Notes and quotes from the PGA's 2010 "Produced By" conference

It was a real treat to be invited to speak at the PGA's "Produced By" conference this weekend; I was on a panel moderated by Emerging Cinemas' Ira Deutchman called "Smashing Windows: DIY and the New Hybrid Distribution."

I took some notes throughout the day Saturday on things that struck me as worth remembering, during panels on transmedia, digital cinema, "The Simpsons," and the producer's role. (I had to fly home Saturday night, so didn't stick around for the second day of the conference.) The subtext of most of the sessions I went to was this: we acknowledge that new stuff is happening and new technologies are emerging...and we know audiences want to interact with content in new ways...but it's unclear how we'll make anything approaching decent money in this new world.

I got a chance to ask noted producer (and onetime United Artists chief) David V. Picker whether he felt worried or energized by the changes technology is bringing about. "I'm curious," Picker said. "No one knows how they're going to make their money back. No one has figured it out." But it seems obvious, he added, that "you just can't keep making $100 million movies."

Picker moderated a panel of producers talking about the relationship between producer and director. (The panel was supposed to feature Brian Grazer and Ridley Scott, but both were mysterious no-shows. Not too eager to dwell about "Robin Hood," maybe?)

Larry Gordon, who produced "Die Hard" but also "Water World," said that anything can happen to a project (mostly bad) as you're trying to package together the screenplay, actors, and director. "You're not shooting until you're shooting," Gordon said.

Gordon said a lot of a producer's job is "protective work," mentioning that he once had to battle to keep Paramount executives from firing an actor on one of his films that they deemed unfunny. (The actor was Eddie Murphy, and the film "48 Hours.")

Douglas Wick, producer of "Gladiator" and "Working Girl," said that "creative alchemy [mentioned in the title of the panel] is an interesting topic, because it rarely occurs. A good movie is a miracle. There are so many ways things can go wrong." Producers, he added, are called upon to solve every imaginable problem that comes along.

Bruce Cohen, producer of "Milk" and "American Beauty," said that Spielberg told him on his first producing gig that the producer's job is to "get the director's vision up on the screen." Cohen said that is a "great mantra to start from," but that it's also important to figure out where a director may need help — on creative issues, sticking with the budget, or organizational stuff, to "keep them from getting in their own way."

Cohen had some funny stories about being reluctant to give notes to Tim Burton while he was shooting "Big Fish." He observed that Burton "paces back and forth very fast on the set, which makes it impossible to have a conversation with him, which is the point."

Jeff Gomez of Starlight Runner Entertainment moderated a panel on transmedia storytelling, with an impressive group of execs that included "Avatar" producer Jon Landau and "Battlestar Galactica" producer David Eick. Gomez mentioned that the PGA is forming a think tank on transmedia.

Gomez started by showing some slides to explain his view of transmedia. Some of the benefits: transmedia can create intense loyalty, long-term engagement, lifespan extension (of the property, not the viewers, I presume), a desire to share the experience with others, and increased revenue.

Landau talked about writing Pandorapedia, a "definitive version of the world" of "Avatar," by getting a dozen people in a room for a few days. That helped others who were building content related to the film.

Cary Granat of Bedrock Studios talked about the way Walden Media has created educational programming for school kids around movies like the "Narnia" series and "Holes," through a program called "Reel Thinking."

Larry Tanz of Vuguru mentioned "The Legion of Extraordinary Dancers," intended to start on the Web and then move to TV.

Landau was asked why there weren't more transmedia tentacles extending from "Avatar." He said they'd pitched some that Fox hadn't wanted to fund. "Trying to get a big studio to embrace new ideas is never easy," Landau said. "No one ever got fired for not trying something."

"All these extensions cost money," said Tanz. "And not all of them generate money. You may only be paid for the TV show of the movie... Some of the pieces can be liabilities on the balance sheet."

Transmedia needs to come from an authentic place, Eick cautioned: "Once the audience starts to feel manipulated, you're dead... and maybe not just the off-shoot, but the mothership, too."

