SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.54-1.2%Nov 13 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JMD who wrote (24163)3/15/1999 4:18:00 PM
From: bananawind  Read Replies (4) of 152472
 
Mike, re CineComm revenue potential.

Current distribution cost for a major movie release is something like $10 to $15 million. Thats the cost of making 3 or 4 thousand copies and getting them out to the hinterlands. I don't know how many pictures are released this widely in a year, but would guess 50 to 100 at least. So there's maybe a $billion to be saved through digital distribution, not counting the piracy problem. Just for the sake of argument, split this three ways - 1/3 to the producer/distributer, 1/3 to the owner/financer of the new projection equipment (Hughes/JVC/TXN,Theatre owners), and 1/3 to the encryption source/digital transporter/CineQservicenter[TM]. So there's a tidy $300 million recurring revenue core that Q! might build a little business around. [Sounds alot like Omnitracks, doesn't it]

FWIW this one should be fun to watch for another reason. I've always been told that distribution is the choke point for all of Hollywood, ie. he who controls distribution, controls the industry. A change like this will likely bring into play more than a few very vested interests and gawd-only-knows how many of those tiny Hollywood ego's we have all heard about. Witness George Lucas as the first to dip his toe into the digital ring.

Best regards,
Jim
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext