC extends all manufacturers' product warranties one year at no additional expense to our clients, for both parts and labor.
- Complimentary Xenon Lamps: The first replacement xenon lamp for each installed Digital System is free of charge.
- Technical Service: The first maintenance/service call on any new Digital System is provided free of charge.
- 24/7 Protection: EEC provides an around-the-clock technical service hot line.
- Training Programs: Two complimentary training workshops/seminars at Cinema Training Central are awarded with the purchase of each Digital System.

WHY WILL VIDEO MULTI-TASKING BE SO BIG
Video multi-tasking - the simultaneous viewing of two screens to view more about the same content (movie or TV show) is emerging as a 'next big deal' in entertainment viewing. 

With video multi-tasking, consumers would be able to simul-view a movie or show  while simultaneously viewing something associated with that movie or show on their tablet or other device.The whole point being to provide viewers a more 'complete' viewing experience by providing more visual and contextual information on a second screen.
As you can imagine, there are varying points of view on this.  Detractors believe it will distract viewers (not to mention others around them) as they watch a movie or TV show while also viewing information on that content (such as plot and character backgrounds, related statistics, or other "relevant" information).  Proponents however, say that simul-viewing will allow for 'content emersion' by the viewer and is the experience most viewers would opt for.  And they may be right, as according to the Nielsen Rating Company up to 60% of today's tablet owners already use their devices while they watch a movie or TV show at home - using it to check emails, search, or for social media roaming.  Predictably, content providers like ESPN are big backers of simul-viewing and plan to experiment with what it calls "a Game-cast experience" during the upcoming college football season.
Who knows, simul-viewing movies at the local cinema may be in your future!

I would enjoy hearing from you.
Best and Happy Movie Going !
Jim Lavorato

CineBUZZ - CINEMA NEWS REPORT / 14 July 2012

HIGHLIGHTS OF THIS WEEK'S CineBUZZ REPORT

- How Large Should You Go
- Fandango Hits It Big With Mobile Sales
-Consumer Bill of Rights Will Impact Cinemas
-Yes, House Calls Do Still Exist


HOW 'LARGE' SHOULD YOU GO !



SMPTE recommends 30 degrees

When speaking with cinema customers, I have (more than a few times and recently) fielded questions on home entertainment and where I think it is headed. The most asked question being: What size TV should be purchased? Answer: as big as the room will fit and you can afford.   OK, that answer is sort of snarky but there does exist a size and distance correlation which should be observed.

Clearly, the farther away you sit the smaller the image appears.  What you strive for is an image that fills 'your field of view'.  THX/Lucas recommends a viewing angle of 40 degrees.  Translation: multiply the seating distance (in inches) by .84 which gets you the size of TV required.  For example, if you are sitting a distance of 8 feet the screen should 'ideally' be 80" diagonal (8x12x.84).  Hmmm.... quite large. SMPTE (Soc. of Motion Picture & TV Engineers) on the other hand recommends a 30 angle of view - multiply seating distance by .625.  So, under their standard the required screen size at 8 feet would be 60" diagonal.  C/NET, the premiere site for info. on all tech products, goes another route and recommends sitting no closer than 1.5 times screen diagonal.

Go Figure: Room size for Panasonic's 152" dia. screen

But do all of these recommendations mean anything in real terms?  Not really.  What matters is resolution.  Meaning that, an extremely large TV in a small room may not look quite as good if you are sitting really close - as you are viewing more than the TV was designed for you to see.  This is especially evident when viewing regular broadcast content vs say a Blu-ray.

In the end, its all about preference and budget.  If you are a sports fan or gamer (as I am) the preference is: the bigger the better!



MOBILE TICKET SALES
UP 107%


Fandango's mobile ticketing app

Fandango, the ticket sales folks, reported this week that mobile ticket purchases increased 107%, year-over-year, and was the main reason it achieved its best quarter sales in the company's 12 year history.
Mobile purchasing is just getting started as more and more consumers are using their phones and tablets to make movie ticket and other event purchases.  Jessica Yi, Fandango's Chief Product Officer, told CGM that, "The consumer's comfort level with mobile shopping is on the rise. Fandango's surge in mobile ticket sales is definitely evidence of that and a strong indication that consumers enjoy the convenience of purchasing movie tickets on the go.  Mobile purchasers now comprise 27% of our overall ticket sales."

Fandango sells tickets for nearly 20,000 movie screens nationwide and just inked distribution deals with AOL's Moviefone and Microsofts's MSN on-line ticketing systems.  Fandango apps have been downloaded 25 million times with mobile downloads accounting for 49%.  Yi, explained that, "Our goal has always been to make movie going easy.  To that end, we aim to provide movie show times, tickets, theatre amenities and directions, fan and critic reviews and information wherever consumers are, and mobile has clearly emerged as one of the top channels for getting that information."

Fandango is smart to have a major presence in the mobile space and movie exhibitors should take note.  Folks that read CMG with regularity know that I have been a huge advocate of the use of mobile devices for point-of-sale admission and concession purchases at theatres.  So, it goes without saying, that a tie-in with Fandango is one marketing tool that every modern cinema must utilize.


