Today Landmark Theatres and Microsoft Corp. announced that they are equipping 
  177 screens in all 53 Landmark Theatres across the United States with digital 
  cinema playback systems based on Microsoft® Windows Media® 9 Series. This 
  unprecedented agreement represents the largest digital cinema theater circuit 
  installation to date in the United States.
  
  For the first time, a critical mass of the independent film industry's 
  infrastructure will be wired for digital distribution. This helps address the 
  escalating costs of releasing theatrical films, which weighs heaviest on the 
  independent sector, as it must pay the same costs to release a film as the 
  major studios. The creation of a complete digital alternative represents a 
  major breakthrough in these economies that will help guarantee greater 
  diversity and access to the marketplace for independent filmmakers and 
  distributors alike.
  
  "Landmark's mandate has always been to build an alternative infrastructure 
  dedicated to the enhancement and proliferation of independent film," said Bert 
  Manzari, executive vice president of Landmark Theatres. "We exhibit over 250 
  films a year, and all too many of these films succeed or fail due to market 
  economics rather than artistic accomplishment."
  
  The newly outfitted theaters will be able to screen films encoded digitally in 
  Windows Media 9 Series, which enables high-resolution, theater-quality 
  experiences with up to 7.1 channel surround sound. The network rollout is 
  expected to be completed by the end of this year.
  
  "Landmark Theatres' commitment to specialty film and its established 
  leadership in the independent exhibition space offers Microsoft the perfect 
  opportunity to demonstrate its ongoing commitment to the independent film 
  community," said Dave Fester, general manager of the Windows Digital Media 
  Division at Microsoft. "Moviegoers get the high-quality theatrical experience 
  of Windows Media 9 Series, while producers and distributors benefit from the 
  cost savings associated with mastering and releasing films digitally."
  
  Landmark President and CEO Paul Richardson was a featured presenter at a 
  symposium on digital cinema at this year's Sundance Film Festival. "What has 
  impressed me most is the enormous breadth of interest in digital cinema that 
  has been generated since the festival. I've been contacted by key 
  distributors, investment bankers and members of the creative community, all of 
  whom want to know when we can deliver a complete solution to digital 
  distribution," Richardson said. "I believe that we will look back at this 
  moment as one when we were able to fundamentally change the business model in 
  a way that will allow far more of these films to compete successfully."
  
  Working with Microsoft and Landmark to deploy the network will be Digital 
  Cinema Solutions (DCS). DCS will supply its solution, the Cinema System, which 
  has powered the BMW Films Digital Cinema Series in 25 theaters since November 
  2002. The DCS Cinema System employs a networked PC architecture that 
  integrates into existing theater infrastructure. Once the network is in place, 
  Windows Media 9 Series allows films to be sent to theaters over private 
  networks, on CD-ROM or on DVD-ROM, all protected with Windows Media Digital 
  Rights Management technology.
  
  "The independent film space has largely been ignored by digital cinema," said 
  Jim Steele, president of DCS. "The small, current base of digital cinema 
  installations targets the largest screens and multiplexes focused on 
  mainstream Hollywood blockbusters. The program announced today by Landmark and 
  Microsoft will change all that because it creates a nationwide network of 
  independent digital cinemas, effectively solving the 'chicken and the egg' 
  problem for the independent film community by allowing them to move forward 
  for the first time with wide-scale digital distribution."