At ShoWest, a new company called "Digireel" was selling a digital projection system for pre-show ads that had a list price of $19,900.00.
Check out the Kodak DLP digital and slide projectors at:
http://www.kodak.com/country/US/en/digital/av/
You shouldn't have to "kill" anyone to get projectors. If your theatre has the business, and you are willing to subject your audience to ads, there are companies that will pay you to run the ads.
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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 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com
They use the ever popular Kodak carousel with 50 slides. I don't know what wattage bulb they use, but it creates an image that's bright enough if there are no screen wash lights. While they do sell control boxes to have two (or more) slide projectors alternate, we only use one projector. We did insist though, that they have a simple control box to fade out the lamp before advancing to the next slide- it looks a little nicer. We get about 3 weeks out of a bulb before it dies.
Or you could line up the advertisers yourself, but that is a lot of work. You'd also have to take pictures and/or do some graphic art to create the slides- not too hard, but very time consuming.
So, some outlined thoughts:
Adjusting the lighting in the auditorum to keep the screen dark. Of course, you can unscrew bulbs, but will that make the theater too dark for people to see comming in?
Cutting an extra port hole in the wall with it's own glass for the projector (will your building codes allow this?) If so, my suggestion is to put it at about the same height as the regular projector port window, so the slides are easy to get at and change. This depends on your booth layout, obviously.
You could just put it on a (very!) high shelf in the back of the theater. Be aware that kids can jump very high. We did it that way at one theater, (there was a 125ft throw and the slide projector lamp wasn't bright enough so we had to put it closer) and people got annoyed listening to the "click-kaclick" of changing slides. Also, (on a shelf) it's hard to get at to repair or change slides.
In either case, it needs an outlet. The outlet must be hooked up such that can be controlled by the projectionist to shut off when the feature starts. (Ours are hooked into the automation to go off/on automatically.) If the projector can be in the booth, it might be easy to hook up an outlet. If it's the back of the theater, you might need a electrician (or someone like him!) 
Now, that said, is there anyway we can talk you out of putting slide projectors in? I hate 'em. But I must acknowlege that they can generate a lot of money.
My only advice to you is if you do put the projectors on shelfs inside the auditorium, as opposed to on the booth side of the wall, you might have problems with bulbs burning out at excessive rates due to the port glass blocking the cooling fan and creating a lot of heat in that space.
They do provide projectors that at least fade out and back in between slides. Better than the normal slide projectors that just go black and then immediately back on with a different slide. Fade time is adjustable.
$19,000! AHHH!I'm just doing this for my university. I will be run by little old me. I was just thinking about getting a Kodak carosel silde projector that runs itself. It's only on one screen (very small screen, seats only 180) I'm looking for new ways to bring in money for out campus movies. Do you think this would be a good idea? I'll just runs ads for oncampus stuff like the newspaper, campus outdoor rec ads, RHA Ads, that sort of thing. If I did this the what would I charge per ad? Any suggestions would be helpful.
Thanks everyone!
However, if you must, then Scott's dual xenon dissolving setup is THE way to go. Alternatively, at least get you a TELEX model with fade in/fade out on each slide. There's nothing more tacky than the generic model Kodak that just pops in and out and in and in and in and in and in and in and in...damnit, I need to go repair that projector again! (No offense John, but the Kodak projectors I've used were brand new and were pathetically unreliable. Does Kodak have a higher quality level machine available that could be recommended to Sara? Preferably one with fading capabilities.)
On another note, stay away from putting the slide projector at waist level. First, if you put them on the operator side of the projector, the hot air will be constantly blasting you while you are threading and starting the show. That's just damn annoying. Second, if you mount it on a shelf on the non-operator side of the projector (typically the platter side), you will break your back every time you thread as you keep ramming yourself into that damn shelf! Believe me, I've logged no less than 10,000 hits myself. Also, when that lamp is on and you bump it, typically you will break the filament and have to get another bulb. So, place them up high. They don't have to be at the ceiling, but out of your way so you don't bump your head on the shelf. Just pull the carousel down when you need to change slides. Your day to day operatiors will thank you.
Check out the Kodak website URL I gave.
The EKTAPRO line is the professional level, and the 7020 and 9020 models have built-in dissolve.
Many of the slide avertising companies use the consumer version, which aren't designed for the abuse they get in theatre operation.
But even the stock EKTAPRO projectors haven't got enough light for really big images. So the metal-arc or xenon-arc modifications are recommended.
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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 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com
As others have noted, you can buy your own projector (check the Kodak website I gave), and make your own slides. For a small, one-screen university theatre like yours, I'm not sure you could get an advertising contract and a free projector. As others have said, pre-show ads are not the best of showmanship.
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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 Fax: 716-722-7243
E-Mail: john.pytlak@kodak.com
As far as slide programs being tacky, I don't mind so much. Think of it like this, if there weren't slide and a reasonable amount of commercial trailers (not REASONABLE), the customer would be getting slammed at the box office and concession stand even more than they do already. The money for stadium seating, union operators, and all digital sound has to come from somewhere you know.

