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A REPORT ON DIGITAL CINEMA
Motion Picture Association Office of Technology
DigitalCinema
2001
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INTRODUCTION - WHAT IS DIGITAL CINEMA?
’m sure we’ve heard the words “digital cinema” being used quite liberally these
days. With the acceleration of recent developments related to the digital
presentation of theatrical films, it appeared to be the right time to clarify, from
the Motion Picture Association of America’s perspective, what digital cinema is, and
what it isn’t. Within the digital space, the words “digital cinema” are quite freely used,
and have been for some time. For the purpose of our context and this report, we’ll
concentrate on digital cinema activities as it affects our member companies, but also
detail what else people refer to in their perspective of “digital cinema”.
I
Today, virtually anything that can be seen through the camera lens by a filmmaker
can be recorded directly on film, video, or can be captured directly to a digital format.
The creation of computer-generated imagery, coupled with the digital enhancement
and manipulation of both still and motion picture elements, has moved from almost
non-existent a decade ago to a commonplace occurrence today.
It is now possible for us to electronically capture, compose, animate, and paint on our
home personal computers in a fashion similar to what is done today by professional
filmmakers. And, desktop random-access digital editing offers greater efficiency with
increased creative and decision-making opportunities than have previously been
available.
With all that is possible within this digital technology space, isn’t this indeed “digital
cinema”? In the broadest terms, it is. I would suggest however, that we dedicate the
words “digital cinema” to the digital electronic distribution and display of theatrical
film content or live material to the theatre.
This report is not intended to make its readers experts in digital cinema technology,
but to provide an overview of what the technology is all about and what it means to
distributors, exhibitors, and theatergoers.
THE BIG PICTURE
The birth of digital cinema has broad implications for our members in terms of the
production, post production, marketing, and distribution, as well as the projection of
theatrical films. There is little doubt that the motion picture exhibition world has
officially begun its conversion into the digital realm.
While some of us may have witnessed the electronic projection of standard definition
television images onto a big screen sometime over the last two decades, it has only
been within the last year that we have seen the experimental projection of theatrical
material in one of our neighborhood theatres.
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These demonstrations have been born not only out of technology, but the business
efficiencies of digitally distributing motion pictures around the world.
It is generally agreed that in the next 3 to 5 years, we will see an acceleration of the
conversion to electronic projection in most of the domestic major market theatre
venues. With all this, does film go away? While the technology to support digital
cinema projection is rapidly evolving, film as a distribution medium, will not
disappear anytime soon.
Is there a compelling reason for distributors or exhibitors to jump into the digital
delivery of theatrical films? The Motion Picture Association of America’s member
companies invest an average of $800 million per year in the domestic distribution of
their product to the exhibitors. In the current distribution model, the exhibitor never
actually purchases a print, unless it becomes damaged. At the conclusion of its run,
the print is returned for recycling or destruction, and in some cases, used for
distribution internationally.
The associated costs for photographic film distribution alone, provide ample reasons
for the industry to move toward the electronic delivery and “playout” of movies,
which can be delivered either physically on a series of inexpensive DVD’s, or via
satellite. There is a catch, however. It is believed that distributors will not enjoy real
financial benefit until the majority of theaters are converted.
The MPA member companies believe that the introduction of digital cinema
distribution has the potential for providing real benefits to film producers,
distributors, theater owners, and theater audiences.
THE ENHANCED THEATRICAL EXPERIENCE
The Motion Picture Association of America’s Digital Cinema Working Group
(DCWG) delivered and published a “Goals for Digital Cinema” document last year
that outlined 10 goals that are “critical to the successful implementation of digital
cinema”. The first goal is the “Enhanced Theatrical Experience”, the opportunity to
“bring real benefits to theater audiences”.
While most of us as theatergoers concentrate on the creative intent occurring on the
screen, viewers are undoubtedly familiar with the “jitter” or unsteadiness of the film
frame as it passes through the projector gate, variations in color, scratches, dirt, and
the overall signs of aging of the average theatrical print. Since digital projectors have
no mechanical movements, there is no jitter or flicker. There is also no variation in
the color and no aging of the print. We see exactly the same high quality, crisp and
clean presentation on the last day of the film’s run, as on the first day.
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The MPA’s “Quality” goal goes further to say that the quality “should exceed that of
a projected 35mm “answer print” shown under optimum studio screening theater
conditions”. While this is a reasonable goal, and one that is quickly becoming a reality,
it is not there today. Digital cinema, like other technologies, is evolving and becoming
better over time.
However, we must realize that today’s technology cannot be dismissed. The quality
of presentation seen in the 32 digital cinema equipped theatres is receiving rave
reviews from theatre audiences worldwide.
WILL DIGITAL BRING PEOPLE TO THE
THEATRES?
Despite the fact that more people are staying home and being absorbed by their
DVD’s, Home Theatres, and other consumer entertainment devices, digital cinema,
with its promise of superior image quality, stands to genuinely offer the next
revolutionary "effect" in movie theater history. Just as stadium seating brought people
back to the theatres and changed the theatres we went to, digital cinema technology
with its high-brightness and high-resolution projectors will definitively change
theatergoer habits.
Despite bankruptcies and theatre closings, the rollout of digital cinema is offering
other opportunities. George Lucas and other filmmakers are increasingly taking
advantage of digital production and distribution, and there are several serious efforts
to create a network of alternative digital cinemas for the screening of theatrical film
and live content utilizing existing auditoriums and other large venues.
The challenge will be to fully take advantage of the potential of digital cinema to
make the movie-going experience a memorable one.
HOW DOES DIGITAL CINEMA WORK?
Digital cinema was once described in Boxoffice magazine as “moving images
photographed and stored in digitized form on tape or some other hard disc, that can
be edited electronically and projected with amazing brightness and detail” on the
screen. This current technology has been borne out of advancements in the same
type of “front screen” electronic projectors that are used in our conference rooms
today. In fact the size of today’s digital cinema “grade” projectors, is only slightly
larger than the data “grade” projectors that many of us have been so accustomed to
using in meetings.
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The Motion Picture Association of America is encouraging of multiple vendors of all
technologies. Currently, Texas Instruments (TI) and its Digital Light Processing
(DLP) projector technology is utilized in the 32 theatrical venues worldwide.
The key to TI’s Digital Light Processing technology is the Digital Micromirror
Device (DMD), an optical semiconductor chip with over a million tiny microscopic
mirrors that create a high-resolution, full-color image.
One of the perceived shortcomings of the current (TI) DLP technology is that the
projection is limited to a resolution of 1024 vertical lines by 1280 horizontal “pixels”
per line. (A pixel, which is a word invented from “picture element”, is the basic unit
of color in a computer image). At the above resolution, this is about 40% fewer pixels
than the current high definition television format of 1080 vertical lines by 1920
horizontal pixel
If you were to walk into a digital cinema projection booth today, you would see
something like this. The electronic projector is mounted in front of a light source.
This light source is virtually identical with what is being used for today’s film
projection. A computer file server plays out the compressed movie file and feeds the
electronic projector and theatre sound system.
D i g i t a l
M i c r o m i r r o r
D e v i c e ( D M D )
L i g h t
M o d u l a t o r
C h i p
T e x a s
I n s t r u m e n t s
D L P C i n e m a
P r o t o t y p e
P r o j e c t o r
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Other companies such as JVC, Sony, and Kodak, have shown and continue to
develop “chips” built around JVC’s Direct-Image Light Amplifier (D-ILA)
technology. Originally developed by Hughes Aircraft for military applications, the D-
ILA chips, as they are called today, are now available and being demonstrated in
digital cinema projectors with a resolution of 1536 vertical lines by 2048 horizontal
pixels, somewhat greater than High Definition TV.
