Introduction: Foreign media published an article on Saturday outlining the ties between Kodak, the Oscars, and the entire film industry. With Kodak filing for bankruptcy protection, the Kodak Theatre, which has hosted the Oscars for nearly a decade, will regrettably remove its nameplate. Moreover, market analysts predict that film projectors will soon become obsolete.
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As the annual Oscar ceremony is about to begin, each year's event features a tribute segment honoring those in the film industry who have passed away. This year, Kodak (Weibo) will bid farewell to the Oscars.
Kodak, with its 131-year history, has now filed for bankruptcy protection, thereby terminating its naming rights for the venue of the Oscars—the Kodak Theatre. This marks the fading of Kodak's star power in Hollywood. Despite seven out of nine Oscar-nominated films using Kodak film, the widespread adoption of digital audio-visual technology and production in the film industry has severely impacted Kodak's film business.
Digital Cinema Overtakes Film Cinema
Currently, about half of the world's commercial cinemas use digital projectors to screen movies. It is expected that film projectors will exit the historical stage in the near future.
David Hancock, head of the film and cinema market business at market research company IHS Screen Digest, stated that the film duplication industry will disappear within four years.
For a long time, Kodak film has been the favorite of cinematographers, but now more and more films are shot using digital cameras, and film editing is handled by studios utilizing computer technology.
Last month, Viacom CEO Philippe Dauman expressed that they would no longer distribute film prints to most theaters, helping them install digital playback equipment.
The abandonment of film by major movie studios will save them tens of billions of dollars, directly causing a sharp decline in Kodak's film duplication revenue.
In the first half of 2011, Kodak's duplication business revenue was $763 million, only about half of the $1.57 billion in the same period in 2008.
Kodak is hopeful about the development of commercial imaging equipment and printing businesses, but the film duplication business remains very important to it, accounting for about a quarter of its total revenue.
Kodak Abandons Oscar Naming Rights
Kodak filed for bankruptcy protection in January, with debts totaling as high as $6.7 billion. At this point, Kodak can no longer afford the naming fees for the Oscars.
Last week, a bankruptcy court judge approved Kodak's early withdrawal from the Oscar naming rights, saving it $3.6 million annually in naming fees. Kodak signed a 20-year naming rights agreement with CIM Group, the owner of the Kodak Theatre, in 1999.
The Academy of Motion Picture Arts and Sciences (referred to as "AMPAS") declined to comment on Kodak no longer being the title sponsor of the Oscars. According to reports, the academy is considering changing venues for the award ceremony.
Moody's stated that Kodak's termination of the naming agreement would not have any financial impact on AMPAS, as it has no direct connection with Kodak. Its annual budget of $100 million mainly comes from the authorized broadcasting fees of the Oscars. AMPAS rents the venue from CIM Group to host the Oscars.
Kodak was not blind to the development prospects of digital audio-visual technology. In October last year, Kodak licensed its laser projection technology patents to Imax Corp.
Even though Kodak is no longer the title sponsor of the Oscars, it will still be part of the film production industry. Mark Graziano, senior vice president of post-production at DreamWorks, the production company behind "War Horse," said that Kodak's exit from the Oscars reminds people of the lost art of filmmaking. (Biao He)
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