DIGITAL CINEMA

1
A Presentation to UNIC
DIGITAL CINEMA January 2006
2
Introduction

• Technicolor Digital Cinema (TDC)
• Digital Rollout Overview
• Common Exhibitor Questions - Answered
• Screen Advertisings Role
• Summary

3
Technicolor Digital Cinema
4
Technicolor Digital Cinema

• Technicolor Digital Cinema is the industry leader
  in the worldwide provision of digital cinema
  services to the motion picture industry
• TDC operates in the following areas
• Installation of Digital Cinema Systems TDC has
  installed 76 systems in 17 circuits worldwide
  and is set to install 5000 systems across North
  America over the next few years and 15000
  systems over the coming decade
• Preparation of Digital Cinema Distribution
  Masters TDC has managed over 100 digital
  releases for 8 Studios since 2000
• Distribution of Digital Content Managing the
  encoding encryption delivery key management
  and upload of features
• Digital Screen Advertising Operates SkyArc
  Screenvision USs platform for digital cinema
  advertising

5
Current Focus

• TDC has developed a digital business model which
  works for all parties in the motion picture chain
  equitable sharing of cost delivering
  performance and content security
• TDC now has definitive agreements with 5 US
  studios Dreamworks Fox Sony Universal and
  Warner Bros. and is in late stage negotiation
  with a further 2 accounting for 75 of the 2005
  US Box Office
• A 180-240 screen beta test will be launched in
  early 2006 and a full US rollout thereafter
• TDC is approaching this business model on an open
  standards basis aiming to become a single point
  of accountability for both studios and exhibitors
  in the digital era

6
TDC Europe

• TDC recognises that some European markets could
  digitise more quickly than the US due to the
  different industry dynamics in each country
• Technicolor has the expertise in content
  preparation and distribution and is a trusted
  partner to studios distributors and exhibitors
• Leveraging this reputation and core competence
  TDC has established a European business parallel
  to the US digital cinema initiative
• Technicolor currently has multiple facilities in
  London and locations in Rome Paris and Madrid

7
Digital Rollout Business Model
8
Technicolor Rollout Principles

• To minimise the disturbance to existing business
  models and relationships. That is Technicolor
  shall not act as a gatekeeper
• All service providers can access all screens
• Content owners are free to select distribution
  service providers
• Apply core technologies based on industry
  standards (DCI SMPTE etc) this allows for
• Multiple vendors and system configurations
  (Christie Barco NEC Sony)
• Upgrades over time (eg 2K to 4K)
• Provide cost-effective financial solutions
• Minimising cost through scale
• Maximising efficiency through common equipment
  for features and advertising
• Establish parallel long term agreements between
  stakeholders ensuring a common interest for the
  life of the project

9
Technicolor Solution

• Enable the Rollout
• Manage deployment preparation and roll-out
• Provide maintenance solutions
• Procure equipment and systems
• Theatre management system
• Offer Fulfilment Services
• Content preparation
• Network operations
• Distribution management
• Key management/security

Technicolor will enable the industry and
subsequently support the transition by offering
the required services in the digital era