Digital Cinema Transition Going Much Slower Than Expected

With Texas Instrument's DLP systems, digital cinema looks like it's ready for prime time. However, the dispute over who's going to pick up the technology tab is having a damper on adoption rates:

Some people thought about 2,000 of the new high-tech projectors would be in theaters by the end of 2002. Instead, 155 theaters worldwide, about one-tenth of 1% of all theaters, have them. And none of the top U.S. theater chains plan to add more digital projectors until they can work out better business terms with Hollywood studios.

With exhibitor's margins already razor thin on big studio films, I doubt that they're willing to fork over even a few cents per ticket to any of these tech companies. And I don't see Hollywood budging anytime soon, either.

Related Links:
Lights, Camera, Where's the Digital Action? (Investor's Business Daily)