Christie Achieves 12,000 Digital Cinema Shipment Milestone　

Establishes new plant in Shenzhen, China

Ushio Inc. (headquartered in Tokyo; Shiro Sugata, President and CEO; “Ushio”) is pleased to announce that Christie Digital Systems U.S.A., Inc. (headquartered in California, US; Kenji Hamashima, CEO; “Christie”), a 100% subsidiary of Ushio, has achieved a milestone, shipping its 12,000th digital cinema projector in June 2010. In July, Christie will be commencing production of digital cinema projectors in China also, at Christie Shenzhen Inc., established in June with a 100% investment, to respond to further growth in demand.

Christie undertook a roll-out program*1 to promote the take up of digital cinema projectors (DCP) in the United States between 2005 and 2007, installing about 3,800 units in two years. By 2008, cumulative global shipments of 5,000 units were recorded. The figure reached 7,500 units in 2009, and 12,000 units by June 2010, including 2,000 units of the 4K-upgradable Christie SolariaTM series*2.

Looking at market shares in each region based on all digital screens, the company has achieved about 70% in North America, about 55% in Europe, and approximately 65% globally*3.

Christie has been manufacturing DCPs at its Kitchener Plant in Ontario, Canada, since the initial shipment in 2000. To keep pace with the surge in global demand associated with the newfound popularity of 3D films and other factors, a new production base has been established in Shenzhen, China. The new plant is close to the key markets of Asia and reduces the burden of import customs in China. It will commence operation in July.

At the new plant, manufacture of the CP2220, CP2210, and CP2230 Christie SolariaTM series will start in sequence, with products shipped to the Asia-Pacific and other regions.

*1 Rollout program

This is a program for encouraging the adoption of DCP, which was run in the United States between 2005 and 2007. Christie AIX, a 100% subsidiary of distributor AIX (Formerly AccessIT; currently Cinedigm), served as the special-purpose company (SPC) and purchased DCPs from Christie in bulk. Then, the cinema complex chain to whom the DCPs were supplied under separate agreements installed them. The system encourages digitization, because the virtual print fee (VPF)* paid by production companies is appropriated for the majority of DCP system costs, with the cinema complex chain needing to pay only part of the DCP system costs, annual maintenance fees, replacement lamp fees, and installation costs. The SPC collects the costs for purchasing DCPs over the long term, as a VPF.

*Virtual Print Fee
This is the fee paid by the production companies to SPC, each time a movie is played using DCP, pursuant to an agreement concluded between the producers and the cinema complex chain. The fee is appropriated as part of the funds necessary for purchasing DCPs and taking other action to digitize cinemas.

*2Christie SolariaTM Series

A DCP series with 4K resolution, achieved by the DLP® system. CP2230, CP2220, and CP2210 are “4K-ready” 2K models that can be upgraded to 4K in the future. CP4230, CP4220, and CP4210 are compatible only with 4K resolution.

*Resolution
2K and 4K resolution systems are available with DCP, each of which refers to resolution in the horizontal direction.2K = 2048 in width x 1080 in height (full HD); 4K = 4090 in width x 2160 in height (four times the full HD)

*DLP is a registered trademark of Texas Instruments Inc. (TI)

*3 Shares by region

Surveyed by Christie (as of June 1, 2010)

Related products