[Satellite TODAY 03-08-13] Five American film studios and the country’s three largest exhibitors have reached an agreement to partner on the first digital theatrical delivery service via satellite. Regal, AMC and Cinemark, together with Universal and Warner Bros, announced the start of the Digital Cinema Distribution Coalition at last year’s CinemaCon. Lionsgate, Disney and Paramount have also joined the coalition, plus Sony and Fox and in negotiations to get involved.

  DCDC is a network of satellites capable of distributing feature, promotional, pre-show and live content via digital distribution technologies. Its implementation would eliminate the need for most of the physical discs that are still shipped to digital-capable theaters, the standard practice since the conversion wave began in 2007.

   According to Randolph Blotky, chairman and CEO of Technology Convergence Partners, the DCDC’s business model “will assure long-term consistent low-cost pricing to content providers and exhibitors across the industry.” The model is based on an important collaboration between studios and exhibitors, and marks the first time the three major U.S. exhibitors have partnered since the formation of DCIP – an effort facilitate digital conversion – in 2007.

  The initial rollout for DCDC’s plan is scheduled for completion before the end of the year. Deluxe/EchoStar LLC will provide operations support for the DCDC network.