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Windows Media 9 Series for Digital Cinema Applications

If you read any major national news publication, film and video trade magazine, or high-tech news Web site these days, you are almost certain to find a story related to digital cinema. It is arguably the most astonishing technology innovation in the film industry since the introduction of sound in films in 1926. All other major aspects of filmmaking have remained largely unchanged for the past century.
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A variety of technology companies are involved in this emerging space of digital cinema. Companies such as Qualcomm, Boeing, QuVis, and Avica have all come to the table with various digital cinema products and services. However, after more than two years of market development, only about 60 screens across the U.S. have permanent digital cinema installations.

This small number can be attributed mainly to cost. Similar to the transition from "talkies" to sound films as well as in the case of the emergence of color film, cost is a significant barrier to entry. In an industry where production and distribution costs are off the charts and margins on theatrical exhibition are low, it is a challenge to rationalize funding the conversion to digital cinema.

However, from production applications such as dailies in digital format and digital asset management to promotion devices such as digital media trailers on the Web to (most recently) film distribution and exhibition, filmmakers and other film industry leaders are recognizing the economic value of integrating digital media into their work environments.

Digital media is especially appealing for filmmakers who want to distribute their films not only in commercial theaters but also at film festivals; over the Internet through video-on-demand services such as CinemaNow, or MovieFlix; or even through hand-held devices such as the Pocket PC.

Microsoft Windows Media 9 Series provides an end-to-end platform for the filmmaker working in digital media. The platform offers flexibility and integrated security and provides for significant cost savings and new revenue opportunities.

This paper will address various factors regarding digital cinema, examining some of the technical and creative challenges of implementing it and how Windows Media 9 Series can help meet these challenges.

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The Challenges

The technology and business of theatrical film distribution and exhibition has been largely unchanged over the last 50 years. While systems used in the preparation of film content for theatrical distribution and exhibition have become increasingly digital and computerized, the actual deliverables and image playback systems for movies have remained largely analog and mechanical. This is primarily due to three factors:
  • Film provides a consistent theater-quality viewing experience that is expected by audiences and not readily available outside the movie theater

  • A film print is a tangible and easy-to-understand "product"

  • Standard 35mm film projectors are low-cost, reliable, and ubiquitous around the world
However, today these industry norms squeeze profitability from every step of the process, from film production to theater exhibition—especially for independent and alternative filmmakers. Relevant issues include:
  • High distribution costs – Today the cost of sending films out to theaters across the country and around the world is fixed based on the cost of creating the film prints themselves. Depending on the size of the order and the length of the feature, this cost can range from $1200 – $2200 per print per theater, in addition to the cost of shipping the film across the country. Part of the reason for this is that film mastering is a laborious and expensive endeavor. Not only are there costs associated with 35mm print stock, but the processes and labor leading to a final release print master are specialized and redundant. Unlike computer-generated images, which can be manipulated in a non-destructive manner, any changes to a film print are permanent and a new print must be struck to accommodate further refinements. By the time a final InterNegative (IN) from which release prints will be struck is created, it is typical for upwards of six intermediate prints to have been made. (See Figure 1 below for an illustration of this process.)
Once the InterNegative is completed, release prints can be made for exhibition.
  • Security – There is no inherent security in today’s theatrical release process. A distributor has little control over a film once it leaves their facility. They can only hope that it’s delivered safely to the appropriate theaters and doesn’t fall into the wrong hands or get damaged along the way.

  • Quality – As a movie is screened it becomes progressively scratched and dirty, degrading the viewing experience and possibly requiring a replacement print.

  • Limited programming flexibility – Currently theater owners are only set up to receive 35mm films. And, because the cost of 35mm film distribution is so high, there are few entities beyond major independent and studio distributors that can afford to take advantage of theatrical exhibition.

  • Inflexible advertising – Advertisers love advertising in theaters because they have a captive, attentive audience. But today’s theater advertising is limited to slide shows, low quality film versions of re-purposed television ads, and in the rare instance, an expensive filmed ad. Given the costs of film distribution, not many advertisers can afford to create a high-quality 35mm film master and prints to send to each theater and, even if many advertisers did so, the theater operators have to physically splice in each ad to a feature's platter, making on-the-fly changes impossible.
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The Solution

The benefits to theaters of moving to digital cinema are clear. Windows Media 9 Series helps to bring down the cost of digital cinema and make exhibiting film content to audiences of independent films more affordable. Factors such as high-resolution 720p and 1080p video, hardware acceleration, and Windows Media Audio Professional 5.1 surround sound move Windows Media 9 Series into the digital cinema space for specialty theaters and independent distributors. Some of the key benefits Windows Media 9 Series brings to the digital cinema industry include:
  • Theater-quality audio and video – Windows Media 9 Series offers high-definition resolution video, hardware acceleration, and 5.1 multi-channel surround sound. In addition, digital preservation is built in – the one-thousandth time a digital movie is screened provides the same quality as the first time. In contrast to film, there is no breakdown in the digital file.

