Deluxe/EchoStar, Rave in Satellite Distribution Deal
Pact follows similar agreement with Carmike.
Deluxe/EchoStar has inked an agreement with Dallas-based Rave Cinemas, the fifth-largest exhibitor in the U.S., for satellite distribution of digital content. The company expects to connect Rave’s circuit of 817 digital screens in 20 states to its network by year’s end.
Deluxe/EchoStar, formed in 2010, is building a satellite distribution network aimed at delivering digital cinema content to digitally equipped theaters in the U.S. and Canada. This month, the company also announced a deal with Carmike Cinemas, whose circuit reaches 2,103 screens in 36 states.
Today, digital content is generally shipped to theaters on hard drives, though the industry also has been exploring the potential of satellite services. Deluxe/EchoStar suggests that satellite delivery could make the process faster (in that it could be used to transmit a movie on average in 5-10 hours) and more cost-effective, eventually eliminating traditional freight costs associated with shipping the hard drives to theaters.
Deluxe/EchoStar is a joint venture between Deluxe Digital Cinema, a subsidiary of Deluxe Entertainment Services Group, and EchoStar Satellite Services, a subsidiary of EchoStar Corp.