Filmmakers not fully sold on digital

Despite the many benefits of phasing out celluloid film, production companies are hesitating to go fully digital.

Two weeks ago, Malayalam cinema gave India its first completely digital feature film "� Moonamathoral "� shot, produced and released only in digital format. That, by itself, makes one assume there are enough digital theatre screens in Kerala "� in fact, there are 80.

Digital cinema works on the principle of the digitised video being distributed to theatres via satellite, uploaded to a computer server which serves it to a digital projector for screening "� no scratches and no scuffs. These and a range of other pay-offs are enough reason for cinema theatres in India to convert from analogue to digital. "With DV (digital video) the first screening is as good as the 1000th, unlike film reels which deteriorate with time," says Sanjay Gaikwad, CEO, UFO Moviez "� an end-to-end digital platform operator who has converted and delivered digitised content to over 375 cinemas.

However, it has taken a very long time for cinemas to accept this technology while the rest of the entertainment industry has been functioning on digital for years. The biggest roadblock to digital cinema taking off, however, has been the lack of advocacy from film makers. "For years, the value of a movie is seen as lying in that physical negative. Without that film, most film-makers would feel a huge void," says Kunal Kohli, director of Fanaa.

Shringar has been playing host to an annual digital cinema festival for three years now, hoping to spark an interest in Indian film makers. "One would imagine DV could really empower the budget-bound independent filmmaker," adds Kohli. "Actually most filmmakers have already switched to digital editing systems," says Gaikwad, "they convert the film to a digital format for post-production and then back to film again for its release; this is a costly process."

"It's currently hard to find the right talent to deliver the technical standards recommended by the Hollywood digital committee," says Kazi. For exhibitors, the biggest snag has been the fixed costs of converting from analogue to digital. UFO's business model involves bearing the capital risk (roughly Rs 12 lakhs) of conversion, and instead charges per usage of the content available on its server. "Exhibitors were unwilling to invest in digital cinema technology because there is always uncertainty in new technology," reasons Gaikwad.

Cost-cutting, though, is forcing apprehensions aside. Until two years ago, there were no known digital screens. Today there are an estimated 700. Fifteen per cent of Krrish's release was in digital format, the biggest-ever digital release of a Bollywood blockbuster on a single digital network platform "� UFO moviez. While on an average, a Hindi film releases 150 prints; with digital there are no limits.

"At a time when actors get 60-70 per cent of the films collection, exhibitors can hardly afford to pay exorbitant prices for content (a film print costs Rs 60,000)." says P S Saminathan, managing director, Pyramid Saimira "� a digital theatre chain that converts existing theatres into digital cinemas, currently owning 134 screens, with an additional 700 screens signed up.

The obvious saving is in distribution costs, but it would involve huge changes in an industry that thrives on familiarity. For one thing, distribution companies wouldn't have nearly as much work to do. Pyramid Saimira's business model involves actually purchasing exclusive rights for release directly from the producer for release, eliminating the middleman. "That will become particularly easy when we reach our pan-India presence of 6000 screens by 2010," says Saminathan.

One of the greatest savings is the loss of revenue to the piracy market, estimated by Saminathan at Rs 6000-10,000 crores. "Digital allows producers to cover the greatest number of theatres in the first week of release before piracy eats into the film's revenue potential," says Gaikwad. "B and C centres benefit the most from digital cinema because they start to get first-day-first-show release films," says Arshad Kazi, technology head, Shringar films.

Saurabh Varma-VP Cinema Marketing and Promotions, PVR Cinema "� the largest multiplex chain with 70 screens that is currently planning its no-frill foray into B and C centres "� concurs: "Digital cinema will find the most conversion where price sensitivity is highest." Saurabh Varma-VP Cinema Marketing and Promotions, PVR Cinema "� the largest multiplex chain with 70 screens that is currently planning its foray into B and C centres "� concurs: "Digital cinema will find the most conversion where price sensitivity is highest."

But probably the most exciting outcome of digital projection, that few talk about, is a flexibility previously unimaginable. With a digital projector you can screen virtually anything from cable to live sporting events. "Digital cinema also offers exhibitors to minimise revenue risk by terminating the showing of an unsuccessful movie or showing a successful release across several screens at once, all at short notice," says Saminathan.

Companies like UFO and Pyramid hope to solve that by handling the digitising and encryption of content themselves. Still, ultimately digital cinema will be a commercial and not a technology call. Celluloid film has served the industry well, but its associated costs might mean final curtain is nearing.