The panelists were honest about the current state of transmedia: it can still be hard to figure out where to invest to actually generate good returns (whether that means ticket sales, TV viewers, or game buyers/subscribers.) "It can be hard to understand if webisodes actually have any impact on box office," said Granat, but he pointed to Disney's recent "Tickets Together" experiment in selling advance tickets to "Toy Story 3" on Facebook as something that may point in an important new direction.

Landau agreed that embedding transactions into media, whether virtual goods or ticket sales, is likely the future. He also suggested that some of the spending studios do today on traditional TV and print advertising might be better invested in transmedia projects.

Granat added, "The big studios are not going to continue [investing in transmedia] until they understand the metrics."

But Granat mentioned an interesting transmedia example toward the end: Disney's decision to create a Broadway version of "The Lion King." The studio took a risk in hiring Julie Taymor to reinterpret the film, and wound up creating a stage franchise that has since surpassed the movie in revenues by playing for years in theaters the world over (at a much higher ticket price than the film, of course.)

During a session on "Digital Cinema and You," Cinedigm Entertainment executive Michele Martell trotted out some stats about the industry. Of about 39,000 movie screens in the U.S., 8,400 have digital projectors today, and 3,700 can show 3-D content. Of 100,000 screens worldwide, 15,000 are digital, and half of those can show 3-D, she said. Also, she referred to a survey that found that one in four Americans say they plan to buy a 3-D TV. (But when?)

On 3-D television broadcasts, Fox Sports exec Jerry Steinberg said, "It is still a technology in search of a business model. People will have to pay extra at home, or for theater tickets." But Steinberg is a believer that it'll happen: "What 3-D does for sports is recreate the experience of being in the premium seats, and we as an industry haven't sold that yet." He said his expectation is that 3-D TV, just like high-def, will be an 8 to 10 year transition. "We're two years into it," he said.

Jonathan Dern, a Cinedigm executive and a long-time producer of animated TV shows and movies, said, "I don't intend on producing anything from now on that isn't in 3-D. [That way,] you have an archive that is the future."

In our panel on "DIY and Hybrid Distribution," I tossed out what I've found to be four essential truths of the new media world producers are living in: "Distribution is free. Choice is infinite. Demand is instant. Noise is unprecedented." You can either develop strategies to address those shifts, or you can try to ignore them. (I've found that many studios and more established producers are doing the latter.)

"Simpsons" writer-producer Tim Long moderated a panel of his colleagues, including "Simpsons" creator James L. Brooks, that was a hoot, as you might expect. They talked about some of the guest stars with whom they most enjoyed working (Michael Jackson, Dustin Hoffman, Mr. T) and some with whom they had problems (the late Gary Coleman apparently didn't want to say "Whatchu talking about, Willis?" on his episode.) They agreed that Conan O'Brien is one of the funniest people they've ever met, seeking to entertain anyone who'll make eye contact with him, at any moment. They said that the reason that Homer and Marge have stayed together after so many years is that the sex is great. (Apparently, this is Julie Kavner's explanation of the secret of their marriage.)

"The show is a labor of love, but it's also a labor of work," said "Simpsons" executive producer Matt Selman. More seriously, he added, "we try to cram the maximum amount of awesomeness" into every episode.

I only caught the end of Mark Cuban's conversation with LA Times reporter Dawn Chmielewski, but he made the comment that "if anything, the studios have gotten more power [over the past few years], not less."

He also talked about the EBIF standard for developing interactive applications on TVs, and said that as new Internet-enabled cable boxes crept into American homes, we'd start seeing more applications layered onto TV shows, like the long-heralded ability to click your remote and buy an outfit that a character is wearing, or dive into more data about a documentary. Cuban said that there are already about 20 million cable boxes deployed that support the EBIF standard.

So those are my notes. You can read tweets from the conference here, and hopefully the PGA will post audio or video at some point.