  • Integrated security with Digital Rights Management – Microsoft Windows Media Digital Rights Management (DRM) provides the secure distribution of digital media files; it is a set of technologies content owners can use to protect their copyrights and stay in closer contact with their customers. Windows Media DRM encrypts digital media content and limits access to only those people who have acquired a proper license to play the content.

  • Cost savings – Windows Media introduces a whole new streamlined distribution process that will no longer involve dealing with bulky expensive film reels. Films can be delivered digitally over the Internet Protocol (IP) network to targeted theaters (or on physical media such as a DVD) without producers and distributors ever having to duplicate a 35mm reel.

  • New revenue opportunities – With digital media, independent theater owners have new opportunities for filling their theaters as well as for running advertising. Content ranging from World Cup Soccer, concerts and sporting events, major events such as the Academy Awards, and theater events from Broadway and across the world could be streamed live to theaters, which can organize and promote such events with national sponsors to help fund broadcasts and fill seats.
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Windows Media 9 Series Makes It Possible
So, what is Windows Media 9 Series? The Windows Media platform provides a set of components and features for creating, hosting, securing, and delivering digital media (audio and video) for playback over a computer network, such as the Internet or a corporate intranet, on physical media such as CDs and DVDs and in theaters. Windows Media 9 Series is the newest version of the Windows Media platform and is available as a part of the Microsoft Windows operating system and through Windows Server 2003.
Applications and Content Chart As depicted, Windows Media 9 Series is a complete media platform designed so that each component works well separately. However, when it is deployed on Windows XP and with Windows Server 2003, together they deliver an even broader set of benefits and features for creating, distributing, and playing back digital media.

This next section delves into Windows Media 9 Series features that enable the digital cinema industry to deliver high-quality, secure content and reduce costs.

High Quality Audio and Video
The overall quality of Windows Media has been continually improved upon over the last 10 years. The result is that Windows Media 9 Series is no longer just a streaming technology for the Internet, but is also a technology appropriate for more mainstream entertainment viewing including digital cinema.

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Windows Media Video 9
Windows Media 9 Series video codecs (referred to as Windows Media Video 9) offer limitless scalability. Today’s digital micro-mirror device based cinema projectors are supporting playback resolutions up to 1280 x 1024. Windows Media Video 9 offers software decoding of 720p and even 1080p resolution content on consumer PCs that will ship in the 2002 holiday season. This makes high-quality digital video very affordable for the first time on standard off-the-shelf hardware and software.

Windows Media Video 9 offers increased efficiency at any quality level with bandwidth savings of 15 to 50 percent (the higher savings occur at higher bit-rates) compared to Windows Media Video 8.

Windows Media Audio Pro 9
Windows Media 9 Series now offers up to eight-channel 7.1 surround sound to complete the theater viewing and listening experience.

In addition, Windows Media 9 Series offers:
  • Limitless scalability – Windows Media 9 Series audio and video codecs are extremely scalable. From 47Kbps video streams appropriate for dial-up Internet connections up to 7Mbps high-resolution video with multi-channel audio appropriate for local cinema playback, there is a wide range of quality levels and compression ratios possible.
Windows Media 9 Series is not tied inherently to any resolution or frame rate limitations. Today one could encode resolutions of 4 KB or even greater. The limiting factors are storage and playback; storage because the uncompressed source file that you would encode would be enormous, and playback because no existing PC is fast enough to render these resolutions without dropping frames. As storage and processor technology continue to evolve exponentially, this will be less of an issue. PCs shipping starting fall of 2002 will be capable of playing back 720p resolution video with software only decoding. And, in the near future, there will be various types of hardware components supporting acceleration of Windows Media image rendering as well.

While some codecs can only be decompressed through dedicated hardware chips, Windows Media 9 Series can be decoded entirely in software, partially in software and hardware, or entirely in hardware. This makes the new platform a flexible format for consumer electronics, portable devices, PCs, home media centers, digital cinema servers, or practically any usage scenario that you can imagine.
  • Broader choice of hardware – Leading DVD chip manufacturers, including Cirrus Logic Inc., ESS Technology Inc., LSI Logic Corp., STMicroelectronics, and Zoran Corporation have licensed Windows Media. And DVD player manufacturers such as Panasonic, Apex Digital Inc., Shinco (Jiangsu Shinco Electronics Group Company Ltd.), and Toshiba Corp have announced support for Windows Media 9 Series. In addition, a variety of consumer electronics devices currently utilize Windows Media audio and video technologies (a comprehensive list of these devices can be found at our Consumer Electronics page).

