Cinema audiences can look forward to sharper images

The new technology, which will also slash distribution costs for film studios, has not yet become common because of high costs.

But there are plans for studios and cinemas to share the costs, the president of the National Association of Theatre Owners (Nato), John Frithian, has said.

There are currently only 161 digital projectors in cinemas around the world, with half in the US - out of a total of 130,000 screens worldwide, of which 35,000 are in the US.

As well as offering better picture quality, digital projectors allow events like concerts to be beamed into cinemas, and make it cheaper for adverts to be shown.

After several years of uncertainties over cost, technology and developing one standard system, Mr Frithian told industry convention ShoWest that the problems looked like being resolved.

"With that, the digital roll-out could begin by 2004," he said.

Standard system

Digital projectors cost $100,000-$150,000 (�62,000-�94,000) per screen to instal.

There had been uncertainty over whether cinemas would have to install different digital systems as they do with digital audio.

But cinema owners, film studios and equipment manufacturers are working to devise a set of standards.

And digital has been proven to be better quality than the old 35mm projectors with the unveiling of a new "2K" microchip.

Rock concerts have already been beamed live into cinemas that are already equipped with digital technology, and have proved to be a hit with fans.