How
is Digital Cinema different from a regular feature presentation?
Digital Cinema replaces the traditional optical print with a digital print
which can be delivered via satellite. Traditional film projectors use 35mm / 70
mm optical prints for screening. In Digital Cinema the film is transported via
satellite and stored on Digital Servers. Powerful processors then decode and
project a pure digital picture.
Digital cinema uses a "store-and-forward" delivery mode to distribute motion
pictures. Digital movies are encrypted and compressed computer files that can
be stored on a secure disk or cartridge, or sent through broadband cable or via
satellite.
Those large files are downloaded on a secure digital storage server, a robust
computer system connected to a digital projector located in the projection
booth of the movie theater.
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Does Digital Cinema
really make a difference in the quality of a film?
Digital Cinema greatly enhances the film viewing experience as has been demonstrated by us.
With 35mm film presentation over time scratches, sound pops and physical wear
and tear break down the original pristine condition of the film. With Digital
Cinema the image is never distorted because it reverts to the original digital
code; there is nothing to wear down the quality of the image.
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Why
do you think UFO will be successful when other early players in
the field have failed?
We have the advantage of superior technology combined with the highest degree
of faith in our product. The crucial factor in this business would be the
creation of a critical mass of theatres to drive this business ahead. This is
where UFO's business model of providing the Digital Cinema System free of cost
to the theatre owners will score over other digital cinema operators.
In addition to this our MPEG 4 based encoding system delivers
images which are far superior compared to the images produced by other players.
This technology is available exclusively with us.
It is essentially our faith in the future of Digital Cinema that
drives us to undertake take such aggressive marketing strategies. The Single
Chip projection system costs Rs.10.5 Lakhs and a three chip projection system
costs Rs.15.5 Lakhs. We are making the total investment in the projection
systems unlike other players who are asking for upfront investment from the
cinema owners .
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What will be UFO's
role in the system chain?
UFO intends to operate only as pure service providers, and as such shall not be
disturbing the existing business models operating in the Industry between
Producers, Distributors and Exhibitors.
Producers and Distributors shall continue to distribute their films and book
cinemas as before. We shall simply look after the logistics of the supply chain
management, reduce the investment required in prints, and increase the revenue
earning potential of the producers, distributors and exhibitors.
Thus UFO shall seamlessly blend into the cinema business and
provide essential services in a professional manner at a fraction of the
existing cost.
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EXHIBITOR FAQ'S
How do I become
an Exhibition Franchisee?
To become an Exhibition Franchisee you have to fill out the Exhibition Franchise Application
Form, and submit the same your area's Regional Dealer, along with the cheque
towards registration fees.
The forms shall be forwarded to our head office, and within
seven days of receipt of the application, our engineers shall conduct a
Techno-feasibility survey of the Cinema premises. Certain basic site
preparations will be required to be done such as installing an AC in the
projection room, and racks for the system.
Once the Regional Dealer confirms satisfactory site preparation,
we shall install the digital cinema equipment within 4 days. Thus the total
process should not take more than 15 days at the most.
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Who will be responsible for programming and content?
Programming will be carried out under the normal existing Exhibitor -
Distributor supply arrangements. Distributors shall continue to exploit the
films in the traditional manner.
UFO shall simply make the process of Distribution and Exhibition simpler and
more streamlined. The existing business models will continue as before.
The Producers and Distributors will remain in full control over the
distribution process. The producer / distributor shall give written
instructions to UFO, and only then will UFO activate or de-activate a film at
any particular theatre .
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Will UFO provide
insurance for the installed equipment? Who will bear the cost of
the insurance?
Yes, UFO will ensure that the equipment installed at the premises of the
Exhibition Franchisee is fully insured and hence there would be no burden on
the Exhibition Franchisee in the Event of any damage or theft.
It shall be the responsibility of Exhibition Franchisee to use the equipment in
a prudent and business like manner, and ensure that there is ample security for
the same. The cost of the insurance shall be borne by UFO.
However should there be any damage to the equipment due to willful negligence
on the part of the Cinema owner, then we shall be constrained to recover the
cost from the cinema owner.
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Are all movies available
in digital cinema format?
Realizing the potential of digital cinema, most of the big banner films in the last one year
have slowly started moving towards digital cinema format. In the future this
percentage is bound to go up with more and more cinemas converting to the
digital cinema format.
The cost of digitizing a film to High Definition format is a
mere one time cost of Rs.60000. Also since all other costs such as encoding,
encrypting and downloading the films to the Exhibition Franchisees shall be
borne by UFO we are confident that many producers shall avail of these
facilities.
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What happens if UFO is unable to supply the content?
The Franchisee is billed only for the shows used by him. In case there is no
content there shall be no charge. Additionally if UFO is consistently unable to
provide the content, then we shall return the Exhibitor's deposit including the
registration fees paid by him at the time of signing up. However this situation
shall never arise since we are confident of our system and the industry has
given a very positive response.
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Does Digital Cinema require any change in the existing
film making procedure?
