Jack, thanks for joining in the discussion.
I was unaware that Warners had gone to a digital only policy. That certainly wasn't the case when Dick May headed up their preservation efforts, but he retired a few years back. That is disturbing...
One of the problems, as I see it, is that it turns archivist and film handlers into database managers and film history, lore and physical knowledge evaporates very quickly.
And, as you point out, data preservation for archives and media holders is still very much in its infancy, so that is dangerous.
A real danger I see evolving is the tendency of some people to dismiss the dangers of digital migration as a consequence of hesitation to adopt new technologies -- simplistic taunts of "luddite" smack of near religious faith in new technology and have no basis in experience or the actual track record of a technology.
This danger extends to the very companies that make raw materials for the motion picture industry, mainly Kodak. While the entertainment division of Kodak has repeatedly assured the public that they intend to continue making filmstocks for the foreseeable future, the CEO of Kodak repeatedly has stated that Kodak's future is in digital imaging, so we not only have to fight the perception of film as being an "obsolete" medium from technology fans, we have to continue to convince a major supplier of their importance in the equation!
I agree that while digital is a very good tool to overcome some serious problems with source material for a restoration or reconstruction, it (in all it's various ways of being stored) is in no way a good archival format to archive film for two reasons;
1. Past and present physical data carriers for digital data are NOT archival; sorry, but the future doesn't count here!
2. The data word, once written to a carrier, unless very carefully migrated and extracted from the carrier, will be changed or corrupted, thus rendering the the "lossless" aspect of digital a fallacy. Bit by bit copying is grand but ultimately useless if the data can no longer be extracted for use OR is significantly changed when interpreted by software that changes the data by simply interpreting the file. There are any number of pitfalls here; multiple undocumented bit-depth changes, undocumented LUT (look up table) manipulations of images in software, forced use of incorrect color spaces, log files incorrectly translated to linear, etc., the list goes on...
The cost of digital restoration and "preservation", if done properly by laying back to film for the preservation master, is very high at present. You basically have to pay both the costs of electronic manipulation and the expense of laying the images back to film elements for preservation.
While it appears on the surface that the difference between what it costs to archive a reel of film VS a couple of Terabytes of data heavily favors the pure data, it must be examined beyond the cost of the carrier that holds the images.
Film Cost (assuming only from point of preservation of completed job):
1. Lab charges, film stock, processing, reel and can costs.
2. Transportation to archive
3. Annual overhead of physical archive -- building, staff, climate control
Data Cost (same parameters)
1. Data transfer charges.
2. Annual overhead of physical data archive -- building, staff, climate control, power consumption -
3. Archiving software and licenses of applications required to extract the data.
4. Salary or contract expenses of data professionals required to migrate data to new digital media as the old either goes obsolete or begins to decompose or both.
It doesn't take long to realize that, although it is more expensive up front to make a film element and store it in a controlled environment, the cost of archiving that element SHOULD remain fairly flat throughout its life from that point forward, while the actual cost of maintaining the digital files will probably rise more rapidly due to the need for frequent migration, data verification and possibly legacy software development when elements are required for exhibition or further restoration work.
However, there is also another fly in the ointment; access.
When an archive does a partial digital reconstruction/restoration of a film and outputs back to film, the archival needs are obviously meet, but access needs are not.
A plus to the fully digital restoration path is that you wind up with a data set, hopefully at full film resolution, from which you can extract all your derivatives (DVDs, streaming cell phone files, web streaming files, film recorder output files, etc.) and the ability to generate these derivative files is largely software based and can economically be produced either in a short period of time OR on the fly by dedicated content servers like the Ripcode Transcoding Appliance.
Of course you can feed the output of the restoration back into a film chain to generate access copies, but that is little less expensive in overhead costs than doing a film resolution scan itself, AND is often of limited use to an archive (this derivative must also be cataloged, archived and stored) so a conundrum arises.
It seems to me a modified digital strategy is in order, but access remains a real problem.