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This topic comprises 3 pages: 1 2 3
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Author
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Topic: Digital cinema: Majority of people not willing to pay more
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John Pytlak
Film God

Posts: 9987
From: Rochester, NY 14650-1922
Registered: Jan 2000
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posted 04-17-2001 06:51 AM
Bill said: "Price wise film projection equipment is still pretty damned expensive considering the bulk of the R&D was done nearly fifty years ago. I guess the price is based on the fact that they're only going to sell it to you once so they've got to get you NOW."Don't be so critical of the equipment manufacturers. There are only about 110,000 theatre screens in the world. Since film projection equipment is so durable, I would be surprised if the worldwide market for new projection equipment exceeded 15,000 units per year, divided among competing manufacturers. So the economies of scale just aren't there to bring prices down with mass production methods. If GM, Ford, Chrysler, Honda, or Toyota sold only a few thousand cars per year, the prices would be much higher too. ------------------ John P. Pytlak, Senior Technical Specialist Worldwide Technical Services, Entertainment Imaging Eastman Kodak Company Research Labs, Building 69, Room 7419 Rochester, New York, 14650-1922 USA Tel: 716-477-5325 Cell: 716-781-4036 Fax: 716-722-7243 E-Mail: john.pytlak@kodak.com Web site: http://www.kodak.com/go/motion
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Aaron Haney
Master Film Handler
Posts: 265
From: Cupertino, CA, USA
Registered: Jan 2001
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posted 04-17-2001 06:52 AM
If digital cinema is to succeed, it absolutely must be better than what people can get at home, whether or not ticket prices are raised.Just think: I can go to an electronics store right now, today, and buy an HDTV set with a resolution of 1920x1080. Technicolor (so far the only company that has unveiled a serious plan for large-scale digital cinema installation) is talking about putting 1280x1024 in theaters. You do the math. Right now there are two factors that prevent competition from HDTV from being too big of a problem:
- HDTV is too expensive for the average home viewer
- There is a limited availability of full-resolution HDTV source material (just a few broadcast and cable channels)
Both of those a very much temporary. In a few years, an HDTV home video format (one in which pre-recorded feature films are available) will probably be available, and then it will really take off. Economy of scale will bring the prices down, so it will become affordable to more and more people. What are theaters going to do then? The companies that are pushing for digital -- particularly Technicolor -- seem to be rushing blindly into it because they see a way to save a few bucks. However, those savings will only come if they can keep all other factors, especially ticket sales, the same. Once people get the ability to have better quality at home than in theaters, they will simply stay home, and not come back! Bye-bye, savings! I realize that's been said before, but it bears repeating. Just think about how many home theater freaks there are who already (incorrecly) believe their setups are superior to any theater. Their ranks will swell tremendously once HDTV gets going full swing. And for once, they'll actually be right -- they really will be getting better quality at home! If companies like Technicolor had any long-term vision at all, they would probably wake up and realize doing things like giving away 1000 very expensive projectors which are pretty much already obsolete is not a smart investment. Of course, this is corporate America we're talking about, so it's pretty much a given that they will be short-sighted and not figure that out.
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Scott Norwood
Film God

Posts: 8146
From: Boston, MA. USA (1774.21 miles northeast of Dallas)
Registered: Jun 99
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posted 04-17-2001 09:54 AM
Jeff -- good points.
Personally, I really don't think that analog TV broadcasts will go away anytime soon, regardless of what the FCC is saying now. There are major problems with reception in fringe areas, where people might currently be able to get a watchable picture, but who would get no reception at all with digital. The cost issue is a big one, along with the fact that consumers don't really seem to care much about digital TV. There's not much of an advantage over NTSC for standard-definition pictures, and the costs and disadvantages are substantial.
I don't see HDTV (which is a superset of the digital TV requirement) as being a big winner, either, and certainly not in the next decade or so. Cable companies won't carry it because they don't want to sacrifice the channel capacity. There isn't much HDTV programming (other than movies of the week and a few prime-time shows and major sports events), primarily because the production costs are significantly higher and yet the ad rates are not. And what about the last 50 years' worth of programming? Sure, the stuff shot on film can be re-transferred to HDTV, but why would anyone bother with the expense? Are any of these shows really going to be all that much better in high-def?
It seems to me that all indications are that the public really doesn't want to pay extra for this, especially in a time when a pretty decent 27" NTSC set can be purchased for well under $500, with the digital- and HDTV sets costing many times that amount. As a result, there isn't likely to be much of an economy of scale for the manufacturers, which will delay any price reductions over the long term. Also, TV sets tend to last a long time; 10 to 15 years is not uncommon for a good color set. People are _not_ going to suddenly trash their old sets and buy new ones just because they're digital.
I know this sounds like an anti-HDTV post, and it sort of is. Personally, I am totally in favor of anything that improves image quality (on TV, in movie theatres, etc.), but the cost (financial and otherwise) is just way too high right now to justify the benefits, and I don't see the cost dropping anytime soon.
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Evans A Criswell
Phenomenal Film Handler

