Digital Cinema Implementation Partners has entered into long term agreements with Twentieth Century Fox, Walt Disney Motion Pictures, Paramount Pictures, Universal Studios and Lionsgate Films for the deployment of digital projection systems to nearly 20,000 movie theater screens across North America, including the AMC, Cinemark and Regal theatre chains.
Digital cinema will enable the addition of potent new viewing technologies, including digital 3-D. It has already demonstrated the ability to expand alternative, non-traditional movie theater programming including pre-recorded and live events, and will ultimately provide more and higher quality choices to entertainment seekers.
JP Morgan Securities and The Blackstone Group are acting as financial and structuring advisers to DCIP to raise $1 billion
DCIP was formed in February 2007 as a joint venture owned equally by AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group for the purpose of financing, procuring and deploying digital projection systems to movie theater screens across the United States and Canada.
This key milestone marks the first five of a number of agreements that DCIP intends to enter into with all of the major studios and independent distribution companies to ensure the widespread roll-out of digital technology.
In accordance with these agreements, the digital projection systems deployed by DCIP will comply with the technology and security specifications developed by the Digital Cinema Initiatives studio consortium.
"3-D has proven to be a game-changer for the cinema industry," said Michael Lewis, Chairman and CEO of RealD. "This announcement ensures the continued rapid growth of the RealD 3D platform, which has over 6,500 screens under contract."
Travis Reid, CEO of DCIP said, "Within the next few years, we will see thousands of auditoriums retrofitted with digital technology across North America. Guests will enjoy enhanced presentation, as well as a number of additional entertainment options at their favorite theaters, including many upcoming releases using digital 3-D technology. Having these studios as our partners is critical to the success of digital cinema and we look forward to working with them to ensure a smooth and efficient digital transition."
Additionally, Paramount announced Thursday a deal with Kodak. The Kodak deal, which will be applicable to the deployment of digital motion picture projectors to U.S. exhibitors, will provide for the payment of Virtual Print Fees (VPF) to help promote the installation of digital projection systems.
Exhibitors who install the Kodak system, which also supports 3-D technology, will convert to a DLP-based 2K projector, along with Kodak content players and the Kodak Theatre Management System. The deal covers as many as 8,000 U.S. screens.
