Intelsat S.A., announced an agreement with Grupo Chilefilms to provide satellite connectivity for a new digital cinema distribution network that will serve Mexico, the Caribbean and South America.

Under a multi-year contract, Intelsat will provide C-band capacity to Grupo Chilefilms on the Intelsat 1R satellite at 310° East, transitioning to capacity on the Intelsat 27 satellite, which is scheduled for launch in the first quarter of 2013.

Grupo Chilefilms owns and operates CINECOLOR SAT, a new satellite-based distribution network that will deliver feature films and live events directly to cinemas throughout Latin America. Grupo Chilefilms began testing the network on Intelsat 1R in early October, and it is expected to be fully operational by the end of 2012.

"Delivering content via satellite improves the speed and reliability of distribution while reducing the cost," said Cristián Varela, CEO of Grupo Chilefilms. "The instantaneous nature of satellite distribution will allow cinemas to show live broadcasts, such as concerts and sporting events, which create new revenue streams for these cinemas.

"Because Latin America is a vast region with great distances between cinema complexes in many cases, physical distribution of films is a logistical challenge. Intelsat understood our requirements and worked with our engineers to create a solution that meets our needs today, and will allow CINECOLOR SAT to grow in the future."

"Intelsat is the choice for media programming distribution in Latin America and around the world," said Carmen Gonzalez-Sanfeliu, Intelsat's regional vice president for Latin America & Caribbean sales. "With this innovative approach to feature film and live event distribution, Grupo Chilefilms' customers will benefit from the reliability and flexibility of our network, which will ultimately deliver a service of the highest quality."