In a strategic step to more effectively serve the needs of the emerging
digital cinema industry, Thomson (Euronext Paris;: 18453; NYSE: TMS), the worldwide
leader in video technologies, products and services and QUALCOMM incorporated (Nasdaq:
QCOM) today announced that QUALCOMM has sold its equity interest in Technicolor
Digital Cinema (TDC) to Thomson, the parent company of Technicolor, a move that
results in sole Thomson ownership of the venture. Financial terms of the sale were
not disclosed.
The agreement allows both entities to leverage Technicolor Digital
Cinema's successful systems and service model while enabling each to focus on their
respective core businesses - Technicolor in servicing the digital cinema needs of
its customers and QUALCOMM in developing and producing innovative digital cinema
technology and systems. The transaction is also consistent with Thomson's commitment
to support content owners and network operators globally as they evaluate and embrace
digital technologies.
"Many of the objectives of forming the joint venture company in
2000 have been met," said Gary Garland, Vice President and General Manager of the
QUALCOMM Digital Media Division. "With the combination of Technicolor's service
legacy to the entertainment industry and QUALCOMM's technical expertise in digital
cinema enabling technologies, we hoped to move digital cinema forward by providing
both systems and services specific to the digital cinema space. We have done that,
and we've done it exceptionally well."
As part of the restructuring, Technicolor will acquire exclusive
rights to manufacture, sell and service the multi-screen Theatre Management System
(TMS) designed by QUALCOMM under the Technicolor Digital Cinema umbrella. In turn,
QUALCOMM will continue to develop and market core digital cinema products and technologies,
including decoder modules, encoders and conditional access systems (CAS) that are
based on its ABSoluteä compression and decryption technology.
"This is a positive move that provides customers the freedom to
independently select a service provider and a technology architecture that best
fits their needs," said Dave Elliott, President of Technicolor Entertainment Services
and Chief Executive Officer of Technicolor Digital Cinema. "Our intent has always
been to offer the industry options. By restructuring the joint venture, we expand
customer choice while at the same time restoring Technicolor's legacy to serve multiple
architectures and enhancing QUALCOMM's ability to market their advanced digital
cinema technologies."
Technicolor and QUALCOMM will continue to work closely together
as QUALCOMM digital cinema technologies and products emerge, including ABSolute image compression technology
and advanced security architecture as well as QUALCOMM's digital cinema decoder modules,
encoder systems, and conditional access equipment for the industry. Technicolor
Digital Cinema will continue to provide and support these technologies and products,
but will also offer other technologies to meet industry demand and requirements.
Since launching in 2000, Technicolor Digital Cinema has evolved
to offer the industry's most comprehensive set of digital cinema services and solutions,
including compression, encryption, distribution, storage, and scheduling/playback
as well as in-theatre management systems, maintenance and support. Technicolor Digital
Cinema has installed and maintained digital cinema delivery technology and equipment
through QUALCOMM -designed Auditorium Management Systems in nearly 40 theatres worldwide
for first-run showings of digital movies. To date, Technicolor Digital Cinema has
processed, packaged, delivered and downloaded 35 motion picture titles for a total
of more than 33,000 showings to commercial audiences, including four titles that
were released using the world's first end-to-end encryption approach, provided by
QUALCOMM's technology. Recent encrypted digital cinema releases include Terminator
3: Rise of the Machines, Finding Nemo, Sinbad: Legend of the Seven Seas and Pirates
of the Caribbean.
Thomson and Technicolor Digital Cinema will continue to work with
content owners toward advancing the digital cinema evolution by developing robust
systems, support services and industry standards in anticipation of the widespread
adoption of this new medium. QUALCOMM will continue to develop and provide advanced
digital cinema technologies and products to meet industry requirements on an open-systems
basis to OEM's, service providers and end-users.
