Good article on Technicolor's digital effort

Business Week has a good article on Technicolor's efforts in the digital cinema space. It gives both historical and current market context:

Technicolor, which was bought in 2000 by Thomson (TMS ) of France for $2.1 billion, is up against an aggressive new entrant, Access Integrated Technologies (AccessIT), as well as Digital Cinema Implementation Partners (DCIP), a joint venture of the three biggest theater chains, Regal Entertainment (RGC ), AMC Theatres, and Cinemark (CNK ). This summer could be the tipping point in the digital transition, as the number of U.S. theaters capable of showing movies in digital form finally exceeds 10% of the 35,000 U.S. screens. "This is a disruptive technology environment," says AccessITCEO A. Dale "Bud" Mayo.

Technicolor was founded in Boston in 1915. Swashbuckler Douglas Fairbanks was enchanted by the possibility of making a pirate movie in color and relied on Technicolor's cameras to shoot The Black Pirate in 1926. The company received important boosts from Jack Warner, Warner Bros. co-founder, and Walt Disney. By the 1940s the phrase "Color by Technicolor" in a film's marketing campaign could boost ticket sales as much as 30%. But in the '50s, Eastman Kodak Co. (EK ) introduced a less expensive film stock that could run through any camera. That forced Technicolor into the business of processing film and manufacturing prints.

This month marks the anniversary of the Technicolor-Kinepolis announcement and to date only some 30-odd screens in Kinepolis' chain have been converted and no VPF deal has been announced for Europe. It is too soon to write off this deal, but it does illustrate the hurdles that European digital cinema business plans still face.