Technicolor Shifts to Digital Production, Online Distribution

0

Technicolor Inc., the iconic Hollywood company with the color film process that dominated the industry from the 1920s to the 1950s, is sharpening its digital focus.


The shift comes after much scaling back of the company’s DVD replication operations a lucrative niche the company developed over the past decade as its film operations declined for cost-saving purposes. In January, Thomson-owned Technicolor eliminated 630 positions at its Camarillo manufacturing and distribution plant, a move that followed 245 layoffs last year, and plant closures and significant job cuts in U.S. and overseas operations. Company executives said the cuts were made under pressure from movie studios to lower costs for retail DVDs.


While operations may have been downsized, company representatives said the actual number of DVDs turned out by Technicolor increased from 1.7 million last year to 1.8 million this year.


The company, which dates back to 1915, became known for its groundbreaking representation of color, used in film musicals including “The Wizard of Oz” and “Singin’ in the Rain,” hundreds of costume pictures and animated films including “Snow White and the Seven Dwarfs” and “Fantasia.”


The development of competing film processes and the emergence of digital cameras cut significantly into the company’s market share over the past decade, however.


The company said it is focusing on its new digital production and online distribution services in response to consumers’ increasing demand for access to digital content. Technicolor’s clients are looking for ways to manage, store, and deliver digital content through Web, broadband and mobile distribution channels.


Technicolor recently acquired SyncCast, an Anaheim -based online distributor of rich media content. SyncCast is an outsourced application delivery network and digital media services provider that provides services to a wide range of customers, including Microsoft Corp.’s Xbox LIVE Video Marketplace, the Motion Picture Association of America and National Geographic. The company also manages and prepares content for CBS, MTV, HBO and Lions Gate Entertainment Corp.



Broadcaster Testing Ads

Broadcaster Inc. has begun testing advertising placements on its Web site Broadcaster.com, a popular site for social video networking.


Broadcaster.com will let advertisers choose specific channels within the site, and is also developing a section of targeted communities for advertisers to select.


The site recently began offering “remote video” capability that enables users to integrate live video stream into their social networking sites.


The company launched last year and lets its site users become “broadcasters” either through Web cam video chat of themselves, or as producers broadcasting live and pre-recorded content. Users can edit their programming with free Broadcaster tools.


The penny stock is traded over the counter and was up about 18 percent to $2.70 on the news late last month, though shares were down and hovered around the $2.35 mark last week. Broadcaster did a 1-for-2 reverse stock split in June.



Something in a Cape?

Warner Bros. Consumer Products division has teamed up with trendy apparel-maker Salvage Clothing to produce sportswear and contemporary clothing for young men “inspired by Superman and Batman.”


Salvage’s attire will feature classic imagery of the two heroes and will incorporate items inspired by “The Dark Knight,” the 2008 film sequel to “Batman Begins.”


No word on whether the superhero duds will lend superpowers to the wearer.



DVD Link

The L.A.-based Yari Film Group entered a two-year multi-picture deal with Sony Pictures last week that covers pay-per-view TV and U.S. home video distribution rights for films produced and distributed by Yari.


About four to six of Yari’s films each year will be released on DVD through Sony Pictures Home Entertainment.


Bob Yari’s eponymous film group has produced more than 30 films since it was founded five years ago, including the 2005 best picture Oscar winner “Crash.”



ITunes Trouble

NBC Universal has opted out of its 20-month-old agreement with Apple Inc. to carry the network’s shows on the popular Internet download service iTunes.


NBC will leave its existing content up on iTunes until the current two-year deal expires in December. But Apple said it will not make NBC’s new fall TV shows available for download from the service.


The relationship soured after Apple declined to pay NBC more than twice the price per TV episode in the original agreement, saying that it would have to increase prices paid per download from the present price of $1.99 to $4.99.


NBC and News Corp. are preparing to launch an online video venture this fall with TV shows from Fox and NBC.



Staff reporter Anne Riley-Katz at can be reached at

[email protected]

or at (323) 549-5225, ext 225.

No posts to display