Abstract
Cinema is in the process of converting all the world' s screens to digital
projection equipment. However, since the development began in earnest in 1999,
numerous problems have been encountered in replacing its longstanding analogue
forerunner, not least who is going to pay for this conversion and how and by
whom will it be undertaken.
The publication of technical specifications by a joint US studio led grouping
in 2005 proved a catalyst for a US-wide first phase roll-out and this
territory has taken a significant advance over much of the world. We are now
at a stage where the foundations have been laid for a European-wide mainstream
deployment to begin, and this report analyses the business models being
developed, the value proposition for both exhibitors and distributors, the
remaining challenges for deployment companies, the forecasted speeds of
adoption by all territories and key driver territories and companies.
Key findings:
- At the end of 2007, 5.5 per cent of the world' s modern screens are
converted to digital and we predict that by 2012 this will rise to 48 per cent.
- The dominant business model for digital conversion is the Virtual Print
Fee, but there may be other models entering the market
- The driver market is the USA, but significant government involvement is
pushing other countries, such as China, UK and Norway.
- Despite almost full digital provision of studio movies in the USA, a key
obstacle to overcome in Europe, outside of the business model, is the
provision of arthouse and European content.
- The main financial beneficiaries, certainly in the short-term, are
distributors but digital 3D and alternative content are forming the beginnings
of a persuasive business case for the exhibitor
- The digital conversion will cost an approximate $10bn worldwide over the
next ten years
In the report:
- Forecasts of digital cinema screen growth by territory to 2012 Overview of
the current state of the market; globally, regionally and for key driver
territories
- Analysis of the current business models, focusing on the Virtual Print Fee
but also exploring others in the global and European market
- Analysis of the European digital cinema market and the obstacles blocking
growth
- The digital cinema value proposition for the distributor, including an
evaluation of print costs and distributor benefits
- The digital cinema value proposition for the exhibitor, including digital
3D, alternative content, and theatre management systems
- Full datasets for digital screen growth and penetration, projector
manufacturer sales and market shares, projector market sizes, server
manufacturer market shares and digital content.
- Analysis of the key challenges remaining to resolve before full market
roll-out can be achieved
- Analysis of the progress made towards the digital delivery of movies by
satellite or other means
- Analysis of the role that Hollywood has played in the move towards digital
conversion
- Full company profiles for all key digital cinema players (exhibitors,
projector manufacturers, server manufacturers, third-party facilitators,
digital 3D system manufacturers
- Digital cinema progress timeline from 1999 to 2007
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