[[abstract]]This article attempts to demonstrate the way in which digital cinema can transform the declining film industry by recognizing, and thereby taking advantage of, the trend of digital convergence. Two technical terms of “annotation” and “transcoding” are used as concepts to explicate HD’s (both a tool and a mean to produce and artifact within the bound of digital cinema) various applications to film production, distribution, exhibition as well as film’s management in the age of media convergence. In a similar manner, such theoretical frameworks as “structural functionalism” and “organic solidarity” are used as methodologies by which this article takes up its discourse of digital cinema in relation to other digital media such as TV and MOD of telecommunication platform. As a result, this article argues that in every aspect, the success of digital cinema depends of how well the basic digital infrastructure can develop. In other words, the cumulative result of the latter would help the former to improve its own management problematic. Therefore, film industry should start to cooperate with TV or telecommunication industries to complete media integration in a digital environment. In other words, digital film is examined within the context of convergence phenomenon as a whole. Issues concerning subscription fee (e.g. pay per view), management strategy and service model are all taken into consideration. Also, Digital film production, platform management, broadband transmission, TV display, as well as film “usage and gratification” in digital environment are all discussed in a way that the context of digital convergence is omnipresent. Several suggestions follow as a conclusion for film industry to adapt itself to this new era of digital convergence.
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