Instead of using traditional 35mm film reels, digital cinema stores data digitally and it is sent via satellite, DVD or cable to cinemas who use special high definition electronic projectors.
The new method could mean savings of over 90% in film print production and distribution, an industry currently worth almost $5bn a year globally, and fierce competition between rival technology providers.
Advertising opportunities will be greatly increased as advertisers will have the opportunity to tailor high quality campaigns to local audiences. Screen Digest also forecasts the emergence of ‘e-cinema’ screens showing more live sports than films although the new technology is likely to cause a rift between the US, European and Asian film industries, each of whom will want to exploit different benefits to e-cinema.
Patrick von Sychowski of Screen Digest comments: “Electronic cinema is an entirely new medium and as yet the industry hasn’t had the opportunity to grasp its full impact. Pioneering demonstrations such as Toy Story 2 notwithstanding, the current deadlock over how to share the huge costs, savings and new revenue opportunities fairly has not been resolved yet. We do expect new players, ‘third party middlemen’, to emerge, working with distributors and exhibitors to provide finance and generate new revenue streams, primarily from advertising, big screen sports, games, concerts and corporate use.”
Currently cinema advertising accounts for only around 2% of all display advertising in Europe. Screen Digest forecasts that the introduction of digital technology could increase its value by as much as E250m annually.
