Digital Cinema Initiatives (DCI), a joint venture between Disney, Fox, Paramount, Sony, Universal and Warner Bros., has decided to banish traditional film reels in favor of digital projectors in a bid to create the next generation of cinemas.

After three years of discussions, the group has finally settled on a set of technical requirements and specifications for an open architecture that will help manufacturers create universal models of digital cinema equipment throughout the US.

These specifications should provide a common ground to spur innovation and encourage many more players who were previously resistant to invest capital in technology that may or may not have been viable, said Walt Ordway, chief technology officer, DCI. And as the market gets more competitive, the price of the equipment and its installation – previously thought to be a major barrier to digital cinema – will become increasingly affordable, to the point where that stumbling block should no longer be of consequence.

Digital projectors use a computer to show films. This means that distribution costs should be significantly reduced because studios will be able to pipe their films directly to studios via satellite, fiber optic cable or disc, instead of physical transportation.

Some cinemas have already adopted this technology, but the new universal standard is expected to enable a complete roll out to cinemas worldwide.

Reports claim the only remaining question underlying the announcement is the question of price. Film studios and cinemas have so far remained silent on whether they plan to pay for the technology, and there is still no indication of whether or not ticket prices will go up as a result.

The new digital films, which will be applicable to both 2K and 4K resolutions, are expected to be released by the end of 2005.