In Japan, Nippon Telephone and Telegraph (NTT) is currently undergoing
experiments with a Liquid Crystal Display (LCD) projector capable of reproducing
images of 3840 x 2048 pixels. And, there is other technology on the horizon, such as
laser, that may offer even higher resolution than is currently available today.
Technology proponents and equipment manufactures continue their development
work to improve the quality of today’s projectors. The Motion Picture Association
supports these development efforts with the belief that if digital cinema is to provide
real benefit to all stakeholders, it must exceed the quality of HDTV, and eventually
exceed the quality of a projected 35mm answer print.
WHAT’S IN IT FOR THE EXHIBITORS?
While there may be compelling reasons for the content owners and distributors to
deploy this technology, the benefits to theater owners are less clear. First, the cost for
conversion to digital projection, currently estimated at $150,000 per theatre is
expensive in relation to the typical capital budgets of the exhibitor. John Fithian,
president of the National Association of Theatre Owners (NATO), has said that ‘’It
is highly unlikely that digital cinema will happen if exhibitors are asked to pick up
most of the costs.’’
The exhibitors are still “reeling” over their necessary investment in multiple formats
of digital sound. Currently, a great number of theatres are equipped with 3
incompatible digital sound formats that exist side-by-side, each requiring separate
electronic boxes in the projection booth to process the different audio signals. While
most feature films are now distributed with all three digital sound tracks to avoid
multiple “inventory”, the financial impact of requiring the exhibitors to install these
multiple sound technologies is apparent.
To jump start the deployment of digital cinema, equipment manufacturer
Qualcomm, and film laboratory Technicolor have announced a joint initiative that
would underwrite the conversion of approximately 1,000 U.S. film theaters to
electronic projection in exchange for an average of 12.5 cents from each ticket.
Boeing, armed with a satellite fleet and a digital cinema delivery service, has also
indicated that they are willing to assist with the financing of digital cinema equipment
to theatres.
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Some of the major distributors have also discussed an initiative to form a new
company (“NewCo”) to finance the deployment of digital cinema equipment. A
viable financing plan is a key factor to the successful commercial launch of digital
cinema.
Digital cinema equipment provides excellent opportunities for exhibitors to
maximize the use of their theatre space. Electronic projection will allow the
programming of all sorts of alternative entertainment. With satellite receivers and
cable in hand, reception of live events such as rock concerts, sporting events, and
interactive programming become possible. Some exhibitors such as Richard Segal,
CEO of UK’s Odeon Cinemas, have come out strongly in favor of alternative
content, believing that digital projection alone will not change box office revenues.
Time not currently dedicated to theatrical films, such as the mornings, could also be
used for the digital reception of corporate or educational presentations to a large
audience.
It is believed that when fully implemented, digital cinema will offer savings to theatre
owners in scheduling and projection efficiencies. However, exhibitors have expressed
concerns about the use of digital rights management and conditional access systems
that can ultimately “control the show”. In a secure digital world, technology will
permit those who “hold” the digital keys to control the digital data. However, content
owners and exhibitors have co-existed by managing a unique business relationship
and it is presumed that digital cinema will not greatly change that relationship.
THE CREATIVE COMMUNITY
It’s been said that one can ask ten motion picture creative professionals to define the
impact of “digital cinema”, and you might very well get ten different answers. Not
enough can be said about the effect that digital technology, in general, has had on the
filmmaker’s ability to recreate his/her artistic vision. While there appears to be
general optimism within the creative community about how the new technology is
affecting the cinematic art form, cinematographers such as Stephen Poster believes
that, out of necessity, we have become a “group of engineers, scientists and artists”.
With the introduction of high-definition digital cinematography systems
manufactured by Sony and others, and modified by film camera manufacturer
Panavision, a new era in moviemaking has begun. George Lucas is currently in
production on “Star Wars: Episode II” utilizing this digital technology that Lucasfilm
Ltd. and Industrial Light & Magic (ILM) believe is “indistinguishable on the large
screen” from film.
One would ask the question again: Does film go away?
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The majority of cinematographers polled believe that however advanced digital
production technology is today, there are still creative limitations and further
developments that must occur. Today, these new digital tools are alternatives.
In the digital postproduction equipment areas, a number of significant technology
developments have occurred in the last five years including the introduction of high-
resolution digital film scanners, image compression technologies, and high-speed
networking and data storage. In many cases, these developments have actually given
the creative community greater freedom and control, while allowing the creation of
higher resolution digital images required for digital cinema
In the area of digital projection, the creative community echoes the same comment as
the distributors and exhibitors. Make it better!
The industry is looking for something MORE than high definition television on the
big screen. Continuing advancements will narrow the quality gap between digital
projection technologies and a 35mm film print.
Thanks to ongoing outreach efforts of the Motion Picture Association member
companies and the Digital Cinema Laboratory (DLC) of the University of Southern
California’s Entertainment Technologies Center (ETC), there have been several
opportunities with the creative community to openly discuss and demonstrate digital
projection issues such as visible resolution, color accuracy, and compression-based
motion artifacts. The goal is a continued free exchange of information, the creative
community’s involvement with industry testing, education, and a common desire to
pursue global digital cinema standards.
There has been a concerted attempt to engage and educate the creative community in
the developments and the standardization of digital cinema. This has primarily
involved the American Society of Cinematographers (ASC) and the Directors Guild
of America (DGA). In the end, the creative focus is still the same as it always has
been. The comment that has been heard is to concentrate on telling the story and
utilize the tools that best achieve that end.
DIGITAL CINEMA DISTRIBUTION
Today, motion picture release prints must be physically delivered to the theatre for
projection. Technology hopes to eventually replace this form of media distribution
with sophisticated electronic delivery via fiber optics, satellite, or virtual private
networks (VPN). Demonstrations have proven the viability of all of these methods.
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The first step of the Post Production process is the creation of a Digital Cinema
Distribution Master (DCDM). This digital master is then encrypted prior to the
generation of digital data files onto DVD data disks. These compressed and
encrypted data disks, containing “parts” of the movie, are shipped to the theatres,
where the files are transferred to a computer server and assembled for eventual
playout. Companies such as QuVis, Grass Valley, Avica, and EVS are currently on
the forefront of digital cinema server technology.
In the future, theatrical features will be “finished” by scanning a film inter-positive
(IP) to a very high quality Digital Source Master (DSM). This DSM is simply data,
stored on media, and archived to a tape or similar data source. From the DSM,
digital cinema delivery masters can be made, as well as formats for home video and
broadcast markets. Film prints will be made by taking the original DSM and making a
“digital intermediate”, from which film release prints will be made and distributed to
theatres that still require it.
For digital cinema distribution to be cost effective, there must be electronic delivery
methods employed that will securely and efficiently move the feature to the theatre.
Experiments have been conducted by companies like Boeing, the world’s leading
manufacturer of commercial communication satellites. Boeing has introduced an
end-to-end content delivery and control system that utilizes satellites to transmit
digital cinema content.
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While physical media will likely continue as the distribution mechanism for most
digital cinema theaters for some time, Bob Lambert, the Senior VP of New
Technology and New Media at Disney pointed out that “wireline and satellite
delivery are likely to compete as practical transport methods” in the future.
At some point, most theatres will likely have small satellite dishes to receive their
movies, which will be stored on servers, and played back on cue. Think DirectTV or
the Dish Network, with a TIVO or similar unit as a comparison.
However, unlike the satellite content that we may receive at home, the time required
to currently transmit a digital cinema feature can be many hours. And, the storage of
that feature currently consumes many gigabytes of information.
In addition, there will be theatres that are unable to receive satellite reception, and
must depend on a fiber optic cable or broadband connection. Companies that have
shown proof-of-concept demonstrations in this area are Williams Communications/
Vyvx, Qwest, and Global Crossing, to name a few.
