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Old cinemas get digital face-lift
Emerging Pictures, theater league strike strategic alliance

Jul. 17, 2002

By Ian Mohr

NEW YORK -- Big Apple-based Emerging Pictures has struck a strategic alliance with the League of Historic American Theaters in its bid to launch a national network of satellite-fed digital cinemas, with the goal of taking on 300 screens during the next three years.

Under the pact with LHAT, some digital projection systems would be installed in restored historic "movie palaces" nationwide.

Emerging Pictures plans to supply existing cinemas with digital projection systems and satellite receivers that would enable member venues to present selected independent and international features, as supplied through Emerging Pictures. The technology also would enable theaters to screen such content as live HDTV closed-circuit broadcasts and prerecorded music concerts, theatrical productions, lectures and corporate events.

Emerging Pictures plans to provide the projection systems and content to member theaters at its own expense, and the company said it is negotiating with manufacturers over initial installations. The company is weighing whether to utilize DLP technology from Texas Instruments or the JVC D-ILA technology that Kodak Digital Cinema recently opted for and installed at a test site at the Hollywood & Highland six-plex (HR 5/5).

Financial details of the plan were not disclosed, but the companies point to a licensing arrangement with a certain percentage of ticket sales per week split between Emerging and member venues.

Emerging Pictures' Ira Deutchman said the company's EmergingCinemas, or EmCi, locations would be "completely opportunistic" in terms of geography and will be selected based on "whether a given market can support the product being brought in."

"What's been lacking to date is an installed base of digital cinemas designed to widen the distribution for specialty films to include an audience we're firmly convinced exists in all sorts of communities around the U.S., not just in the major media markets," Deutchman said.

The indie outfit's move comes after NewCo Digital Cinema, the digital coalition formed by major studios, took a step closer to its own digital cinema plans last month by installing Clearview Cinemas president Charles Goldwater as CEO (HR 6/18).

According to Deutchman, Emerging's plan would not technologically preclude member cinemas from screening studio fare (which the studios have yet to standardize) because "the vast majority of (studio) films will eventually be archived on high-definition video masters." A number of indie distributors have indicated interest in supplying selected films to the network.

But whatever the technology, the popularity of the plan will reflect some indie theaters' willingness to move to digital cinema without waiting for mainstream Hollywood.

"My suspicion is that the theaters (under this plan) are not the ones Hollywood would be in business with anyway," LHAT executive director Terry Demas said from the organization's 26th annual convention in Minneapolis, where the Emerging Pictures partnership is being unveiled this week. "These are not the kinds of theaters where you just put a big multimillion-dollar ad in the paper for people to come and see 'Spider-Man.' We're not talking about direct competition with the multiplexes. These are theaters that are having a harder and harder time getting product."

Demas added that his members have shown keen interest in the program, the rollout of which will build slowly so as not to create competing venues.

Emerging Pictures is run by indie film veteran Deutchman, along with television producer Barry Rebo and home theater/consumer electronics executive Giovanni Cozzi. The company has so far been using a 245-seat theater at Manhattan's Intrepid Sea-Air-Space Museum to show off digital cinema technology.

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