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TOPIC: Digital Dream Update

Digital Dream Update 19 Mar 2008 15:07 #17903

  • rufusjack
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Since it has been a few months since our last lively discussion on the Digital Dream, do we any more information after Showest? I ask these questions to try plan for what I hope is a 3-4 screen expansion over the 6-9 mos.

My questions:
How much will you have to gross each year (assuming you qualify as a first-run all of time theater) in order to get digital equipment in order to be digital at the 50% proliferation point (where half of all screens are digital)? How much at the 75% proliferation point? This of course assumes you going for Virtual Print Fees to pay for your equipment. Will all or substantially all VPF installations be done on who grosses the most basis? If so, how does any independent operator get equipment anytime soon? Even the CBG only covers approx. 15% fo the screens.

If you opt to finance the equipment yourself: can you get it anytime in the next year? 2 years? 3 years? How will the “film” rental work with the studios if they are not paying any VPF to any equipment supplier? Will there be any difference to how it works today? Any allowance for the studio to not have to pay for a print for you? At least a couple of hundred dollars?

If you happen to be a theatre that gets digital equipment and qualify for virtual print fees, will you have to run a film every week in those rooms that have the digital equipment that get VPFs? Would a film like Bella from RSA be available to play? If I missed something that was a surpise hit, could I play it if no VPFs available b/c the movie is 6-7 weeks old?

Or like Mike was asking, could I get a movie that I could not get now but not have a VPF paid on my behalf?


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Re: Digital Dream Update 19 Mar 2008 20:05 #17904

  • slapintheface
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I am going to buy my equipment outwrite so i dont have any of those fees.
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Re: Digital Dream Update 19 Mar 2008 20:45 #17905

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Accessit closed at 3.10 per share as wall street continues to be uncertain of this business model. Down nearly 70 % from its year high aixd continues to lose money every quarter.
When the price comes down I will buy my own equipment-no way I am going to use an integrator with all the fees both seen and unseen.
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Re: Digital Dream Update 19 Mar 2008 21:45 #17906

  • Transit Drive in
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This is not the place to ask those questions, if what you want are actual answers that are not conjecture.

If you are at all serious about installing digital anytime soon, you should conduct lengthy discussions with Access IT, Technicolor, Delux, or the CBG if you are a member.

If you do not plan to use an integrator to finance the equipment through VPFs, then be prepared to pay a ship load of money out of your own pocket. Technicolor and Delux are capible of delivering digital content to theatres without VPF arrangements, but the details of such are beyond my present knowledge.

If you are serious about installing digital, and want accurate information, this forum is not going to offer you much.

My advice is take your time, not rush into any commitments, and do extensive research by contacting theatres which are using digital now, and the people who are providing digital equipment to those theatres.

Rick
"As long as there are sunsets and stars at night, there will always be drive-in movies."
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Re: Digital Dream Update 20 Mar 2008 00:43 #17907

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you will pay alot upfront .....about 130,000 per screen......
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Re: Digital Dream Update 20 Mar 2008 10:53 #17908

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Rick,

With CBG, they have never returned my phone calls or emails. As far as contacting the actual suppliers of equipment, I have heard that most of the time they do not even return your phone call.

Since many of you just got back from Showest, my hope is that there might have been some update on what is going on.

Are there any independent theaters that currently have digitial?

Thanks
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Re: Digital Dream Update 20 Mar 2008 11:14 #17909

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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by rufusjack:
<B>Rick,

With CBG, they have never returned my phone calls or emails. As far as contacting the actual suppliers of equipment, I have heard that most of the time they do not even return your phone call.

Since many of you just got back from Showest, my hope is that there might have been some update on what is going on.

Are there any independent theaters that currently have digitial?

Thanks</B><HR></BLOCKQUOTE>


As far as people returning your phone calls, I have never experienced a problem getting my phone calls returned from CBG, Access IT, NEC, Quvis, Strong, Delex, Christie, and Technicolor.

It helps to know the name of the person you are calling, so that you are leaving a message for a specific person to return your call.

You should try to be more persistant and more patient. Also, it helps to actually try calling them, instead of using the excuse "Oh, I heard from so-and-so that they won't return my call, so I didn't bother to call them myself."

Be persisitent. Be patient. Be professional. Be determined. Be smart. Be honest.

