Hollywood Software has acquired cinema technology firm Digital Cinema Systems, Inc. (DigiCine), the companies announced on Tuesday. The purchase gives the software company access to DigiCine’s FilmStore motion picture playback system and all of its patents to develop integrated theater management systems for venues of varying sizes.
“The industry is moving into the next stage of digital cinema now that virtual print fees are ending and equipment from the first installations is reaching end-of-life,” David Gajda, Executive Chairman, Hollywood Software, said. “After working with DigiCine for two years and most recently having fully integrated FilmStore with our TMS, this acquisition leaves Hollywood Software poised to present exhibitors with the most flexible, low-cost options for new Series II installations and Series I migrations.”
The deal is expected to give Hollywood Software the capability to offer theaters multiple management system configurations at different price points that bridge legacy technologies with the latest theater playback installations.
“Historically, when you have a Series I projector and your Series I server failed, the answer was to purchase another Series I server, which has serious cost and functional implications,” Larry McCourt, SVP Sales and Marketing, Hollywood Software, explained.
The company’s FilmStore theater management system allows for a more “future-proof” option, McCourt continued. “We are excited to be able to help move the industry forward at an affordable price point.”
Hollywood Software was spun off by Cinedigm in September of last year to an investment group led by Gajda, one of the company’s founders, in order to head off potential conflicts such as deals like the one announced today. The terms of the Hollywood Software-DigiCine sale were not disclosed.