Posts: 1579
From: Huntsville, AL, USA
Registered: Mar 2000
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posted 04-17-2001 10:42 PM
Scott,About digital TVs costing a lot and there not being enough programming: I'll bet that many people purchasing digital TVs right now are ones that want to watch DVDs in progressive scan 480p on a 1.78:1 screen, rather than to watch actual HDTV material. If I bought one right now, better DVD viewing quality would be the reason, and not HDTV. ------------------ Evans A Criswell Huntsville-Decatur Movie Theatre Info Site
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Joe Schmidt
Expert Film Handler
Posts: 172
From: Billings, Montana, USA
Registered: Apr 2001
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posted 04-18-2001 06:32 AM
Here's some fuel for the nitrate fire of the tv debate.It's my belief that in 5 years from now, most of the local tv stations will not have converted to digital as the FCC has mandated. Instead, they will be off the air, dark, gone, no more. Why? Do the math. Every year, the broadcast networks lose more viewers to the hundreds of competing satellite channels. I saw an article in Time magazine a while back which suggested they were down nearly to only 25% of the market THEN. So if you have 4 local stations in a market with CBS, ABC, NBC and FOX, that 25% is divvied up between the 4 of them. One of these days the local merchant advertisers are going to wake up, and say: HEY!! WE'RE PAYING ALL THIS MONEY AND NOBODY'S WATCHING OUR COMMERCIALS! When this hits it is going to snowball very fast and local tv darkness will follow. Eventually the 4 networks will become just another 4 pay channels, if, that is, all 4 survive somehow. I've heard the disney interests are losing a lot of money in abc and aren't happy. Within next 5 years switches may be pulled somewhere. Only stations in the major markets are likely to survive. There are about 140 being carried on DirecTV, within channels 860-999.
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Evans A Criswell
Phenomenal Film Handler

Posts: 1579
From: Huntsville, AL, USA
Registered: Mar 2000
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posted 04-18-2001 09:21 AM
Joe, your observation about TV may be very accurate. Look at what has happened to radio during the past few years. Many former local stations have been bought out by bigger companies and we have more and more "network radio" stations. There is a Nashville station that sometimes plays the same songs as a Huntsville station, with the same commercials. I've been driving from Nashville to Huntsville and could switch between a Huntsville and Nashville station playing exactly the same thing.I think the "local flavor" of broadcast TV stations will diminish more as time goes on. The way things are now, even the national cable network stations have local commercials. They usually stick out like a sore thumb because of the audio and video quality. Broadcast TV is being hurt by people that don't want to use antennas. I lived in the country for 15 years and we had to use an antenna with a rotator and amplifier to get anything, and what we got was often snowy. We could get approximately 30 different stations, but only a couple had good picture quality. Many people in the country got satellite dishes for the cable networks and they end up not watching the broadcast channels because they can't get a good picture with an antenna and the local stations are not available on the dishes. I wouldn't be a bit surprised to see broadcast TV go completely away and be replaced totally by cable and dish systems. Antennas are just too problematic. Even if you live in the city where the TV station is, it doesn't guarantee that you'll be able to get a good picture free of ghosts and interference. ------------------ Evans A Criswell Huntsville-Decatur Movie Theatre Info Site
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