Hollywood studios to help theaters pay for 3D technology

In a rare collaborative effort for the major Hollywood studios, word from Reuters is that Disney, Paramount, 20th Century Fox, Universal and Warner Bros. are close to an agreement worth upward of $1 billion to finance the installation of thousands of digital screens at theaters across North America.

The deal would allow the major studios to release digital and 3D films in the super-saturated release patterns of major summer blockbusters. The studios will help pay for theaters to upgrade to digital cinema technology, an unusual step for the majors since the fall of the vertically integrated Hollywood 60 years ago.

But if the deal is novel, it is not a surprise, since there is a growing belief in the industry that mainstream digital and 3D projection are pivotal to the future of the theatrical business. George Lucas has long championed the digital format, and James Cameron is currently at the helm of what looks to be the most ambitious 3D project ever made, Avatar.

Current 3D releases, like Journey to the Center of the Earth 3D (above) this summer, can only screen in the 3D format at fewer than 1,300 of the 37,000 screens at movie theaters nationwide. If the plan rolls out as expected, there could be twice that number within the next six months, ushering in release schedules that include more major 3D films every year.

Related links:
News: Paramount and DreamWorks have a messy breakup
DigitalCinemaReport.com
Wikipedia.org: Digital cinema

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