There is no doubt that there is work to do here. However, as previously mentioned,
there have been experiments conducted that have proved the viability of all of these
delivery methods. Eventually, technology will permit a completely automated
electronic delivery of digital films to theatres.
GLOBAL STANDARDIZATION EFFORTS
The Motion Picture Association of America and representatives of its members
companies have been taking leadership roles in participating in digital cinema
standardization efforts.
It is widely believed that a digital cinema system should be based around global
standards that will be voluntarily embraced around the world, so that theatrical
content can be reliably distributed and played anywhere in the world, as can be
done today with 35mm film. Jerry Pierce, the Senior Vice President of
Technology, at Universal Studios is an advocate for standardization of digital
cinema distribution, but points out that “we are not there yet, the roads haven’t
been built.”
The MPA has been actively participating in organizations such as the Society of
Motion Picture and Television Engineers (SMPTE) and the Moving Picture Experts
Group (MPEG). Both these organizations have been addressing distributor and
exhibitor requirements that will be the basis for writing standards that will foster
competition amongst multiple vendors. These two organizations have the experience,
capabilities, broad cross-industry support, and already established activities to lead to
the development and documentation of international standards for digital cinema.
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SMPTE’s Digital Cinema Technology Committee (DC28), which first met on
January 19th
, 2000,was formed for the specific purpose of addressing standards for
digital cinema, and has been providing a valuable forum for industry discussions on
technical requirements. DC28 was initially divided into seven study groups whose
scopes match their area of technical investigation:
• Mastering
• Compression
• Conditional Access
• Transport and Delivery
• Audio
• Theatre Systems
• Projection.
The purpose of these groups was to uncover and discuss the many issues that face
the full deployment of digital cinema. The DC28 Technology Committee is chartered
to “identify key systems and technology issues; develop and recommend an approach
to digital cinema; identify, establish and coordinate necessary working groups to
achieve overall digital cinema objectives; provide standards and recommendations to
ensure interoperability, compatibility, performance and support for future
innovation.” In October of 2001, a number of these groups moved into Working
Group (WG) posture, and, it is felt, are indeed closer to defining and/or
recommending practices that will be used for digital cinema in areas such as
encryption and compression.
While numerous questions have arisen concerning image quality, system interfaces,
storage, and content transport, it appears clear that for digital cinema systems to be
cost effective and easily upgradeable, each of the major components of the system
should be built around clearly defined standards and interfaces that insure
interoperability between different equipment vendors.
Other international standards bodies such as the Digital Video Broadcasting project
(DVB), the International Telecommunications Union (ITU), and the Information
Technology for European Advancement (ITEA) have begun similar investigations.
While acknowledging the importance of these other standards bodies, the MPA is
working closely with the North American Theatre Owners (NATO) association in
digital cinema standardization, and encourages these organizations to harmonize their
efforts with existing SMPTE and MPEG work already underway, so as to avoid
inconsistent standards.
While global standardization is an ideal solution, nothing will prevent distributors or
manufacturers from creating their own digital cinema solutions if the standardization
process proceeds to slowly..
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GLOBAL INTEREST IN DIGITAL CINEMA
The global interest in digital cinema is growing rapidly in both parallel and divergent
directions. In June of 2001, The Swedish Work Group for E-Cinema hosted a special
meeting in which 30 representatives of European film, government, and research
organizations participated. The meeting resulted in the establishment of the
European Digital Cinema Forum (EDCF). The secretariat will be the British
Kinematograph Sound and Television Society (BKSTS), the European equivalent to
SMPTE. A further meeting was held in September, 2001, bringing together the major
western European countries, with representatives from exhibition, distribution, and
manufacturing.
The EDCF, which will function as an umbrella organization for European digital
cinema interests, will investigate standardization and user requirement issues relevant
to digital cinema. Similar efforts have begun in the Far East as well with the
formation of the Japanese Digital Cinema Forum (JDCF).
Sweden’s interest in digital cinema is unique. Led by efforts of the Royal Institute of
Technology’s Advanced Media Technology Laboratory (AMT) in Stockholm,
Sweden is conducting experiments on efficiently moving digital images. Armed with
an extensive fiber infrastructure in the southern part of the country, the AMT is
focusing on “electronic cinema” and high definition formats.
Notice the distinction. The concept of “electronic cinema” is not new, and
involves the projection of live or recorded material onto a theatrical screen.
Utilizing other than digital cinema “grade” projectors, Sweden’s plan is to reopen
previously shuttered neighborhood cinemas and electronically tie “meeting
rooms” together, via fiber, to provide interactive entertainment via lower cost
digital projection. Questions remain such as the concern for quality and as to how
the distributors will deal with theatrical content being played in these types of
cinemas.
In an endeavor to bring together all these interested parties, an International Digital
Cinema Outreach Program was undertaken by the Entertainment Technologies
Center in Los Angeles with the goal of improving the international understanding of
the issues and activities related to the global standardization and implementation of
Digital Cinema around the world. One meeting has already occurred, and it is hoped
that through continued international dialogue, a global International Digital Cinema
Forum will be organized.
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CONTENT PROTECTION – “ IS IT SAFE? ”
The line “Is it Safe” from the movie “Marathon Man” is indeed repeated many times
today by content owners, distributors, and exhibitors alike. Because of the serious
harm associated with the theft of digital content at this early stage of its distribution
life cycle, the digital cinema system must include highly secure, end-to-end,
encryption and conditional access content protection provisions. Content distributed
for digital cinema exhibition is at the most valuable and most vulnerable point in its
commercial life. Theft of content at this stage of its distribution life cycle could have
serious financial impact on content producers and distributors. Because of this, the
MPA and its member companies have been talking to Digital Rights Management
(DRM) and Conditional Access (CA) system companies, and have been participating
in the activities of numerous standards bodies, to assure that the commercial rollout
of digital cinema provides a highly secure, content protection system.
As content owners increasingly invest in and distribute digital content, the protection
of their intellectual property rights (IPR) has become both a litigious issue and a
technological challenge.
We currently live in an environment of nearly indefensible exposure to piracy, which
has left companies scrambling for an effective solution. Since digital media assets can
be duplicated with only negligible degradation and distributed with the touch of a
button via the Internet, the threat of piracy is real.
In order to better understand the strengths and weaknesses of digital encryption, one
must know how it works. Encryption is the modification of data into a form that can
not be read without a secret decryption key. With roots in the military dating back to
Julius Caesar, data can be encrypted by computer programs that make the data
unreadable, except to those who have an electronic “key” to unlock it. It’s presumed
that a theatrical movie may require more than one key to unlock the data.
The MPA could be called upon to play the role of coordinating the relationship with
a global network of trusted “key” management authorities who will be responsible
for the generation and distribution of device certificates and “private keys” for
playback and projection devices used in the encryption and decryption of digital
movie files around the world. The encrypted files could only be decrypted by
“trusted” playback devices that authenticate themselves to a key management server.
This secure Digital Rights Management (DRM) system should also provide for the
creation and communication of secure audit logs of content usage. This would also
include special reporting communications when the conditional access system detects
unusual or unauthorized usage of the content.
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In addition, a properly implemented content protection system for digital cinema
should also include a system of exhibition content watermarking to provide the
MPAA with traceable forensic evidence of the screen, date, and time of showing in
the case of theft.
The Motion Picture Association’s Digital Cinema Working Group is currently
developing a document outlining proposed content protection and conditional access
requirements for digital cinema, in order to facilitate the adoption of efficient
standards by appropriate standards setting bodies..
TECHNOLOGY…ON THE SIDE OF THE PIRATES?