Why oh why do some people cinch like that!?!?!? It's just like throwing money out the window in the long run. We never had more than 75% of the screens properly running at any given moment in time those damn things were breaking so fast.
Is this the consumer version? If so, why does the web site say (and I quote) "the workhorse of the AV industry" as well as "world-class slide projectors for presentation professionals" in the description on the web site? These slide projectors have one very major flaw in their design. If you pull the bottom cover off and watch during a slide change, you will see a little thin arm on a gear which grabs at a little metal plate to advance the slide. If this assembly gets even slightly worn or out of alignment for any reason, the gear will spin forever constantly advancing to the next slide! After a certain amount of use, the little metal plate will develop a lip on it and then you've really got some work to do to prevent the arm from catching! Sure these are quick to fix, but they just don't last more than a couple of weeks before the assembly works it's way out of alignment again. Top that off with those weird screws they are assembled with (forgive me for forgetting their proper name) and these machines are just one big pain in the butt. Certainly with all of the great minds at Kodak, SOMEONE there can fix this design flaw for future machines.
(hint, hint)
I've had exactly zero problems ever with a TELEX projector. Never, nada, not one. If I had a gun to my head and was told "make one of those annoying slide programs for this theater", I would purchase a TELEX unit so I wouldn't have to deal with projector maintenance. (Sorry for the bad review John, but it's really the truth. Kodak makes a fantastic film, but they need some help in the projector category.)
If done right a slide presentation could be neat in your case. Use fades between slides. Get the art/photo people to make your slides, and give em' credit. (free slides and good PR for your theater)
If you were running a commerical for profit moive theater....NO SLIDES!! I love to hate going to my local mutli and seing these puke presentations of slides. Dim,dumb,and dull-but dollars!! The all-mighty dollar....
--Chris
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Mike Colley
Regal Cinemas
Hollywood 24
Atlanta, GA
I don't know if this is the same lens that came with the projector. Most of the lenses that come with slide projectors have a zoom feature to fit it to your screen. But, they are usually not meant for the larger size screens used in theaters. You should find out what lens will fit your theater before you buy.
As I said, we get about 3 weeks out of a bulb. That's from about 1.5 hours on Monday-Friday, 3.5 hours on Sat & Sun for a total of about 43.5 hours of bulb life. Note that the filliment in the bulb becomes very brittle after the first time it's lit, so it's very important not to move or jiggle the projector. Otherwise it will break, and have to be replaced. If you were thinking of setting the projector up, then removing it to store somewhere after each night, you will have to replace the bulb much more often.
There is a fader unit with our projectors. It is made by a company called, "Entré." It is a model "D100 Single Projector Fader / Dissolve." It plugs in the back of the projector.
Apx Prices:
From: http://www.cambridgeworld.com/projector_viewer.htm
I don't know if these people are good or what; I just wanted to get some idea of prices.
Kodak Ektagraphic IIIA $339.95
KODAK CAROUSEL MEDALIST $266.95
ENTRE DISSOLVE D100 $138.95
Maybe I'm the only one, but these projectors have worked OK for us. I find that, out of 10 new projectors, maybe one will develop problems shortly after use. Usually, the tray feeder jams up. Also, the socket for the bulb gets messed-up (from bulbs being changed so often.) Usually, with a little TLC you can get them running again. My suggestion is that if you buy one, turn it on right away and make it step through slides (with and without the bulb on) to find out right away if it's going to last. I mean, don't leave it on for a week constantly, but maybe for 5 hours one day, another 5 the next, so if it dies, it's within the warrenttee period.

Very few people today seem to do that, Ian and Ky are the only exceptions that come to mind.
The AMT units, for some reason, seem to be louder running than the 4600's. Must be a different fan assembly in the AMT's?
I use my 4600's at Biltmore Estate functions mostly. Their gatherings seem to be more upscale. The black housing on the 4600 vs.the grey housing on the AMT looks better with all my black stands, drapes, and equipment.
Our AMT's are 12 years old and only a couple have been opened for repairs--usually because of operator errors, or something being jammed into the fan. The lamp sockets are getting rough on a few of the machines. I have bright-light modules for most of them, but I really dont notice a big difference in the brightness.
Who knows how much use the 4600's have had? I got them because of the auto-slide focus feature that seems to work really well. They were nasty looking until I took a small brush to the slide changer area.
We use Apollo EXR lamps that are more inexpensive (cheaper) than GE's. I dont replace them very often, but I do always include a spare in the carrying case.
If the projetor jams, 9 times out of 10, it is a bad slide tray that is warped, or bent. I've never had the constant change problem that was mentioned above.
I like using the Ektagraphic, and 4600's. I dont love them, but I do like them.
I dont like the TORX screws. Who's idea was that? Trying to keep me out of it, I bet! (smiley face goes here)