  • Anyone can create products based on Windows Media, and Windows Media technology is not tied to any one proprietary piece of hardware.
Integrated Security with Digital Rights Management
In the world of digital cinema, digital content will need to be secured before it ever leaves the mastering facility. There are a number of business rules that the content provider can apply to a digital file that will prohibit the content from being copied, transferred, shared, or saved.

Windows Media Digital Rights Management "locks" digital media files with a license key to maintain content protection. Each license is uniquely assigned to each computer. This prevents illegal distribution of digital media files.

For example, each copy of a movie pressed to disc would have an individual license specific to the computer at the theater that the specific copy of the film was intended for, and only that theater can unlock and play the content. Windows Media DRM includes proven encryption schemes that ensure distributed digital media files are not exposed to piracy or other illegal use.

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Cost savings and broader reach for filmmakers
The savings associated with digital cinema can be substantial. Filmmakers can transfer their work from video to Windows Media audio and video at standard or even high-definition resolutions and save the cost of expensive 35mm video-to-film recording. Mastering a film today from digital video to 35mm film can cost in excess of $35,000 and then another $1200 to $2200 per release print. If you are undertaking a moderate release (60 screens), this represents more than $100,000 in up-front expense; a wider release (150 screens) represents a cost hit of $200,000 or more.

The ability for filmmakers to make multiple copies of their work on CD or DVD and securely send those copies around the country or world is infinitely more cost effective than creating film copies for screenings or tapes for review, which in turn enables them to give their work much broader reach.

Additionally, a low-cost format such as Windows Media gives filmmakers and distributors tremendous flexibility to deliver a high-quality movie experience to consumers across a variety of devices and venues, including theater-based digital-projection systems, PCs and TVs, and wireless devices. Over the years, independent and art house movie theaters have tended to accommodate independent filmmakers and their need to shoot films economically by installing 16mm projectors into their theaters. They are now responding to the same need by installing digital projectors in their theaters.

New revenue opportunities and flexible programming for theaters

Windows Media-based digital cinema has many pluses for filmmakers but theater owners will benefit in several ways too. The equipment costs required for the small to medium sized screens found in most specialty theaters is much lower than for larger theaters. These smaller theaters are finding that they can begin to achieve some of the benefits of digital cinema with off-the-shelf hardware and software. For example, theaters in Seattle, Dallas, and Denver recently completed digital screenings of the critically acclaimed independent film “Wendigo.” The theater owners delivered high-quality screenings using a standard Windows-based workstation with Windows Media 9 Series for the encoding, delivery, and playback and a digital micro-mirror device based projector.

The majority of independent/art house theaters have less than a 70-foot throw between projection booth and the screen. In addition, the average screen size is less than 30ft wide. With these modest dimensions, the mid-range DLP projectors are more than adequate for providing a high-quality cinema experience.

Whereas other digital cinema platforms use proprietary compression and encryption software built into proprietary servers, which can cost between $40,000 and $100,000, Windows Media 9 Series requires simply a $2500 PC and one audio card (which costs around $100). This means these smaller theaters can begin to achieve some of the benefits of digital cinema with off-the-shelf hardware and software.

With Windows Media, theater owners can program content quickly and cost-effectively, moving content from one auditorium to many, meeting market demand in a way in which they have previously been unable. Since the cost associated with distributing features is lower, more features can run in shorter timeframes, keeping the theaters filled with new content and new audiences. Theater owners will also find that alternatives to traditional films will be available in Windows Media, including live Webcasts of popular entertainment events such as sports or concerts. Corporations and universities will find that they’re able to take advantage of theaters with digital infrastructure and provide their own Windows Media-based content including guest speakers or lectures, distance training, and special events.

Advertising is a significant and growing source of revenue for theaters today. Advertising using digital media enables ads to be targeted to specific theaters based on content being shown in that theater to a particular demographic. Programming of advertising can be changed on the fly according to audience, content, time of day—whatever the advertiser wishes. The distribution of the ads is inexpensive and instant.

Conclusion

Technology is changing the landscape of the film industry at a faster pace than ever before. With breakthroughs in quality, security, and costs, Windows Media 9 Series is increasingly the platform that filmmakers, distributors, and theater owners are investing in to bring digital media to theater audiences.

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This is a preliminary document that may be changed substantially prior to final commercial release of the software described herein.

The information contained in this document represents the current view of Microsoft Corporation on the issues discussed as of the date of publication. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information presented after the date of publication.

This white paper is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT.

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