DALLAS - Digital projectors
should soon replace film on more than 20,000 of North
America’s 42,000 movie screens.
The change will save studios millions, let theaters
show three-dimensional films and boost sales for digital
cinema champions such as Texas Instruments Inc.
‘‘This is the biggest technological change in the
theater business since the introduction of sound,’’
said John Fithian, president of the National Association
of Theater Owners.
Viewers won’t notice much difference when they see
regular movies, but early signs suggest they’ll love
the 3-D.
The handful of recent movies shown in 2-D and 3-D did
anywhere from two to four times as much business per
screen in 3-D - even though limited 3-D seating meant
some moviegoers were turned away.
Viewers will score tickets more easily as digital
projectors proliferate, and they’ll find plenty of
shows to watch.
Studios plan to release two more 3-D films this year
- the cartoons ‘‘Bolt’’ and ‘‘The Nightmare
Before Christmas’’ - and 14 more in 2009.
Even viewers who dislike 3-D may benefit from digital
projection, for it will bring increased variety to
theaters.
The only way to get film to a projector is to print
it, package it, ship it and then thread it into the
machine.
Special one-time showings - and even limited runs -
cannot justify the time and cost.
Digital movies, on the other hand, move almost as
quickly and as cheaply as the videos on YouTube. The
digital format practically demands special showings.
It also invites live event coverage.
Theaters have already drawn crowds with musical
events that range from rock concerts to operas. The NBA’s
Dallas Mavericks even beamed one of their games, shot in
3-D, to a local movie theater.
As more theaters get digital projectors, expect far
more experiments.
‘‘While it’s not unusual for movies to be
produced in 3-D, there is a market for other types of
3-D entertainment that is ready to take off,’’ said
Mavericks owner Mark Cuban.
The Mavs broadcast ‘‘was a huge success,’’ he
said. ‘‘Fans loved it, 3-D glasses and all, and have
asked for more. We have seen the same demand for other
types of content as well.’’
Texas Instruments, which makes the digital light
processing chips that power 99 percent of the digital
projectors in theaters, has been promoting its
technology for a decade, but a variety of obstacles
delayed the transition.
Even with volume discounts, a complete digital
projection system costs $70,000 per screen. At that
rate, total transition will exceed $7 billion worldwide.
Theater owners have long claimed that those costs
dwarf the financial benefits to them.
Studios, on the other hand, stand to profit from the
digital transition.
They pay about $1,000 to print and handle a single
copy of a movie. Worldwide industry film costs probably
top $1 billion per year.
The studios have thus agreed to help finance digital
projectors by paying a ‘‘digital print fee’’
equal to the cost of a film print whenever it sends a
digital, rather than film, copy of a movie to a theater.
Theaters that borrow money to go digital get heavy
subsidies to pay off their loans. Other theaters
continue with business as usual.
‘‘This model makes sense for everyone. Studios,
theaters and viewers all win,’’ said Travis Reid,
chief executive of Digital Cinema Implementation
Partners, a consortium formed to negotiate with studios
for the three largest U.S. chains, AMC, Regal and
Cinemark.
For Texas Instruments, the digital transition
vindicates an ambitious dream and a lot of work.
The relatively small number of movie screens will
limit the direct financial benefit to TI, even if the
company’s DLP chips end up in every auditorium in the
world.
But the indirect impact will be far larger.
‘‘The work we’ve done for theaters has improved
the quality of the products we can offer to consumers
and businesses,’’ said Doug Darrow, TI’s brand and
marketing manager of DLP products. ‘‘This is a boost
for our entire DLP division.’’