DIGITAL CINEMA MARKET IN CZECH REPUBLIC

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1 DIGITAL CINEMA MARKET IN CZECH REPUBLIC

2 TOTAL AUDIENCE (millions) CZECH MARKET Year Audience (millions) , , , , , , ,139

3 TOTAL BOX OFFICE REVENUES IN in EUROS Year Revenues in million Eur , , , , , , ,69

4 CINEMA MARKET IN THE CZECH REPUBLIC Total numbers of: Multiplexis 25 Screens in multiplexis 196 Single screens Cinemas 129 Digital screens * 57 (+20) - screens with 3D 54 - screens with 4K 2 * another 20 screens will be digitilized in near future due to the grants from the Ministry of Culture of the Czech Republic. Grants are being given from the Fund for support and development of Czech cinematography.

5 DEVELOPING OF DIGITAL CINEMAS (DECEMBER 2009) grow of digital screen sites % market share of digital technology* 17 % * From all active cinemas is 17 % digitally equiped

6 GOVERNMENTAL GRANTS - Ministry of the Czech Republic (the Fund for support and development of Czech cinematography) is in charge of digital cinema advacement. - The Fund give grants at the maximum amount of 1.25 mil CZK (approximately euros) per cinema for digitalization cinemas have been granted in 2009 (21 cinemas in September and 14 cinemas December) - Mostly single screen cinemas are supported. Only one screen in Golden Apple multiplex in Zlín was supported so far.

7 LOCATION OF DIGITAL SCREENS IN THE CZECH REPUBLIC GREEN PINS = SINGLE SCREEN CINEMAS BLUE PINS = MULTIPLEX CINEMAS

8 DIGITAL SCREENS IN PRAGUE, CAPITAL OF THE CZECH REPUBLIC RED PINS = DOUBLE SCREEN CINEMAS BLUE PINS = SUPRANATIONAL MULTIPLEX CINEMAS CAYN PINS = LOCAL MULTIPLEX CINEMA

9 TOP 10 FEATURES 2009 FEATURE AUDIENCE FEATURE BOX OFFICE IN CZK 1. Líbáš jako bůh Ice Age: Dawn of the 2. Dinosaurs 3D Harry Potter and the Half- 3. Blood Prince Avatar 3D Bobule Angels & Demons Michael Jackson'sThis Is It Peklo s princeznou Inglourious Basterds Ice Age: Dawn of the Dinosaurs 3D Líbáš jako bůh Harry Potter and the Half- Blood Prince Avatar 3D Bobule Angels & Demons Michael Jackson's This Is It Inglourious Basterds Up 3D

10 AMO FOR DIGITAL CINEMAS

11 Czech movies all new Czech locally produced movies are prepared in both version Digital Cinema and 35mm Independent movies MOVIES just few titles were distributed digitally, only strong titles and 3D movies Hollywood production mainly 3D movies like Avatar, Ice age 3D utilizing 3D capable screening sites

12 NT Live ALTERNATIVE CONTENT dramatic shows in HD resolution from National Theatre in London Metropolitan opera: Live in HD opera shows in HD resolution and 5.1 sound from Metropolitan Opera in New York City Les Ballets Russes ballet performances in HD resolution and 5.1 sound from National Opera in Paris Pop concerts & sports broadcasting of special events e.g. Robbie Williams, F1, Premier League in 3D, SuperStarTV show (Idol)

13 DIGITAL CINEMA - The greatest transformation in cinematographic projection since the beginning of sound era in the 30 s of the 20th century. - 3D has potential for every cinema, not like the IMAX. Extreme accelerator for cinema audience development - 3D content participated with 13.5% ( mil CZK = 6.5 mil Euro) on total cinema revenues in 2009 in the Czech Republic. - Except few art cinemas all cinemas equipped with DCI projection system with 3D ability - 3D movies now driving digital development and blocking usage for 2D movies. - Digital cinema Bringing new distribution models, more flexibility and better orientation to target customers

14 ABOUT US

15 ABOUT US BDM primarily works on European markets with particular emphasis on movie distributors, publishers and game distributors. Headquarters of the company is located in Prague with branch offices in London, Bratislava, Warsaw and Budapest. European Offices & Representations: Czech Republic: Head Office Digital Services Logistics and Distribution United Kingdom: Sales Office Digital Services Slovakia: Sales Office Poland: Sales Representative Hungary: Digital Services Sales Representative

16 OUR SERVICES BDM provides a wide range of services covering the life cycle of content media from preparation through post production, data processing and distribution to recycling. Content preparation and authoring: Authoring Video and audio preparation Graphic design Post production Localisation and dubbing Restoration: Audio and video mastering Noise and grain management Replication and logistics: Print and packaging management Transport and logistics Secure disposal and recycling

17 DIGITAL CINEMA SUPPLY CHAIN logical extension our services

18 DIGITAL CINEMA MASTERING & KEY MANAGEMENT AT BDM Professional services according the DCI standard: Equipped with DVS Digital Cinema Mastering 2K, 4K or 3D image resolution Localisation and dubbing Mastering and encoding Key generation and management Technical advisory and support Crucial projects: Paranormal Activity (localisation for 3 countries, supervision over distribution in 60+ digital cinemas in the Czech Republic, Slovakia and Hungary) Exam (distribution in UK market, premiered in January 2010) Under the Sea (mastering of 3D content) No one Knows about Persian Cats (music documentary from Iran, distribution on markets of UK and Ireland)

19 INTERNATIONAL DIGITAL MANAGEMENT STRATEGIC PARTNERSHIP FOR CE / EE IDM primarily works as an Creative and Authoring house for Hollywood Studios and their licensees with particular emphasis to the Independent market in South Eastern Europe and Russia. Offices & Representations: Bulgaria: Head Office Digital Services USA: Sales and Production Office Digital Services UK: Sales Office IDM is long time partner for Studio operations for DVD, BD and VOD in Europe since Warner Bros, Fox, Sony, New Line, Universal, BBC all rank as key clients. IDM already working for Independent Cinema distributor in Bulgaria, Romania, Greece, Turkey and Ex - Yugoslavia.

20 LOS ANGELES DCP COMPRESSION Hollywood Studios Hollywood Independent DIGITAL CINEMA HUB FOR EAST EUROPE LONDON DCP HDD/KEY DIST HDD SUPPORT European Content owners UK majors UK independet CE /EE HUB SOFIA DCP HDD/KEY DIST HDD SUPPORT LOCALIZATION REGION HUB : CENTRAL STATION R&D. Key Generator, Archiving Files Eeaster European Localization Keys for Cinemas, Database Cinemas Central Server Technical Support PRAGUE DCP HDD/KEY DIST HDD SUPPORT LOCALIZATION

21 THANK YOU DANIEL HROMÁDKO BRICKBOX DIGITAL MEDIA Your reliable and professional partner in the world of digital film

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