Does Length Matter? ... Distribution Strategy for 'Lovely by Surprise' ... A First Film for Cinetic Film Buff

- This piece from yesterday's NY Times suggests that attention spans on the Web are getting longer (though the average video is still just 3.4 minutes in duration). Microsoft blogger Don Dodge offers more on length, based on a recent chat with MTV executive David Gale. Dodge writes:

Building the story from the ground up with a couple scenes in an 8 minute sequence works well for the web, and easily transitions to the 30 minute TV format. However, trying to work backwards from a 30 minute show and break it into web length clips doesn’t work so well, for obvious reasons.

- I wonder what the turn-out was like today at the 88 movie theaters that offered a live simulcast of the Michael Jackson memorial service.

- Jake Abraham has a nifty piece on Filmmaker Magazine's Web site. (Abraham was part of the founding team at InDigEnt Entertainment.) He writes:

We decided on a “day-and-date” release for two reasons. One, we’re a tiny group and can only sustain this level of attention for so long. Two, as momentum has grown over the past few months of promotion, we think its time to get the film out there while awareness is still high and let people consume the film in any way they want. Unfortunately, this meant that we’ve had to pass on some deals that required exclusivity.

For example, the IFC FestivalDirect VOD deal requires that the DVD release be held back ninety days from the VOD release date due to deals with the cable operators (they don’t want to compete with Netflix). With the lengthy backlog to get on the service, we were looking at a DVD release as late June 2010. While I love IFC and was excited that they liked the film, there was no way we wanted to suspend our entire operation just so the film could be carried on a consignment basis through cable monopolies starting sometime next year.

- Anne Thompson reports that 'New Orleans Mon Amour' will be the first film distributed by Cinetic Film Buff, a new cable VOD service. No info about Film Buff on Cinetic Media's 1997-era Web site, but there is a Twitter feed.

Imax: A digital transition, and smaller screens

I hadn't been following the growing uproar (covered by Variety) over the smaller-size Imax screens that have been going in to multiplexes. There's even a site called Liemax that aims to help you discern "real" (giant) Imax locations from "fake" ones.

Here's a recent LA Times piece in which Imax's co-chairman says the company is considering sharing more info with consumers about screen size.

And there's this interesting stat in today's NY Times story on Imax:

How did Imax win over Hollywood? For starters, next-generation Imax projection systems, which rely on digital images rather than film, sharply lowered costs. Before digital arrived, a single Imax print of a major Hollywood film could run $60,000, according to Warner Brothers, compared with about $1,000 for a standard print. Imax’s digital prints cost about $500 each

Big D-Cinema Win for Sony Electronics and 4K

AMC has signed a $315 million deal with Sony to deploy 4K digital cinema projectors in the U.S.

"Digital cinema gives us a huge opportunity to do 3-D, live broadcasts and playback of live events," AMC exec Frank Rash tells the New York Times.

Variety notes that AMC already has 150 of the Sony SXRD digital projectors in its theatres, 29 of which also are outfitted with the RealD system for playing 3-D content.

AMC's initial deal with Sony for 4K projectors happened back in 2007. Installation of this new batch will start soon, and continue through 2012.

One question I have: wasn't Digital Cinema Implementation Partners formed specifically to handle these kinds of deals for AMC, Regal, and Cinemark? Where were they?

Monday Links for Your Reading Pleasure

- The Wall Street Journal offers a round-up of technologies changing the way we watch movies, from BD Live to iTunes to holograms to in-store DVD kiosks.

- Bloomberg News says that the continuing credit crunch will likely slow the deployment of 3-D projection technology in U.S. cinemas.

- The New York Times assesses two new video search technologies from VideoSurf and Digitalsmith. Both use facial recognition software to try to determine who is appearing on screen.

- Last week's 3-D broadcast of an NFL game didn't go off sans snafus, according to Wired News.

- Filmmaker Rob Spence is installing a camera in his eye socket, to replace the prosthetic eye he has previously worn.

