Information Technology Reference
In-Depth Information
coming to the surface. This can be identified by discussions on the D-Cinema
arenas. This shows that not all players have the same understanding of D-
Cinema and its process. There especially seems to be a gap between the stu-
dios, distributors and exhibitors, representing a role each in the value chain.
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Competition is tightening between the vendors as alliances are building. Ven-
dors from Asia offering more price competitive products are entering the
market. Classically we would have seen aggressive competition from already
established products in the market. However, since D-Cinema is new, no exist-
ing products were in the market.
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The investors are getting worried and some are losing interest. The global fi-
nancial crisis is severely increasing this effect, putting the existing business
models to their hardest test ever.
None of these reasons are due to the users' reaction to D-Cinema. As a matter of
fact, the NORDIC project has shown that the users make little or no distinction
whether it's a digital screening or not. This shows that the perceived quality is sta-
ble and withheld during the digitization. The real advantages are in the added
functionalities offered by D-Cinema such as 3D and alternative content.
5.2 Does Quality Matter?
The ability to move from 2D to 3D screening was once viewed as important as the
transition from silent to sound movies by the motion picture industry. Although its
popularity has come and gone, it is definitely back again and seen as one of the
most important change agents for D-Cinema.
The revenue upside for 3D is clear. Estimates suggest that exhibitors can charge
a 20% premium on a ticket for a digital 3D (non-Imax) movie. Like with "Journey
to the center of the earth" 3D versions also tend to outperform 2D on a per-screen
basis. And 3D films are viewed as less susceptible to piracy. There is very little
material and numbers currently available to be able to substantiate such a claim.
However, Hollywood sees a future, documented by the more than 30 3D produc-
tions in the pipeline and the enormous interest gathering around 3D.
Other Digital Stuff - the reference term for Alternative Content - covers all
content screened in a cinema that is not a feature film. This includes advertising,
live events (sports, music), educational and gaming. ODS has the potential of di-
versifying exhibitor offering and provide new revenue streams.
As technology, ODS came as the unexpected side effect of reinventions. By
digitizing screens one realized the huge potential the equipment (server and pro-
jector) pose for other users requiring ultra high definition. The exploitations have
ranged from Opera to Laparoscopic surgery.
The D-Cinema business is about creating a digital media asset (the feature or
motion picture) and screening this on as many screens as possible in order to op-
timize the profit of the studios owning the asset. For more than 100 years a value
chain consisting of the studios, the distributors and the exhibitors has managed
this. Digitization has the potential of dramatically changing the value chain, the