There is no change required in the existing film making procedure. The same
process is followed till the final negative stage as is the norm. Once the
picture and sound negatives are finalized, the film is telecined onto D5 tapes
using high definition scanning technology which is easily available in India.
Hence all films including old released films can be very easily converted to
the Digital format.
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Who will be responsible
for manpower training and maintenance of the digital cinema equipment?
We shall provide training to the existing operators and our nation wide network of regional
dealers shall ensure prompt response to any maintenance related problems.
We shall be introducing a toll free national help-line number,
which shall enable Exhibitors to log in complaints at any time. The regional
dealers shall ensure that the break down time is never more than 6 to 12 hours
depending on the location of the theatre.
All expenses related to maintenance of the equipment, including
consumables, such as bulbs and other spare parts, etc shall be borne by us.
Thus, eliminating all projectors related expenses.
Worldwide experience has shown that digital cinema equipment
with fewer moving components is far more sturdy and reliable than the existing
optical projectors.
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Is it very difficult
to operate the Digital Cinema System?
On the contrary the operation of the Digital Cinema system is a two click process. The User
interface of the system is extremely simple to operate and only a click is
required to start and stop a film. The scheduling system is also extremely
simple to operate. Two hours training is sufficient to train any person to
operate the system.
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How
will I pay the capacity cover charge?
At the time of installation of the equipment we shall provide a Smart Card,
which shall be loaded with a pre-existing credit. We shall not be taking any
money for this credit and the same shall be against the amount already
collected as part of the refundable deposit.
You shall be required to forward your dues towards the capacity
cover charge to your regional dealer on a weekly basis, after which your Smart
Card shall be re-charged automatically with the remitted amount directly via
satellite.
Should you not pay the capacity cover charge on time we shall
de-activate the Smart Card till such time that your credit is replenished.
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How will digital cinema help increase my revenues?
Digital cinema will provide the latest films on the day of their release, which shall ensure
higher box office collections and push up the existing capacity utilization.
Good quality images will be a big draw for the cinema audience. Additionally
the Exhibition Franchisee shall have the facility of multi scheduling, whereby
he can schedule different films for different shows with no extra costs for
prints. All this shall directly translate into increased revenues.
Additionally once the theatres are linked via satellite, newer
business opportunities such as banks, ATMs, gaming terminals can be explored.
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Will
there be any cost savings?
In addition to the increased revenues, Digital Cinema shall translate into numerous cost
savings to the exhibitor. Namely:
· Savings in electricity costs to the extent of 75% of the
existing cost
· cost of carbons and lamps,
· repairs and maintenance of projectors,
· manpower cost etc.
We anticipate savings of Rs.25000 per month per theatre on
account of Digital Cinema Conversion.
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What option do
I have in the event the film does not do well?
In the event the film does not do well exhibitors shall have the option of discontinuing the
shows as per their contractual obligations. We shall ensure that there are 8
-10 films available on the server at any point of time. The Exhibitors shall be
free to choose from any of the stored movies to fulfill the vacant slots.
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Will I have the
flexibility to adjust the show timings?
We are adopting a system of store - play forward method, wherein the films shall be delivered
via satellite and stored on the server at the Cinema. Once the film has been
stored on the server, the exhibitor shall have the flexibility to schedule the
shows as per their requirements as is done currently.
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Will
I lose the revenue from local advertisements?
The Exhibitor shall be free to schedule any advertisements they desire, before
the start of and during the interval of the movie. They can display these
advertisements using their existing projectors. All revenues from such
advertisements shall continue to be to the benefit of the Exhibitor.
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Will my existing staff become redundant?
The digital cinema system is designed in such a way that it requires only one person to run
and monitor the system. The existing projectionist can be trained to operate
the digital cinema equipment. In fact digital cinema shall ensure optimum staff
utilization. Since the digital system does not need constant monitoring once
the system has been switched on, the operator can be utilized for other
purposes such as counter, box office window or gaming terminal management.
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Will I be required to install a new screen system?
The digital projector can project on any smooth surface, including the existing screen.
However, for best results and performance we suggest that the screens be
cleaned and maintained on a regular basis.
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Can the existing sound system in the theatres
be used with the Digital Cinema System?
No change is required in the existing sound set up. The image is digitally encoded for both
sight and sound. Digital Cinema enhances the sound with digital playback. The
existing sound system will be used and configured to give optimum performance
with the help of the Digital Cinema system.
The Digital Cinema System is designed to cater to most existing Mono, Stereo,
Digital sound systems (Dolby, THX, DTS, SDDS, etc.), and run side-by-side with
existing 35mm projection equipment so as to manage a smooth transition between
analog and digital film exhibition.
PRODUCER/DISTRIBUTOR/ COPYRIGHT HOLDER
FAQ'S
How is a film converted
to digital cinema format?
To ensure the highest quality and pristine viewing experience, the negatives of the film shall
be first colour graded and then telecined at High Definition (1920x1080
Resolution) onto D5 tapes. This will then be converted into an uncompressed
AVI/ MOV file, after which the same shall be encoded and encrypted into MPEG-4
format, which is the latest encoding format available, allowing a high
compression ratio, while still maintaining the quality of the film. In fact we
are the first ones in the world to be using this format for encoding for
digital cinema purposes, thus, giving us a huge advantage over our competitors
.
