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Shift from Conventional Projection Technology to Digital Technology Drives the Digital Cinema Projectors Market, According to New Report by Global Industry Analysts, Inc.

Shift from Conventional Projection Technology to Digital Technology Drives the Digital Cinema Projectors Market, According to New Report by Global Industry Analysts, Inc.











San Jose, CA (PRWEB) August 27, 2012

Follow us on LinkedIn – Global digital cinema projector (DCP) market is ideally positioned to experience growth in the near term due to the conversions of conventional projectors to digital cinema projectors. Additional demand emerges from a largely under-penetrated market for 3D and digital cinematography equipment. Current movie theater business model is continuously threatened by a constant rise in digital downloads by consumers, large-scale availability of less expensive rental options, and the studios’ intentions of reducing or eliminating theatrical release lifecycle to raise DVD sales. In order to stay relevant, cinema operators are now exploring options of enhancing viewer experience, which can be effectively achieved by digitizing the cinema theatres. Transformation to digital formats offer numerous benefits to cinema operators, mainly cost savings, which assume the form of cost involved for printing, physically transporting films, and retrieving the physical celluloid prints. Digital cinema also offers operators the flexibility of customized on-demand entertainment options. The global cinema industry is currently undergoing a transition towards complete digitalization.

Digital cinema has been around for more than ten years but the market gained traction in the year 2010. With the shift away from the celluloid based cinematography, the entire value chain is witnessing a seismic change. Consequently, the whole process of capturing cinematographic data, processing, distribution and exhibition is experiencing complete digitalization. Digital cinema projectors form the lifeline of digital cinema industry. These projectors have brought about an end to the reign of the 35-mm legacy, mainly due to the inherent advantages offered by digital projectors. Though infrastructural costs in Digital Cinema, including projectors and servers, are much higher than conventional 35-mm, the printing costs and transportation cost of the films is drastically reduced with the implementation of Digital Cinema. The cost of distribution is further reduced by transmitting films through satellites. From a market perspective, in 2010, the digital cinema projectors market witnessed a slew of investments towards digitalization. Growth in the market is expected to commence declining after conversion to digital reaches a sizeable level of maturity. However, the demand from consumables and lamps, as well as replacement sales would continue to rejuvenate the coffers of digital cinema OEMs (Original Equipment Manufacturers) in the upcoming years.

Unlike 35-mm celluloid film, which is prone to photochemical deterioration, digital films are unalterable and hence offer a much enhanced shelf life. Repeatedly playing a film print results in degradation of image quality and enhances replacement costs. Moreover, technological advancements in digital technology have led to the development of 2K and 4K resolution projectors, which offer higher image quality than what is offered by traditional film-based projectors. Hence, days of dominating the cinema space is over for conventional 35mm technology, which with the advent of the digital revolution in the cinema exhibition arena, has been gradually reclining to the corners of the exhibitor’s and viewer’s mind space. However, 35mm will still be in operation in some markets till it gradually fades into obscurity. In a phased manner the celluloid based concept which had driven the cinema industry for years will witness obsolescence across the globe, in the European region by 2014 and the US as early as 2013. Digital Cinema content is embedded by encryption codes that offer substantial protection to the content against piracy, thereby reducing losses suffered by the industry in the process.

Digital cinema is also finding favor with distributors as innovative support schemes continue to drive the digitalization process. For instance, schemes such as the virtual print fees (VPF) support the exhibitor in making the shift towards the digital format. Moreover, special purpose companies (SPCs), which facilitate the process of providing Digital cinema projectors free of cost for the exhibitor, are also augmenting the growth process. In lieu of the cost, the exhibitors pay VPFs to the SPCs. The VPF model was first introduced in North America, and its implementation catalyzed the shift towards digital cinema across the region. The adoption process gained additional momentum from supportive measures offered by various organizations. For example, organizations such as Digital Cinema Implementation Partners (DCIP) and Cinedigm are managing the mantle in the US, XDC International in Belgium and Arts Alliance Media in the UK. In China, the government is supporting the industry in the establishment of new digital theaters.

As stated by the new market research report on Digital Cinema Projectors, the US represents the largest regional market worldwide. However, future growth in the market is expected to emerge from emerging markets, with Asia-Pacific spearheading the growth. The region is projected to rise at a compounded annual rate of 15.1% during the analysis period. Within Asia-Pacific, China is expected to be at the epicenter of growth in the foreseeable future. With a large number of digital as well as conventional technology-based theaters being constructed in China, the country is poised to dominate growth in demand for Digital Cinema Projectors. In other Asia-Pacific markets such as South Korea, continued promotion of digital cinema adoption from organizations such as Digital Cinema Korea is expected to surge demand for digital cinema projectors.

Major players in the global digital cinema projectors marketplace include Barco N.V., Cienmeccanica S.P.A, Dolby Laboratories, Inc., Eastman Kodak Company, Kinoton GmBH, NEC Display Solutions Ltd., Panasonic Corporation of North America, Sony Electronics, Inc., Ushio, and Christie Digital Systems USA, Inc.

The research report titled “Digital Cinema Projectors: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in terms of annual sales in US$ Million for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific, Middle East & Africa, and Latin America.

For more details about this comprehensive market research report, please visit –

http://www.strategyr.com/Digital_Cinema_Projectors_Market_Report.asp

About Global Industry Analysts, Inc.

Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.

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