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Grasping the European D Cinema Nettle. David Monk CEO, European Digital Cinema Forum. European Digital Cinema Forum. A membership organisation interested in the deployment of Digital Cinema technology. Broad membership of people from all aspects of Cinema.

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Grasping the European D Cinema Nettle

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    1. Grasping the EuropeanD Cinema Nettle David Monk CEO, European Digital Cinema Forum

    2. European Digital Cinema Forum • A membership organisation interested in the deployment of Digital Cinema technology. • Broad membership of people from all aspects of Cinema. • Exhibition, Studios, Distributors,, Mnfrs… • A network of interested parties who share opportunities, problems and issues.

    3. The European Issue - Complexity • European Community now comprises some 27 countries: • Language, culture, geography, currency, economic wealth all influence Cinema business. • Natural complexity is mimicked in the supply and movie distribution infrastructure.

    4. Austria (since 1995-01-01) (EUR) Belgium (EUR) Bulgaria (since 2007-01-01) Cyprus (Greek part) (since 2004-05-01) (EUR: 2008-01-01) Czech Republic (since 2004-05-01) Denmark Estonia (since 2004-05-01) Finland (since 1995-01-01) (EUR) France (EUR) Germany (EUR) Greece (EUR) Hungary (since 2004-05-01) Ireland (EUR) Italy (EUR) Latvia (since 2004-05-01) Lithuania (since 2004-05-01) Luxembourg (EUR) Malta (since 2004-05-01) (EUR: 2008-01-01) Netherlands (EUR) Poland (since 2004-05-01) Portugal (EUR) Romania (since 2007-01-01) Slovakia (since 2004-05-01) Slovenia (since 2004-05-01) (EUR) Spain (EUR) Sweden (since 1995-01-01) United Kingdom of Great Britain and Northern Ireland EC Countries

    5. D Cinema – European History • Started in 2000 with Technicolor/Disney tests in : • France, Germany, Belgium, Spain, UK. • First European Digital Movie was Toy Story 2 • Reliability proven. • UK Film Council DSN project (240 screens) • not about Digital but specialist film and audience development.

    6. European Opportunity • No shortage of appetite or vision about the benefits of D Cinema. Plenty of demand. • Deployment has been paced by : • Availability of Digital Releases • Commercial arrangements to guarantee product supply with major studios. • Geographic Rollout Priorities.

    7. Underlying Anxieties - Exhibition • Availability of competitive funding plan. • Reduced operating flexibility – key management. • Potential reporting obligations. • Loss of control –‘DCI Compliance’ • Creeping DCI Specification. • Real running costs?

    8. Underlying Anxieties - Distribution • Threat of ‘transmitted media’ • Satellite, Cable, RF. • Initial lack of knowledge about digital. • Policy set at Head Office. Responsibility in the region. • Complication of mixed ‘digital/film’ bookings. Playout strategies.

    9. Underlying Anxieties - Studios • Setting a fair VPF deal considering: • Recycled prints. • Local content mix. • Other users – Alternative Content providers. • US experience. • New builds. • Incremental Short Term Costs. • Long Term Implications. • Critical Mass. • Expanding operational complexity of releases.

    10. Myths • Europe needs its own standard for D Cinema. • National Governments will subsidise some or all of the D Cinema rollout. • Distribution is threatened by D Cinema. • Key Management is an excuse to capture exhibition control by studios. • Better to wait than start too early. • Image quality is a key care-about.

    11. Real Concerns • Exhibition needs a competitive choice of plans. (All) • Specification uncertainty is a barrier to lower costs.(Mnfrs, Studios, Exhibition) • Theatre Management System software is weakness for all digital installations.(Exhibition) • Case for Central Key Management needs resolution. (FR/GER) • ‘Certification’ and standards control is a hot potato. (FR/EC) • Economic solution for the smaller theatres needs work. (GOVs) • Time to cut new deals in Studios. • Critical to keep the cinema experience unique, special and competitive with other leisure choices. (All)

    12. What’s Driving D Cin. in Europe? • 3 Things have generated a new imperative for D Cinema in Europe. • 3D • 3D • 3D • 3D Box Office results from Meet the Robinsons, Beowulf, Hannah Montana are setting the Digital agenda. • Studio endorsements are compelling.

    13. Role of EDCF • Help sort the myth from the reality. • Bring interested parties together. • Participate in EC level debate and discussion on rollout plans and needs. • Publish Guides on 3D and Alternative Content presentation. • Actively support work of ISDCF & SMPTE. • Find the opportunites in the problems…