$525 Million For Digital Conversions! 500 Screens A Month To Be Converted In 2010

Jim here. According to THR, JP Morgan is stepping up to the plate with $325 million in bank syndication and $200 million from equity based contributors (including the theatrical chains) to fund a massive rollout of digital and therefore subsequent 3D screens.

As many of you know, there was a lot of movement toward digital deployments in the previous two years but the credit crunch hampered any real movement. Yes, there was some digital screens converted (chains did it themselves to the tune of ~$60 million and the promise of getting that money back) and up to 2000 of those are now 3D, but the progress was much slower than what was needed.

Now we will see some real action. How about 2500 3D screens by the end of 2009? Sounds much better. Digital Cinema Implementation Partners (DCIP) will help funnel the new funds to the chains and get the deployments rolling again.

Think Fox is happy with the announcement? Oh yes: "As far as Fox is concerned, the sooner the better," Fox distribution president Bruce Snyder said. "More units should be out there for both Thanksgiving and Christmas, and time's a-wasting."

DCIP plans to convert ~500 screens a month to digital (and subsequently a portion of that to 3D) to get 12,000 to 13,000 digital screens in place by the end of 2010. Almost double the amount today (~7,000).

AWESOME NEWS! Finally some real action. The money should be available in November and hopefully we can get some action in time for AVATAR in December. I think it is in the best interest of everyone to make that happen!

Germany's CINEMAXX To Deploy REALD Technology

Large Volume Pact to Bring RealD 3D Experience to CinemaxX Theatres Across Germany and Denmark

(Emphasis is mine)

Global 3D cinema leader, RealD, and major German cinema circuit, CinemaxX, have partnered to equip CinemaxX theatres across Germany and Denmark with RealD 3D. This multi-screen pact builds on RealD’s extraordinary momentum that saw 400% growth across Europe in the first half of 2009, cementing RealD as the territory’s preferred 3D provider.

The multi-year agreement kicks off with 30 CinemaxX screens in Germany and Denmark immediately upgraded to RealD 3D in time for the highly anticipated September release of Disney●Pixar’s Up. An additional 30 RealD 3D equipped screens will be added across the CinemaxX circuit by the end of the year, with an ongoing rollout of more RealD 3D enabled screens through 2010.

“We’re pleased to welcome CinemaxX to the RealD 3D platform,” stated Bob Mayson, managing director of RealD Europe. “This partnership will assure moviegoers across the CinemaxX circuit will experience the extraordinary line-up of movies this year and for years to come in crisp, clear, fully immersive RealD 3D.”

“We’re excited to partner with RealD to equip our circuit with the best 3D cinema technology available,” said Christian Gisy, CEO of CinemaxX AG. “RealD 3D will give CinemaxX audiences an unmatched 3D entertainment experience in time for this year’s top films.”

Real D’s new generation 3D technology is deployed across the world’s largest 3D platform with over 8,700 screens under contract and over 3,200 screens installed in more than 45 countries with over 300 exhibition partners. The leading 3D provider around the world, RealD 3D is the market leading 3D cinema platform in territories including North America, Latin America, Australia and Europe, having notched 100% growth to its global install base in the first half of 2009 alone. A bright spot for the entertainment industry, RealD 3D is driving box office to the tune of three to four times per screen revenue of the same film on 2D screens.

About CinemaxX
CinemaxX AG is the most well-known operator of multiplex cinemas in Germany. In total, the company has 36 cinemas with 303 screens and capacity for around 88,000 people in Germany and Denmark. Due to their architectural design, CinemaxX multiplex cinemas occupy a unique position in the German cinema landscape and also offer exemplary standards of comfort and quality - including refined picture and sound quality, extra large screens, modern comfortable seats in air-conditioned cinema halls and an excellent ambience. For more information, please visit www.cinemaxx.de.

About RealD
RealD is the global leader in 3D, bringing the most advanced and realistic digital 3D experience to cinemas worldwide. RealD’s new generation technology, deployed across the world’s largest 3D platform, provides a stunningly lifelike viewing experience. Beyond cinema, RealD is the worldwide inventor and provicder of key stereoscopic technologies used in science, manufacturing, marketing , and other industries, with thirty years of scientific development behind its systems. RealD’s mission-critical 3D visualization technologies are used by organizations such as NASA, Pfizer, BMW, Boeing and more. www.realD.com

Awesome news to hear more conversions taking place. Timing couldn't be better for CinemaxX as AVATAR is ramping up and 2010 promises to be a huge year for 3D. I would love to check out a CinemaxX theater as they seem to be a hugher end venue for movies - I love theaters like that.

Quick Post: Exhibitors Meet with Wall Street; Hope to Speed Up 3D Rollout

Michael here. Variety has an article about a meeting between exhibitors and Wall Street bankers that took place in New York yesterday in which theater operators sought funding for digital and 3D conversions.

The financial crisis, and the resulting frozen credit markets, has slowed the expected pace of the digital and 3D rollouts.

An interesting tidbit from the article is that Regal has been redistributing its 232 3D-equipped projectors amongst various markets to maximize the potential revenue from future 3D shows.

I hope they find sufficient funding and are able to make up for lost time. Entertainment, which always thrives in down economic climates, seems as sure a bet as possible...and 3D films outperform their non-3D showings by significant factors. Let's hope they all see the obvious logic and solve this issue ASAP!

Check out the Variety article for more discussion of the current state of the rollout.