Technicolor Digital Cinema Unveils Milestone Plan
to Facilitate Digital Conversion of
Motion Picture Distribution and Exhibition
Technicolor/QUALCOMM Joint Venture
to Kick-Start Transition
by Providing First 1,000 Digital Cinema Installations at Theatres Nationwide
Company Showcases Complete System
and Service for
Digital Delivery and Exhibition of Movies
LAS
VEGAS (March 7, 2001) ñTechnicolor
Digital Cinema, LLC today unveiled its milestone business plan to
set in motion a new digital direction for the motion picture industry
that will help transform the way movies are delivered and viewed at
theatres. Formed in June 2000 by Technicolor and QUALCOMM Incorporated
(Nasdaq: QCOM), the company said that it now has all the business and
technical components in place to support the digital delivery of movies
to theatres worldwide.
In its first public appearance,
Technicolor Digital Cinema outlined its business model during a major
luncheon presentation to approximately 3,000 attendees at ShoWest, the
world's largest convention for the motion picture exhibition industry.
The digital cinema technology
on which this system is based will be available to industry manufacturers
to develop and produce interoperable equipment and systems, assuring
the industry of a multi-source, open systems architecture solution.
The system also ensures the timely delivery and security of content
and provides exhibitors with the user interface tools to manage the
scheduling of content on their movie screens. Future digital cinema
technology standards may also be developed based on this technology.
Core to the announcement is Technicolor Digital
Cinema's commitment to help kick-start the transition by providing,
installing and maintaining the first 1,000 digital cinema systems at
selected theatres throughout the U.S. The first of these commercial
systems are scheduled to become operational this fall, once industry
agreement is reached
"Digital
cinema projectors are very expensive, which has limited the development
of the industry from the start," said Dave Elliott, president of Technicolor
Digital Cinema, during his keynote address. "By putting digital cinema
in theatres nationwide, we are demonstrating that this is indeed a superior
product whose time has come and that the benefits are numerous for the
various segments of the motion picture industry and the movie-going
public."
Committed
to working with the motion picture industry, the company is founded
on the combined strength of Technicolor's 80-plus year legacy as the
guardians of color and quality for the motion picture industry and QUALCOMM's
leadership role in developing and delivering innovative digital wireless
communication systems, including its technological expertise in the
compression, encryption and transmission of digital images and sound.
"The motion picture industry is moving to a digital
platform, and Technicolor will continue to move forward with the changing
dynamics of the industry," said Lanny Raimondo, Technicolor chief executive
officer. "For more than 80 years, the industry has trusted Technicolor
to be the guardian of its content, assuring both the quality of its
processes and the timeliness of its delivery. Technicolor has been trusted
to assure that quality copies are manufactured and distributed to the
correct destination. Technicolor Digital Cinema is committed to providing
the same leadership and service solutions for digital movies that Technicolor
pioneered for the world of film, DVDs and videocassettes."
"Technicolor Digital Cinema is armed with cutting-edge
QUALCOMM digital technology designed specifically for the application
of digital cinema," said Kimberly Haile, president of QUALCOMM Digital
Media. "QUALCOMM's compression and electronic security technology, along
with its expertise in digital communications and network system integration,
has been successfully tested and proven. This technology has been designed
for the express purpose of processing digital feature films on movie
screens and is built to protect motion pictures from counterfeiting
and piracy. The net result is an unparalleled ability to bring both
the enabling technology and service solutions to the industry as it
enters the digital age of motion picture delivery."
Digital cinema brings a stable and superior, non-degrading
image to the silver screen, assuring that audiences will experience
pristine picture and sound quality showing after showing. Audiences
will have a more enjoyable movie-going experience by seeing the equivalent
of a first-time showing every time they visit a theatre.
By enabling the motion picture industry to gracefully
transition at its own speed from 35mm film into today's digital communication
world, digital cinema carries with it the promise of industry economic
savings, convenience, flexibility, reliability and unprecedented levels
of security against theft and piracy. Exhibitors, distributors, the
creative community and the movie-going public will all benefit.
Technicolor Digital Cinema will enable the delivery
of alternative programming to theatre screens, helping to transform
theatres into entertainment centers and generate new revenue sources.
Events such as concerts, sporting events and many other forms of alternative
programming will allow theatres to attract new types of business and
customers when screens are not being utilized for traditional motion
picture programming. On-screen advertising can be customized for individual
markets for additional revenues and to promote theatre programming,
concessions and merchandising.
"At a time when many exhibitors are under unprecedented
financial stress, the need for additional revenue streams has never
been greater," Elliott said. "The delivery of alternative programs to
exhibitors will provide that revenue stream and help transform theatres
into entertainment centers in service to their communities."
Motion picture distributors will also save on existing
film duplication and shipping costs for each digital print ordered.
Distributors will also save on trailers distributed digitally through
Technicolor Digital Cinema.
Digital cinema has been made possible by Technicolor
Digital Cinema at 31 movie screens worldwide that utilize evolving digital
cinema projection and distribution technology. There are exhibitors
offering digital cinema in the United States, Germany, United Kingdom,
Spain, Italy, Japan and Mexico.
Technicolor Digital Cinema, LLC is a global leader
in the development of end-to-end distribution technology and support
services for the delivery of digital cinema to theatres worldwide. A
joint venture between Technicolor and QUALCOMM, the company is working
closely with the motion picture industry as a technology enabler and
service provider, supporting open standards for the digital delivery
of movies and the existing studio-to-theatre model.
Headquartered in Studio City, Calif., Technicolor
Digital Cinema is jointly managed by QUALCOMM and Technicolor, with
the latter maintaining a majority ownership. Technicolor Digital Cinema
provides a complete range of end-to-end digital cinema distribution
technology and support services, including on-site distribution, full-scale
system installations, digital uploading to projection systems, theatre
site testing and verification, and more.
For further information contact:
Carrie
Bissell
Technicolor
(805) 445-4286
carrie.bissell@technicolor.com
Sid Shapira
QUALCOMM
(858) 651-4374
sids@qualcomm.com
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