Perhaps it is because I live and work in L.A. that I have attended what seems an inordinate number of technology related conferences in the past few months. These have included Digital Video Expo, iHollywood Forum’s Digital Studio Summit, Quantel’s two-day generationQ – the next generation, Entertainment Asset Management, and HDExpo.

It is clear that we are deep into a challenging technological era. Bill Gates and others have said that this will be the Digital Decade, not the 1990s. They are right.

Oh, sure, digital technology has been around for sometime. But as with many technologies, it takes a long time before many aspects are commonly accepted in the broad marketplace.

Of particular note is high definition. Mark Cuban, chairman of HDNet, the first all-HD national TV network, in his keynote address at Digital Studio Summit stated that "prices on HDTV sets are dropping two to five percent per month." Cuban indicated that content of almost any kind is welcome, knowing that when people see the way it looks on their neighbors’ sets, they will want one, too. Cuban is ready with a range of programs on his HDNet, but is on a continual hunt for more.

We need to be ready for the effects of HD on the LF business, both positive and negative. Several LF organizations are leading the way. Let’s look at a few.

Discovery Pictures has converted its three LF films, Africa’s Elephant Kingdom, The Human Body, and Wildfire to HD. I saw parts of the converted Africa’s Elephant Kingdom on a monitor at Crest National in Hollywood. The results were spectacular: clear, crisp, and with great color. I only wish I could have seen it on a larger display.

Discovery is leading the way in converting its films. Yes, it does need programming for its HD cable channel, so the ancillary revenue from these existing product is probably minimal. But in an industry that has been slow to recognize and exploit the home entertainment and TV markets, Discovery’s lead role in this new direction is important.

Discovery’s HD channel and others, such as HDNet, will provide new opportunities for maximizing revenue from LF films.

Regal is installing digital projectors and high-speed networks in its theaters, including all of its California locations, according to a recent Los Angeles Times article. Initially, the system will be used for shorts and commercials before the feature film program. Ultimately, the network and more advanced digital cinema projectors will begin replacing conventional film distribution.

Regal will also be showing James Cameron’s Ghosts of the Abyss in about 150 of its theaters, in a 35mm over/under 3D version. These venues, in markets that have no LF bookings of the film, may provide the right opportunity to enhance the revenue stream for some films, even if for a relatively short booking. The converted film would thus be ready for subsequent distribution windows and their revenue streams.

Ghosts of the Abyss will most likely not be a traditional LF documentary, which generally does not play well in the commercial LF settings. If commercial theaters attracted an educational crowd, wouldn’t they have done so a long time ago? But Ghosts promises to be more, with what I anticipate will be compelling content in HD 3D. With the built-in Cameron cachet and a focused Disney marketing campaign, the film may well attract a diverse audience.

While Ghosts of the Abyss may be the exception rather than the rule, a month on 150 additional screens may be a boon to the LF industry. Makers of 3D films should benefit from having more screens on which to book their films. Lower costs to enter the exhibition market could form the wave of the future for LF films.

Cameron’s film was shot digitally and probably remained in the digital domain through the post production process. As such, it is one of a handful of films, 35mm or LF, that have used digital technologies from start to finish. As Cameron begins work on his next documentary about the sinking of the Prestige, it will be interesting to use Ghosts of the Abyss as a benchmark in comparing how the technology evolves between the two productions.

I recently saw the 15/70 trailer for Ghosts of the Abyss on the front end of The Lion King. To my eye, it looked great. And as the tools to blow up HD to 15/70 and 8/70 continue to be fine-tuned, quality will only increase, to the benefit of LF theaters and producers.

nWave recently participated in an open house at LA Center Studios that was attended by one of the largest contingents of LF industry folks outside of an LFCA or GSTA event. A large contingent from the themed entertainment industry allowed for great networking and lively discussion. Production challenges in themed entertainment are equal to or greater than those of LF production.

nWave presented approximately 9-½ minutes of PandaVision, a 14-minute attraction film in HD3D made for the Aquarium of the Pacific in Long Beach. According to Charlotte Huggins, SOS Planet is a complementary piece to PandaVision. The excerpt was shown in a temporary set up in the studio’s auditorium. Despite a few relatively minor flaws in the presentation (due to the temporary setup), the images looked great.

An effective implementation of PandaVision in Long Beach might lead other institutions to develop similar HD theaters that would be less expensive to build and operate than traditional LF theaters.

This digital decade will provide both opportunities and challenges. The results may not be measured right away, and there is no turning back. We are about to be immersed in the digital decade, but unlike the Titanic, we will not sink.

Marty Shindler is CEO of The Shindler Perspective, Inc. an organization specializing in providing a business perspective to creative, technology and emerging companies. Marty may be reached at Marty@iShindler.com. Visit the firm’s web site at iShindler.com.

Copyright 2003 by Cinergetics, LLC. All rights reserved. Used by permission