By Peter J. Brown

The movie industry is waking up to the fact that satellite-based distribution today represents a viable alternative to the old way of distributing films. When it comes to security, reliability, flexibility and cost effectiveness, satellite can do it all.

The industry’s de facto d-cinema standard was published by Los Angeles-based Digital Cinema Initiatives (DCI) in 2005 and enjoys the support of major studios, the National Organization of Theater Owners and the American Society of Cinematographers. While slow to start, adoption of the standard and d-cinema in general is picking up speed. The forces driving d-cinema are the same ones — improvements in quality and costs — which spawned the digital revolution in other areas, says Scott Calder, CEO of Utah-based Mainstream Data. "The truth is that with or without satellite, cinema would be going digital for quality and cost reasons," he says. "To the extent that satellite vendors understand that fact and then focus on providing infrastructure that enables a better theater experience at costs that are much lower than analog film, there is a bright future for satellite in digital cinema."

Since 2004, North Carolina-based Microspace has worked with Paramount’s Dreamworks SKG to deliver films like Shrek 2, Collateral and Shark Tale to theaters in North America. Microspace integrated forward error correction software from Kencast to help its satellite-based d-cinema solution to deliver a base 99.95 percent availability. "Wide distribution of a single movie file to many theaters will be done by satellite, and with a reliable enough multicast system, modest return-link capacity will be used to certify delivery," says William Steele, president of Connecticut-based Kencast Inc.

Initially, the files delivered were in the range of 50 to 100 gigabytes. Now the files are likely to be closer to 200 to 300 gigabytes, and technology must improve to help deliver the larger files, Steele adds. "The ability to transcode quickly, even in real time, to smaller formats means the movies can be distributed directly to hotels, cable, direct-to-home services and even mobile handsets with the need to continue ongoing extensions of the network infrastructure as these markets emerge."

Ontario-based International Datacasting Corp. (IDC) also has been active in d-cinema applications for several years, providing the infrastructure for Boeing’s D-cinema project and providing file distribution for Technicolor, says IDC’s President and CEO Ron Clifton. "There is no doubt that digital cinema is the wave of the future and we have got the delivery part solved with proven technology — cost-effective, secure, and reliable."

Clifton emphasizes proven technology, which means open standards, packet-level forward error correction and backlink correction. "Our systems readily handle large files such as the 150-gigabyte files used for digitized films, and they operate at rates up to 70 megabits per second and higher for both file delivery and the projection of live events," he says. "With our new line of DVB-S2 products, we now can achieve higher content delivery rates up to and beyond 90 megabits per second. This high performance is critical in order to make d-cinema economically viable," says Clifton.

In March, Digital Cinema Network Service announced it had selected BT as its global system integrator to develop, install and operate its d-cinema solution. Willem Weijer, BT’s vice president of business development, says the most significant change in terms of satellite-based, multi-venue content distribution since DCI got underway involves the understanding of the application of VSAT technologies and the increase in throughput abilities by the VSAT equipment vendors. "Many VSAT equipment manufacturers are now working diligently to increase the maximum throughput capacity of their systems in response to d-cinema," he says.

D-cinema content is encrypted from the time it is encoded until play out. While reliability and security are both accounted for in the process, the network-based solution increases flexibility and speed of delivery, says Weijer. "You will likely continue to see upgrades to VSAT technology in the area of higher data throughput capabilities. You will also likely see upgrades to the software and middleware applications that are currently used for scheduling content delivery and security."

Although satellite distribution of d-cinema content remains largely unchanged, the way the content is encoded and encrypted is changing, says Curt Tilly, manager of D-cinema distribution at Microspace. "With JPEG encoding we are seeing d-cinema (files) that are two to four times the size of the first MPEG-encoded (files) we delivered," he says. "Because the packages are now encrypted to a standard specification, we receive and deliver all content in an encrypted form."

Other big d-cinema system changes underway involve support for multiple screens, and Tilly sees satellite distribution playing a major part in these new systems. "While satellite distribution certainly saves money for independent theater owners, the big cost in the transition really remains the projector, server and back-room systems that support digital presentation," he says. "Satellite will provide the opportunity for additional revenue for these smaller exhibitors with alternative content choices, and this might be enough of an incentive to move to digital. Satellite carries the added benefit of keeping the workflow entirely digital. Using satellite means that studios and exhibitors do not have to inventory, duplicate, track, ship, ingest and return hard drives."

