Our Work in Digital Cinema
MKPE has been active in digital cinema since the 90's. During that time,
we have consulted clients in establishing and guiding world class operations.
At times, we have the opportunity to play a significant role in moving the
digital cinema industry forward. Below is a summary of our public efforts.
- VPF Agreements for Ireland and UK
To encourage the transition from film to digital projection, US motion picture
studios offer financial assistance to cinema owners in the form of a "virtual
print fee," or VPF. The establishment of digital cinema deployment entities
to manage such financial assistance is encouraged worldwide. MKPE consults
clients in establishing such entities, including the negotiation of VPF agreements
with the US major movie studios. Our first public announcement in this area
was with Digital Finance Limited of Ireland, who announced in October 2009
the signing of digital cinema deployment agreements with Disney, Fox,
Paramount, and Universal.
- Accessibility for the Disabled
To meet the needs of people with visual and auditory impairments,
special capabilities must be built into both the distribution format
and the playback equipment itself. With film systems, a major drawback
has been that the film technologies that enable such capabilities
are proprietary and royalty-based. The industry needed to do better with digital cinema.
In late 2006, with support from the National Association of Theatre Owners,
Michael Karagosian initiated and chaired the first ever effort
within the cinema industry for developing closed caption standards.
Unlike the closed captions of television, closed captions in
cinema allow specially equipped patrons to view captions without
impacting the movie-going experience of others. Michael
also drove the inclusion of accessible audio tracks in standards.
With open, royalty-free standards in place for accessibility in digital cinema,
competitive audience delivery technologies can now be brought to market. This
will bring choice to cinema owners and wider support for disabilities to audiences.
- The Dawn of Digital 3-D Projection
In late 2004, Peter Jackson, while working with In-Three, expressed the
need to educate the exhibiton industry on the value of digital 3-D projection.
In-Three turned to MKPE. We conceived and initiated
the world's first
public presentation of 3-D for ShoWest 2005.
Supported by five major film directors, the demonstration was a huge success,
convincing a skeptical audience of cinema owners that 3-D was
the missing added value for digital projection. Inspired by the demonstration, Paul Holliman of Disney
encouraged his company to pursue digital 3-D projection for the movie Chicken Little, released
in the Fall of 2005. The dawn of digital 3-D projection arrived.
- NATO's Digital Cinema System Requirements
With the DCI specification limited only to those areas that affect
distribution, quality, and security, guidelines for how to address
significant operational issues were needed. Michael Karagosian organized
and led a panel of experts within the exhibition industry to address this
need. The result is NATO's Digital Cinema System Requirements, which can
be downloaded at the NATO web site.
- Automated Security Key Delivery
Security keys are married to equipment. Equipment moves, or new
equipment could be installed, and a means
was needed to synchronize security key fulfillment centers. Michael
Karagosian first proposed the Facility List Message concept to studios
in early 2005, later writing the standard in the industry's first step
toward automating security key delivery.
- Digital Cinema Packaging
The motion picture industry required a flexible distribution format
unlike any distribution format before it. Recognizing the need,
Michael Karagosian assembled the first
meeting of select industry experts in December of 2001 to determine
the best path forward. This became the first meeting of what was to
become the SMPTE DC28 Packaging Ad Hoc Group. 90% of the distribution
format now standardized was conceived in that first meeting in December.
As chairperson of the effort, Michael gave the first industry
presentation on digital cinema packaging at the NAB Digital Cinema Summit in 2002, and his
written work in SMPTE became the basis of the Packaging chapter
in the first draft of the DCI specification. Today, Michael chairs
the SMPTE 21DC-30WG Working Group for Digital Cinema Exhibition.
- "The Chasm"
In 2006, amid rosy reports that digital cinema penetration was
growing, Michael Karagosian warned that the reports
of unbounded growth were misleading, and that the industry was
heading into a chasm.
(A chasm results when the technology is not ready for major market adoption.
This can be caused by any number of factors.)
The signs were obvious: the sales rate was well-behind the installation rate.
While MKPE's clients were prepared, much of the industry ignored the warning
and was surprised when installations came to a halt in 2007.
- ETC Digital Cinema Lab
As COO of USC's Entertainment Technology Center, Thomas MacCalla
conceived the idea of the ETC Digital Cinema Lab, and convinced the
then seven major film studios to fund it. Thomas led the ETC DCL in
its early years.
- Pacific Bell in the Mid-90's
Based on industry interest in electronic projection and the potential
to leverage the company's distribution capability, Thomas MacCalla,
as Pacific Bell's Director of Entertainment Technology, led their
exploration into digital cinema. After some
experimentation, the effort was abandoned when it was felt that
the projection technology would not be ready in a reasonable time frame.
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