Audio Video News

Lucasfilm Ltd.'s THX division has been spun off as an independent company, according to an end of June announcement.

The new company, to be known as THX Ltd., will focus on mastering for commercial film releases, theater sound, computer gaming, autosound applications, and home theater. Film producer and company founder George Lucas will retain partial ownership of the San Rafael, CA–based operation. San Rafael, in Marin County, north of San Francisco, is home to Skywalker Ranch, Industrial Light and Magic, and other Lucasfilm divisions. Lucasfilm is one of the county's largest employers. THX is named for Lucas' first film, THX 1138, not for "Tomlinson Holman Effects," as home theater aficionados sometimes mistakenly maintain.

THX Ltd., which has about seventy people working at its San Rafael location and another 15 in an office in Burbank, will be radically reorganized, according to acting general manager Mike Hewitt. He told the Marin Independent Journal that the breakaway will give the new company "more freedom to pursue growth in other technology areas such as car audio systems, digital projection for movie theaters, and electronic games." Hewitt also said that independence from Lucasfilm would give THX more leeway in signing deals with other production companies. Singapore-based Creative Technology, owner of Cambridge SoundWorks, whose Creative Labs division makes the popular "Sound Blaster" PC cards, is an investor in THX, as are several unnamed private investors and investment bankers. None of the THX investors, including Lucas, holds a majority share.

A new chief executive is expected to take the helm in July, to administer five divisions: THX Studio, for mastering and mixing of theater releases; THX Cinema, for upgrades of theatrical systems; THX Mobile, for car audio; THX Games, for the development of gaming software and hardware; and THX Home, for home theater systems. The subdivision of the company will encourage growth in each area. "We've got a big future ahead of us," Hewitt said. THX Cinema will work toward the widespread adoption of digital projection systems in theaters, of which there are only about 100 nationwide.

THX Ltd. marketing manager Christina Lohrisch said the company has experienced "no defections" with the changeover. "I think people are really excited about the growth potential," she stated. "There's been a very positive response." She described the spin-off as "an exciting venture that will allow THX more business development opportunities." Creative Technology will have some say in the company's direction, but will not dictate policy or product development.

For the present, THX will remain in its offices in the Marin Technology Center, with THX dealer training to continue at Skywalker Ranch. There is some discussion of eventually moving the company to a compound being developed by Lucas at the Presidio in San Francisco, a verdant former military base near the Golden Gate Bridge.