Paramount Pushes Digital Direct to Theaters

Written by Sam Baltrusis

Friday, January 23. 2009 at 04:45 PM EST Post a comment

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Paramount Pictures, the Viacom-owned production and distribution film studio, today announced plans to boost direct-to-exhibitors digital movie distribution and 3D systems.

Going digital is a costly transition for exhibitors, and Paramount is trying to cut out an unnecessary step by delivering films via a reusable 300 GB hard drive or satellite feed and digital projector instead of a conventional film projector.

In October 2008, Paramount signed a non-exclusive digital cinema deployment agreement with Sony Electronics' Digital Cinema Solutions to encourage exhibitors to implement digital cinema systems that will feature Sony's 4K SXRD turn-key projection technology.

Digital distribution saves film studios in production costs as well, with a single print averaging between $1,000 and $1,500 and costing as much as $5 million to produce 4,000 prints for a wide-release film.

The move works in tandem with the Digital Cinema Implementation Partners (DCIP) agreement, allowing exhibitors to seek local financing for the new digital equipment rather than waiting for comprehensive integrator agreements. The push allows for chains and independent movie houses to own and control their digital distribution equipment sooner.

Mark Christiansen, executive vice president of operations at Paramount, says the move will give exhibitors "scalability as well as a high-quality presentation" and adds that the solution is a viable bridge for theaters to go digital without an integrator agreement.

Ultimately, Christiansen believes the transition to digital will cut down on shipping costs and will give "more options to independent theaters."

John Fithian, president of the National Association of Theatre Owners, endorsed Paramount’s push for digital distribution.