This article is from the rec.arts.movies.tech FAQ, by Scott E. Norwood snorwood@nyx.nyx.net with numerous contributions by others.
Films which are intended for distribution in theaters often are edited
on non-linear editing systems (such as the Lightworks (tm) , or the
AVID (tm) for later negative matchback, and release prints to be made.
Because they do not require the high quality and often cannot afford
the high cost of the digital formats (because the video transfer is
just used as an editing reference, and not for distribution), they
often use the old, relatively cheap 3/4" Umatic format for `video
dailies' and editing, with `window burns' of Keycode numbers and video
timecode for later negative matchback. During the transfer, the `head'
of the film is `punched' (one frame has a circular hole punched in it)
to provide a reference for the negative cutter to relate the timecode
to the keycode.
Of course, theatrical films which are edited in the conventional
manner (using a Steenbeck (tm) or Moviola (tm) or similar editing
machine, and manually cutting and splicing workprint and magnetic
film) do not even need to use videotape formats at all, unless the
film will be released to the television or home-video markets, in
which case a low- contrast print (or interpositive can be run through
a flying-spot scanner with minimal color/exposure correction (this
will have been done in the color timing stage of production).
 
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