DIGITAL CINEMA ECONOMICS (part I)

AdvertisingAdvertising

DigiTraining Plus: New Technologies for European Cinemas

Kuurne (Belgium), 7 April 2005

Patrick von Sychowski

Director of Business Development

Unique Digital

Overview

Introduction

D-Cinema and E-Cinema (where does DSA fit?)

European & InternationalOverview

Unique – who we are and what we do

System overview (Unique's, of course)

Adverts

E- och D-Cinema –terminology

Community centresCommunity centresLibrariesLibrariesSchoolsSchoolsChurchesChurchesMallsMalls

FeaturesDD--Cinema

Cinema

GamingGamingCorporateCorporateEducationEducation

EE--Cinema

Cinema

NewFunctions

PC

NewVenues

SDTV

NewContent

HDTV

AdvertsAdvertsMusicMusicSportsSportsStageStageLiveLive

Folkets HusFolkets Hus (SE)(SE)Mukta AdlabsMukta Adlabs (IND)(IND)RainRain Netw’sNetw’s (BRA)(BRA)CinemaNetCinemaNet EuropeEurope

4K2K

1.3K

TV

Digital Screen Advertising

Digital Cinema ≠Digital Screen AdvertisingDSA has more complicated needs than DCUS success cannot be replicated in EU, but..DSA offers savings, more flexibility, new customers, revamped business models, future proofing, learning experience for D-Cinema.(Unique has done it longer than anyone else.)

Hollywood (DCI & SMPTE) v. EU (EDCF) & Japan (DCCSDP)

FeaturesDD--Cinema

CinemaEE--Cinema

Cinema

NewFunctions

PC

NewVenues

SDTV

NewContent

HDTV

AdvertsAdverts

4K

1.3K

2KDCIDCISMPTESMPTE

DCCSDPDCCSDPEDCFEDCF

SAWASAWA

ITUITU

D- och E-Cinema count (2005)

Digital Cinema: ~300 screens

E-Cinema: 300 – 500 screens

Digital Screen Advert: Digital Screen Advert: >11,000 screens>11,000 screens

Digital Screen Advertising

North American/US market

Cinema advertising underdevelopedBUT most mature digital cinema marketRegal CinemMedia (Regal) + NCN Inc. (AMC) =

National CineMedia (8,200)ScreenVision (Loews) = 5,000 screensKodak (smaller exhibitors) = 900 screensHalf of all screens digital by end of 2005!

Digital Screen Advertising

Unique Promotions/Unique Digital

Established in 1997 by Dave Spilde and Chris Olsson-Hagan.

Bought and merged with Bug A/S in 2001.

Moved development department into Unique Digital in 2004

Located in Bergen, Norway, with 20 employees which are mainly technicians, programmers and designers.

Main area of business: Digital solutions for the cinema industry.

Offices in Bergen, Oslo, London and Dublin

Unique Promotions/Unique Digital

The first company to fully digitize every single cinema screen in a whole country (Norway) for replacement of 35mm advertising.

Won the tender for supplying the digital solution to Carlton Screen Advertising in the UK in 2002 + Ireland (Rep.) in 2004.

Active in Europe following deal with Screenvision Europe starting 2005, for flagship D-Cinema advertising project that SVB are doing together with Kinepolis Cinemas.

Unique Promotions/Unique Digital

Unique is today the biggest supplier of digital cinema advertising in Europe and globally only Regal has more cinemas installed than Unique.

Unique Digital is currently working with SAWA to help put together recommendation and specifications for digital screen advertising (presented Cannes June 2005)

Working with the Norwegian government in getting funding for switching the whole country to the D-Cinema platform.

Unique Digital is also involved with the Digital Test Bed (DTB) in London and will support the UK Film Council's Digital Screen Network (DSN) of 250 D-Cinema screens, through CSA.

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What is important in DSA?

Focusing on our customers’ needs. Realistic pricing.Working with the right partners.

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Unique Promotions strengths

Experience and know-howRoll out and installationProjectorsStandard cinema equipmentCinema advertising

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Unique Digital's strengths Software development.

User interfaceOnline databasesTesting environment

Satellite transmission.Expertise on global platform + hybrid (BB) solutions

Content Creation

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Unique Digital's ProductsIQ-Accord - Booking database

Standard booking system tools like diary, reports, statistics etc.Scheduling of all content

RegionCityCinemaScreenTimeCategory

Online Communication Interface to Satellite provider Audit trails and diagnostics

Encryption

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Unique Digital's Products

IQ-Commlink – Cinema/Location main server Dedicated satellite receiving unit Distributes and collects data from player units

ContentPlay listsRules/commandsLog filesProjector status(optional)

Online Communication Interface to booking systemAudit trails and diagnostics

Decryption/Re-Encryption

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Unique Digital's Products

IQ-Media Engine – Individual screen PlayerPlayback and storage of AV mediaGenerates log files Communicates with existing cinema automationCommunicates with digital projectorOption PanelDecryptionStreaming live or non-live content

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Unique Digital's Products

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Unique Digital's Products

Lobby Display Video, graphics and text display systemIntuitive simple programming (drag-and-drop)Trailers, ads, concessions, tickets and moreIntegrates with IQ Comm-linkSpecialist company acquired by Unique Digital

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Unique Digital's Products

CRM Main Page

CRM Main Page – Event Dialog

CRM – Case Tender

CRM – Case Tender (PDF)

CRM – Calendar

CRM – Customer Contact

CRM – Report Cases in Weeks

--

IMS - Cinema

IMS - Screens

IMS - Incidents

IMS - Store

IMS - Map

IMS –PDF report

IMS – Word report

Why digital advertising?

It makes money.IT MAKES MONEY!It can be a stepping stone to d-cinema.It allows you to show lots of content……except first run Hollywood featuresIt makes money – here is how:

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Let's watch some adverts...

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Let's watch some adverts...

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Let's watch some adverts...

04/07/0541

Let's watch some adverts...

04/07/0542

Let's watch some adverts...

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Let's watch some adverts...

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Let's watch some adverts...

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Let's watch some adverts...

THANK YOU!

Patrick von SychowskiUnique Digital

ww.uniquedigitalcinema.compvs@mailudc.com