2. Digital Cinema : The Introduction Digital cinema is simply a new approach to making and showing movies. The basic idea is to use bits and bytes (strings of 1s and 0s) to record, transmit and replay images, rather than using chemicals on film. The main advantage of digital technology (such as a CD) is that it can store, transmit and retrieve a huge amount of information exactly as it was originally recorded. Analog technology (such as an audio tape) loses information in transmission, and generally degrades with each viewing “The greatest opportunity for enhancing the theatrical film experience since the introduction of sound and advent of color.”

3. Digital cinema encompasses the production, delivery and projection of full-length motion pictures, trailers, advertisements and other audio/visual "cinema-quality" presentations to theatres using digital technology. The technology uses a "store-and-forward" concept to distribute motion pictures, which have been digitized, compressed, encrypted and delivered to theatres using either physical media distribution or through other electronic transmission methods (such as satellite or other broadband services). What is digital cinema?

4. Digital Cinema - Goals Distribution cost savings and flexibility Improved consistency and quality of presentation over film prints Advertising and alternative content Improved security, transaction processing and DRM Enhanced and unique theatrical experience Production cost and time savings Content encapsulation for use and archive Technological headroom for long amortization

5. Open Standard Interoperability Secure content protection Affordable and reasonable costing Enhanced theatrical experience Accurate voice and image quality World wide compatibility, with anywhere – anytime access Lot more flexible than analog information Hardware – Easy to upgrade, Easy to extend Variety of secure transport mechanism including electronic as well as physical Integration with Online ticket sale / Theatre Management System Features

6. Benefits - Exhibitors Alternative programming and additional advertising opportunities result in new revenue streams Fully integrated delivery, training and maintenance service package Consistent quality with each presentation

7. Benefits - Distributors Reduced shipping, delivery and assembly costs More efficient editing and production process Improved piracy protection and format Interoperability Highly secured content distribution to mass

8. Benefits – Creative Community Preserved image and sound integrity Increased sound track capabilities for diverse population centers Accurate representation of creative intent

9. Benefits – Movie Audiences A pristine digital experience at every showing More diverse content choices Enhanced sound and image quality

10. Typical Architecture

11. Configuration Diagram

12. Future has begun…..

13. Digital Cinema in India

14. Digital Cinema in India – Immense potential India is the largest producer of movies in the world. It also has a very strong information technology (IT) industry. These two attributes should give it a natural advantage when it comes to the new and attractive line of business that is fast opening up — digitizing movies, both new and old

15. Market CAP A Rs.7.2 billion concept: A margin of Rs. 5billion. For every major release (4-5 in a month) which reaches 300 theatres at an average, there is an additional reach of 5000-6000 theatres more generated in the system One of the producers on "Attack of the Clones," said they spent $16,000 on 220 hours of digital tape, and they would have spent about $1.8 million on 220 hours of film

16. Additional Revenue Advertisement Revenues Broadcast of Special Events Leveraging Communication Infrastructure for: –Co-location of ATM Facilities –Internet cafes –On-line Gaming / Lottery terminals

17. Taking market advantage First Day First Show –300 to 400 “35 MM Prints in A Class centre First Day First Show –Digital satellite feed enables 3000 to 4000 “35mm” prints + 300 to 400 digital prints in B & C Class centers Digital satellite enables 800 prints of one film on the first day first show 200% Revenue Upside for the Film Industry

18. Cost Difference Cost of 35 mm print: Rs 60,000/- Cost of transportation: Rs 10,000/- Gross cost of print: Rs 70,000/- Reach of 300-400 theatres / film A Class theatres Satellite Print +Delivery Cost per film / Theatre: Rs.3,500/- Gross cost of print: Rs. 3,500/- Reach of 3000-4000 theatres / film 300-400 B&C Class THEATRES Significant Improvement in Distribution Expenses

19. The challenges Aesthetic Issues –Requirements include the look and feel to resemble 35 mm film based movies –Very high color contrast ratio, color accuracy and resolutions –Many cinematographers would prefer to shoot on 35 mm film –Even though some filmmakers feel digital is better than film uncertainty exists in the marketplace.

20. The Challenges –Cost –Standards –Working business models –More competitors (Competitors bring confidence) –Piracy –Content –Requirements at the system level enabling interoperability between digital and non-digital systems Business Issues Operational Issues

21. New thought process Film and digital cinema both are here to stay Digital is another tool available to shoot movies Not a replacement of film

22. The Future Flexible Acquisition –Film Stable, mature, slowly improving –Electronic cameras Potential for major improvements in resolution and fidelity without requiring larger and heavier equipment Immediate access to the image as a signal enables superior in-camera processing –Direct acquisition of animation Faster, cleaner, very high resolution images –Transcoding of existing content Easy to transfer existing MPEG content to a high quality, high fidelity format Tape -real time, multi format transfer

23. The Future Theatrical electronic production and post –Combine the good characteristics of film and video –Integrated tools that enable Cost savings Time savings Enhanced creative control –An efficient digital master can be easily and cost effectively stored and transported Multi language Sub titling –Ideally it can be delivered transparently to multiple display technologies

24. The Future Enabling the entertainment complex or event –Flexible theatrical configuration Reduced cost and risk Multi purpose facilities Flexible installation and setup –Enhanced operational control Remote control of projection, audio, environment Easy insertion of local and national advertising/promos –Automated maintenance Self test, status, exception detection, reporting –Integrated DRM, transaction management Protects content owner and exhibitor Simplifies distribution and billing

25. We will Initiate Media Matrix Worldwide Limited: Equity investment of 15 crores to retrofit 125 theatres. –Total electronic theatres with similar operating system in India numbering 215, highest in the world by leaps and bounds –Too complex for the Film Industry to grasp –Disruptive element in the concept to transform the industry like nobody’s business

26. Front Projection large venue digital cinema shipments by technology, Units

27. DC is coming, slower than optimists predicted but much faster than any previous technological cinema innovation

28. The investment is lower than believed, the return typically higher than feared

29. We would like to Thank You And would like you to join hands with us in this ambitious project