Digital Cinema Implementation Partners (DCIP) announced today that it has entered into long term agreements with Twentieth Century Fox, Walt Disney Motion Pictures, Paramount Pictures, Universal Studios and Lionsgate Films for the deployment of digital projection systems to nearly 20,000 movie theatre screens across North America, including the AMC, Cinemark and Regal theatre chains. Digital cinema promises a new world of programming flexibility, picture quality and image consistency, and will enable the addition of potent new viewing technologies including digital 3-D. It has already demonstrated the ability to expand alternative, non-traditional movie theatre programming including pre- recorded and live events, and will ultimately provide more and higher quality choices to entertainment seekers.
DCIP was formed in February 2007 as a joint venture owned equally by AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group for the purpose of financing, procuring and deploying digital projection systems to movie theatre screens across the United States and Canada.
This key milestone marks the first five of a number of agreements that DCIP intends to enter into with all of the major studios and independent distribution companies to ensure the widespread roll-out of digital technology. In accordance with these agreements, the digital projection systems deployed by DCIP will comply with the technology and security specifications developed by the Digital Cinema Initiatives studio consortium.
“This is a very exciting time in the motion picture exhibition industry,” said Travis Reid, CEO of DCIP. “Within the next few years, we will see thousands of auditoriums retrofitted with digital technology across North America. Guests will enjoy enhanced presentation, as well as a number of additional entertainment options at their favorite theatres, including many upcoming releases using digital 3-D technology. Having these studios as our partners is critical to the success of digital cinema and we look forward to working with them to ensure a smooth and efficient digital transition.”
Bruce Snyder, President of Twentieth Century Fox Domestic Distribution, commented, “DCIP’s plans to deploy DCI compliant digital projection systems across North America not only marks the tipping point for the conversion in the United States but will ignite a more rapid conversion around the world. We are delighted with DCIP’s plans and are looking forward to working with our friends at DCIP, AMC, Regal and Cinemark to make this happen. A digital projection platform offers so many additional and enhanced entertainment choices for moviegoers not the least of which includes digital 3-D and various forms of alternative content.”
Chuck Viane, President, Distribution, Walt Disney Studios Motion Pictures, said, “This is truly a significant breakthrough towards bringing digital cinema to moviegoers across North America, and we’re thrilled to be working with DCIP and some of the top exhibitors in expediting the installation of this superior new technology. There is no question that digital cinema is the way of the future, and the optimum way to present the very best visual and audio experience, in addition to all of its other benefits. Under the terms of this new agreement, 20,000 additional theatres will be able to offer the very best movie-going experience available today. Disney continues to support our partners in exhibition in making this transition to digital cinema, and this agreement is a major step in the right direction.”
“Digital distribution is becoming increasingly important to the industry and to Paramount’s global distribution strategy and this agreement brings us one step closer to our ultimate goal – to provide audiences with the best movie viewing experience available with today’s technology,” said Jim Tharp, President of Domestic Theatrical Distribution for Paramount Pictures.
“Universal is excited to see this endeavor come to fruition,” said Nikki Rocco, President of Distribution for Universal Pictures. “Digital cinema technology will enhance the theatrical experience as studios and exhibitors will be able to offer moviegoers the ultimate in big-screen entertainment.”
“Lionsgate is proud to partner with DCIP on their digital rollout in over 20,000 screens and their effort to provide the best movie-going experience for audiences nationwide,” said Steve Rothenberg, Lionsgate’s President of Domestic Distribution. “We’re very happy to announce that we’ll be supplying DCIP’s exhibitor partners with one of the first 3-D movies under this agreement, My Bloody Valentine, on January 16. We’re living in a digital age, and DCIP will provide studios like Lionsgate the resources to capitalize on this exciting new technology.”
JP Morgan Securities and The Blackstone Group are acting as financial and structuring advisors to DCIP in connection with the financing for DCIP’s planned digital system deployment.
About Digital Cinema Implementation Partners
Digital Cinema Implementation Partners, LLC is a joint venture owned equally by exhibition industry leaders AMC Entertainment Inc., Cinemark Holdings, Inc. and Regal Entertainment Group, representing more than 14,000 screens in the United States and Canada. Formed in February 2007 to facilitate the roll-out of a digital cinema infrastructure nationwide, the company is headquartered in Upper Saddle River, NJ with offices in Minneapolis, MN and Denver, CO.
About Twentieth Century Fox
One of the world’s largest producers and distributors of motion pictures, Fox Filmed Entertainment (FFE) produces, acquires and distributes motion pictures throughout the world. These motion pictures are produced or acquired by the following units of FFE: Twentieth Century Fox, Fox 2000, Fox Searchlight Pictures, Twentieth Century Fox Animation and Fox Atomic.
About Walt Disney Studio Motion Pictures
Walt Disney Studios Motion Pictures and Walt Disney Studios Motion Pictures International are the global marketing and distribution arms of The Walt Disney Studios. They are responsible for all aspects of marketing, publicity, advertising, promotion, and distribution for motion pictures released under the Walt Disney Pictures — including Walt Disney Animation and Pixar — Touchstone Pictures, and Hollywood Pictures banners.
About Paramount Pictures Corporation
Paramount Pictures Corporation (PPC), a global producer and distributor of filmed entertainment, is a unit of Viacom, a leading content company with prominent and respected film, television and digital entertainment brands. The company’s labels include Paramount Pictures, Paramount Vantage, Paramount Classics, MTV Films, Nickelodeon Movies and DreamWorks Studios. PPC operations also include Paramount Digital Entertainment, Paramount Famous Productions, Paramount Home Entertainment, Paramount Pictures International, Paramount Licensing Inc., Paramount Studio Group, and Worldwide Television Distribution.
About Universal Pictures
Universal Pictures is a division of Universal Studios (http://www.universalstudios.com). Universal Studios is part of NBC Universal, one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group and world-renowned theme parks. NBC Universal is 80% owned by General Electric, with 20% controlled by Vivendi.
About Lionsgate
Lionsgate is the leading next generation filmed entertainment studio with a major presence in the production and distribution of motion pictures, television programming, home entertainment, family entertainment, video-on- demand and digitally delivered content.
The Company’s feature films have generated more than $450 million at the North American theatrical box office in the past year, and the Company has also forged leadership positions in television and home entertainment with the production of such critically-acclaimed television series as “Mad Men” and “Weeds,” the distribution of “Tyler Perry’s House of Payne,” “Family Feud,” “South Park,” “Trivial Pursuit,” “The Wendy Williams Show” and Tyler Perry’s “Meet the Browns,” and approximately 8% market share and the industry’s leading box office-to-DVD conversion rate in home entertainment. Lionsgate handles a prestigious and prolific library of approximately 12,000 motion picture and television titles that is an important source of recurring revenue and serves as the foundation for the growth of the Company’s core businesses. The Lionsgate brand is synonymous with entrepreneurial innovation and original, daring, quality entertainment in markets around the globe.
About JP Morgan
J.P. Morgan is the investment banking arm of JPMorgan Chase & Co., a leading global financial services firm with assets of $1.8 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about J.P. Morgan is available on http://www.jpmorganchase.com.
About The Blackstone Group
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of corporate private equity funds, real estate funds, hedge funds, funds of funds, debt funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at http://www.blackstone.com.