Better Theater Experience

New Jersey-based Access Integrated Technologies Inc. installed more than 500 digital systems at 70 theater sites in 21 states. The company’s wholly owned subsidiary, Christie/AIX, launched its D-cinema platform in 2005 using IDC satellite router receivers. "Satellite transmission adds a few more layers onto security by including conditional access to specific receivers and the scrambling of data," says Russell Wintner, president of AccessIT’s Digital Media Services division. "DCI has mandated that movies will be encrypted with government-strength encryption techniques which cover most of the piracy concerns for content stolen when en route to the theater. Key management has also been designed to make it impossible to play back a movie on any system that does not have a key corresponding to the specific feature, projection server and date and time of valid playback."

Christie/AIX includes a theater management system and a central server which creates a network environment where software simplifies the assigning of movies from one screen to another, says Wintner. "Satellite delivery relies heavily on theaters having a central point of ingest for new content. There are a lot of advantages offered in a central command, but one of them is the ability to communicate back to the earth station, confirming successful deliveries which in turn increases reliability," he says. "… As movies are sent via satellite into a central server in each movie theater, no human intervention is required on the part of the theater to ingest files. This creates an opportunity for the independent theater owner to save money on personnel — a significant change for a mom-and-pop owned business."

In 2005, Thomson selected Mainstream Data to provide an end-to-end high-speed digital satellite network for the distribution of pre-show content to movie theaters throughout North America. Thomson is partnering with several studios for its Technicolor Skyarc system, which uses Mainstream Data’s DVB+ satellite receivers to distribute encrypted high- definition content via satellite or terrestrial links. "The most significant milestone in the development of d-cinema was the day that Technicolor — the 800-pound gorilla in feature distribution — decided to move forward with physical (hard drive) and electronic (satellite) distribution of its digital content," says Calder,

The Skyarc network, with its hybrid terrestrial-satellite distribution technologies, assures the safe and complete delivery of 300-gigabyte files to thousands of theaters simultaneously. "All necessary technology elements are currently in place to deliver a stunningly beautiful d-cinema experience to customers today," says Calder. "There will certainly be evolutionary improvements in the technology after the installation of 4K 3D projectors, but they will be relatively minor. I can tell you that having seen the new technology demonstrated first hand, this new generation of display technologies will keep theater patrons enthralled for years."

An additional benefit of satellite distribution is that smaller independent films are no longer burdened with the costs of mastering and developing film to get a limited release. "Keeping the workflow entirely digital will enable a new generation of film-makers to distribute their work on a broader basis. This idea leads into alternative content in theaters," says Tilly. "Satellite also enables the distribution of a number of forms of alternative content, from concerts to sporting events to independent films, which is becoming increasingly important to exhibitors."

Besides providing a rapid method for distribution, worldwide simultaneous releases via satellite also might reduce piracy, says Chong Man Nang, CEO of GDC Technology Pte Ltd. in Singapore. "By the time the second-run 35-millimeter prints reach the small cinemas, pirated copies are already readily available, which in turn reduces attendance and box- office (revenues)," he says. "Global movie exchanges are easier when satellite connects more and more d-cinemas. Live events and advertisements are already distributed via satellite. The addition of d-cinemas to an existing satellite network means more content base for programming."

One area that still needs to improve is equipment cost. While the advancements promise cost savings for large theater chains, smaller, independent theater owners may not be able to make the transition until d-cinema is more affordable, Calder says. "The principal cost barrier to D-cinema has always been the expense of the projectors ($90,000 to $100,000 per projector) and the cost advantage of satellite really doesn’t kick in until you are delivering to hundreds of theaters simultaneously." Projector costs will have to decline before smaller exhibitors move to the new technology," he adds.

Weijer believes satellite technology does not generally impact the costs to the theater owners. "Cost impact is based more on the business models and the support and maintenance agreements surrounding the business models. Minimally, the theater owners will realize some cost benefits in a digital model in that the shipping costs associated with physical delivery of film tins goes away," he says.

D-cinema is coming to a screen near you, and it will probably happen sooner than you think. So, head down to your nearest theater, check out the dish on the roof, and remember to get your popcorn.

Peter Brown is Via Satellite’s senior Multimedia and Homeland Security editor.