Invite Only: NFL's 3-D Demo This Week

Too bad that sports fans can't buy tickets to see Thursday's game between the Raiders and the Chargers in 3-D. It's for invited guests only.

From the Wall Street Journal:

The several hundred guests at the three participating theaters Dec. 4 will include representatives from the NFL's broadcasting partners and from consumer-electronics companies. The event will be closed to the general public. Burbank, Calif.-based 3ality Digital LLC will shoot the game with special cameras and transmit it to a satellite. Thomson SA's Technicolor Digital Cinema is providing the satellite services and digital downlink to each theater, and Real D 3D Inc. will power the display in the theaters.

This isn't the first time the NFL has participated in a 3-D experiment. In 2004, a predecessor company to 3ality filmed the Super Bowl between the New England Patriots and the Carolina Panthers. When Sandy Climan, 3ality's chief executive officer, shows the footage, "people crouch down to catch the ball," he says. "It's as if the ball is coming into your arms."

The Hollywood Reporter adds:

The test will serve as a proof of concept for the possiblities of 3-D televised sports in the home because several consumer 3-D ready displays will be used.

"This broadcast will be an exciting test of how 3-D could affect fans' experience in the future," said Howard Katz, the NFL's senior vp broadcasting and media operations.

Opera in D-Cinema: Does it Whet the Appetite?

I thought this was a really interesting piece in yesterday's Boston Globe, focusing on the success of live opera distributed to digital cinemas.

Jeremy Eichler writes:

Two years ago, opera simulcasts in movie theaters did not exist; today they are wildly popular. What only recently seemed like a novel, vaguely exotic cultural activity has for many become a familiar ritual on the local musical calendar.

Yet beyond the excitement it has generated, this new wave of high-tech cultural populism is also transforming the ecology of opera in Boston, where the two main companies offering live performances - Boston Lyric Opera and Opera Boston - must now grapple with what it means to have the Met juggernaut landing right next door.

There is no mistaking its momentum. Back in December 2006, only one local theater - in Framingham - screened the first Met simulcast. Last year, the number of greater Boston theaters carrying the broadcasts was up to seven, with 21,000 tickets sold. (By comparison, the combined attendance for all 18 of the Boston Lyric Opera's mainstage performances last season was about 24,000.)

This season, three new theaters in Boston have decided to begin playing opera. Eichler asks how all this is affecting the city's opera companies... and whether it is creating new fans.

Credit Crunch Will Slow D Cinema Roll-Out

You had to know this was coming:

...Regal Entertainment Group CEO Mike Campbell said Thursday a $1 billion industry digital upgrade [to digital cinema] could be delayed.

"We believe, and JP Morgan believes, that it will get financed once the market returns to something that is reasonably normal," Campbell said. "We're going to continue to put together the pieces behind the scenes to be in a position to react."

Regal, of course, is the country's biggest theater chain, and part of the Digital Cinema Implementation Partners joint initiative with several other big chains.

Sony Will Offer 3-D Adapter for its 4K Digital Projectors

One of the drawbacks of Sony's high-res 4K SXRD digital cinema projectors has been that there has been no way to use them to show 3-D content.

That'll change in 2009, when the company will offer an adaptor for its 4K projectors that allows them to show 3-D content (albeit at 2K resolution.) Here's the press release, some coverage from the Hollywood Reporter, a piece on Sony Insider, and a blog post on Engadget HD. No word yet on price.

Wednesday News: D Cinema Deal ... RealNetworks Lawsuit ... New Video Annotation Site ... Netflix Adds Starz Movies

- More digital projection systems will show up in multi-plexes, now that several major studios have signed up to help finance them, according to Variety. (Good thing that Digital Cinema Implementation Partners, the group representing the three biggest theater chains, lined up $1 billion in financing for the gear earlier this year, before the credit markets locked up.) The deal will convert about 15,000 screens over the next three to four years, according to the Wall Street Journal.

