Qualcomm, Technicolor to Distribute Digital Cinema
Since Film requires a lot of storage, and I have posted on distributing video from the Camera to the Theater Projector, I thought I might as well post this.
Thursday June 15 5:47 PM ET
Qualcomm, Technicolor to Distribute Digital Cinema
By Timna Tanners
LOS ANGELES (Reuters) - Wireless communications technology company Qualcomm Inc. (NasdaqNM:QCOM - news) said on Thursday it had teamed up with Technicolor Digital Cinema Inc. to distribute movies digitally to cinemas.
The companies said they will form a joint venture to provide digital distribution of films along with support services and aim to begin trials of the delivery system in early 2001.
``This new entity will combine the two companies' complementary strengths to create an open, standards-based end-to-end distribution solution for digital cinema,'' said Lanny Raimondo, Technicolor's chief executive officer.
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The move combines Qualcomm's experience in digital voice communications and encryption and compression technology and Technicolor's distribution in the entertainment industry, the companies said in a statement.
The team would compete against a similar venture combining computer networking giant Cisco Systems Inc. (NasdaqNM:CSCO - news) and Qwest Communications International Inc. (NYSE:Q - news), which showcased their digital movie distribution technology earlier this month when they beamed sci-fi animated epic ``Titan A.E.'' over an Internet-based network.
Film studios are backing digital cinema, which results in higher quality movies and lower distribution costs. But so far, wrangling over who would pay the high costs of installing projection systems in theaters -- studios or theater owners -- has delayed deployment.
``It's still in the very early stages. I think we are going to see lot of companies who have encryption and compression technology,'' said Jimmy Sunshine of the publication, Film Journal International.
The companies said Camarillo, Calif.-based Technicolor would take a majority ownership in the entity, called Technicolor Digital Cinema LLC. It would initially target the U.S. market, and is seeking partners to expand into global distribution, they said.
Technicolor is a subsidiary of British media group Carlton Communications Plc (NasdaqNM:CCTVY - news).
Carlton shares gained 1-31/64 to close at 63-47/64 on Nasdaq. Qualcomm shares lost 9-1/16 to close at 61-7/16, amid growing concerns over its near-term profit outlook. |
