Digital cinema reaches the end game

"Digital Cinema: Reaching the End Game" was the title of the address by IHS Technology film and cinema director David Hancock during the opening International Day session at CinemaCon in Las Vegas—and end is certainly the operative word. The statistical expert reported that 87% of the world's movie screens have now converted to digital projection. China is 100% converted, Western Europe is "nearly done" at 90%, and North America is also around the 90% mark, though that final 10% is stubbornly holding out at their peril, Hancock noted. Latin America trails at 68%, with some nations desperately behind the curve, like Venezuela at an alarming 23%.

Nearly half the world's screens—some 53,000—are now 3D-capable, and Hancock opined that 3D has left the novelty phase and is entering its maturity. "It's now another film choice," he observed, noting that in this new climate 3D needs to be perceived as a true added value, as was the case with the runaway 3D smash Gravity.

Hancock also touched on other notable recent trends. Theatre circuits' new branded premium large-format initiatives are starting to encroach on the territory previously dominated by the pioneer of giant screens, IMAX, in a dramatic way. In 2012, IMAX screens represented 87% of the large-format market; in 2013, that figure dropped to 65%.

Another topic was the development of laser projectors, technology which is being showcased by both Christie and Barco at CinemaCon. Wearied by the recent digital conversion mandate, exhibitors aren't keen to embrace another expensive new technology in the near future. But Hancock did foresee theatres taking a look at laser in 2017 when their service contracts for Series 1 digital projectors expire, and again in 2019 when their Series 2 deals end.

CinemaCon's morning seminars also included a wake-up call from Malcolm MacMillan and Patrick Bjorkman at Glasgow-based Peach Digital, which oversees web strategies and implementation for 15 exhibitors in seven countries. They noted that 80% of people in the developed world use the Internet, more than use a car. And within that vast majority, the use of mobile devices such as smartphones and tablets (compared to desktops and laptops) is growing dramatically. Yet only 34% of cinemas have mobile solutions for their customers, compared to 88% of travel businesses and 70% of retail businesses. That's a lot of wasted potential, since "every device is a point of sale," they declared. Peach Digital was clearly using CinemaCon to pitch their consulting services, but the need is there. Like the digital revolution, reaching customers where they virtually live is yet another challenge cinemas must meet in this rapidly evolving technological world.

—Kevin Lally