1. MEDIA Salles an initiative of the MEDIA Programme of the European Union with the support of the Italian Government “DIGITAL TECHNOLOGIES: WHICH OPPORTUNITIES FOR THE CINEMAS?” Talk by Elisabetta Brunella, Secretary General of MEDIA Salles At the seminar “New technologies in film marketing and distribution” Kino Expo 2004 Moscow, 18 September 2004

2. MEDIA Salles is an initiative of the MEDIA Programme of the European Union with the support of the Italian Government

3. MEDIA Salles  is a non profit association operating since 1991 with the support of the EU MEDIA Programme and the Italian Government  its members are the national and international organizations representing the cinema exhibitors in Europe

4. MEDIA Salles provides services to European cinema exhibitors in the fields of: Promotion Information Training PROMOTIONINFORMATIONTRAINING

5. DIGITAL CINEMA MEDIA Salles’ mission Help the European cinema exhibitors get accurate and objective information: European Cinema Yearbook exchange views and compare experiences: European Cinema Journal, Cinema Research Library be trained, updated and orientated towards digital screening and digital cinema: DigiTraining Plus: New Technologies for European Cinemas

6. D-screens worldwide (Cinemas equipped with DLP Cinema TM technology) DIGITAL PROJECTION: “D-cinema: slow ahead”

7. D-screens worldwide (Cinemas equipped with DLP Cinema TM technology)

8. DIGITAL PROJECTION: “D-cinema on the move” (a statistical elaboration by MEDIA Salles) D-cinemas and screens worldwide (Cinemas equipped with DLP Cinema TM technology)

9. D-cinemas and screens worldwide NOTE: screens equipped with DLP Cinema TM technology.

10. “Digital films: scarce but growing supply of movies in a digital format” D-CINEMA: Digital films worldwide (as at December 2003) NOTE: films released in DLP Cinema TM technology.

11. Digital films worldwide (as at December 2003)

12. The growth of d-cinema is slow, standards are now being established, thus, new digital technologies offer exhibitors new business opportunities (both d-cinema and e-cinema): alternative contents and film programming alternative contents and film programming for specific audiences digital cinema advertising digital cinema advertising NEW DIGITAL TECHNOLOGIES

13. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE THE PIONEERS

14. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE Palace Cinemas, Czech Republic - Hungary 2 screens equipped with DLP Cinema TM projectors (Palace Slovansky Dum in Prague, MOM Park in Budapest) Digital Hollywood films (i.e. Finding Nemo, The Day After Tomorrow) Alternative contents: Music events: David Bowie and Bon Jovi Live concerts; DVDs premiere (i.e. The Beatles – Concert for George) Sports events: UEFA Euro 2004 DVDs projections for specialized audience: i.e Bowling a Columbine, Apocalypse Now Redux (that probably would not have been shown at the cinemas in 35mm)

15. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE Arcadia, Italy 1 screen equipped with DLP Cinema TM projector Digital Hollywood films (i.e. Atlantis: The Lost Empire, Star Wars Attack of the Clones, Pinocchio, Alien Director’s Cut) Alternative contents: Music events: David Bowie Live Concert Stanley Kubrick: A Life in Pictures Star Wars Episode II - Attack of the Clones - making of

16. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE A STRATEGIC CHOICE: DIGITAL AS AN ADDED VALUE AND A COMPETITIVE ADVANTAGE

17. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE Kinepolis Group, Belgium 10 screens equipped with DLP Cinema TM projectors in Belgium Digital Hollywood films (i.e. Finding Nemo, Brother Bear) Alternative contents: digital previews of Aspe series, a popular weekly TV movie series broadcast of TV News special digital screenings of local productions for the young audience (Plop en de Toverstaf) broadcast of prestigious events and concerts

18. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE COOMING SOON: THE DIGITAL CINEMA AS A CHANCE FOR A WIDER DISTRIBUTION OF EUROPEAN FILMS

19. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE UK Film Council, United Kingdom Digital Screen Network Digital Screen Network: a National Lottery funded scheme to increse the distribution of specialised films on a regular basis. UK Film Council will make available digital projection equipment to around 200 screens in around 150 UK cinemas to improve the distribution of British specialised films, foreign language films, films with specific cultural, social, political interest, reducing their print and distribution costs (35mm vs. digital copies).

20. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE DIGITAL CINEMA ADVERTISING

21. DIGITAL PROJECTION: WHAT’S GOING ON IN EUROPE Leading Norwegian cinema advertising company: conversion of its Scandinavian network to satellite delivered e-cinema projection, developing a larger base of advertising clients and offering exhibitors a reduction of reel-assembly time and more flexibility. Carlton Screen Advertising, UK Leading UK cinema advertising company: investment in digital advertising to distribute digital video contents via satellite to the cinemas. Capa, Norway

22. DIGITAL PROJECTION: WHAT’S GOING ON IN THE WORLD Regal CineMedia, US Digital Content Network (DCN): the world’s largest digital network for the delivery (via satellite) of on-screen and in-lobby marketing and advertising products as well as digital video contents to over 5.000 Regal Cinemas’ screens in US: delivery of “The 2wenty”, the Regal CineMedia 20-minute pre-show programme offering advertising and entertainment, delivery of alternative contents (HD format): simulcasting of live music concerts and events, delivery of educational, entertainment and sports programming.

23. DIGITAL PROJECTION: WHAT’S GOING ON IN THE WORLD China vs India Digital vs Electronic CHINA: d-cinemas fast growth of d-cinemas, supported by local authorities: 34 D-cinemas and screens as at February 2003, 54 as at June 2004. INDIA: the world’s largest digital theatre country with around 130 e-cinemas in small towns and rural areas.

24. “For me the biggest transition in the history of the worldwide cinema is the transition from traditional film technologies to new digital technologies. The new technologies will ensure that the quality of movies is consistent around the world with every show, whereas film technologies can degrade or deteriorate over time. They allow cinema owners to offer new types of entertainment, sporting events, music concerts, educational programs so that the worldwide cinema will become a destination point for many different types of entertainment. The digital cinema revolution will help every territory around the world. The technology is there, the technical standards are being developed and the business models are coming together”. Interview with John Fithian, President of NATO (National Association of Theatre Owners) From MEDIA Salles’ Newsletter “European Cinema Journal”, No. 4/2004

25. To know more about MEDIA Salles visit www.mediasalles.it To receive the European Cinema Journal free of charge, send an e-mail to infocinema@mediasalles.it

26. MEDIA Salles is an initiative of the MEDIA Programme of the European Union with the support of the Italian Government www.mediasalles.it