Piracy of the distributor’s valuable content, both in the theatre from an illegal
camcorder recording, as well as from access to the decrypted output of a digital
cinema server, is real. MPAA President and Chief Executive Officer Jack Valenti has
said that “camcording in theaters may very well be the most dangerous adversary
facing the motion picture industry today”.
The Motion Picture Association, which invests over $25 million dollars annually to
combat film piracy, continues to work with research and film laboratories such as
Eastman Kodak, Sarnoff Research, and Cinea, in activities to develop anti-
camcording solutions for both film and electronic projection that can be practically
and economically implemented.
With the movement towards digital cinema, it is likely that electronic methods will be
developed and implemented in the projector to thwart this form of optical piracy.
The digital projector and digital movie data lend themselves to the use of
sophisticated digital encryption and optical scrambling technologies, and provide one
of the compelling reasons to move to this new medium.
THE WORK GOES ON
It’s important that we keep thinking of all that is possible with this exciting digital
cinema technology.
Despite the diverse business models of its member companies, it is expected that
the business and financial issues associated with digital cinema will be worked
through. As previously mentioned, it is still not clear how that expense can be
worked into the current business model.
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Is the “jury still out”? Make no mistake, the transition to the digital electronic
distribution and display of theatrical film content or live material to the theatre has
already begun. It’s a ball that will not stop rolling. It is expected that market force,
competition, and the demand both here and abroad for alternative content will
continue to drive this young industry. There really are no “show-stoppers” here.
There are genuine benefits to stakeholders and theatergoers that in time, will be seen.
As Jerry Pierce has pointed out, the future of digital cinema is “evolution not
revolution”.
Consider the possibilities. A Friday night film opening that combines after-show live
interviews with the cast and directors. An alternative rating presentation targeted at a
more sophisticated audience. A digital cinema film using its data control track to
trigger a wide variety of in-theatre effects in perfect synchronization with the movie.
Audience participation systems that can allow viewers to redirect the digital cinema
server playback of an alternative ending. Indeed, digital cinema has the potential to
change the movie-going experience.
The Motion Picture Association of America firmly encourages the transition to digital
cinema, and will continue to support, participate, and lead efforts to help provide the
“enhanced theatrical experience”, an experience that stands to offer unprecedented
economic opportunities for the entertainment industry.
Comments on this document can be directed to Dave Dawson at the Motion
Picture Association’s Office of Technology by sending e-mail to:
dcinema@mpaa.org.
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GOALS FOR DIGITAL CINEMA
August31,2000
The member companies of the Motion Picture Association believe that the
introduction of digital cinema represents the greatest opportunity for enhancing
the theatrical film experience since the introduction of sound and the advent of
color. The conversion from photographic film distribution and display to an all-
digital system has the potential of providing real benefits to theater audiences,
theater owners, filmmakers, and feature film distributors. But in order for these
benefits to be fully realized, digital cinema must be defined, standardized, and
implemented in a way that ensures that the benefits accrue to all stakeholders.
The MPA member companies have been involved in public demonstrations of
prototype digital cinema systems. We have also held meetings with equipment
manufacturers, service suppliers, theater owners, and the creative community to
better understand the views of others concerning the implementation of digital
cinema. The MPA and its member companies have also participated in the
Society of Motion Picture & Television Engineers (SMPTE) Digital Cinema
DC28 engineering study groups in the preparation of their reports on
considerations in the standardization of digital cinema. Through these activities
and the dialogue with other stakeholders, we have developed a list of ten goals
that we believe are critical to the successful implementation of a digital cinema
system that provides real benefits to all stakeholders. These goals consist of the
following:
1. ENHANCED THEATRICAL EXPERIENCE – The introduction of digital
cinema must be used by the motion picture industry as an opportunity to
significantly enhance the theatrical film experience and thus bring real
benefits to theater audiences.
2. QUALITY – The picture and sound quality of digital cinema should
represent as accurately as possible the creative intent of the filmmaker. To
that end, its quality must exceed the quality of a projected 35mm “answer
print” shown under optimum studio screening theater conditions. Any image
compression that is used should be visually lossless.
3. WORLDWIDE COMPATIBILITY – The system should be based around
global standards so that content can be distributed and played anywhere in
the world as can be done today with a 35mm film print.
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4. OPEN STANDARDS – The components and technologies used should be
based on open standards that foster competition amongst multiple vendors
of equipment and services.
5. INTEROPERABLE – Each of the components of the system should be
built around clearly defined standards and interfaces that insure
interoperability between different equipment.
6. EXTENSIBLE – The hardware used in the system should be easily
upgraded as advances in technology are made. This is especially important in
evolving to higher quality levels.
7. SINGLE INVENTORY – Once a consensus on digital cinema standards is
reached and implemented, upgrades to the system should be designed so that
a single inventory of content can be distributed and compatibly played on all
equipment installations.
8. TRANSPORT – The system should accommodate a variety of secure
content transport mechanisms, including electronic as well as a physical
media delivery.
9. SECURE CONTENT PROTECTION – The system must include a highly
secure, end-to-end, conditional access content protection system, including
digital rights management and content watermarking, because of the serious
harm associated with the theft of digital content at this stage of its
distribution life cycle. Playback devices must use on-line authentication with
the decrypted content files never accessible in the clear.
10. REASONABLE COST – The system standards and mastering format(s)
should be chosen so that the capital equipment and operational costs are
reasonable. All required technology licenses should be available on
reasonable and non-discriminatory terms.
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Location of Digital Cinema Theatres
