Ireland is breaking new ground as the world's first digital cinema nation. Is this an overly ambitious plan, asks Donald Clarke.

Four weeks ago, to the astonishment of the world's cinema community, Avica Technologies, a major American provider of digital exhibition equipment, announced through its Thurles-based subsidiary, Digital Cinema Limited, that it was set to enable Ireland to become "the world's first digital cinema nation". Within 12 months, DCL claims, it will have installed 515 of the new projectors in 105 sites throughout the country.

Industry analysts have long predicted that big boxes processing software might eventually replace the mechanical film projectors which have, in one form or another, been operating in cinemas since the 19th century. But the ambition of this projected scheme is astonishing. To put things in perspective, at time of writing there are, throughout the entire world, only 205 digital projection systems operating in commercial cinemas. Imagine that Motorola had, in 1985 or so, decided to put a mobile phone in every Irish pocket and you will get some idea of the audacity of what is planned.

"Everyone in the US is watching the Irish experiment very avidly," Charles S Swartz, executive director of the Entertainment Technology Centre at the University of Southern California, tells me from LA. "Even if they don't quite reach the targets they are aiming for, to come close would be a remarkable achievement."

Within days of the announcement, news stories began appearing throughout the world. DCL had, it seemed, solved the dilemma that had hitherto hindered the big switchover: moving to digital forms of delivery eliminates the need to strike expensive film prints and, thus, creates savings for the distribution companies, but, inconveniently, all the capital expenditure - in particular that required to buy the hardware - tends to fall to the cinema owners.

In the United States there has been talk recently of a deal that would see the Hollywood studios subsidise the purchase of the equipment. In Britain the UK Film Council has announced plans to set up a digital circuit of 250 screens. Avica Europe had a different idea: using €40 million, much raised from third-party investors, the company offered to provide the projectors on a custodial basis. Neither the distributors nor the theatre owners would have to pay a penny.

"There has been incredible media interest," says Kevin Cummins, Avica's head of operations in Ireland. "We have hit about 72 countries since that press release came out. There have been calls from Singapore, Australia, everywhere. Now that is what you call pressure."

So does he regret making such a bold declaration of intent? "No. Not at all." The company's strategy is clear. An eventual changeover to clean, digital projection technologies is close to inevitable, and Avica has elected to make an early assault on the market while its rivals are still polishing their rifles.

Ireland is, in many ways, an ideal launching point for such a campaign. "There are four main reasons for launching in Ireland: an English-speaking audience; 80 percent of the movies come in from Hollywood; it's the second largest per capita movie-going population in Europe and also we have a very forward-thinking group in the movie industry here."

Maybe so. But many in the Irish cinema business have doubts about Avica's time scheme. The feeling is that, though the changeover will certainly happen, it will surely take longer than the company predicts.

Charles Swartz, one of the world's leading authorities on digital cinema, is similarly cautious. "There are two hurdles that a plan like this faces," he says. "One is: will the product be available on digital form? The second is: how does Avica return its investment? Does it intend to take a share from the box office? Does it intend to take a service provider fee to deliver the movie to the cinema?"

Whereas it is certainly true that it is cheap to reproduce digital prints of films - they are, after all, just very big computer files - the cost of striking the initial digital master is, in Swartz's words, "not a trivial one".

Cummins maintains that he has understandings with the major studios to the effect that, once he has 10 screens up and running, they will provide all the product he needs. There is, however, nothing on paper. "We are pointing out there is no contract agreement," Cummins says. "It is a Field of Dreams situation. We will build it; you will come. The studios are eager to clarify that they are supporting us, but there is no contract in place. This is a punt to see, does it work?"

So how are Avica and its investors going to recoup their funds? "The simplest way of putting it is: supply chain replacement."

Really? I do hope there is an even simpler way.

"The distributor currently has a film print cost and that is going to be replaced by a digital print cost. Instead of paying Technicolor the film print cost they will be paying Digital Cinema Limited the digital print cost."

So his company makes money through supplying the print? "Correct. We are not in any way affecting the theatre-distributor agreement. We will get an instruction to supply the print and we will do just that."

Though many cinema purists bemoan the loss of film's unreal lustre, the practical benefits of digital projection are clear to see. Once delivered by disk, satellite or (less likely here) through terrestrial fibre, the movie can be screened in any one of the projectors in a network. Moreover, those projectors, considerably more flexible beasts than their mechanical forerunners, can be used to screen broadcast events as easily as movies. Sports fans may, by next summer, be able to watch Ireland's World Cup games - there is wishful thinking here - on a screen only marginally smaller than a football pitch.

Nonetheless, cinema exhibitors are treading carefully. True, Kevin Anderson of Ireland's largest cinema chain, Ward Anderson, did contribute a quote to Avica's press release. "DCL offered us the only solution that supports Hollywood standards for digital cinema while providing an economically attractive option for independent distributors and exhibitors," he said.

Paul Ward, another director of the company (operators of Dublin's Savoy cinema) was, however, rather less enthusiastic. "The other directors have made no commitment to introduce digital projection at this time," he said when contacted for this article.

So where are the 10 screens that Cummins plans to have up and running by the middle of May? He is unable to say at this stage. But it does seem that Star Wars Episode III: Revenge of the Sith will open on a digital print at the Ormonde cinema in Stillorgan on May 19th. "Yes, we are optimistic that that will happen," Brian O'Gorman, who runs that cinema, says cautiously.

Shot with digital cameras and largely composed from digitally rendered computer images, Revenge of the Sith will - even if the story is as feeble as the previous two episodes in the cycle - allow viewers a chance to see the new medium in all its pomp. Indeed, Charles Swartz views the release of the last Star Wars film, Attack of the Clones, as a landmark moment in the advance of digital exhibition. "That really jump-started the industry," he says. "There we saw the projectors do really well in comparison to anything we had seen before."

Whereas O'Gorman is guardedly optimistic, Graham Spurling, his partner in the new 12-screen complex due to open at the Dundrum Shopping Centre later this year, proves to be a positive digital evangelist.

"Brian and I have been at the vanguard here," he says. "I have cinemas in Enniscorthy and Castlebar and they have digital cables all in place and our start date is the release of Star Wars on May 19th. Look, the situation is a no-brainer for us: we are being offered free equipment and free software."

He then says a rather startling thing: "We are moving into Dundrum in September.Three of the 12 screens will be both digital and conventional, and nine will be solely digital. I am opening one in Co Waterford soon, which will be solely digital."

The common wisdom has stated that as distributors slowly make digital prints available, cinemas will be forced to run the new technology and a traditional system in parallel. Is Spurling really so confident that the studios will make the product available? "We have been satisfied by Avica that the prints will be available," he says. "If there is going to be rollout on Star Wars then we assume they have done the deal with 20th Century Fox."

He goes on to point out that George Lucas, the perpetrator of Star Wars, has explained that, while the 35mm film prints have already been locked off, work can still be done on the digital version. "You might get to see a different version of Star Wars in Enniscorthy to the one you see in the Savoy."

If that digital version doesn't contain Jar Jar Binks, it may very well be worth hitching down to Wexford.