% | $
Quotes you view appear here for quick access.

Ballantyne Strong, Inc Message Board

  • sensibleliving2 sensibleliving2 Aug 15, 2008 12:27 PM Flag



    Saving 2009
    Submitted by Nick Dager on Tue, 07/29/2008 - 16:23. Big Picture The Big Picture
    As exhibitors bask, at least temporarily, in the financial glow of The Dark Knight,
    there is now reason to be cautiously optimistic about the box office
    outlook for 2009. It was widely announced in recent days that Twentieth
    Century Fox has reached an agreement with the Digital Cinema
    Implementation Partners.

    The news was first released during a July 24th earnings call to analysts
    during which Don De Laria vice president of investor relations for the
    Regal Entertainment Group said this:

    "Now briefly turning to the digital cinema initiative, a DCIP update, last
    quarter we indicated that digital cinema implementation partners, or
    DCIP, the joint venture between Regal, AMC, and Cinemark, was finalized
    in agreements with the various studios to provide for the upgrade to
    digital cinema. I'm pleased to report that last week we achieved
    definitive progress toward this goal as DCIP signed the first digital
    deployment agreement with a major studio. We believe that this first
    signing is a major milestone and we are optimistic that DCIP will sign
    additional studios in the near-term.

    "As we indicated last quarter, J.P. Morgan and the anticipated financing
    sources continue to be involved in the process and we expect to begin
    the financing process once we have finalized the agreements with the
    majority of the studios. At this time, we would expect the digital
    conversion still to commence during the latter half of the fourth

    At least three other studios are close to signing as well, and all the
    agreements would also likely include deals with AccessIT and the Cinema
    Buyers Group, in addition to DCIP. Not surprisingly, all three studios
    have major 3D movies scheduled for release next year.

    One insider with knowledge of the talks told me, off the record, "As you
    know, moving forward on VPF deals is challenging. I expect the
    financing entities to have higher standards for accepting a deal. The
    ‘3D' studios are the likely candidates to sign first. Fox, Disney,
    Paramount. The rest have less incentive to be timely, as the first
    installs will be for 3D, and there's a full year of 3D releases coming
    up in 2009. Fox tends to be the most aggressive in signing deals. They
    were first with Arts Alliance a year ago, if you recall. Hopefully,
    things will continue to move forward in a timely manner, and we'll see
    several deals done by ShowEast. But getting more to sign than the three
    3D studios could be challenging."

    Another person still closer to the talks said Warner Bros is also close to
    reaching an agreement with exhibitors and would be expected to followed
    shortly thereafter by Sony and Universal.

    Assuming nothing stalls negotiations from this point and the deals are in place
    by ShowEast in October, the winter months will be about deploying the
    thousands of screens in North America that would be covered under the
    agreements. "Regal's got fifty to sixty contractors trained and ready
    to go," said the insider. He added that the other companies are
    similarly prepared.

    "The studios that have 3D movies coming out in early 2009 will probably have
    more 3D screens than are out there now but not as many as they might
    want," he said. "The studios that release 3D movies in December 2009
    should probably have as many as they want."

    SortNewest  |  Oldest  |  Most Replied Expand all replies

      This is the same news that has been out for a few weeks now. Just look at how long it has taken them to get this far (years) and they still have to get other studios to sign. Then on top of it all, they will have to get the funding completed with the banks in this tight credit environment. Access Integrated already has their studios signed and are still waiting for their Phase II funding.

      Do you really have any solid info on "4TH QUARTER OUTLOOK" or are you just hoping that things will magically come together them as folks have been doing for the past years.

      Don't get me wrong, I would like to see this thing go but I would not get excited until something concrete happens. This is the toughest environment yet with a softening economy and difficult credit situation (just look at BTNs own illiquid investments). Please feel free to persuade me otherwise.

6.850.00(0.00%)Oct 21 4:00 PMEDT