MOVIE CHAIN GOING DIGITAL MICROSOFT JOINS WITH LANDMARK.

Byline: Greg Hernandez Staff Writer

Los Angeles-based Landmark Theatres and Microsoft Corp. are equipping all of the chain's U.S. theaters with digital playback systems to accommodate the increasing number of independent movies that are now being shot digitally, the companies announced Thursday.

Microsoft's Windows Media 9 Series will be permanently installed in 177 screens in all 53 Landmark Theatres across the United States. This represents the largest digital-cinema theater circuit installation to date.

The chain said the move is a ``major breakthrough'' because it will help guarantee lower-budgeted films shot digitally more access to the marketplace and will result in a greater diversity of product as well.

``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,'' said Paul Richardson, president and chief executive of Landmark. ``I believe 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.''

Neither Landmark nor Microsoft would comment on the financial terms of the collaboration but the theaters, six of which are located in Los Angeles, will have the new systems in place by the end of the year with implementation beginning immediately.

Independent filmmakers in particular have increasingly turned to digital equipment in recent years, a far less expensive way of shooting and editing compared with traditional film.

``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.''

Last November, the Artisan Films release ``Standing in the Shadows of Motown'' was the first film to be released in the Windows Media 9 Series in a Landmark Theatre.

``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 industry,'' 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,'' Fester added.

Among the recent movies shot digitally is ``Phone Booth,'' an action- thriller starring Colin Farrell that was released in theaters today. The movie, directed by Joel Schumacher, was filmed in just 10 days. Other high- profile digital projects were last summer's ``Full Frontal'' by Oscar-winning director Steven Soderbergh and ``Tadpole,'' directed by Gary Winick.