- You shouldn't be able to buy a $30 software program from RealNetworks to help you rip DVDs, because that's bad. If you want a movie in digital form, you should instead wait until the studio decides to sell that movie in digital form. That's the upshot of a lawsuit filed yesterday against RealNetworks.

- ved.io is a cool new site with a terrible name that allows you to annotate your videos with text, links, and photos. Check out some of the annotations they've done of the first Presidential debate -- really neat stuff.

- Netflix will soon add about 2500 movies from Starz Entertainment to its Internet streaming service, reports the Journal. This is a big deal, giving Netflix lots of recent titles. Nick Wingfield writes:

Under the deal, which is expected to be announced Wednesday, Starz will grant Netflix rights to show movies on its Internet service from the Hollywood studios owned by two big entertainment companies, Disney and Sony Corp. That includes everything from "Ratatouille" to "Superbad" to "No Country for Old Men." The first 1,000 of those videos are already available on the Netflix Web site with more titles appearing in the coming weeks.

Starz holds online viewing rights to movies from those studios that are shown as part of a subscription service, in which a consumer pays a monthly fee to watch as many videos as they wish. The movies will be available online free to people who are members of one of Netflix's unlimited subscription plans, which start at $8.99 a month.

On the Web, no 'Seinfeld' yet ... Paul Schrader on What Happens Next ... More 3-D Screens at Small Theater Chains

- The New York Times ran a story Sunday and another this morning about original Web video content. The message of both, when read together, is that there hasn't yet been a 'Seinfeld'-like hit on the Web yet, but lots of people are trying.

On Sunday, Brian Stelter wrote:

...[P]roducing Web content may be easy but profiting from it is hard. While a small number of writers, producers and actors are making a living with webisodes, they are still a long way from establishing the form alongside television and feature films. The newfound industry lacks clear business models and standardized formats.

And so far, it also lacks audiences. Ask most average media consumers what Web shows they watch, and the reaction is likely to be a blank stare. If they have heard of webisodes at all, it is probably in the context of “Quarterlife,” a Web series that leapt to TV and flopped spectacularly in the ratings in February, or “Prom Queen,” an online drama backed by Michael Eisner, the former chief of Walt Disney.

Then today, Mike Hale reviews several Web series, including 'Gemini Division' with Rosario Dawson, and Stephen King's N., which exists to promote a new book. About 'Gemini,' he writes:

...[P]erhaps because of the cost of hiring a known actress like Ms. Dawson, the execution is lacking. The actors are pasted on top of static photo images of hotel rooms and Paris landmarks, and very little animation has been done beyond the annoying use of graphics to indicate that we’re actually watching video transmissions from Ms. Dawson to a friend back home. It’s like watching “Sin City” or “300” without the digital effects, which — need I say? — were just about the only reasons to watch those movies.

So what do you think, will the hits come from the big guys, or the independents?

Someone from Gen247 Media e-mailed me last week to point me to 'Deleted: The Game', a "Web TV show that promises to blur the lines between fantasy and reality by drawing viewers into an interactive game." Their budget is "next to nothing," I'm told, and they shoot act-by-act, which allows them to incorporate audience input. Characters are available for viewer interaction on sites like MySpace, Facebook, or via chat. Viewers can win prizes, or a chance to do a cameo on the show.

- Karina Longworth has the world's best job. She was out at Telluride this past week, and offered up some notes from a panel called "Snip Snip: Are Cutbacks in Film Distribution and Criticism Affecting Quality Filmmaking?" Here was the section I found interesting:

“Technology is leaving behind much that we are fond of,” [screenwriter & dirctor Paul] Schrader warned. “I personally believe that movies are a 20th century art form, and they’re basically over.” Several times over the course of the session, Schrader expressed enthusiasm for short-form episodic work made on low budgets for small screens. Referencing the rise number of “professional” media makers who have jumped to the webseries format, Schrader announced that he’s currently planning a film that would exist in a couple of different versions: one feature designed for arthouses, and one “X-rated” version, cut into 12, 5-minute episodes, for viewing on cellphones and/or on the web. Schrader’s not planning to go this route because it’s lucrative, but because it’s what he sees as our inevitable future. “There’s [currently] no money in it, but it’s much better to gore the ox than to hold the ox that’s being gored.”

