BUSINESS
Digital cinema firm projects growth
11-06-2004
by Bernie Goldbach
The biggest Internet technology investment to hit the midlands has switched on in Thurles as Avica Europe officially opened in the Tipperary Technology Park.
The company, backed by major American movie studios, heralds the arrival of digital cinema in Ireland with initial venues targeted for Cork.
Avica's technology affects 100,000 cinema screens worldwide. This short list could be configured with encrypted satellite downlinks from Avica's post-production locations.
Avica receives studio masters from distributors, then converts the films into separate encrypted packets weighing approximately 90GB. Those separate elements then beam from Avica uplinks to the rooftops of digital cinemas around the world. Downloading a feature-length presentation this way takes four hours.
Studios currently spend between USD1,200 and USD1,500 for each feature film delivered to traditional projection booths. More than USD850 million is spent each year in the US when making and distributing master copies to local movie theatres. In Ireland, USD10 million annually goes into this process.
"It's a very inefficient process," says Kevin Cummins, the European director of operations at Avica. "We are changing the 100-year-old technique from analogue film to digital."
Besides helping reduce the risk of piracy, Avica's technology creates enormous cost savings for the movie industry. It also opens up new price points in the production of local advertisements.
The software programmers, interface designers, and multimedia developers required for Avica's Network Operations Centre in Thurles will push more than EUR1 million in salaries into the local economy by the end of 2005 with a related knock-on effect for housing and schools in North Tipperary.
"This is a big boost for Tipperary technology," said Brian Keating from Shannon Development. "Avica fits into the framework of the Shannon Knowledge Network and offers immediate job opportunities for graduates of neighbouring Tipperary Institute."
Up to 100 employees will be required when the Avica European NOC is fully operational in 2007. Those staff will provide post-production assistance and network services for all European cinemas in their transition to digital projection services.
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