• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

mkpeReport

top analysis covering digital cinema, 3-D, HFR, and laser illumination

  • Reports
  • About
  • mkpe.com
  • cinepedia.com

Digital Cinema Implementation Partners (DCIP)

January 2009 by Michael Karagosian

No surprise, both Regal and Cinemark redeployed digital projectors in January to new theatre locations equipped with silver screens. If you recall, both Regal and Cinemark installed hundreds of silver screens last year in time for Disney’s Bolt, but with the delay in DCIP’s financing plans, no digital projectors were purchased. The redeployment increases the 3-D screen count by about 70 screens per circuit, or about 140 screens in total. This, plus new 3-D projector purchases by other circuits up the total number of 3-D screens in the US to around 1700.

In regards to financing, no progress has been reported on the DCIP front. No additional VPF agreements have been signed. One Regal executive recently said that only 5 studios would be needed to move forward with financing. (This is up from 4 studios.) But a Warners Bros executive reports that all 6 major studios will need to be on board for financing to move forward. In addition, there is friction among the studios for disclosing each others terms. The Most Favored Nations clause (known as MFN, although the sections are usually titled “most favored terms”) requires a studio to get the best deal offered to any other entity. In terms of strategy, MFNs made it safe for those with the least negotiating power to sign early. But the studios with the most negotiating power, Sony and Warner Bros, have yet to sign. Assuming these studios require a lower VPF, then it would likely upset the economics of DCIP’s rollout. Worse, the policies of some studios may not allow an integrator to share the terms of its deals, placing the integrator in a legal bind when signing another’s agreement with MFN clause. Effectively, such requirements could force the renegotiation of all prior MFN agreements signed. Once again, it appears true that the last 10% requires 90% of the work.

If deal making wasn’t tough enough, internal problems are popping up at DCIP. It appears that even if DCIP’s financing was ready, it’s poorly prepared for managing its chartered scale of rollout and VPF collection process. This brings to front the question of whether or not DCIP has the right management in place to carry out its long term business. Given that an entire industry is counting on its ability to successfully execute, it’s an important question to ask.

Filed Under: Deployment Entities, Exhibitors Tagged With: Cinemark, DCIP, Regal, VPF

Primary Sidebar

Search

Topics

  • 3-D
  • Accessibility
  • Alt Content & Advertising
  • Anti-Piracy
  • Color
  • Communications
  • Deployment Entities
  • Distributors
  • Exhibitors
  • Fulfillment
  • High Dynamic Range
  • Higher Frame Rates
  • Installations
  • Patents
  • Projectors
  • Servers and IMBs
  • Sound
  • Technical Bodies
  • Theatre Management Systems
  • Trade Organizations and Shows

Full Archives

a publication of
MKPE Consulting LLC

Footer

Important Stuff

  • About
  • Privacy Policy

Archives

  • Category & Monthly Archives
Archives date back to 2008.

MKPE

mkpeReport is a publication of MKPE, a world-class consultancy building business at the crossroads of cinema and technology.
Learn more about MKPE.

copyright © 2008 - 2023 mkpe consulting llc

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of all cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
Powered by CookieYes Logo