RealD Gets Second Large 3D Order

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RealD, which makes 3D digital projection technology for movie theaters, has announced an agreement with Cinemark Holdings Inc. to add up to 1,500 RealD 3D screens to its theater circuit.

The deal announced Tuesday brings Beverly Hills-based RealD’s total global 3D orders to 5,000 screens worldwide. That threshold is substantial benchmark for Hollywood’s major studios, which have invested heavily in a slate of at least nine animated and live-action 3D films to be released over the next two years. One of the first, Warner Bros.’s first live-action 3D film “Journey to the Center of the Earth,” is set to open July 11.

Plano, Texas-based Cinemark operates 42 screens in Southern California, including Century 8 Theaters in North Hollywood.

While financial terms of the agreement were not disclosed, RealD’s 3D technology can cost up to $25,000 per screen. However, RealD has revenue sharing and bulk order agreement discounts that can substantially lower that estimated per screen cost. The agreement Cinemark comes on the heels of a similar order for 1,500 screens last month with Regal Cinemas.

Both Cinemark and Regal must install digital projection in their theaters before RealD’s proprietary technology can be added to create 3D projection.