FUTURE FOR THE CINEMA - DISRUPTION

Jobs, as he unveiled Apple TV last year
DISRUPTION  is the name of the game in the digital domain.  Did the studios and movie exhibs really think they could control film distribution once it went digital?  That is why over the past decade I have been against the digitization of movie theatre projection (which I might add was a losing battle).
Take for example, the latest maneuvers by AppleApple's desire is to become the go-to source for movie streaming/viewing in the future.  At $99, the Apple TV set-top box sold over 4 million units in 2011 and with only 8% of U.S. households (7% in Europe) owning smartTVs the growth in connected-TV sales will be huge over the next 5 years.
For its part, Apple plans on being in your living room, as it interfaces its existing base of mobile devices (which number in the tens of millions) with the Apple TV.  Both the iPhone and iPad will serve as remote TV controllers and AirPlay (a feature on Apple's iOS operating system) will allow mobile devices to move media to the TV from the devices and, in reverse, allow the iPhone and iPad to serve as complementary screens.
AirPlay will also feature a mirroring function which displays a mobile device's screen onto the TV and will also allow the device to functions as a game controller. Moreover, Apple is planning to launch its own TV in 2012 which will be able to tap into iTunes for seamless rentals and purchases of movies and TV shows, as well as music.
At present, Smart and connected TV sales are outpacing set-top boxes. Gaming consoles are currently the number one platform for streaming content directly to TVs but this trend will change as well.  Microsoft is also planning a link-up mobile devices and TVs using its Kinect system.
Going Digital-Is It A Waste?
Movie exhibitors be prepared.  It will not be enough to tell moviegoers, as Regal Cinemas postulates in its pre-feature trailer - " Go Big or Go Home". People are at home and they are staying there to view movies more and more and going to the cinema less and less. Cinemas exhibitors, prepare to defend yourselves.

Cheers,
Jim Lavorato
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