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What is Digital
Film Mastering? Who will bear the cost?
What is the cost of converting one film to Digital format?
Who will bear the cost of Digital conversion?
Producers have to telecine their films after colour grading for purposes of satellite and
terrestrial television, with the images being captured on standard definition
format. The cost of such telecine is between Rs. 50,000 to Rs. 75,000/- per
film. The producer shall just need to make a High Definition copy at the time
they make a standard definition copy of the film for Video, Satellite and
Terrestrial TV rights exploitation. Thus there shall be minimal incremental
cost to the producer since the major time consuming job of colour gradation is
already over, this additional high definition transfer shall not cost more than
Rs. 25,000 to Rs. 30,000/- which again is a one time cost and the resultant
High Definition Copy shall be a lifetime asset of the producer just like the
negatives of the film.
This High Definition media is then transferred to UFO's encoding system, which
encodes the digital file into a format, which is readable, by only UFO's
system. The entire cost of the Digital mastering will be borne by UFO.
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How will the films
be delivered to the theatres and who will be responsible for it?
Whilst satellite connectivity permits the showing of events live, at this stage
the DSN network is intended for films only, which do not need to be delivered
in real time. Compared with physical transportation of removable media,
satellite offers a much more rapid delivery solution, creating a potential time
buffer to theoretically allow files to be transferred in considerably less than
real time. A key benefit of a satellite solution over one based on delivery of
removable media is the ability to "multicast" or "broadcast" the same content
to all theatres once only.
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How is the Encoded
film delivered to the desired theatres only?
Once the encoded file is generated, UFO shall deliver it to the cinema via
secure satellite transmission. The distributor shall have to inform UFO which
theatres should receive the film and accordingly UFO shall ensure that the film
reaches the authorized theatres only according to the distribution list and
conditional access parameters defined in the contractual relationship between
the studios, distributors and exhibitors.
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How will I ensure
that the films are screened only for the number of runs for which
the licenses have been issued?
How will I move the film to other theatres?
Integrated security with Digital Rights Management (DRM) provides the secure distribution of
digital media files; it is a set of technologies content owners can use to
protect their copyrights and stay in closer contact with their customers. DRM
encrypts digital media content and limits access to only those people who have
acquired a proper license to play the content.
The digital rights management system shall keep a track of all the films
playing at all times in the theatres. Under this system, we shall activate the
said film for a particular number of days / shows in a particular theatre. On
the completion of these days / shows, the system shall automatically prohibit
any fresh play out of the film. Should the exhibitor want to increase the
number of screenings, he shall be required to contact the producer /
distributor / copy rights holder, who in turn shall authorize us in writing and
we shall re-activate the film for that particular theatre. This obviously does
away with the need to move prints from one theatre to another.
Similarly in case the film needs to be moved to another theatre,
we will simply need to authorize the new theatre for receiving and play out of
the film.
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What is the security
of the copyright? Since the film is already in video format will
it not be easier for the pirates?
When a film is digitally mastered at our facilities we shall be introducing a
Water mark and logo burner at the time of capture. Thus our copy as well as any
data that leaves our premises shall be immediately identifiable. Additionally
we shall also introduce digital fingerprinting to enable us to identify if
there is a leakage in the system by way of camera prints.
Also when a digital movie is transmitted to an exhibitor via satellite, it will
not be in a form that can be played in your computer or in your home theatre
system. The most fundamental reason for this is that the digital movie will be
"encrypted" before it's shipped. Encryption is the digital process of making
perfectly playable movies into digital data that is complete nonsense. To make
it useable again, one applies a "decryption key" to the encrypted digital data,
allowing the player to convert it back to the original movie. Because of the
movie encryption process, we can assume that the digital movie is secure while
stored as encrypted data in the digital cinema system. Even if someone were to
walk away with the movie data, the encryption would render it useless to its
possessor. When it comes time to play the movie to an audience, the system
applies the decryption key to convert the nonsensical data back into the movie
.
A decrypted movie is still not ready to play, however. Once decrypted, a
decoder must decompress the digital movie data. The output of the decoder is a
synchronous stream of digital movie data, ready for viewing. By synchronous, we
mean that the data follows a particular cadence, or timing.
In normal systems when the decrypted and decoded the data leaves the server for
the projector it is in clear format. If nothing more is done, the movie data
will leave the server at full bandwidth and with no encryption. Thus, the movie
data will be unsecured, and vulnerable to theft.
To make this data secure as it leaves the server, a process called High
Definition Content Protection- HDCP is applied. In this process, the movie data
is re-encrypted before it leaves the server, and then decrypted again at the
projector, which is HDCP compliant. Thus, the "link" between server and
projector is protected by specially encrypting the data that travels across it.
Thus while we cannot say that the film will never be pirated we can guarantee
that it will never happen from our system and this is the cornerstone of our
software protection policy .
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