Digital Cinema Need To Get Connected

Two news items : - BSkyB trials stereo 3D and Odeon/UCI Cinemas Further Extend Digital Screens Across Europe

If cinemas charge £10 a ticket for a celluloid presentation then they are unlikely to generate a sustainable premium simply because its digital.

Is 3D presentation the answer? There is a novelty element which may draw in a larger audience and or enable a premium ticket price. But a sustainable increased ROI, I doubt it.

In the UK BSkyB has already done some trials with 3D as it seeks to differentiate its service. BSkyB are masters at differentiating their services and increasing ARPU with multi-room. Sky+ and HD services. As other broadcaster catch up BSkyB look for the next and 3D is it, at the moment.

If the public places a value on 3D that BSkyB can defend or improve ARPU they will go hammer and tong to establish a market. Therefore 3D in cinemas could soon simply be a “me too” proposition rather than a killer differentiation.

Investing in a digital projector for cinema will depend on the ability for the cinemas to have sufficient ROI.

If I bought a HD digital TV and only connected to a DVD player friends would soon be advising me that I needed to get connected to an aerial, satellite dish, cable or IPTV, to get the most out of it. A digital projector connected to a local server is no different to a TV and a DVD. Limited content, recorded (old), dependant on limited content suppliers. Cinemas need to, get connected, get new and get relevant. They need to increase utilisation. Novelty presentations may help but are not enough.