A variety of technology companies are involved in this emerging space of digital cinema. Companies such as Qualcomm, Boeing, QuVis, and Avica have all come to the table with various digital cinema products and services. However, after more than two years of market development, only about 60 screens across the
This small number can be attributed mainly to cost. Similar to the transition from “talkies” to sound films as well as in the case of the emergence of color film, cost is a significant barrier to entry. In an industry where production and distribution costs are off the charts and margins on theatrical exhibition are low, it is a challenge to rationalize funding the conversion to digital cinema.
However, from production applications such as dailies in digital format and digital asset management to promotion devices such as digital media trailers on the Web to (most recently) film distribution and exhibition, filmmakers and other film industry leaders are recognizing the economic value of integrating digital media into their work environments.