PARIS, France and BURBANK, Calif.—Dec 7, 2005
Thomson Signs Strategic Agreement with Twentieth Century Fox To Advance
Digital Cinema Rollout Plans in North America
Twentieth Century Fox Agrees to Utilize Digital Projection Systems from
Technicolor Digital Cinema In 5,000 Screens in the United States and Canada;
Thomson on Track to Begin Beta Test Deployment in First Quarter of 2006
Further demonstrating its
industry leadership in the provision of digital cinema services and technologies
to major film studios, Thomson (Euronext 18453; NYSE: TMS) today announced that
its Services division, through its Technicolor Digital Cinema business, has
reached a long-term digital cinema equipment usage agreement with Twentieth
Century Fox to advance Thomson’s groundbreaking plans for the distribution of
digital cinema content and systems throughout North America. The accord follows
the company’s recently-announced agreements with DreamWorks SKG, Sony Pictures
Entertainment, Universal Pictures, and Warner Bros.
Under the terms of the agreement, Twentieth Century Fox will distribute its film
content digitally throughout the United States and Canada, and pay a virtual
print fee to Technicolor Digital Cinema for content played on screens equipped
with Technicolor systems, beginning in the first quarter of 2006. Twentieth
Century Fox’s support of the Technicolor Digital Cinema plan covers an initial
rollout of complete digital projection systems in up to 5,000 DCI-compliant
screens over the next 3-4 years. Thomson, through its Technicolor Digital Cinema
business, intends to deploy at least 15,000 digitally-equipped screens in the
United States and Canada over the next 10 years through the initial rollout and
additional phases.
“We are delighted to reach agreement with Fox on its use of our digital cinema
systems, and greatly appreciate the help they have provided us in their
thoughtfulness on how the conversion to digital is going to take place for the
industry,” said Joe Berchtold, president of Technicolor Electronic Distribution
Services, and head of Technicolor Digital Cinema. “This is a further indication
that we have a plan that is going to work for studios and exhibitors, and we
look forward to working with Fox on this transition for the next several years.”
“Twentieth Century Fox has had a long and successful relationship with
Technicolor Digital Cinema, dating back to 2001 and the company’s work on the
digital cinema screening of Star Wars: Episode II – Attack of the Clones,” said
Bruce Snyder, president of domestic distribution at Twentieth Century Fox. “As a
result, we are pleased to be involved with the Technicolor Digital Cinema
business plan, and we look forward to partnering with Technicolor as it begins
rolling out digital cinema systems next year.”
In addition to the digital cinema equipment usage agreements, Thomson intends to
secure separate agreements for services associated with end-to-end digital
cinema content preparation, distribution, and exhibition. Pursuant to its role
in spearheading the deployment of digital projection systems covered by this
plan, the company also intends to provide postproduction services, network
services, and systems and equipment to its media and entertainment industry
customers as digital cinema gains critical mass in key markets.
By launching a program with a plan to convert at least 15,000 screens in the
United States and Canada, Thomson further believes it will have the scale to
support all interested exhibitors in a move to digital cinema, from large chains
through independents. In response to exhibitor and studio requests, Thomson will
start its rollout with a beta test in the first quarter of 2006 to prove that
DCI-compliant equipment (both 2K and 4K projectors) operates in a commercial
environment at the very high level which all parties require.
