On July 2005, seven movie studios got together and published the first specification for digital cinema and established the Digital Cinema Initiatives. The ongoing shift to digital cinema will bring major benefits to moviegoers, theater owners and movie studios like more features, easier handling, shipping and storage of movies and cheaper production. However, theater owners who considered running digital pictures balked at making a huge investment without assurance that the technology would be compatible with the offerings of all movie studios for the long term. In making digital films, Digital Cinema Initiatives settled on JPEG2000 as the compressed format of choice. JPEG2000 compresses whole frames as if each were separate picture. JPEG2000 analyzes each image through wavelets. In order to project such a format projectors are designed to be networked with a central management server. This network allows exhibitors to move titles between screens within the multiplex and enables third-party support companies to remotely monitor and troubleshoot the system. Lastly, in order to deliver digital cinemas, fiber-optic delivery and satellite communications systems are being used to distribute data to one point to many others, making it cheap to distribute than conventional 35-mm films.
