Major Subsidiary

Scrabble Entertainment Limited

Our D-Cinema capability is primarily provided through Scrabble Entertainment Limited (“Scrabble”), a subsidiary in which we have 91.32 % interest and in which we initially invested in 2011. Scrabble operates our D-Cinema business in certain states in India and internationally and our Company operates our D-Cinema business in the rest of India.

Scrabble owns a 33.33% interest in (a) Scrabble Digital Ltd, which owns digital labs in Mumbai, Chennai and Hyderabad, and (b) Scrabble Digital JLT, which owns digital labs in Dubai, each of which provides D-Cinema movie encoding, processing and compressing services.

D-Cinema movie files are mastered by these labs using JPEG 2000 technology and encrypted with 128-bit encryption. A D-Cinema file for a full-length feature movie is typically 300 to 350 gigabytes in size and must be copied onto a hard drive for distribution and projected using a 2k projector. Scrabble appoints third party logistics companies to ship hard drives containing the D-Cinema movie files from these digital labs to each individual cinema. Exhibitors play the movies by copying the files from the hard drives onto servers, unlocking the files using licenses from the movie producer/distributor and then projecting the movies using digital projectors.

Our primary D-Cinema business activities include:

  • VPF D-Cinema collection - VPF D-Cinema is payable by movie producers and distributors for the screening of movies at theatres with D-Cinema equipment. The purpose of VPF D-Cinema is to encourage exhibitors to purchase and install D-Cinema equipment at their cinemas. We have D-Cinema deployment contracts with certain major Hollywood studios, which allows for us to collect VPF D-Cinema from those studios, and we also collect VPF D-Cinema from Bollywood and other international studios who release their films on our D-Cinema network through India-based distributors.
  • D-Cinema equipment rental and sales services.
  • D-Cinema movie encoding, processing and compressing services.

Scrabble’s international deployment includes UAE, Bahrain, Qatar, Oman, Kuwait, Syria, Lebanon and Jordan through its overseas subsidiaries. Post successful deployment in India and the above countries, Scrabble has rolled out DCI solutions in the USA and Mexico through associates.