Access Integrated Technologies concluded a first round of 3,740 theater conversions last year.
Mr. Melnick said there had been a number of movie theater conversions in Manhattan, mostly in the 1980s and '90s.
The closing of "Gypsy" on Oct. 25 nearly coincides with the anniversary of the theater's conversion from an 18th-century paper mill into a regional theater in November 1938.
But over the next couple of decades, archivists reason, the conversion of theaters to digital projection will sharply reduce the overall demand for film, eventually making it a sunset market for the main manufacturers, Kodak, Fujifilm and Agfa.
What role has the hype of 3-D films played in the digital conversion of theaters?
If you're so inclined, the Out Now Podcast team did a commentary for the film 1.5 months ago, and of course, it will be returning to theaters with a 3D conversion starting tonight.
The credit crunch has slowed the conversion of theaters to digital projection systems, which are required for 3-D screenings.
Construction or conversion of theater space is an expensive proposition, especially for struggling theater companies.
The announcement came as, in a separate deal, the nation's three largest theater chains — Regal, Cinemark and AMC — were negotiating for what Variety reported would be a $1.1 billion line of credit to finance the conversion of their theaters to digital cinema.
LAS VEGAS — Eager to get American cinema complexes ready for a surge in 3-D movies next year, four major Hollywood studios announced on Tuesday a deal to subsidize the conversion of 10,000 theaters to digital projection systems.
