Information Technology Reference
In-Depth Information
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The printed media industry (newspapers and magazines)
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The broadcast industry (radio and TV)
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The electronic media industry (web, mobile and media on the move)
The motion picture industry (cinema)
Both the electronic media industry and especially the motion picture industry strive
for High Definition. In this chapter we will focus on the motion picture industry, as
this at the moment is perceived as producing the highest quality media to users.
Going to the movies is the end product of a long process involving a complex
value chain. This value chain has developed and operated in the same manner for
over 100 years. Innovations have evolved and refined the process. This process in-
cludes a few major revolutions such as going from silent movies to sound and
more recently being the last of the entertainment industries to go digital [3]. This
innovation bears in it a revolution and a dramatic change for some of the players
in the value chain. The innovation itself is technical, which also results in organ-
izational and managerial changes.
The open question still remains and is whether quality plays a role in the devel-
opment, is an integral part of the business model, and that the focus on the innova-
tion is on the user.
Digital Cinema (D-Cinema) requires a complete change of infrastructure in all
screens worldwide. The traditional 35mm film projector needs to be replaced with a
D-Cinema server and a digital projector. The process of the change is referred to as the
D-Cinema roll out which results in the exhibitors adopting and starting to use the new
technology. The way the roll out is done is governed by a business model where the
actors in the value chain have to agree on a financial model to cover investments, and
novel organization and business models to deliver the film. The predominant financial
model used so far is a so called Virtual Print Fee (VPF), where studios pay the exhibi-
tors a contribution towards the investment based on long term agreements to screen
their digital films. The associated business model has been through setting up busi-
nesses to purchase D-Cinema equipments and to lease them to exhibitors. These busi-
nesses are referred to as 3rd party integrators.
So far quality has not been used explicitly to drive the roll out, although it is an
important factor. The motivations for the change are complex and not solely based
on quality, and not all benefits are seen by the user.
One of the fundamental problems of D-Cinema is that the exhibitors them-
selves, the owners of the screens, are those in the value chain with the least benefit
of the digitization. The highest benefits are for the content owners, the studios
producing the film, and possibly on the end-user, the cinema goers. This means
that the roll out has to be communicated and motivated between all players in the
value chain in order for the adoption to take place. It is crucial that the financial
and business model considers this for D-Cinema to succeed and grasp all players.
D-Cinema roll out opens for the use of change agents, arenas, people and
technologies trying to convince and to persuade the exhibitors to change despite
the fact that the pain is greater than the gain.
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