- RealD and the Cinema Buying Group, which represents smaller theater chains looking to transition to digital cinema, announced that they're going to bring 3-D to about 1,000 screens. Sarah McBride explains:

The independent-theater owners "want to remain competitive, and they want to accrue the benefits" that come with 3D, said Michael Lewis, chairman and chief executive of RealD.

...Theaters tend to charge a premium for 3D tickets, often $2 to $5 more than regular tickets. That means movies that run on 3D screens can boost theaters' and studios' bottom lines. During opening weekend for this summer's "Journey to the Center of the Earth," 3D screens took in almost four times the revenue of 2D screens showing the movie.

Excerpt from 'Inventing' in Digital Cinema Report

Nick Dager edits one of the most respected sites that focuses on digital cinema, Digital Cinema Report. The September "edition" of the site includes a new excerpt from Inventing the Movies, which I adapted especially for Nick's site. It covers the many false starts of the digital cinema revolution...from predictions in the 1940s and 1950s that digital cinema was right around the corner... to efforts by Pacific Bell, George Lucas, and Texas Instruments in the late 1990s...to the present day, when we still haven't hit the digital cinema "tipping point."

A snippet from the beginning of the excerpt:

When did the digital cinema revolution begin, and who started it?

A handful of Hollywood soothsayers were predicting the imminent arrival of digital cinema in the middle of the 20th century. In 1949, the independent producer Samuel Goldwyn, who’d helped to launch three Hollywood studios (Paramount, MGM, and United Artists), anticipated the development of video-on-demand systems that would allow movie fans to view the movies they wanted to see at home, as well as methods for delivering a movie electronically to thousands of theaters, saving the studios the cost of making film prints.

A few years later, in 1954, Albert Abramson, a CBS television engineer, published an article titled, “A Motion-Picture Studio of 1968.” In it, he sketched out how digital cinematography and a film-free distribution system would work: movies would be shot with electronic cameras, and then “sent by radio-relay or coaxial cable to the theaters. Five or fifty theaters in an area may be receiving the same program. An area may cover the whole state, a county, or just a large city. But no theater is shipped the actual picture tape.” Abramson also expected that by 1968, a new generation of electronic cameras would be totally self-contained and cordless – capable of capturing 3-D imagery and transmitting it wirelessly back to the production center.

D Cinema Finger-Pointing

What's this all about?

Warner Bros. is accusing theater owners of dragging their feet in the deployment of digital cinema equipment. (True - the biggest chains, including Regal and AMC, have yet to get serious about installing digital projectors.)

And the National Association of Theater Owners is accusing Warner Bros. of being slow to commit to the financial terms that will support future digital cinema roll-outs. (Probably also true... studios are notoriously stingy about how much they will pay for a film print, or how much their will pay as a "virtual print fee," which is essentially a toll for sending a digital movie to a digital projector, which helps pay for the cost of the equipment.)

Earlier this year, Jeffrey Katzenberg had also accused theaters of being slow in their shift to digital. DreamWorks, of course, is getting ready to introduce its first 3-D movie in 2009, 'Monsters vs. Aliens.' (Warner Bros. is the distributor for this month's 'Journey to the Center of the Earth.')

The studios, I suspect, are now feeling the complexity of releasing movies in both film and digital formats -- and probably won't start seeing real cost savings until digital distribution hits a certain volume level. That's why they're negotiating so hard on what they'll pay as a virtual print fee for this second wave of d cinema installations.

'Hancock' - Hollywood's First Big 4K Release?

It seems to me like 'Hancock,' from Sony Pictures, is the first big-time digital cinema release in 4K. Sony Electronics, of course, currently sells the only commercial 4K digital projectors, which are installed in about 200 theaters in the US, according to The Hollywood Reporter. I suspect 'Hancock' isn't playing on all 200...