NORTH AMERICA CANADA
Harkins Arizona Mills 24
5000 Arizona Mills Circle
Tempe, Arizona 85282
Famous Players SilverCity Riverport
14211 Entertainment Way
Richmond, British Columbia V6W1K4
Harkins Arrowhead Cinemas 18
16046 N Arrowhead Fountain Center Drive
Peoria, Arizona 85345
Famous Players Paramount
259 Richmond St. West.
Toronto, Ontario M5V3M6
AMC 1000 Van Ness
1000 Van Ness Avenue
San Francisco, CA 94109
AMC Media Center 6
770 North 1st Street
Burbank, CA 91501
Edwards Irvine Spectrum 21
65 Fortune Drive
Irvine, CA 92718
El Capitan Theatre
6838 Hollywood Boulevard
Los Angeles, CA 90028
AMC Mission Valley 20
1640 Camino Del Rio North
San Diego, CA. 92108
AMC 1000 Van Ness
1000 Van Ness Avenue
San Francisco, CA 94109
EUROPE
Kinepolis Brussels
Eeuwfestlaan 1/Bd. Du Centenaire 1
Belgium 770 North 1st Street
Warner Village, Star City Birmingham
Birmingham, UK B7 5TR
Odeon Leicester Square
London W1
Warner Village, West End
London, UK WC2H 7AL
UCI The Filmworks
6-8 Dantzic Street
Manchester, UK M4 2AD
Gaumont Aquaboulevard
8/16 rue du Colonel Pierre-Avia
15eme Arondissement
75015 Paris
AMC Pleasure Island 24
1500 Buena Vista Drive
Lake Buena Vista, FL 32830-1305
UCI KINOWELT Zoo Palast
Hardenberger Strasse 29a
10623 Berlin, Germany
AMC South Barrington 30
175 Midlands Dive
South Barrington, IL 60010
UCI KINOWELT Dusseldorf
Hammer Strasse 29-31
40219 Dusseldorf, Germany
AMC Studio 30
12075 South Strang Line Road
Olathe, Kansas 66062
Cinedom Koln
Lm Mediapark 1
50670 Koln, Germany
General Cinema Framingham 16
22 Flutie Pass
Framingham, Massachusetts 01701
UCI Cinesa Diagonal
st. Santa Fe de Nuevo Mejico
Barcelona, Spain
MEXICO Kinepolis Ciudad de la Imagen
Cinemex Mundo "E" 28223 – Pozuelo De Alarcon
Centro Comercial Mundo E Madrid, Spain
Blvd Manuel Avila Camacho, No. 1007
San Lucas Tepetlacalco OTHER LOCATIONS
Tlanepantla, Estado de Mexico Hiroshima & Tokyo (2), Japan
54055 MEXICO Seoul, Korea
18

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DigitalCinemaReport_2001

  • 1. A REPORT ON DIGITAL CINEMA
  • 2. Motion Picture Association Office of Technology DigitalCinema 2001 3
  • 3. INTRODUCTION - WHAT IS DIGITAL CINEMA? ’m sure we’ve heard the words “digital cinema” being used quite liberally these days. With the acceleration of recent developments related to the digital presentation of theatrical films, it appeared to be the right time to clarify, from the Motion Picture Association of America’s perspective, what digital cinema is, and what it isn’t. Within the digital space, the words “digital cinema” are quite freely used, and have been for some time. For the purpose of our context and this report, we’ll concentrate on digital cinema activities as it affects our member companies, but also detail what else people refer to in their perspective of “digital cinema”. I Today, virtually anything that can be seen through the camera lens by a filmmaker can be recorded directly on film, video, or can be captured directly to a digital format. The creation of computer-generated imagery, coupled with the digital enhancement and manipulation of both still and motion picture elements, has moved from almost non-existent a decade ago to a commonplace occurrence today. It is now possible for us to electronically capture, compose, animate, and paint on our home personal computers in a fashion similar to what is done today by professional filmmakers. And, desktop random-access digital editing offers greater efficiency with increased creative and decision-making opportunities than have previously been available. With all that is possible within this digital technology space, isn’t this indeed “digital cinema”? In the broadest terms, it is. I would suggest however, that we dedicate the words “digital cinema” to the digital electronic distribution and display of theatrical film content or live material to the theatre. This report is not intended to make its readers experts in digital cinema technology, but to provide an overview of what the technology is all about and what it means to distributors, exhibitors, and theatergoers. THE BIG PICTURE The birth of digital cinema has broad implications for our members in terms of the production, post production, marketing, and distribution, as well as the projection of theatrical films. There is little doubt that the motion picture exhibition world has officially begun its conversion into the digital realm. While some of us may have witnessed the electronic projection of standard definition television images onto a big screen sometime over the last two decades, it has only been within the last year that we have seen the experimental projection of theatrical material in one of our neighborhood theatres. 2
  • 4. These demonstrations have been born not only out of technology, but the business efficiencies of digitally distributing motion pictures around the world. It is generally agreed that in the next 3 to 5 years, we will see an acceleration of the conversion to electronic projection in most of the domestic major market theatre venues. With all this, does film go away? While the technology to support digital cinema projection is rapidly evolving, film as a distribution medium, will not disappear anytime soon. Is there a compelling reason for distributors or exhibitors to jump into the digital delivery of theatrical films? The Motion Picture Association of America’s member companies invest an average of $800 million per year in the domestic distribution of their product to the exhibitors. In the current distribution model, the exhibitor never actually purchases a print, unless it becomes damaged. At the conclusion of its run, the print is returned for recycling or destruction, and in some cases, used for distribution internationally. The associated costs for photographic film distribution alone, provide ample reasons for the industry to move toward the electronic delivery and “playout” of movies, which can be delivered either physically on a series of inexpensive DVD’s, or via satellite. There is a catch, however. It is believed that distributors will not enjoy real financial benefit until the majority of theaters are converted. The MPA member companies believe that the introduction of digital cinema distribution has the potential for providing real benefits to film producers, distributors, theater owners, and theater audiences. THE ENHANCED THEATRICAL EXPERIENCE The Motion Picture Association of America’s Digital Cinema Working Group (DCWG) delivered and published a “Goals for Digital Cinema” document last year that outlined 10 goals that are “critical to the successful implementation of digital cinema”. The first goal is the “Enhanced Theatrical Experience”, the opportunity to “bring real benefits to theater audiences”. While most of us as theatergoers concentrate on the creative intent occurring on the screen, viewers are undoubtedly familiar with the “jitter” or unsteadiness of the film frame as it passes through the projector gate, variations in color, scratches, dirt, and the overall signs of aging of the average theatrical print. Since digital projectors have no mechanical movements, there is no jitter or flicker. There is also no variation in the color and no aging of the print. We see exactly the same high quality, crisp and clean presentation on the last day of the film’s run, as on the first day. 3
  • 5. The MPA’s “Quality” goal goes further to say that the quality “should exceed that of a projected 35mm “answer print” shown under optimum studio screening theater conditions”. While this is a reasonable goal, and one that is quickly becoming a reality, it is not there today. Digital cinema, like other technologies, is evolving and becoming better over time. However, we must realize that today’s technology cannot be dismissed. The quality of presentation seen in the 32 digital cinema equipped theatres is receiving rave reviews from theatre audiences worldwide. WILL DIGITAL BRING PEOPLE TO THE THEATRES? Despite the fact that more people are staying home and being absorbed by their DVD’s, Home Theatres, and other consumer entertainment devices, digital cinema, with its promise of superior image quality, stands to genuinely offer the next revolutionary "effect" in movie theater history. Just as stadium seating brought people back to the theatres and changed the theatres we went to, digital cinema technology with its high-brightness and high-resolution projectors will definitively change theatergoer habits. Despite bankruptcies and theatre closings, the rollout of digital cinema is offering other opportunities. George Lucas and other filmmakers are increasingly taking advantage of digital production and distribution, and there are several serious efforts to create a network of alternative digital cinemas for the screening of theatrical film and live content utilizing existing auditoriums and other large venues. The challenge will be to fully take advantage of the potential of digital cinema to make the movie-going experience a memorable one. HOW DOES DIGITAL CINEMA WORK? Digital cinema was once described in Boxoffice magazine as “moving images photographed and stored in digitized form on tape or some other hard disc, that can be edited electronically and projected with amazing brightness and detail” on the screen. This current technology has been borne out of advancements in the same type of “front screen” electronic projectors that are used in our conference rooms today. In fact the size of today’s digital cinema “grade” projectors, is only slightly larger than the data “grade” projectors that many of us have been so accustomed to using in meetings. 4