Rick

[This message has been edited by Transit Drive in (edited March 20, 2008).]
"As long as there are sunsets and stars at night, there will always be drive-in movies."
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Re: Digital Dream Update 20 Mar 2008 15:07 #17910

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CBG did have a members only meeting at showest. Some of the questions you ask above were answered BUT what was discussed was confidential and cannot be posted or passed on to anyone. (I'm not going to get sued) If you are a cbg member, then you should call them and get your questions answered. If you are a cbg member talking with the vendors/integrators would be useless and extremely counter productive. If you are small and not a cbg member...sorry but you are a fool.
Without divulging too much info the $150,000 per screen mentioned above is not even close to being an acccurate number.
Be patient...the deal should be done soon. (no idea the definition of soon)

The seminar put on by NATO was very eye opening however (and not confidential). Some facts presented that stuck out to me, besides the cost and ROI. Was the fact that semi-conductors are outdated after 18 months. Lifespan of the digital projectors is around 10 yrs max vs 30+ years for film projectors. The tone of the meeting was ALMOST negative towards digital cinema. It was the perfect meesage though...DON'T rush into things, prices will come down, technology will change, standards need to be met, interoperability issues need to be worked out, problems with the keys need to be delt with...etc... Basically film is not going away anytime soon. Be patient. Let things fall into place before getting on board...but start saving, because it will cost some out of pocket money...even with the vpf.
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Re: Digital Dream Update 20 Mar 2008 18:50 #17911

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I promise I will write a full report on digital by the end of the weekend. I did do my homework.

Short version:

digital: wait unless you want 3-D. But your time is coming.

Mike



Michael Hurley
Impresario
Michael Hurley
Impresario
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Re: Digital Dream Update 20 Mar 2008 19:47 #17912

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mike did you see 4k..(sony)
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Re: Digital Dream Update 21 Mar 2008 00:27 #17913

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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by slapintheface:
mike did you see 4k..(sony)<HR></BLOCKQUOTE>

<-- Putting on my leisure shirt, goatee, and New England accent...

The screening for "21" was done by Sony in 4K. It was the first time a full feature has screened in 4K at either ShoWest or ShowEast.

My impression was that it looked good, but was no better or worse than a 2K presentation.

I would defy anyone watching the movie from 20 feet away from the screen to be able to tell the difference between 2K and 4K, other than by looking at the invoice to pay the substantial cost difference.

Rick
"As long as there are sunsets and stars at night, there will always be drive-in movies."
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Re: Digital Dream Update 21 Mar 2008 07:40 #17914

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Rick, My thinking on 4k was that perhaps it would give me a competitive edge with some studios .All my competitors will have 2k..

Just a thought....
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Re: Digital Dream Update 21 Mar 2008 14:17 #17915

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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by slapintheface:
<B>Rick, My thinking on 4k was that perhaps it would give me a competitive edge with some studios .All my competitors will have 2k..

Just a thought....</B><HR></BLOCKQUOTE>


Unlikely scenario. As long as each theatre in a territory has installed SMPTE/DCI compliant digital projection, it is doubtful that studio bookers will care if you have the 2K or 4K. That is akin to suggesting that you'll get bookings because you have a Simplex 35 and your competition has a Century. Or you use Osram bulbs and your competition is using Superior Quartz.

Also keep in mind that Sony 4K does not support the current 3D formats, which are designed aroung 2K DLP.

Rick
"As long as there are sunsets and stars at night, there will always be drive-in movies."
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Re: Digital Dream Update 21 Mar 2008 21:43 #17916

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Will they make films for only 4k
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Re: Digital Dream Update 22 Mar 2008 00:43 #17917

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<BLOCKQUOTE><font size="1" face="Verdana, Arial, helvetica">quote:</font><HR>Originally posted by slapintheface:
Will they make films for only 4k<HR></BLOCKQUOTE>

Will they make films for only 4k

That is a question for the studios to answer, but a reasonable assumption is that both the 2K and 4K formats will be supported for quite a while, or for as long as there exists a substantial number of theatres dependant on 2K or 4K technology.

The main purpose of DCI was to standardize digital cinema technology for all studios and all cinema operators, so an interoperable transition could occur in which all studio product is compatible with all cinema equipment for a substantial period of time, if not indefinitely.

This process is still taking shape today, and will likely take another few years to completely evolve into a stable, interoperable delivery system that can function seamless across the industry.

Digital cinema right now is still in the "early adoption" stage, but is slowly moving toward a "broad market adoption," where the majority of screens will be equipped for digital. When DCIP (better known as AMC, CineMark, and Regal, controlling over 14,000 screens) and CBG-NATO (mostly independent theatre operators with a 8,000 screen membership) implement their digital rollouts, which has not even started yet, we will have moved as an industry past the "early adoption stage."

That is when the countdown to the end of 35mm prints will really begin. When the studios start to pay VPFs for the 25,000 digital screens that make up 95% of their gross, what makes anyone think they will continue to supply 35mm prints for the 15,000 (mostly second-run or low grossing first-run) screens that count for only 5% of their gross?

Rick

"As long as there are sunsets and stars at night, there will always be drive-in movies."
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