Sony has done other stuff to promote their 4K projectors in the past, but as far as I know, this is the first release of a big studio picture... though Sony did a special showing of 'Spider-Man 2' back in 2004 with the projector.

Text Messaging the Movie Screen

Screenvision and Verizon Wireless are getting together later this month to test an audience survey technology together, in 10 US cities. The idea is to encourage movie-goers to text message votes about their favorite music to the screen, where they'll see the results tallied (amidst the rolling series of pre-show advertisements.)

News of the deal is here and here.

If you're at a theater that's showing pre-show ads, I suppose it can't hurt to have more to do than just sitting there passively...though I do worry that this will make it seem OK to be text-messaging *during* the movie.

Sony Will Distrib Live Perfs to Digital Cinemas ... Pogue Really Likes New Roku Box

- Sony Pictures is creating a new business unit to send live performances (pre-recorded live performances, that is) to digital cinemas, according to the NY Times, Variety, and Wall Street Journal. They're starting with a Cirque du Soleil show, 'Delirium,' and then moving on to the final Broadway performance of 'Rent.' The Times observes: "Sony is the first big studio to dip its toe into the arena, which until now has been left to niche players like Colorado-based Fathom Events, which simulcasts from the Metropolitan Opera." Some events will be offered in 4K digital projection...which should look super-sharp.

- Tech reviewer David Pogue really likes the new $99 Roku set-top box, which streams movies from Netflix. (Though he does have some qualms about the video quality.) Pogue writes:

In the game of Internet movies, the Netflix Player is revolutionary. It’s the first Internet service that delivers movies to your TV without a per-movie fee — an incredibly strange, liberating feeling. It’s also the first that doesn’t require you to download or store your movie collection.

Finally, it’s the first without a 24-hour time limit. If you feel like watching a movie again, you can watch it next week or next year, without paying a penny more.

Roku also says that this box is wired for the future. When Instant Watching goes to high definition, the Player will be ready. Roku also says mysteriously that its deal with Netflix is not exclusive; technically, the box is equipped for future rivals.

Spielberg Concedes He May One Day Have to Shoot Digitally...

...but he hopes it isn't soon.

From some Chicago Tribune Cannes coverage:

"Making a film on celluloid," [Spielberg] said, is a threatened mode of expression.

"Digital cinema is inevitable. It's right around the corner. And someday," said Spielberg, "even I will have to convert."

The official Cannes site has a slightly longer Spielberg quote that offers some more nuance:

"The film is being released digitally on a lot of screens, about 300. Making a film digitally and releasing a film in the same digital process gives a beautiful image. It creates an extraordinarily clean, sharp image, but making a film on celluloid - as I’d like to do with all of my pictures –then transferring, releasing it, and projecting it digitally is a very inferior image. So the decision to go out to a vast number of motion picture theatres was a simple decision for me to make. But digital cinema is inevitable, it’s right around the corner and even someday I will have to convert, but right now I love film.”

How 'Crystal Skull' Almost Didn't Have a Digital Release

Variety's Pamela McClintock writes today about the continuing spat over whether the digital 3-D roll-out is proceeding quickly enough. But there's an interesting aside in it about the plain old 2-D digital release of the new 'Indiana Jones' movie.

McClintock writes:

There was an outcry among theater owners earlier this year when Par suggested it wouldn't supply digital prints of Spielberg's "Indiana Jones and the Kingdom of the Crystal Skull," because Spielberg wanted the movie played only as film on 35mm screens. Filmmakers including Spielberg sometimes balk at having their movies shown in digital when they were shot on film.

Not providing a film like "Crystal Skull" on digital would slight theater owners who have made the conversion, according to exhibs. Theater owners have long argued that there's no reason to make the transition if the product isn't there.

