They run the film through something called a telecine machine. which scans each frame of film 1 by 1 multipass. It takes around 48 hours to do a whole movie sometimes more depending on the quality of the machine. They range from 500k american to 2 million american dollars.
After that all frames are merged into 10 to 20 minute video blocks in uncompressed format.
They are cleaned up of scratches and spots then are synced with sound, once this is complete they merge all the clips and color correct and then encode to desired format.
Lets just say this is not for a home enthusiast.
BTW Thats hollywood Standards.
The bootleggers produce much crappyer versions for 8mm film by projecting them onto a non reflective white surface and record with a digital camcorder set to record at the same frame rate as the 8mm.
Thats the budget way and it does not produce the quality of true telecine.
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