Thomson sees significant opportunities from Analog-to-Digital Cinema Transition
PARIS, France and BURBANK, Calif., — November 10, 2005 —Thomson (Euronext 18453; NYSE: TMS) today announced that its Services division has reached digital cinema usage agreements with DreamWorks, Sony Pictures, Universal Pictures, and Warner Bros. to accelerate the deployment of digital cinema systems in North America. In addition, the company is in late stage negotiations with Twentieth Century Fox, New Line Cinema, and The Weinstein Company and expects these studios to be part of the initial deployment. The agreements reinforce Thomson’s global leadership in the provision of electronic delivery services and technologies to the world of content producers and distributors.
Thomson’s intended role includes the management of the rollout of digital cinema projection systems covered by the agreements with the studios, as described in the joint press release, plus a wide range of post-production services, network services, including distribution, and the supply and development of equipment and related technology.
These value-added services and equipment are critical components in the creation and distribution of content in a digital environment:
- Post-production services such as digital post-production (including content preparation for digital distribution and projection), content management software, and security solutions
- Network services, including electronic content distribution, through the management of digital distribution centers, as well as digital rights management and security solutions
- Supply of digital broadcast and network equipment (including the installation and maintenance of digital cinema systems)
Accordingly the transition from analog to digital content and distribution creates significant opportunities across all three of Thomson’s divisions – Services, Systems & Equipment and Technology.
In each of these divisions, Thomson’s strategy has been to invest so as to create and reinforce the relationships and capabilities necessary to support the digital transition – in cinema, as well as other media. The increased investment in Research & Development, in Services roll-out, and the bolt-on acquisitions in the Services division, made in 2004 and 2005 to date, all support this strategic goal. As today’s Digital Cinema announcement shows, Thomson is accordingly well placed to seize the exciting business opportunities from the transition.
Specifically concerning the Digital Cinema, Thomson will manage revenues flow from both the physical/analog environment (print fees and distribution charges), and from the digital cinema environment (roll-out, post-production and network services). Thomson estimates that the opportunities from the market for digital cinema services are at least as great as from today’s $1.5bn global film print and distribution market.
“Today’s digital cinema agreements are the first example and a major demonstration of our commitment to assist all of our customers in managing the transition from analog to- digital content and distribution,” said Frank Dangeard, Chairman & CEO of Thomson. “We look forward to working with all content producers and distributors in helping them achieve this strategic shift successfully.”
About Thomson — Partner To The Media & Entertainment Industries
Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and technology to help its Media & Entertainment clients – content creators, content distributors and users of its technology – realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: http://www.thomson.net.
About Technicolor Digital Cinema
Since its inception in 1999, Technicolor Digital Cinema has been a pioneer in the enabling and advancement of digital cinema initiatives. By actively working side-by-side with key digital cinema stakeholders as a technology enabler and service provider, Technicolor Digital Cinema is utilizing its breadth and depth of valuable industry knowledge and expertise to develop solutions for technologies and standards that will ultimately facilitate the global commercialization of digital cinema. Headquartered in Burbank, California, Technicolor Digital Cinema offers the most comprehensive set of digital cinema services and solutions, including compression, encryption, key management, secure distribution, storage, scheduling and playback, and maintenance and support. Additionally, the division is working closely with studios to support current digital cinema releases. Technicolor Digital Cinema is an operating unit of Technicolor Electronic Content Distribution Services, part of the Services division of Thomson. Since 2000, Technicolor Digital Cinema has managed and distributed 100 titles for eight studios, covering more than 280,000 digital presentations worldwide. For more information: http://www.technicolordigital.com.
About Technicolor Electronic Content Distribution Services
Technicolor Electronic Content Distribution Services, part of the Services division of Thomson, is a leader in the preparation, distribution, and exhibition of digital theatrical content for customers worldwide. Its operations include those of Technicolor Digital Cinema. In addition, Technicolor Electronic Content Distribution Services provides managed services to enable content distribution over Internet protocol (IP) networks that allows customers to deliver a differentiated content offering. For more information: http://www.technicolor.com.
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