Film vs. Digital Exhibition: A Kodak Perspective

The Established Value of Film Cinema

In any industry, any technology must be evaluated in terms of total performance. It should be viewed from creative, financial, operational, and technical perspectives; emphasizing any one aspect is misleading and unfair. Considered in its entirety, the film projection system is a remarkable one.

Start with the projector itself. For about $25,000 (US), this simple device has impressive capability - it grabs a tiny chip of film, pulls it into position, opens and closes a shutter and opens it again, projecting a sharp, bright, and uniform image on a screen 40 feet (or more) wide and 40 feet away by enlarging that tiny film image more than 1000 times.

It does that 48 times (twice for each frame) a second - 432,000 times for one showing of an average-length movie -- and it does it so reliably that, with normal maintenance, a film projector can last twenty or thirty years or more - in daily use.

Film has unique qualities no other medium has. For cinema audiences, what's important is this: film "sees" the same way the human eye does - with a random grain structure that emulates the randomly scattered rods in our retinas. So the images it displays on the screen have a 'magical' quality that audiences associate with entertainment because film can covey an endless range of creative possibilities.

Film is rugged and reliable, with color and uniformity that's better than ever. And it offers good value for everyone. A typical movie print costs the studio less than $1200 and is shown 300 times. That means the print cost is about $8 per showing - so the first two people purchasing a ticket more than pay for the cost of the movie print.

And with reasonable care, a film print can be shown thousands of times with 'like new' quality. The record for 'print longevity' may belong to movie prints Disney returned to Kodak from their use at EPCOT center. Some of those prints had been shown as many as 60,000 times and most were in excellent condition.

The process to handle film prints is highly-reliable. Labs are well equipped, worldwide, to produce prints in high quantities and to an exacting and ever-changing schedule. Film distribution companies are well-established. At the cinema, the cases with print reels arrive, the prints are made up, loaded onto platters, and projected with seldom a problem.

Bookings and film rent are negotiated, and when the film projector is used for other purposes - screen rent or pre-show advertising, for example - there are no usage fees or other charges to pay. It's clear to all who owns what; there are no surprises.

The whole infrastructure to support film distribution is in place, proven reliable, and effective. The system works.

And the world is really still under-screened. There are approximately 80,000 first-run movie screens worldwide. The US has one screen for every 8,000 people. Europe has one for every 25,000 people; in Asia Pacific, it's one for 46,000; in Latin America, the ratio is one for 70,000; in the Middle East/Africa, it's one for 149,000.

So, there is plenty of opportunity, internationally.

Evaluated in its entirety, the film cinema offers unique entertainment, reliably, with a business model that makes sense to everyone involved. It's no wonder that digital cinema is finding a tough challenge providing an alternative; film standards are high - and at Kodak, we are pushing them higher still.

The film industry is healthy and we are doing our part and more to help it remain so for some time to come.

The Evolving Value of Digital Cinema

Every new technology starts out by emulating the one it intends to replace. Early movies looked a lot like vaudeville on film. Early television was little more than radio with pictures. And early digital cinema has simply replicated the analog system.

To date, much of the emphasis has been focused on the technology - and for good reason. Without worldwide standards that work for everyone, digital will work for no one. But now technical specifications are largely decided. Now, exhibitors and studios are beginning to recognize that digital can also make creative, operational, and business sense - and are challenging it to do so.

From that challenge, digital cinema is beginning to discover its own unique capabilities - beyond analog, beyond the obvious fact that, because there is no wear and tear on physical media, presentations can be more consistent, over time.

In a digital world, systems can be connected - networked - to communicate with one another. When they are, workflow can be changed in ways that make cinema operations more efficient, content handling more automated, and the whole cinema presentation more seamless.

The benefits of that connectivity began with networked systems in the digital pre-show world. Playlists and programs were prepared remotely and delivered - with associated 'business rules'. When the digital network was connected to the point of sale (ticketing) system, content arrived, staged correctly, stored, played, moved (if necessary) and 'reported' -- all automatically.

Kodak introduced those benefits; they are more widespread today. Electronic affidavits of play provide a record of what was shown, on what screen, at what time, in what order. And the system is remotely monitored -- and potential problems diagnosed and often repaired - all over the network.

Now Kodak is bringing that same connectivity to digital cinema installations that are, too often, largely stand-alone systems. As the Kodak Theatre Management System is installed, those systems will be networked throughout the complex and the benefits of digital cinema will become clear to those who manage and operate cinemas.

The first Kodak Theatre Management Systems are being introduced into cinemas. Early version of the software handle automatic loading and migration of the keys, but the system will evolve rapidly to handle all content receipt, movement, staging and playback - as directed by the complex's ticketing / POS system.

In a digital world, the 'prints' arrive already 'assembled', with trailers attached and others stored in the server; programming for all show content can be handled at the screen, centrally in the complex, or (increasingly) remotely over a network. A different mix of trailers, for example, can play during the day than plays in the evening - or on different screens showing the same movie.

With the high storage capacities available - a content player at each screen can store 3 to 4 movies in digital form, the TMS can store 10 - 12 more, Networked Attached Storage (in use in larger multiplexes) can handle several dozen. The result is - the exhibitor has more programming flexibility, including the ability to schedule and play several movies - as well as other content - on the same screen.

In the future, with the Theatre Management System in place, content will move more automatically from central server to the players on each screen, workflow can be smoother, operations can be more efficient. Most studios are making most features available in digital prints -- and smaller distributors are following suit. Alternative content is increasing in diversity and quantity. Digital 3D is proving to be an exciting and unique new form of cinema entertainment.

At the same time, exhibitors are gaining confidence in the quality, reliability, and flexibility of the digital cinema systems.

Business models are also being worked out. The connectivity that digital offers - with ticketing, automation, and audio in the booth - and other screens in the lobby or concession areas - is leading to new ideas, new sources of profit in the multiplex, more complete and expanded forms of entertainment.

Digital is liberating technology - it's easier to do things that increase theatre occupancy without increasing labor. Studio feature movies will remain the centerpiece of the multiplex, but a greater variety of entertainment can be scheduled - at different times of day or different days of the week - on the same screen, all with the click of a mouse.

All of this will evolve. And, as in every evolution, what changes will be important - but equally important will be what stays the same. The business will not change overnight; even as it does, long-term relationships will be important, partnerships among companies with the depth and capabilities to complement each other, while sharing the same vision.

A hundred years ago, Kodak assured customers that if they would simply 'press the button', we would 'do the rest'. We intend to offer that same level of simplicity and trust in digital cinema -- today and for the long term.