Our take...
Cinepolis has already installed six screens before the release of the latest digital 3D movie, Journey to the Centre of the Earth 3D, in July 2008. However, no mention has been given over the source of financing for the underlying d-cinema equipment. The deal is expected to expedite discussions on various business models to secure the basic d-cinema equipment, by expressing to the Studios a clear intention to upgrade a substantial proportion of those prospective digital screens, to 3D, once the roll-out is underway.
In turn, the Studios require a provision of sufficient 3D screens to generate the amount of incremental revenues from 3D, necessary to offset higher film budgets. To date, third party networks or individual exhibitors have not yet secured Studio subsidies for mass deployment in this region.
The latest announcement indicates that competition between the major circuits could be a key factor in driving 3D installations in particular regional zones. In North America, three of the top five movie theatre chains namely Regal, Cinemark and Carmike have all made large commitments to RealD's stereoscopic technology. The RealD system has now been selected by major exhibitors from three world regions – North, South America and Europe for large-scale orders, in comparison with ad hoc deployments for the two other major 3D technology providers (Dolby and XpanD). A notable exception is pan-European operator Kinepolis, which proceeded to upgrade one screen in each of its 23 theatres to the Dolby 3D system.