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WHAT IS DIGITAL CINEMA?

Digital cinema is beginning to replace 35mm film projection with the use of high grade digital projection. Instead of film canisters arriving at cinemas for reels to run through old analogue projectors, these movies can be delivered via satellite, fibre connection or hard disc for immaculate replays.

Digital cinemas will serve not just traditional movies but new, diverse content such as live music, sports and video games. This kind of innovative programming can dramatically increase a cinema operator's revenue in low occupancy periods of the week and help attract new customers altogether. The potential for groundbreaking 3D programming, for example, is particularly strong.

However, as of 2006, the concept of digital cinema is still relatively embryonic. The major film suppliers in Hollywood, under the banner of a cross-studio forum called Digital Cinema Initiatives, LLC (DCI) have only recently agreed technical standards on image quality, compression schemes and delivery methods.

The next 12-24 months look set to be significant, not least as the investment models are finally agreed for major rollouts to commence.