  • 6. The Motion Picture Association of America is encouraging of multiple vendors of all technologies. Currently, Texas Instruments (TI) and its Digital Light Processing (DLP) projector technology is utilized in the 32 theatrical venues worldwide. The key to TI’s Digital Light Processing technology is the Digital Micromirror Device (DMD), an optical semiconductor chip with over a million tiny microscopic mirrors that create a high-resolution, full-color image. One of the perceived shortcomings of the current (TI) DLP technology is that the projection is limited to a resolution of 1024 vertical lines by 1280 horizontal “pixels” per line. (A pixel, which is a word invented from “picture element”, is the basic unit of color in a computer image). At the above resolution, this is about 40% fewer pixels than the current high definition television format of 1080 vertical lines by 1920 horizontal pixel If you were to walk into a digital cinema projection booth today, you would see something like this. The electronic projector is mounted in front of a light source. This light source is virtually identical with what is being used for today’s film projection. A computer file server plays out the compressed movie file and feeds the electronic projector and theatre sound system. D i g i t a l M i c r o m i r r o r D e v i c e ( D M D ) L i g h t M o d u l a t o r C h i p T e x a s I n s t r u m e n t s D L P C i n e m a P r o t o t y p e P r o j e c t o r 5
  • 7. Other companies such as JVC, Sony, and Kodak, have shown and continue to develop “chips” built around JVC’s Direct-Image Light Amplifier (D-ILA) technology. Originally developed by Hughes Aircraft for military applications, the D- ILA chips, as they are called today, are now available and being demonstrated in digital cinema projectors with a resolution of 1536 vertical lines by 2048 horizontal pixels, somewhat greater than High Definition TV. In Japan, Nippon Telephone and Telegraph (NTT) is currently undergoing experiments with a Liquid Crystal Display (LCD) projector capable of reproducing images of 3840 x 2048 pixels. And, there is other technology on the horizon, such as laser, that may offer even higher resolution than is currently available today. Technology proponents and equipment manufactures continue their development work to improve the quality of today’s projectors. The Motion Picture Association supports these development efforts with the belief that if digital cinema is to provide real benefit to all stakeholders, it must exceed the quality of HDTV, and eventually exceed the quality of a projected 35mm answer print. WHAT’S IN IT FOR THE EXHIBITORS? While there may be compelling reasons for the content owners and distributors to deploy this technology, the benefits to theater owners are less clear. First, the cost for conversion to digital projection, currently estimated at $150,000 per theatre is expensive in relation to the typical capital budgets of the exhibitor. John Fithian, president of the National Association of Theatre Owners (NATO), has said that ‘’It is highly unlikely that digital cinema will happen if exhibitors are asked to pick up most of the costs.’’ The exhibitors are still “reeling” over their necessary investment in multiple formats of digital sound. Currently, a great number of theatres are equipped with 3 incompatible digital sound formats that exist side-by-side, each requiring separate electronic boxes in the projection booth to process the different audio signals. While most feature films are now distributed with all three digital sound tracks to avoid multiple “inventory”, the financial impact of requiring the exhibitors to install these multiple sound technologies is apparent. To jump start the deployment of digital cinema, equipment manufacturer Qualcomm, and film laboratory Technicolor have announced a joint initiative that would underwrite the conversion of approximately 1,000 U.S. film theaters to electronic projection in exchange for an average of 12.5 cents from each ticket. Boeing, armed with a satellite fleet and a digital cinema delivery service, has also indicated that they are willing to assist with the financing of digital cinema equipment to theatres. 6
  • 8. Some of the major distributors have also discussed an initiative to form a new company (“NewCo”) to finance the deployment of digital cinema equipment. A viable financing plan is a key factor to the successful commercial launch of digital cinema. Digital cinema equipment provides excellent opportunities for exhibitors to maximize the use of their theatre space. Electronic projection will allow the programming of all sorts of alternative entertainment. With satellite receivers and cable in hand, reception of live events such as rock concerts, sporting events, and interactive programming become possible. Some exhibitors such as Richard Segal, CEO of UK’s Odeon Cinemas, have come out strongly in favor of alternative content, believing that digital projection alone will not change box office revenues. Time not currently dedicated to theatrical films, such as the mornings, could also be used for the digital reception of corporate or educational presentations to a large audience. It is believed that when fully implemented, digital cinema will offer savings to theatre owners in scheduling and projection efficiencies. However, exhibitors have expressed concerns about the use of digital rights management and conditional access systems that can ultimately “control the show”. In a secure digital world, technology will permit those who “hold” the digital keys to control the digital data. However, content owners and exhibitors have co-existed by managing a unique business relationship and it is presumed that digital cinema will not greatly change that relationship. THE CREATIVE COMMUNITY It’s been said that one can ask ten motion picture creative professionals to define the impact of “digital cinema”, and you might very well get ten different answers. Not enough can be said about the effect that digital technology, in general, has had on the filmmaker’s ability to recreate his/her artistic vision. While there appears to be general optimism within the creative community about how the new technology is affecting the cinematic art form, cinematographers such as Stephen Poster believes that, out of necessity, we have become a “group of engineers, scientists and artists”. With the introduction of high-definition digital cinematography systems manufactured by Sony and others, and modified by film camera manufacturer Panavision, a new era in moviemaking has begun. George Lucas is currently in production on “Star Wars: Episode II” utilizing this digital technology that Lucasfilm Ltd. and Industrial Light & Magic (ILM) believe is “indistinguishable on the large screen” from film. One would ask the question again: Does film go away? 7
  • 9. The majority of cinematographers polled believe that however advanced digital production technology is today, there are still creative limitations and further developments that must occur. Today, these new digital tools are alternatives. In the digital postproduction equipment areas, a number of significant technology developments have occurred in the last five years including the introduction of high- resolution digital film scanners, image compression technologies, and high-speed networking and data storage. In many cases, these developments have actually given the creative community greater freedom and control, while allowing the creation of higher resolution digital images required for digital cinema In the area of digital projection, the creative community echoes the same comment as the distributors and exhibitors. Make it better! The industry is looking for something MORE than high definition television on the big screen. Continuing advancements will narrow the quality gap between digital projection technologies and a 35mm film print. Thanks to ongoing outreach efforts of the Motion Picture Association member companies and the Digital Cinema Laboratory (DLC) of the University of Southern California’s Entertainment Technologies Center (ETC), there have been several opportunities with the creative community to openly discuss and demonstrate digital projection issues such as visible resolution, color accuracy, and compression-based motion artifacts. The goal is a continued free exchange of information, the creative community’s involvement with industry testing, education, and a common desire to pursue global digital cinema standards. There has been a concerted attempt to engage and educate the creative community in the developments and the standardization of digital cinema. This has primarily involved the American Society of Cinematographers (ASC) and the Directors Guild of America (DGA). In the end, the creative focus is still the same as it always has been. The comment that has been heard is to concentrate on telling the story and utilize the tools that best achieve that end. DIGITAL CINEMA DISTRIBUTION Today, motion picture release prints must be physically delivered to the theatre for projection. Technology hopes to eventually replace this form of media distribution with sophisticated electronic delivery via fiber optics, satellite, or virtual private networks (VPN). Demonstrations have proven the viability of all of these methods. 8
  • 10. The first step of the Post Production process is the creation of a Digital Cinema Distribution Master (DCDM). This digital master is then encrypted prior to the generation of digital data files onto DVD data disks. These compressed and encrypted data disks, containing “parts” of the movie, are shipped to the theatres, where the files are transferred to a computer server and assembled for eventual playout. Companies such as QuVis, Grass Valley, Avica, and EVS are currently on the forefront of digital cinema server technology. In the future, theatrical features will be “finished” by scanning a film inter-positive (IP) to a very high quality Digital Source Master (DSM). This DSM is simply data, stored on media, and archived to a tape or similar data source. From the DSM, digital cinema delivery masters can be made, as well as formats for home video and broadcast markets. Film prints will be made by taking the original DSM and making a “digital intermediate”, from which film release prints will be made and distributed to theatres that still require it. For digital cinema distribution to be cost effective, there must be electronic delivery methods employed that will securely and efficiently move the feature to the theatre. Experiments have been conducted by companies like Boeing, the world’s leading manufacturer of commercial communication satellites. Boeing has introduced an end-to-end content delivery and control system that utilizes satellites to transmit digital cinema content. 9
