FRANCE TELECOM&DIGITAL CINEMA: FRANCE TELECOM & DIGITAL CINEMA ShowEast
31st October 2001
Managing Director, Digital Cinema Program A global leaderin professional broadcastingand File deliveryvia satellite: A global leader in professional broadcasting and File delivery via satellite is part of the B to B division of France Telecom Worldwide coverage & presence: Worldwide coverage & presence 3 GlobeCast Bureau GlobeCast
Bureau + Teleport GlobeCast Teleport GlobeCast
Expert SNG Partners Slide4: We are a worldwide company that includes huge activities in Broadcast Services.
But why being involved in Cinema ?
Because the Digital Cinema transmission chain has many analogies (but also some differences) with the Professional Broadcast Services Business, and because it happens that we are already present in the Cinema Business (Madrid Film). Slide5: Playout & Network management Diffusion
or Projection Transmission OR / AND OR FIBER Slide6: TV: Operators Pay for the transmission (transport of content) (Exhibitors)
Multiple operators in the same site
Cinema: Editors Pay for the transmission (the prints) (Distributors)
At least one site (theatres) per operator in a given area (town)
Therefore, the major potential interested party are the distributors because they will make important savings on the costs of the prints, but exhibitors and others such as advertisers will make more profits.
Consequently, although the technical delivery chains have strong similarities, the business model for establishing the related services will be substantially different. BUT DIFFERENCES Slide7: WHAT ROLE SHOULD FRANCE TELECOM PLAY ? We are in the business of electronic transport and services for radio and TV transmitters, offering a complete service for broadcasters.
We plan therefore to offer a full range of services for the cinema industry based on our experience of electronic transport of content and network management. Slide8: Have made an experimental platform to demonstrate our know-how
Identify which services we will offer
Work on business models WHAT ARE WE DOING ? HAVE MADE AN EXPERIMENTAL PLATFORM: HAVE MADE AN EXPERIMENTAL PLATFORM To contribute the large understanding of the benefits of digital cinema in general and electronic delivery by satellite (and fibers ?) in particular. It is important to stress the interest of satellite because the cost of transmission is divided by the number of theaters, while, in the case of a physical medium, it is multiplied by it ! N.B.: We made it in partnership with the CST (French Technical Superior Committee for Cinema and Audiovisual facilities HAVE MADE AN EXPERIMENTAL PLATFORM: HAVE MADE AN EXPERIMENTAL PLATFORM To contribute to make sure that standardization will move towards proper and realistic achievements.
To make demonstrations of our know-how :
FNCF (French NATO) - September 2000
PATHE - Spring 2001
ODEON Leceister Square - October 4th 2001
Biarritz - October 5th 2001
Paris - october 29th 2001 : whole movie
TO IDENTIFY WHICH SERVICES WE WILL OFFER: TO IDENTIFY WHICH SERVICES WE WILL OFFER Network management :
Which content, to deliver where, with which associated rights for use and status of content of local servers.
Monitoring of proper delivery and use made of them.
Reporting to the right owners (distributors, screen advertisers,…).
Transport of contents (movies, advertising, trailers, live events,…).
Possible other services: maintenance… for theater installations (depending on the country considered). WORK ON BUSINESS MODELS: WORK ON BUSINESS MODELS To identify who could be our future customers and potential partners
Slide13: Advertisers Screen
Advertising Advertising Agencies BUSINESS MODEL: PRESENT SITUATION Slide14: Advertisers Screen
Agencies TELCO Transport of content
ex. Boeing, France Telecom, Others Show
Distributors Shows, Education, Conventions... DIGITAL CINEMA BUSINESS MODEL: SCENARIO N°1 New Operator (Investment in projectors + network management + physical delivery) Technicolor Digital Cinema Services, Kodak (?), others
Slide15: Advertisers Screen
Agencies TELCO Network management incl. Transportation
France Telecom, Others Show
Distributors Shows, Education, Conventions... DIGITAL CINEMA BUSINESS MODEL: SCENARIO N° 2 Potential Distributor Joint Venture
+ Finance Company
(investment of projectors)
+ 3rd party accounting
+ 3rd party maintenance Slide16: Advertisers Screen
Agencies TELCO Network management incl. Transportation ex. Boeing,
France Telecom, Others Show
Distributors Shows, Education, Conventions... DIGITAL CINEMA BUSINESS MODEL: SCENARIO N° 3 Compensation Finance Company
ex. Boeing Capital,
G.E. Capital Others (some related to France Telecom) OR Slide17: Advertisers Screen
Advertising Advertising Agencies BUSINESS MODEL: PERMANENT CORE SYSTEM Slide18: None of these digital cinema scenarios will change the roles of the producers, distributors and exhibitors.
We have proved that we are prepared to serve the cinema industry in a way consistent with the new millennium age, that is only to replace the spools and the trucks by servers and satellite transmission in order to decrease costs, give more flexibility, quality and security, help the cinema industry to get more revenues. CONCLUSION Slide19: The End !