Digital Cinema : The Introduction

• Digital cinema is simply a new approach to making and showing movies. The basic idea is to use bits and bytes (strings of 1s and 0s) to record, transmit and replay images, rather than using chemicals on film. The main advantage of digital technology (such as a CD) is that it can store, transmit and retrieve a huge amount of information exactly as it was originally recorded. Analog technology (such as an audio tape) loses information in transmission, and generally degrades with each viewing

““The greatest opportunity for enhancingThe greatest opportunity for enhancingthe theatrical film experience sincethe theatrical film experience since

the introduction of soundthe introduction of soundand advent of color.”and advent of color.”

• Digital cinema encompasses the production, delivery and projection of full-length motion pictures, trailers, advertisements and other audio/visual "cinema-quality" presentations to theatres using digital technology.

• The technology uses a "store-and-forward" concept to distribute motion pictures, which have been digitized, compressed, encrypted and delivered to theatres using either physical media distribution or through other electronic transmission methods (such as satellite or other broadband services).

What is digital cinema?

Digital Cinema - Goals

• Distribution cost savings and flexibility

• Improved consistency and quality of

presentation over film prints

• Advertising and alternative content

• Improved security, transaction processing and DRM

• Enhanced and unique theatrical experience

• Production cost and time savings

• Content encapsulation for use and archive

• Technological headroom for long amortization

• Open Standard

• Interoperability

• Secure content protection

• Affordable and reasonable costing

• Enhanced theatrical experience

• Accurate voice and image quality

• World wide compatibility, with anywhere – anytime access

• Lot more flexible than analog information

• Hardware – Easy to upgrade, Easy to extend

• Variety of secure transport mechanism including electronic as well as physical

• Integration with Online ticket sale / Theatre Management System

Features

Benefits - Exhibitors

• Alternative programming and additional advertising opportunities result in new revenue streams

• Fully integrated delivery, training and maintenance service package

• Consistent quality with each presentation

Benefits - Distributors

•Reduced shipping, delivery and assembly costs

•More efficient editing and production process

•Improved piracy protection and format Interoperability

•Highly secured content distribution to mass

Benefits – Creative Community

• Preserved image and sound integrity

• Increased sound track capabilities for diverse population centers

• Accurate representation of creative intent

Benefits – Movie Audiences

• A pristine digital experience at every showing

• More diverse content choices

• Enhanced sound and image quality

Typical Architecture

Configuration Diagram

Future has begun…..

Digital Cinema in India

Digital Cinema in India – Immense potential

• India is the largest producer of movies in the world.

• It also has a very strong information technology (IT) industry.

• These two attributes should give it a natural advantage when it comes to the new and attractive line of business that is fast opening up — digitizing movies, both new and old

Market CAP• A Rs.7.2 billion concept: A margin

of Rs. 5billion.

• For every major release (4-5 in a month) which reaches 300 theatres at an average, there is an additional reach of 5000-6000 theatres more generated in the system

• One of the producers on "Attack of the Clones," said they spent $16,000 on 220 hours of digital tape, and they would have spent about $1.8 million on 220 hours of film

Additional Revenue

• Advertisement Revenues

• Broadcast of Special Events

• Leveraging Communication Infrastructure for:– Co-location of ATM Facilities– Internet cafes– On-line Gaming / Lottery

terminals

Taking market advantage

• First Day First Show– 300 to 400 “35 MM

Prints in A Class centre

• First Day First Show– Digital satellite feed

enables 3000 to 4000 “35mm” prints + 300 to 400 digital prints in B & C Class centers

Digital satellite enables 800 prints of one film on the first day first show

200% Revenue Upside for the Film Industry

Cost Difference

• Cost of 35 mm print: Rs 60,000/-

• Cost of transportation:Rs 10,000/-

Gross cost of print: Rs 70,000/-

Reach of 300-400 theatres / film A Class theatres

Satellite Print +DeliveryCost per film / Theatre:Rs.3,500/-

Gross cost of print: Rs. 3,500/-

Reach of 3000-4000 theatres / film300-400 B&C Class THEATRES

Significant Improvement in Distribution Expenses

The challenges• Aesthetic Issues

– Requirements include the look and feel to resemble 35 mm film based movies

– Very high color contrast ratio, color accuracy and resolutions

– Many cinematographers would prefer to shoot on 35 mm film

– Even though some filmmakers feel digital is better than film uncertainty exists in the marketplace.

The Challenges

– Cost – Standards– Working business models– More competitors (Competitors bring confidence)

– Piracy– Content– Requirements at the system level enabling

interoperability between digital and non-digital systems

• Business Issues

• Operational Issues

New thought process

• Film and digital cinema both are here to stay

• Digital is another tool available to shoot movies

• Not a replacement of film

The Future

Flexible Acquisition

– Film • Stable, mature, slowly improving

– Electronic cameras • Potential for major improvements in resolution and fidelity

without requiring larger and heavier equipment • Immediate access to the image as a signal enables superior

in-camera processing – Direct acquisition of animation

• Faster, cleaner, very high resolution images – Transcoding of existing content

• Easy to transfer existing MPEG content to a high quality, high fidelity format

• Tape -real time, multi format transfer

The Future• Theatrical electronic production and post

– Combine the good characteristics of film and video

– Integrated tools that enable • Cost savings • Time savings

• Enhanced creative control

– An efficient digital master can be easily and cost effectively stored and transported

• Multi language • Sub titling

– Ideally it can be delivered transparently to multiple display technologies

The Future• Enabling the entertainment complex or event

– Flexible theatrical configuration • Reduced cost and risk • Multi purpose facilities • Flexible installation and setup

– Enhanced operational control • Remote control of projection, audio, environment • Easy insertion of local and national advertising/promos

– Automated maintenance • Self test, status, exception detection, reporting

– Integrated DRM, transaction management • Protects content owner and exhibitor • Simplifies distribution and billing

We will Initiate

• Media Matrix Worldwide Limited: Equity investment of 15 crores to retrofit 125 theatres.– Total electronic theatres with similar operating

system in India numbering 215, highest in the world by leaps and bounds

– Too complex for the Film Industry to grasp– Disruptive element in the concept to transform

the industry like nobody’s business

Front Projection large venue digital cinema shipments by technology, Units

DC is coming, slower than optimists predicted but much faster than any

previous technological cinema innovation

The investment is lower than believed, the return typically higher

than feared

We would like to Thank You

And would like you to join hands with us in this ambitious project