  • 11. While physical media will likely continue as the distribution mechanism for most digital cinema theaters for some time, Bob Lambert, the Senior VP of New Technology and New Media at Disney pointed out that “wireline and satellite delivery are likely to compete as practical transport methods” in the future. At some point, most theatres will likely have small satellite dishes to receive their movies, which will be stored on servers, and played back on cue. Think DirectTV or the Dish Network, with a TIVO or similar unit as a comparison. However, unlike the satellite content that we may receive at home, the time required to currently transmit a digital cinema feature can be many hours. And, the storage of that feature currently consumes many gigabytes of information. In addition, there will be theatres that are unable to receive satellite reception, and must depend on a fiber optic cable or broadband connection. Companies that have shown proof-of-concept demonstrations in this area are Williams Communications/ Vyvx, Qwest, and Global Crossing, to name a few. There is no doubt that there is work to do here. However, as previously mentioned, there have been experiments conducted that have proved the viability of all of these delivery methods. Eventually, technology will permit a completely automated electronic delivery of digital films to theatres. GLOBAL STANDARDIZATION EFFORTS The Motion Picture Association of America and representatives of its members companies have been taking leadership roles in participating in digital cinema standardization efforts. It is widely believed that a digital cinema system should be based around global standards that will be voluntarily embraced around the world, so that theatrical content can be reliably distributed and played anywhere in the world, as can be done today with 35mm film. Jerry Pierce, the Senior Vice President of Technology, at Universal Studios is an advocate for standardization of digital cinema distribution, but points out that “we are not there yet, the roads haven’t been built.” The MPA has been actively participating in organizations such as the Society of Motion Picture and Television Engineers (SMPTE) and the Moving Picture Experts Group (MPEG). Both these organizations have been addressing distributor and exhibitor requirements that will be the basis for writing standards that will foster competition amongst multiple vendors. These two organizations have the experience, capabilities, broad cross-industry support, and already established activities to lead to the development and documentation of international standards for digital cinema. 10
  • 12. SMPTE’s Digital Cinema Technology Committee (DC28), which first met on January 19th , 2000,was formed for the specific purpose of addressing standards for digital cinema, and has been providing a valuable forum for industry discussions on technical requirements. DC28 was initially divided into seven study groups whose scopes match their area of technical investigation: • Mastering • Compression • Conditional Access • Transport and Delivery • Audio • Theatre Systems • Projection. The purpose of these groups was to uncover and discuss the many issues that face the full deployment of digital cinema. The DC28 Technology Committee is chartered to “identify key systems and technology issues; develop and recommend an approach to digital cinema; identify, establish and coordinate necessary working groups to achieve overall digital cinema objectives; provide standards and recommendations to ensure interoperability, compatibility, performance and support for future innovation.” In October of 2001, a number of these groups moved into Working Group (WG) posture, and, it is felt, are indeed closer to defining and/or recommending practices that will be used for digital cinema in areas such as encryption and compression. While numerous questions have arisen concerning image quality, system interfaces, storage, and content transport, it appears clear that for digital cinema systems to be cost effective and easily upgradeable, each of the major components of the system should be built around clearly defined standards and interfaces that insure interoperability between different equipment vendors. Other international standards bodies such as the Digital Video Broadcasting project (DVB), the International Telecommunications Union (ITU), and the Information Technology for European Advancement (ITEA) have begun similar investigations. While acknowledging the importance of these other standards bodies, the MPA is working closely with the North American Theatre Owners (NATO) association in digital cinema standardization, and encourages these organizations to harmonize their efforts with existing SMPTE and MPEG work already underway, so as to avoid inconsistent standards. While global standardization is an ideal solution, nothing will prevent distributors or manufacturers from creating their own digital cinema solutions if the standardization process proceeds to slowly.. 11
  • 13. GLOBAL INTEREST IN DIGITAL CINEMA The global interest in digital cinema is growing rapidly in both parallel and divergent directions. In June of 2001, The Swedish Work Group for E-Cinema hosted a special meeting in which 30 representatives of European film, government, and research organizations participated. The meeting resulted in the establishment of the European Digital Cinema Forum (EDCF). The secretariat will be the British Kinematograph Sound and Television Society (BKSTS), the European equivalent to SMPTE. A further meeting was held in September, 2001, bringing together the major western European countries, with representatives from exhibition, distribution, and manufacturing. The EDCF, which will function as an umbrella organization for European digital cinema interests, will investigate standardization and user requirement issues relevant to digital cinema. Similar efforts have begun in the Far East as well with the formation of the Japanese Digital Cinema Forum (JDCF). Sweden’s interest in digital cinema is unique. Led by efforts of the Royal Institute of Technology’s Advanced Media Technology Laboratory (AMT) in Stockholm, Sweden is conducting experiments on efficiently moving digital images. Armed with an extensive fiber infrastructure in the southern part of the country, the AMT is focusing on “electronic cinema” and high definition formats. Notice the distinction. The concept of “electronic cinema” is not new, and involves the projection of live or recorded material onto a theatrical screen. Utilizing other than digital cinema “grade” projectors, Sweden’s plan is to reopen previously shuttered neighborhood cinemas and electronically tie “meeting rooms” together, via fiber, to provide interactive entertainment via lower cost digital projection. Questions remain such as the concern for quality and as to how the distributors will deal with theatrical content being played in these types of cinemas. In an endeavor to bring together all these interested parties, an International Digital Cinema Outreach Program was undertaken by the Entertainment Technologies Center in Los Angeles with the goal of improving the international understanding of the issues and activities related to the global standardization and implementation of Digital Cinema around the world. One meeting has already occurred, and it is hoped that through continued international dialogue, a global International Digital Cinema Forum will be organized. 12
  • 14. CONTENT PROTECTION – “ IS IT SAFE? ” The line “Is it Safe” from the movie “Marathon Man” is indeed repeated many times today by content owners, distributors, and exhibitors alike. Because of the serious harm associated with the theft of digital content at this early stage of its distribution life cycle, the digital cinema system must include highly secure, end-to-end, encryption and conditional access content protection provisions. Content distributed for digital cinema exhibition is at the most valuable and most vulnerable point in its commercial life. Theft of content at this stage of its distribution life cycle could have serious financial impact on content producers and distributors. Because of this, the MPA and its member companies have been talking to Digital Rights Management (DRM) and Conditional Access (CA) system companies, and have been participating in the activities of numerous standards bodies, to assure that the commercial rollout of digital cinema provides a highly secure, content protection system. As content owners increasingly invest in and distribute digital content, the protection of their intellectual property rights (IPR) has become both a litigious issue and a technological challenge. We currently live in an environment of nearly indefensible exposure to piracy, which has left companies scrambling for an effective solution. Since digital media assets can be duplicated with only negligible degradation and distributed with the touch of a button via the Internet, the threat of piracy is real. In order to better understand the strengths and weaknesses of digital encryption, one must know how it works. Encryption is the modification of data into a form that can not be read without a secret decryption key. With roots in the military dating back to Julius Caesar, data can be encrypted by computer programs that make the data unreadable, except to those who have an electronic “key” to unlock it. It’s presumed that a theatrical movie may require more than one key to unlock the data. The MPA could be called upon to play the role of coordinating the relationship with a global network of trusted “key” management authorities who will be responsible for the generation and distribution of device certificates and “private keys” for playback and projection devices used in the encryption and decryption of digital movie files around the world. The encrypted files could only be decrypted by “trusted” playback devices that authenticate themselves to a key management server. This secure Digital Rights Management (DRM) system should also provide for the creation and communication of secure audit logs of content usage. This would also include special reporting communications when the conditional access system detects unusual or unauthorized usage of the content. 13
