Regal says Sony's 4K projector not ready

NEW YORK (Reuters) - A super high-definition projector being aggressively marketed by Sony Corp. (6758.T: Quote, Profile, Research, Stock Buzz) is not yet reliable enough to be installed in movie theaters, said the chief executive of the largest U.S. cinema chain on Wednesday.

Regal Entertainment Group (RGC.N: Quote, Profile, Research, Stock Buzz) Chief Executive Michael Campbell told the Reuters Media Summit in New York that he would not consider installing the Sony projector on his chain's 6,400 screens until it had been tested more thoroughly.

Sony said last month that its 4K digital projection system was market ready after tests conducted by an entertainment advisory board, and the company was ready to cut deals to install the systems in theaters as part of an industry-wide transition to digital projection.

The projector boasts 4,096 horizontal pixels, compared with 2,038 horizontal pixels for rival 2K projectors made by Barco Digital Cinema, Christie Digital Systems and others.

"We've seen 4K in some lab conditions, it looks really good," Campbell said. "The problem is, at least currently, it's not reliable. It's being tested."

Regal is a partner in National CineMedia, a joint venture with AMC Theatres and Cinemark that has been tasked with selecting digital technology for all three chains, which have a combined 14,000 screens.

There are about 37,000 U.S. movie theater screens, according to the National Association of Theater Owners.

Campbell said other disincentives are that the Sony projector is more expensive than the better-tested 2K, and was being rolled out slower than manufacturers had indicated to theater owners.

"I think the (digital projection) roll-out ... initially is going to be almost exclusively 2K, and as the roll-out progresses, as 4K technology becomes more tested, as the price of that technology inevitably comes down... you may see a lot of companies including Regal shift to some 4K units as part of that roll-out process," Campbell said. "I don't think it's ready today."

Campbell said the chain wants to encourage Sony to continue testing and rolling out the technology "but at the end of the day it has to be an affordable technology."