JamieG Analysis

Sony broadcast, a flagship of the Sony brand, is in its sunset years. As tape work-flows are replaced by tape-less and the professional video arm of any organisation becomes more like an IT division.  What is Sony to do with billions of dollars of investment in servicing an infrastructure aimed at tape-less?

Well in this case, its got its mind set on owning cinema exhibition and projection.

Here are a few links for consider.

• AMC Entertainment to Convert Entire Circuit to Digital Cinema Projection with Sony 4K Systems (309 theatres and 4,628 screens)
• Regal Entertainment Group to Install Sony 4K Digital Cinema Projection Systems Across Entire Circuit (.. agreement for the installation of Sony 4K digital projection systems across its entire circuit over the next 3 to 5 years … Approximately 1,500 of the Regal screens will also be outfitted for 3D digital projection, using Sony’s newly introduced dual-lens adaptor technology.)
• Sony Announces New Exhibitor Agreements as Conversion to 4K Digital Cinema Technology Continues (The new exhibitors are: Muvico Theaters at the Oaks, Thousand Oaks, Calif.; Alamo Drafthouse at the Village, Austin, Texas; The Palace Theater, Canadian, Texas; Lincoln Square Cinemas in Bellevue, Wash.; and Channelside Theaters in Tampa, Fla.)
• Sony Electronics Expands Digital Cinema Deployment Agreement with Sony Pictures to Cover Asia (… DCSS now has agreements with two major studios for Asia –Sony Pictures Entertainment and Twentieth Century Fox. …)

Initially I thought this to ambitious, but the more I think of it, the more sense it makes.

But first let me explain why this was very unexpected by the industry.  In general, cinema owners did not give Sony much of a chance.  However, Sony appear more determined than anyone could guess.

Sony has a history in exhibition already.  In the distant past there was a Sony technology for cinema audio called SDDS. (See wikipedia for a details on Sony Dynamic Digital Sound). In short, it was an expensive new audio format that Sony supported for a very short period of time. Those cinema owners who adopted it where very angry with Sony.  They invested a lot of money only to be left hanging soon after.  Cinema owners are a tight group with long memories.  To them, Sony had lost all credibility.

Then there is the general opinions of cinema technicians and Sony competitors towards the Sony 4K technology.

Sony has not done well in many areas compared to the TI (Texas Instruments) based projection companies NEC, Christie and Barco.  Sony may have the 4K of very teir 2K resolution but in all other areas they are lacking.  These include.

1. Colour consistency across the screen outside DCI spec.  This has been put down to the implementation of the 4K system.  It is actually 4x 2K chips operating independently.  This is said to be greatly improved in the latest revision. (??)
   
2. Questionable longevity.   Sony 4K projectors is based on IDLA projection technology, which has by and large been a failure in domestic projection technology.  Makes you wonder about its commercial implementation.
3. proprietary media-block and interfaces.  The TI projectors makers can use many different media players (Dolby, DTS-Qube, Dorami, GDC) and are documented so anyone can integrate.  Sony has all home grown product.  Access to this API’s is unknown.
4. To gain FIPS (A security requirement DCI equipment need to meet) approval, the projectors are large secure refrigerator type boxes. In a comparison of a typical DCI/TI projector with the same performance and brightness of a Sony equivalent.  The Sony would typically need more equipment and technology.  As such, one would not consider they could compete on price.
5. Sony projectors have the highest running costs of all DCI compliant solutions available.  Lamp cost and longevity is said to be on the poor side compared to all other DCI projector makers.  This is an important issue as your running costs are actually one of the most important considerations.
   

If you consider all the above issues, Sony would likely be a distant last on the consideration stakes for any cinema owners.

As the announcements above indicate, this is not the case.  So how does this all stack up? Currently Sony have more slated projectors going in then anyone else.  And if it keeps going this way, they are likely to gain at least 50% of the market over NEC, Christie, Barco.

If you notice above, the Sony announcements are all done with large cinema organisations.  I have not heard of any small independent cinemas selecting Sony.

Rumour is that Sony is selling its solution for the same, if not less then the typical price the current 2k equipment is going in for.  In my opinion, they must also be guaranteeing the longevity and a level of running cost as well.  Even with the bad sentiment from the past, in large deals like above, that means little to the white collar business man and accountant making the deal.

Sony also has a big roadmap with 4K production as it focus.  They do make great (Expensive) professional gear, but they also need to keep ahead of the consumer end of the market.  4K cinema gives this hi-end of the market a reason for existence.

So what is Sony to Gain.  If one considers Sony are not likely to actually make a great deal of money out of this.  In many ways, they are buying dominance in a upcoming industry.  They are giving their tape based servicing infrastructure a new reason for living with 4K tape-less and cinema support businesses.  They are putting a Sony logo at the start of nearly all films show in all cinemas.  They are building the brand back up to its peek in respect and perceived quality.

Cinema Exhibition portion of the Sony empire is a lost leader.  It will not likely loose or make money, but will position the company so save many segments from going out of business and keep Sony the domestic leader it strives to be.

Every TV in every home..  a SONY!

P.S. Follow this link to my www.cinetechgeek.com site and videos on the Sony cinema projection technology.