Did Canon Just Steal the Future of Filmmaking?

The company that popularized the art of shooting with a DSLR is about to release the next evolution in digital cinematography.

Last week, Canon

unveiled the C300, a new camera designed

. Due for release in January at a price of $20K, the C300 comes with a “super 35MM-equivalent 16:9 large CMOS sensor” that shoots 4K images (or not, depending on

). Thus far, the

have been very impressive. This announcement came just as RED announced the final plans and pricing for its long-awaited Scarlet camera, a

alternative to its previous offerings. Scarlet will retail for just under $10,000 (camera body only), but you can get a ready-to-shoot model for roughly $15,000. At first glance, Scarlet might sound like the better deal. But RED cameras typically require a bunch of expensive extras. That's part of the company's strategy; lure filmmakers with a low base price and hit their pockets later with a plethora of expensive add-ons. While Canon could be planning a similar strategy (ex: you'll still have to buy the lenses and other equipment separately, but that's true of most film cameras), the company has one significant advantage over its competitors: filmmakers are already fans of the format.

Over the past couple of years, indie filmmakers and commercial producers alike have been investing heavily in Canon's top-tier line of DSLRs. Cameras like the 5D Mark II, 7D, 60D, and even lower-end models like the Rebel T2i were all built for shooting stills. But with the ability to shoot gorgeous 1080 video, these cameras have become the new favorite among filmmakers on a budget. Not only are they cheaper than traditional HD cameras, but they accept a plethora of Canon lenses without the need for a special adaptor. The same cannot be said for the average video-specific camera. When these filmmakers grow beyond their indie status, where are they most likely to turn? In the past, they'd go to RED, Sony

, or some other manufacturer. Not anymore. Now they have a high-end option that's compact, fairly lightweight, and is very similar to the DSLRs they have already been using.

While the world of digital cinema is still evolving, Sony is arguably the most influential company in this field. For the final Star Wars prequel, George Lucas reportedly paid Sony $1 million each for a series of custom-made HD cameras. If true, this would explain why Episode III's images – shot entirely in high-definition – are indistinguishable from the previous Star Wars prequels, which were shot partially on film. In fact, Episode III is the only movie I have ever seen whose picture quality is on par with traditional film. Theoretically, other Hollywood filmmakers should have been eager to order their own custom cameras from Sony. But they didn't. They looked for cheaper alternatives, hence the success of the RED One. Unfortunately for moviegoers, this means that digital-only movies tend to look much worse than those that were shot on film. Sony had a stellar opportunity here to step in with a lower-cost model and take control of the market, but it completely missed the boat. The company has been taking losses in nearly every division. If RED holds onto its market position, and if Canon takes another chunk of the market, where will that leave Sony? Right now, the cheapest professional, high-def camera that Sony makes retails for

. Though its most expensive listed camera is $100K, Sony won't even provide a price for models that go higher, simply saying, “Pricing available upon request.”

With little to no competition in the DSLR market, and very little competition outside of RED, Canon is in a very good position right now. Traders – before diving into the action items, let's go over the key points of Canon's newest camera:

That said, there are a couple of other things to remember:

If you believe in the future of Canon's new cinematography offering, then consider these trades:

Are DSLRs just a fad? Will the larger, more traditional cameras continue to reign supreme? If you have concerns about the C300, consider these alternatives: