Microspace-Carmike deal opens way for more movies over satellite in US

Carmike Cinemas, who as you know is the largest client of Christie/AIX, has signed an independent delivery deal with Microspace. This seems to mean that in the future studios would not have to go through AccessIT to send their films to cinemas in digital over satellite. Instead their preferred service providers (Deluxe, Technicolor) could use Microspace directly. This is a very interesting development, as highlighted by the article 'Movies from Space!':

As part of a pilot program, Microspace will install satellite and server equipment in more than 200 Carmike theaters, making it possible for digital satellite transmissions to reach more than 2,000 screens, Microspace officials said. Neither Carmike nor Microspace would divulge the cost of the agreement.

The deal, reached on March 7, will enable Carmike, already the biggest user of digital technology in the movie theater business, to accept films from more Hollywood studios. Carmike entered the deal with Microspace because some studios have preferences as to which satellite delivery company they use, said Tony Reed, senior vice president at Carmike.

Carmike has had a deal in place with Access IT of Morristown, N.J., since March 2004, to receive digital transmissions of movies directly via satellite.

Of Carmike's 2,447 total screens in 289 theaters, 1,711 screens in 85 theaters are set up for digital, Reed said.

"Access IT, to date, has delivered films to Carmike theaters from Buena Vista, Universal and a couple of others," he said.

Microspace executives say their company has delivered 10 first-run films -- "Glory Road," "World Trade Center," "Dream Girls," "Over the Hedge," "Mission Impossible III," "Eight Below," "The Shaggy Dog," "She's the Man," "Flushed Away" and "Cars" -- to eight theater chains across the country. The movies played on more than 2,000 screens at some 250 locations, said Curt Tilly, manager of digital cinema distribution for Microspace.

Note that studios like Sony Pictures and Fox are absent from this list, but that might now start to change.

This is a great step forward for Microspace, which now looks set to become the pre-eminent digital cinema satellite service provider for North America.