5 Hollywood studios have signed an agreement to pay more than $1 billion for offering digital movie technology to approximately 20,000 cinemas within North America. The investment will be a precursor to 3-D technology implementation, set to take place subsequently. This takes care of approximately half the screens in the US and Canada and is set to start in the new year.

More than 20 3-D films are scheduled for debut by 2010, but only 1,264 movie theaters are available currently to show such films. 3-D movies have traditionally attracted many movie goers and at a higher ticket price than 2-D movies.

The studios included in the agreement are: The Walt Disney Company, 20th Century Fox, Universal Pictures, Paramount Pictures, and Lions Gate Entertainment Corp. Additional studios are also targeted to be added to the agreement.

The technology will use a certain type of filter which will be placed on top of the digital projector in order to polarize specific images for the right and left eyes. The viewers will need special glasses to see the movies clearly.