Year 11 for Digital Cinema The Situation in the US
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1 Year 11 for Digital Cinema The Situation in the US Michael Karagosian February MKPE Consulting LLC
2 Today s Discussion - Afternoon The Numbers Deployment Entities & Financing SMPTE DCP Transition ISDCF, CoMBI Anti-Piracy Efforts 2010 MKPE Consulting LLC 2
3 USA Screen Growth D is the driver! D D 2-D D MKPE Consulting LLC 3
4 DCIP Digital Cinema Implementation Partners AMC + Cinemark + Regal = 16,000 screens $700M bond will finance up to 10,000 screens Could take 2 to 3 years to install, after which 2 nd round of financing is needed 2010 MKPE Consulting LLC 4
5 Disappearing Deployment Entities 2010 MKPE Consulting LLC 5
6 Cinema Buying Group (CBG) Functionally a large circuit made up of independent cinema owners No deployment agreements Deployments by Cinedigm 2010 MKPE Consulting LLC 6
7 Deployment Deal Structure Virtual Print Fee (VPF) is paid per booking NOT pay per distribution NOT pay per play NOT pay per projector ALL distributors pay a VPF ALL screens in a complex must be converted Title remains with deployment entity or bank until recoupment ALL screens in plan must recoup before title is transferred Equipment must be warranted for 10 years 2010 MKPE Consulting LLC 7
8 Deployment Agreement vs Free Rider Objective of the deployment agreement is to enforce 100% conversion of screens in a complex Deployment agreements have benefits for studios: Ensures that competitors also pay Establishes when the VPF terminates Minimum standards for equipment Deployment agreements have benefits for deployment entities: One time fee negotiation Collateral for bank Free Rider is a distributor that has NOT entered into a deployment agreement 2010 MKPE Consulting LLC 8
9 Distributor VPF Cost Structure Cost neutral Everyone pays VPF revenue is audited 2010 MKPE Consulting LLC 9
10 Deployment Entity Balance Sheet Costs Revenues 2010 MKPE Consulting LLC 10
11 Why Deployment Entities? Shared equipment Competition law Everyone pays 2010 MKPE Consulting LLC 11
12 SMPTE SMPTE DCP Alternative Frame Rates Closed Captions Assistive Listening 2010 MKPE Consulting LLC 12
13 SMPTE DCP (Digital Cinema Package) DCI Compliance: SMPTE Picture SMPTE Subtitles SMPTE KDM SMPTE Audio SMPTE Closed Captions 2010 MKPE Consulting LLC 13
14 SMPTE DCP (Digital Cinema Package) Transition to SMPTE DCP distributions from Interop begins April 2010 Transition to complete in April 2011 Backwards compatible with Interop distributions Rigorous testing underway, resulting in several fixes to SMPTE DCP standards 2010 MKPE Consulting LLC 14
15 Accessibility Those with difficulty hearing Those who can t hear at all Those who cannot see, or see well 2010 MKPE Consulting LLC 15
16 Accessibility for Film Player Closed Caption System 2010 MKPE Consulting LLC 16
17 Accessibility for Digital Cinema Player Closed Caption System 2010 MKPE Consulting LLC 17
18 Digital Cinema Accessibility Those who can t hear at all Closed Captions (CC) SMPTE DCDM Closed Captions SMPTE DCP Closed Captions 2010 MKPE Consulting LLC 18
19 Digital Cinema Accessibility Those with difficulty hearing Hearing Impaired Audio (HI) SMPTE DCP Operational Constraints 2010 MKPE Consulting LLC 19
20 Digital Cinema Accessibility Those who cannot see, or see well Visually Impaired Narrative (VI-N) SMPTE DCP Operational Constraints 2010 MKPE Consulting LLC 20
21 SMPTE DCP Constraints (& Audio) 2010 MKPE Consulting LLC 21
22 SMPTE DCP Constraints (& Audio) 2010 MKPE Consulting LLC 22
23 SMPTE DCP Caption and Closed Subtitle Open Subtitles Closed Subtitles Open Captions Closed Captions 2010 MKPE Consulting LLC 23
24 SMPTE CSP/RPL Output SMPTE Aux Content Synchronization Protocol (CSP) Player SMPTE Aux Resource Presentation List (RPL) Ethernet CSP / RPL Closed Caption System 2010 MKPE Consulting LLC 24
25 Putting It All Together WGBH Proprietary Protocol Rear Window Display Panel Light Reflector SMPTE Captions & Audio SMPTE CSP / RPL Protocol for Closed Captions IR or RF Access Audio Digital Cinema Server Controller / Transmitter IR Caption Glasses Hearing Impaired (HI) & Visually Impaired Narrative (VI-N) Audio WiFi PDA 2010 MKPE Consulting LLC 25
26 Digital Cinema is Accessible 2010 MKPE Consulting LLC 26
27 ISDCF - Inter Society Digital Cinema Forum Not a standards body Discussion group for current problems and solutions Anyone can participate Meeting minutes are online MKPE Consulting LLC 27
28 TI Series 2 Not all servers can drive Series 2 projectors Cinelink 2 operates differently from Series 1 Secure communications between server and projector operate differently from Series MKPE Consulting LLC 28
29 Standards-Based Security Key Management 2010 MKPE Consulting LLC 29
30 Cinema Communication Message (CCM) Delivery of FLMs and KDMs Receipt of delivery Supports the concept of data intermediaries 2010 MKPE Consulting LLC 30
31 Common Media Block Interface (CoMBI) 2010 MKPE Consulting LLC 31
32 Anti-Piracy 2010 MKPE Consulting LLC 32
33 Solutions Technology Forensic marks Labor guards with night vision equipment ILLEGAL RECORDING Detection vs Jamming 2010 MKPE Consulting LLC 33
34 PirateEye Camcorder Detection 2010 MKPE Consulting LLC 34
35 Published Monthly On-Line Media Salles discount rate 1 st 10 days free Promotional code MKPE Consulting LLC 35
36 Thank you Media Salles discount rate Promotional code Business Development for Entertainment Technology MKPE Consulting LLC
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