'PRIVACY (INFORMATION) BILL OF RIGHTS'

Who's Watching Your Data

As cinemas become more and more technologically advanced and 'digitized', information collected on moviegoers and on the operation of the cinema itself comes into play.  Can cinemas sell or distribute information they have collected on patrons - email addresses, credit information, viewing preferences, etc.? What are the rules of Privacy you must afford customers and, indeed, what information on your business and yourself should have protection, if any?

Currently, in the U.S., a Privacy Bill of Rights, is moving through Congress with the endorsement of the Obama Administration. Talks started last week between industries impacted, lobbyists, privacy activists, Congress, and the Administration to make the Privacy Rights law.  Here, in shorthand, are the highlights of the Bill and the principles to be followed by Internet content, access, and advertising enterprises

-Individual Control: Consumers have a right to exercise control over what personal data companies collect from them and how they use it.
-Transparency: Consumers have a right to easily understandable and accessible information about privacy and security practices.
- Respect for Context: Consumers have a right to expect that companies will collect, use, and disclose personal data in ways that are consistent with the context in which consumers provide the data.
-Security: Consumers have a right to secure and responsible handling of personal data.
-Access and Accuracy: Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data is inaccurate.
-Focused Collection: Consumers have a right to reasonable limits on the personal data that companies collect and retain.
-Accountability: Consumers have a right to have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

It all sounds good. Hmmm ..... let's see how far these Rights get.


YES, HOUSE CALLS ARE STILL MADE

The conversion to digital movie distribution/exhibition is inevitable, so to assist in this transition, Entertainment Equipment Corp. will perform a free site visit to determine your cinema's or drive-in's unique needs for digital conversion - so don't hesitate to request a visit.

Additionally, EEC provides turn-key solutions as they acquire, install, train, and provide after-sales service on all of the digital cinema equipment you decide to purchase.  And, as a full-line supplier EEC represents all of the digital equipment manufacturers.

So, contact EEC today (800-448-1656) - they'll do their best to answer all of your questions and concerns and - if you wish - pay a visit to your theatre.


I would like to receive your comments.

Best and Happy Movie Going !
Jim Lavorato

EXHIBITION WINDOW shrinks ..... W I D E R

L.A. based Cinedigm Digital Cinema is developing a strategy whereby cinema operators would share in a movie's down-stream revenues (those from videos, BluRays, pay-per-view, and web streaming) if that movie is released day-and-date across all media platforms.

The exclusive theatrical distribution window currently enjoyed by cinemas for first-run movies will eventually close - this we are (or should be) aware of.  However, Cinedigm thinks it has come up with a novel approach for cinemas' to share in a movie's distribution spoils.

This new (and potentially disruptive) revenue distribution concept is extremely interesting, and Cinedigm (which wants to transform movie theatres into digitally networked entertainment centers) is putting its money where its mouth is.  Last month, Cinedigm acquired independent content distributor New Video Group for $14 million, and plans to have New Video distribute 18-24 indie films in 2014.  These films would be released using the new down-stream revenue sharing concept to entice exhibitors to run these releases.

The move to day-and-date release of movies across all media platforms has been forewarned by CMG for several years and is driven by the 'can't stop' nature of  digital technology, thus making it imperative that movie theatres get their 'game on'.

What makes Cinedigm's concept so interesting is that if a means can be worked out whereby exhibitors have the grosses they lose by having their exclusive distribution window shut replaced with a sharing of down-stream revenues - this would be a huge game changer for the cinema exhibition industry. 

I think, what I am dubbing, a  'cascade of content'  would be unleashed for cinemas.  Envisioned would be a cinema exhibitor perusing a weekly on-line 'content menu' containing a myriad of  selectable content which would be coupled with the opportunity to share in that content's full revenue stream.

Ah ..... the possibilities the digital domain offers are endless and unimaginable.

I look forward to your comments

Best and Happy Movie Going!
Jim Lavorato

CineBUZZ - Cinema News Report - 6 July 2012

KODAK GETS BREAK

As is becoming the norm in the cinema industry, things can change very quickly.  Case in point: the on-going Kodak saga.  Just the other day (7/1/12) I posted on CMG that a number of tech giants, including Intel and Apple, petitioned the bankruptcy count to indefinitely postpone the planned August auction by Kodak of its inventory of digital imaging patents to the highest bidders.

On 7/3/12 - two days later - the U.S. Bankruptcy Court dismissed the complaints and approved the action, granting Kodak the right to sell "all or any portion" of its patents "free and clear" of all claims and interests, to maximize their value.  The Court further stated that, "holders of claims and interests, if any, will be sufficiently protected by the availability of the proceeds of the sale."

