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vince · #5 (**permalink**) 03-05-2004, 05:11 AM

Eastman Kodak Company

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Kodak Digital Cinema System Demonstrated at ShoWest
LAS VEGAS, March 4 -- Kodak unveiled an advanced prototype of its full digital cinema system during demonstrations here at the annual ShoWest Conference of distributors, exhibitors, and suppliers to the industry. The Kodak Digital Cinema system, which includes a high quality projector and flexible operating system, is designed to improve the cinema experience.

"Interest in digital cinema is growing," says Robert Mayson, general manager and vice president of Cinema Operations for Kodak's Entertainment Imaging division, "and we are poised to take a leadership role in this emerging market. We are committed not only to putting superior quality pictures on the screen, but to working with the industry to make sure our system makes creative, technical, operational, and business sense for everyone involved."

Kodak's marketing strategy involves the creation of a dedicated company unit, Kodak Digital Cinema Services. This new unit will offer various business plans to enable the industry to adopt digital systems with minimal risk or fear of obsolescence.

For cinemas, Kodak service agreements will include system components, installation, training, and support. For studios and other content suppliers, agreements will include all aspects of digital print delivery to theatres.

"The goal of Kodak Digital Cinema Services," says Mayson, "is to combine Kodak's long experience in the industry, our reputation for service, and our capability in imaging to bring digital cinema to the market in a way our customers expect of Kodak. We see ways to strengthen existing relationships, to complement current practices, to identify new sources of revenue. There are lots of potential benefits in this new system."

The company indicated it has no intention to 'seed the market'; instead it will provide a variety of affordable business plans in which those who share in the benefits also share in the investments. "We're offering solutions that will make sense for the long term," Mayson says.

As an entry point to digital cinema, Kodak is demonstrating its Digital Cinema Operating System (COS), which involves installation of a 'digital backbone' into cinemas. With a server and proprietary Kodak software, the COS will receive encrypted or unencrypted digital content via DVD's, satellites, or fiber optic network, store it safely and distribute it reliably and easily to projection screens.

As more ads, movies, trailers and other content are supplied in digital form, the COS will greatly facilitate the make-up of show reels in the cinema. The system can handle any number of screens in a multiplex and can also schedule and deliver trailers, digital art posters, advertising, and even public service announcements to monitors and flat panel screens in lobbies.

"The Kodak Digital Cinema Operating System will open up new sources of revenue for cinema operators," Mayson notes. "Used imaginatively, it can strengthen and extend the relationship that exists between distributors and exhibitors and provide ways for advertisers and others to extend the entertainment experience."

To show first-run movies, the Kodak Digital Cinema projector, which is part of the Kodak system, offers a major step forward in digital image quality. It incorporates Kodak Color Management software and other proprietary Kodak imaging technology, in a projector platform from JVC. The projector uses new JVC D-ILA three million pixel chips.

"The new JVC chip offers more than double the resolution currently available in digital cinema projectors," says Mayson. "When you combine that gain in resolution with our color management technology, we are coming a lot closer to our goal of matching the best film quality available on screens today."

The Kodak projector supports decryption keys, so the movie stays encrypted until it's shown. Other anti-piracy safeguards in the projector include invisible watermarking data that can be later extracted to show when and where the copies were made.

Mayson notes that a key to the successful adoption of digital cinema is a process called digital film mastering. "There are more than 100,000 screens showing movies on film and so digital projection will exist side-by-side with film projection for long into the future."

With digital film mastering, the entire movie is scanned once, giving the cinematographer more creative options to manipulate the images for all uses. And then the results are recorded back on film or any other media, all with the same look to preserve the filmmaker's vision.

"Digital film mastering is a creative solution that makes business sense," says Mayson. "It's the heart of digital cinema."

Kodak is currently testing its Cinema Operating System in a "real world" situation during dark hours at a Hollywood multiplex. The company expects to install its first complete Kodak Digital Cinema systems in early 2003.

Mayson notes there are still questions around standards, acceptable system costs, adoption rates, and industry support, but Kodak will help the industry find answers.

"We're involving the industry in the development of our technology, and in the business options we'll offer," he says. "Kodak Digital Cinema will evolve with the requirements of our customers. Those who know Kodak know that we are always advancing technology, making better image quality available, making affordable systems easier to use, and supporting everything with world-class service. This is a new beginning to a long-term commitment."