Thomson unit strikes digital cinema deal

Industry News :: Thomson unit strikes digital cinema deal

BURBANK, California (Reuters) - Technicolor Digital Cinema, a unit of electronics maker Thomson <TMS.PA>, said on Tuesday it reached a deal to install digital projection systems for 90 to 120 movie screens owned by Century Theatres Inc.

The deployment, called a "beta-test" in a joint statement by the companies, expands Technicolor's involvement in the emerging business of placing digital film projectors in theaters, and the deal could lead to Technicolor installing digital systems throughout Century's entire 1,000-screen chain.

The movie industry is beginning a transition to digital projection from old-style, celluloid filmstrip. Digital promises a sharp picture and new entertainment. Theater owners might boost revenues, and film studios can lower costs.

Over the next three to four years, Technicolor said it hopes to install digital projection systems on up to 5,000 screens. In 10 years, it hopes to reach 15,000 screens.

There are about 36,000 movie screens in the United States, according to the National Association of Theater Owners.

"We were attracted to Technicolor's digital cinema services portfolio, its long-standing relationships with the studio and exhibition communities, and its proven industry leadership," said David Shesgreen, Century's chief executive officer.

Several others are rapidly moving into the nascent market including Christie/AIX, a venture of privately-held projector maker Christie, and service provider Access Integrated Technologies Inc. <AIX.A>.

Sony Corp. <6758.T> and Texas Instruments Inc. <TXN.N> have major investments in the projection systems and computer microchips that are powering the transition to digital.

Film company Kodak <EK.N> and Belgian projector maker Barco NV <BARBt.BR> also announced an alliance. Dolby Laboratories <DLB.N> and Walt Disney Co. <DIS.N> recently partnered for a digital release of Disney's "Chicken Little" movie.

(In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Callifornia Film Industry has no affiliation whatsoever with the originator of this article nor is California Film Industry endorsed or sponsored by the originator.)

"Go to Original" links are provided as a convenience to our readers and allow for verification of authenticity. However, as originating pages are often updated by their originating host sites, the versions posted on California Film Industry may not match the versions our readers view when clicking the "Go to Original" links.