The patents are to be auctioned in two separate portfolios called the Digital Capture and Kodak Imaging Systems and Services portfolios.  Apple, for example, claims that 10 of the patents in the Digital Capture portfolio  are their inventions.  Kodak, filed a complaint that asked the Court to issue an injunction barring Apple and others from asserting ownership "under any theory, including ownership " to Kodak patents, and asked for dismissal of the "baseless" claims by Apple and others -
it seems the U.S. Bankruptcy Court for the Southern District of New York agrees, and, as of today, the auction will take place in August as planned.

CineBUZZ - CINEMA NEWS REPORT - 1 JULY 2012

Highlights of this Week's Report

- Kodak May Not Be Able To Auction Digital Patents
- Google Glasses Make Big Splash
- A Satillite for Everyman
- "The Hobbit" Leads the Way

KODAK 'TRIES' TO SELL TECHNOLOGY

As promised, I am following up on the Kodak saga.  The latest twist in this tale is that a number of tech giants have gone to court to stop Kodak from sellings its digital patents.  CMG reported on Kodak's  immense stash of digital imaging patents in several prior posts - see "Kodak's Hidden Treasure" - 20 August 2011, and "Kodak - Riding the Wave" - 23 January 2012.

Last Monday (6/25) tech giants, Intel, Nikon, Richo, Motorola, and Apple filed suit objecting to Kodak's plan to hold an auction in August to sell its digital imaging patents to the highest bidders. The companies are alleging that the selling of the patents negates the licenses they signed with Kodak for use of the patents - and therefore the auction should not take place.  They further contend that the rights issue should be settled in a federal court and not the bankruptcy court.

In January, Kodak, based in Rochester, NY, filed for Chapter 11 bankruptcy with the intention of reorganizing under court protection.  In its bankruptcy filing Kodak listed its assets at $5.1 billion, and its debt at $6.75 billion.  Its stock is currently trading at about 20 cents per share. I will keep you informed as this very interesting tale unfolds.

CATCH A MOVIE ON YOUR 'GLASSES'  ?

Google officialy put its computerized glasses on the runway during its annual tech conferance this past week.
The Google Glasses, which have a processor and memory, will include 3 or 4G wireless web access, as well as, motion and GPS sensors. The demos of the glasses, which included two skydivers who during their descent were wearing the glasses and streaming live video of their jump over the internet, were a great success and had the tech industry honchos buzzing. Naming the early edition, "Google Glass Explorers Edition", Google announced that conferance attendees could pre-order a pair at a price of $1,500 which would be available in 2013.

President dons Google Glasses

The glasses, which are Android based, have a small screen positioned right above one of the of the user's eyes and come in several different styles.  A wearer can take pictures or video with the glasses by touching a spot on the side of the frame. The demos also included users wearing the glasses while playing tennis, biking, and playing with their babies - all while  the glasses were taking pictures and video images of their activities.

Uploading and viewing a movie will be no problem - it would be the same as streaming it to your laptop or iPad.  Hmmmm, lets see, I can be driving and watching Fast and Furious at the same time.

A SATELLITE FOR EVERYMAN
Everyman Cinemas, an independent British cinema chain which is dedicated to the goal of bringing a unique cinema experience in stylish venues with varied programming, has teamed up with Arqiva, a communication service provider, to use Arqiva's cinema satellite distrbution network.

Under the arrangement, each Everyman location will be equipped to receive delivery of D-Cinema transmissions via satellite which will include feature films, trailers, and advertising.  Additionally, recorded and live alternative content on all types of arts and entertainment will be made available.
Arqiva, provides its communication and media services in Europe and the U.S. Its venture with Everyman Cinemas represents a perfect example of the direction cinemas should be headed -  exhibiting unique and varied content to their set demographic which includes a wide variety of content.   Made available due to the cinema industry's digital transition, this presents nothing less than a golden era for exhibitors which they should  leverage to maximum utilization and profitability.

Peter Jackson, Director of "The Hobbit" to use HFR

The Hobbit and HFR Will Impact The Cinema

"The Hobbit" may bring a major change to the movie exhibition business, for this movie is expected to be released using a High Frame Rate (HFR) - meaning that it will be exhibited at 48 frames per second (fps) vs. the normal 24 fps.  Movie directors and producers have for years wanted to use a higher frame rate in shooting films because it produces a sharper, clearer on-screen image.  However, using a HFR with 35mm film was not possible as it would have doubled the amount of film used for a release print, let alone the fact that normal 35mm film projectors were not capable of running at the higher speed.

This all changed with the evolution of Digital Cinema projection.  The new Series 2 digital projectors are capable of the higher frame rate as are the new Servers - which is yet another reason for exhibitors to acquire a D-Cinema platform.  The tipping point is quickly being reached where conversion will not be an option.  The demise of 35mm film prints in the U.S. and other markets, such as Canada, will most likely occur by the end of 2013 and all global markets by the end of 2015.
After that, its anyone's guess as to how movie distribution evolves - satellite or internet, possibly both.  There is no limit on the variety of content that will be available.  It's up to the cinema exhibitors to ensure the public continues to support their venues with unique and premium presentations.


Best and Happy Movie Going !
Jim Lavorato

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