Par changed its position and will be releasing digital prints of "Indiana Jones." Exhibs aren't entirely mollified, though, since digital prints will go only to those houses where all the screens are digital. If there's a mix of screens in a theater, that theater will get only a film print.

Who's Frustrated Now? Katzenberg.

In the early 2000s, it was director George Lucas who was persistently peeved at how slow theater-owners were to install digital cinema equipment; he wanted more screens to show 'Attack of the Clones' and 'Revenge of the Sith.' ('Phantom Menace' was shown on just four digital screens as a test, in 1999.)

Now, in the latter part of the decade, it's DreamWorks Animation CEO Jeffrey Katzenberg who is frustrated at how slow big multiplex operators have been to install 3-D digital projection gear. From Variety:

"In the last 30 days, things have not progressed as well as I had hoped, expected and, quite frankly, been committed to, by all the parties involved," Katzenberg said in response to an analyst's question. "It's ongoing as we speak literally now, but in terms of getting the big three (exhibitors: Regal, Cinemark and AMC) on board and actively moving forward, I feel as though things have dragged along, and it's been pretty disappointing."

Tensions are simmering on both sides of the issue, as the major studios and the top three circuits try to hammer out the size of the "virtual print fee" that studios will pay to distribute their pics digitally, which would be used to defray the costs of digital projector installations.

Katzenberg is hoping there will be 5000 3-D capable screens in the US by next March, when DWA will release 'Monsters vs. Aliens.'

A Few Monday Reads: Piracy, Cameron, Blockbuster, and Digital Cinema Fees

- The NY Times has an interesting piece today that suggests that piracy is moving from NYC street corners to the Internet. (This may be in part due to a big enforcement initiative by NYC Mayor Michael Bloomberg.) Eric Taub writes:

Since December 2003, when Mayor Michael R. Bloomberg started an initiative to stem the trade in bootlegged and counterfeit goods, [NYC enforcement agent Shari] Hyman has “seen a huge decrease in illegal DVDs being sold in buildings.” In a February sweep, the organization checked out three buildings and 32 storefronts for bootlegged DVDs, and found none.

But New York may not be the best barometer of piracy. Worldwide and on the Internet, video piracy remains rampant. The movie industry has devised new ways to fight piracy, and has pushed for antipiracy laws and run ads to discourage pirates.

Besides pirated DVD copies of first-run films, copies are also available online for illegal downloading, mainly through peer-to-peer file-sharing networks. High-definition camcorders, some not much bigger than a cellphone, can copy films from a movie screen with little loss of detail.

- James Cameron shares a lot about what he's learned about shooting in 3-D in this e-mail interview with Variety's David S. Cohen. It's full of juicy observations, advice, and opinions. A snippet:

COHEN: Right now, 3-D is pretty much being used for films that have some spectacle in them, whether it's "Journey to the Center of the Earth" or "U2 3D"; nobody's talking about using it for domestic dramas. But there are people wondering whether it will actually enhance the impact of character-driven stories. What are your thoughts on how 3-D changes the experience of watching actors act?

CAMERON: I plan to shoot a small dramatic film in 3-D, just to prove this point, after "Avatar." In "Avatar," there are a number of scenes that are straight dramatic scenes, no action, no effects. They play very well, and in fact seem to be enhanced by the stereo viewing experience. So I think this can work for the full length of a dramatic feature. However, filmmakers and studios will have to weigh the added cost of shooting in 3-D against the increased marketing value for that type of film.

- Blockbuster wants to buy Circuit City for more than $1 billion, according to the Wall Street Journal. Why? Blockbuster's CEO wants to create a company that can sell digital and physical media, and also the devices you need to play it on ... "an $18 billion global retail enterprise uniquely positioned to capitalize on the growing convergence of media content and electronic devices," CEO Jim Keyes wrote in a letter.

- Studios and cinema owners are wrangling over the fees studios will pay each time they deliver a digital file to a theater. (Known as the "virtual print fee," this helps theater owners --or a third-party that installed the digital projector and server -- defray the cost of the digital equipment.)