Onscreen Advertising Distributor Eyes Features
National CineMedia
To Develop Big-D Plan
 DENVER — National CineMedia (NCM), a leading distributor of sound-and-motion on-screen cinema advertising, announced Dec. 15 that it had reached an agreement with each of its three founding partners — AMC Entertainment, Cinemark USA and Regal Entertainment Group – to “work on the development of a digital cinema business plan.”

The plan is expected to be similar to plans being implemented by Technicolor Digital Cinema and Christie AIX, according to a Dec. 15 report in the Hollywood Reporter entertainment trade daily. Participating distributors, says the periodical, will likely be expected to pay “virtual print fees” to have their releases projected on newly installed “big-d” digital projectors.

NCM currently uses less-expensive “little-d” projectors for most of its advertising.

Chief exec Kurt Hall said NCM’s big-d plan will be open to all exhibitors. “NCM’s primary objective is to work with manufacturers to reduce the cost of digital cinema equipment through efficient volume purchasing for NCM’s partners’ 13,000 screens and other participating exhibitor screens,” Hall said via a Dec. 15 press release. “NCM will also seek to develop an efficient financing structure for the purchase of the digital cinema equipment that will be open to all capital sources and that will provide a transparent cost effective arrangement for exhibitors, distribution partners, capital providers and all other key constituents. 

“Once the financing model and equipment volume pricing has been established, our founding partners and other exhibitors who participate will have ultimate responsibility for deployment of digital cinema systems.

"NCM is uniquely qualified to assist with the industry transition to digital cinema.  NCM has successfully designed, deployed and operated its national Digital Content Network (DCN) for several years and has significant experience distributing its advertising pre shows and various forms of live and pre recorded digital content, including sporting events, concerts and independent films. With the DCN growing to over 11,000 screens in 2006, it will provide an excellent platform that can be upgraded to the Digital Cinema Initiatives (DCI) specifications with the higher quality digital cinema equipment now available.”

Once installation of its DCN technology is completed in Cinemark’s facilities, National CineMedia’s network is expected to comprise approximately 11,000 digital theatre screens in 150 North American markets, including 49 of the top 50.

New Cinema Buying Group Managing Director
Anderson To Lead
Indies Into Digital Era
SUSSEX, Wis. – Longtime R/C Theatres CEO J. Wayne Anderson has been elected managing director of the Cinema Buying Group, L.L.C. (CBG) by the CBG managers.  The managers also elected new officers for the buying group: president, Byron Berkeley; treasurer, Bill Campbell; secretary, Robynn Gabel.

The move comes as CBG is organizing a program designed to help independent exhibitors equip their facilities with digital cinema equipment.

“We’re delighted to have an industry veteran of Wayne Anderson’s expertise, credibility and integrity help lead independent theatres into the digital era,” said Berkeley, also a CBG manager.

CBG was established in November 2003 as an independent, non-profit purchasing co-operative designed to allow cinema owners to pool their buying power.  Its function has been negotiating volume discounts on such commonly-used items as xenon bulbs, concession equipment and soft-drink syrup.  The group now assumes leadership for independent owners on the most important industry transition since the advent of sound.

“We’ve labored long and hard to ensure a smooth and fair transition into the digital era,” noted NATO President John Fithian.  “It’s impossible to say with any certainty how this digital transition will play out,” he continued, “but we can certainly say that independent theatres have a better chance of making that transition efficiently with Wayne Anderson at the helm.”  CBG is not a NATO program or member service, though NATO has supported the goals of the group.

“I am very proud to take the lead for the small theatre owners and will do my best to see they get a good and fair deal,” said Anderson.

Once approved for membership in the buying group, the theatre owner becomes a voting member of CBG and is given password access to the co-op’s online product catalog and buying page. The CBG office can also process phone orders for members who can’t or prefer not to order online.

The cooperative will hold an annual meeting in March 2006, likely in conjunction with ShoWest, and conduct several important items of business, including election of new managers.

Exhibitors interested in joining CBG can request an application by phone at (800) 416-0077 or online at http://www.cbgpurchasing.com/register.htm. 

90-120 Screens Before April
Technicolor & Century
Plan Big-D Beta Test
BURBANK, Calif. — Technicolor Digital Cinema announced Jan. 3 that it had reached “a strategic understanding” with Century Theatres to install “big-d” digital projection systems in the exhibition giant’s auditoria.

Under the terms of the understanding, Technicolor will, in the first quarter of 2006, equip between 90 and 120 Century auditoria with equipment – all compliant with the major Hollywood studios’ Digital Cinema Initiative (DCI) specifications – for a “beta test.”

Once the testing phase is complete, Technicolor’s parent company, Thomson, plans to outfit all of Century’s 1,000-plus screens with the new projection technology.

“Century Theatres’ participation in Thomson’s beta-test deployment is significant as Century Theatres’ circuit comprises state-of-the-art facilities concentrated in high profile and fast-growing metropolitan areas throughout the western United States,” read the Jan. 3 press release. “With an expanding portfolio of predominantly stadium-seated theaters, and among the highest per screen revenues of any theater circuit in the nation, Century Theatres is an ideal partner in the development and deployment of next generation projection technology.”

The Century deployment is part of Thomson’s larger plan to install DCI-compliant projection systems in 5,000 auditoria over the next three or four years. Longer-term plans call for Thomson to equip a total of 15,000 North American auditoria with big-d projectors within a decade [In Focus, January 2006].

“Thomson is in late-stage negotiations with other major national and regional exhibitors,” according to the release.

Thomson recently signed non-exclusive “digital cinema equipment usage agreements” with DreamWorks, Sony, 20th Century Fox, Universal and Warner Bros. According to Thomson, each studio has agreed to pay a “virtual print fee” in exchange for use of the digital projection systems Thomson installs. Thomson also says it continues to negotiate with other studios to expand the range of its non-exclusive content agreements.