  • 15. In addition, a properly implemented content protection system for digital cinema should also include a system of exhibition content watermarking to provide the MPAA with traceable forensic evidence of the screen, date, and time of showing in the case of theft. The Motion Picture Association’s Digital Cinema Working Group is currently developing a document outlining proposed content protection and conditional access requirements for digital cinema, in order to facilitate the adoption of efficient standards by appropriate standards setting bodies.. TECHNOLOGY…ON THE SIDE OF THE PIRATES? Piracy of the distributor’s valuable content, both in the theatre from an illegal camcorder recording, as well as from access to the decrypted output of a digital cinema server, is real. MPAA President and Chief Executive Officer Jack Valenti has said that “camcording in theaters may very well be the most dangerous adversary facing the motion picture industry today”. The Motion Picture Association, which invests over $25 million dollars annually to combat film piracy, continues to work with research and film laboratories such as Eastman Kodak, Sarnoff Research, and Cinea, in activities to develop anti- camcording solutions for both film and electronic projection that can be practically and economically implemented. With the movement towards digital cinema, it is likely that electronic methods will be developed and implemented in the projector to thwart this form of optical piracy. The digital projector and digital movie data lend themselves to the use of sophisticated digital encryption and optical scrambling technologies, and provide one of the compelling reasons to move to this new medium. THE WORK GOES ON It’s important that we keep thinking of all that is possible with this exciting digital cinema technology. Despite the diverse business models of its member companies, it is expected that the business and financial issues associated with digital cinema will be worked through. As previously mentioned, it is still not clear how that expense can be worked into the current business model. 14
  • 16. Is the “jury still out”? Make no mistake, the transition to the digital electronic distribution and display of theatrical film content or live material to the theatre has already begun. It’s a ball that will not stop rolling. It is expected that market force, competition, and the demand both here and abroad for alternative content will continue to drive this young industry. There really are no “show-stoppers” here. There are genuine benefits to stakeholders and theatergoers that in time, will be seen. As Jerry Pierce has pointed out, the future of digital cinema is “evolution not revolution”. Consider the possibilities. A Friday night film opening that combines after-show live interviews with the cast and directors. An alternative rating presentation targeted at a more sophisticated audience. A digital cinema film using its data control track to trigger a wide variety of in-theatre effects in perfect synchronization with the movie. Audience participation systems that can allow viewers to redirect the digital cinema server playback of an alternative ending. Indeed, digital cinema has the potential to change the movie-going experience. The Motion Picture Association of America firmly encourages the transition to digital cinema, and will continue to support, participate, and lead efforts to help provide the “enhanced theatrical experience”, an experience that stands to offer unprecedented economic opportunities for the entertainment industry. Comments on this document can be directed to Dave Dawson at the Motion Picture Association’s Office of Technology by sending e-mail to: dcinema@mpaa.org. 15
  • 17. GOALS FOR DIGITAL CINEMA August31,2000 The member companies of the Motion Picture Association believe that the introduction of digital cinema represents the greatest opportunity for enhancing the theatrical film experience since the introduction of sound and the advent of color. The conversion from photographic film distribution and display to an all- digital system has the potential of providing real benefits to theater audiences, theater owners, filmmakers, and feature film distributors. But in order for these benefits to be fully realized, digital cinema must be defined, standardized, and implemented in a way that ensures that the benefits accrue to all stakeholders. The MPA member companies have been involved in public demonstrations of prototype digital cinema systems. We have also held meetings with equipment manufacturers, service suppliers, theater owners, and the creative community to better understand the views of others concerning the implementation of digital cinema. The MPA and its member companies have also participated in the Society of Motion Picture & Television Engineers (SMPTE) Digital Cinema DC28 engineering study groups in the preparation of their reports on considerations in the standardization of digital cinema. Through these activities and the dialogue with other stakeholders, we have developed a list of ten goals that we believe are critical to the successful implementation of a digital cinema system that provides real benefits to all stakeholders. These goals consist of the following: 1. ENHANCED THEATRICAL EXPERIENCE – The introduction of digital cinema must be used by the motion picture industry as an opportunity to significantly enhance the theatrical film experience and thus bring real benefits to theater audiences. 2. QUALITY – The picture and sound quality of digital cinema should represent as accurately as possible the creative intent of the filmmaker. To that end, its quality must exceed the quality of a projected 35mm “answer print” shown under optimum studio screening theater conditions. Any image compression that is used should be visually lossless. 3. WORLDWIDE COMPATIBILITY – The system should be based around global standards so that content can be distributed and played anywhere in the world as can be done today with a 35mm film print. 16
  • 18. 4. OPEN STANDARDS – The components and technologies used should be based on open standards that foster competition amongst multiple vendors of equipment and services. 5. INTEROPERABLE – Each of the components of the system should be built around clearly defined standards and interfaces that insure interoperability between different equipment. 6. EXTENSIBLE – The hardware used in the system should be easily upgraded as advances in technology are made. This is especially important in evolving to higher quality levels. 7. SINGLE INVENTORY – Once a consensus on digital cinema standards is reached and implemented, upgrades to the system should be designed so that a single inventory of content can be distributed and compatibly played on all equipment installations. 8. TRANSPORT – The system should accommodate a variety of secure content transport mechanisms, including electronic as well as a physical media delivery. 9. SECURE CONTENT PROTECTION – The system must include a highly secure, end-to-end, conditional access content protection system, including digital rights management and content watermarking, because of the serious harm associated with the theft of digital content at this stage of its distribution life cycle. Playback devices must use on-line authentication with the decrypted content files never accessible in the clear. 10. REASONABLE COST – The system standards and mastering format(s) should be chosen so that the capital equipment and operational costs are reasonable. All required technology licenses should be available on reasonable and non-discriminatory terms. 17
  • 19. Location of Digital Cinema Theatres NORTH AMERICA CANADA Harkins Arizona Mills 24 5000 Arizona Mills Circle Tempe, Arizona 85282 Famous Players SilverCity Riverport 14211 Entertainment Way Richmond, British Columbia V6W1K4 Harkins Arrowhead Cinemas 18 16046 N Arrowhead Fountain Center Drive Peoria, Arizona 85345 Famous Players Paramount 259 Richmond St. West. Toronto, Ontario M5V3M6 AMC 1000 Van Ness 1000 Van Ness Avenue San Francisco, CA 94109 AMC Media Center 6 770 North 1st Street Burbank, CA 91501 Edwards Irvine Spectrum 21 65 Fortune Drive Irvine, CA 92718 El Capitan Theatre 6838 Hollywood Boulevard Los Angeles, CA 90028 AMC Mission Valley 20 1640 Camino Del Rio North San Diego, CA. 92108 AMC 1000 Van Ness 1000 Van Ness Avenue San Francisco, CA 94109 EUROPE Kinepolis Brussels Eeuwfestlaan 1/Bd. Du Centenaire 1 Belgium 770 North 1st Street Warner Village, Star City Birmingham Birmingham, UK B7 5TR Odeon Leicester Square London W1 Warner Village, West End London, UK WC2H 7AL UCI The Filmworks 6-8 Dantzic Street Manchester, UK M4 2AD Gaumont Aquaboulevard 8/16 rue du Colonel Pierre-Avia 15eme Arondissement 75015 Paris AMC Pleasure Island 24 1500 Buena Vista Drive Lake Buena Vista, FL 32830-1305 UCI KINOWELT Zoo Palast Hardenberger Strasse 29a 10623 Berlin, Germany AMC South Barrington 30 175 Midlands Dive South Barrington, IL 60010 UCI KINOWELT Dusseldorf Hammer Strasse 29-31 40219 Dusseldorf, Germany AMC Studio 30 12075 South Strang Line Road Olathe, Kansas 66062 Cinedom Koln Lm Mediapark 1 50670 Koln, Germany General Cinema Framingham 16 22 Flutie Pass Framingham, Massachusetts 01701 UCI Cinesa Diagonal st. Santa Fe de Nuevo Mejico Barcelona, Spain MEXICO Kinepolis Ciudad de la Imagen Cinemex Mundo "E" 28223 – Pozuelo De Alarcon Centro Comercial Mundo E Madrid, Spain Blvd Manuel Avila Camacho, No. 1007 San Lucas Tepetlacalco OTHER LOCATIONS Tlanepantla, Estado de Mexico Hiroshima & Tokyo (2), Japan 54055 MEXICO Seoul, Korea 18