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Many old films of cultural value are steadily decaying and will be lost if no effort is taken to preserve or restore them for future generations. In fact, close to 90% of the silent cinema (before 1930), and 50% of all the film produced before 1950 are irretrievably lost by now. To cope with this problem, research efforts are made not only on film preservation, but also on restoring already lost or damaged information on motion pictures.
Since films run at 24 frames/second and one frame of a high-resolution 35-mm color film consists of 45 MBytes of data, the restoration of one hour of film needs processing of 3.9 TBytes of data in 86400 frames turning motion picture restoration into a labor-intensive, costly undertaking. For example, in the beginning of digital film restoration, the processing of Snow White (Walt Disney, 1937) took 18 weeks using 40 workstations 24 hours a day, seven days a week, and costed 7 Million Dollar.
A lot of useful information about film restoration and preservation can be found in the AMC Film Preservation FAQ.
Useful links about film restoration and image processing:
Computer Aided Film Restoration Home
Motion Picture Restoration Home
Motion Picture Restoration
Image Restoration
List of Links about old motion picture restoration
Restoration of Old Movie Films by Digital Image Processing
Papers about image processing from the UC Berkeley VIP Lab
XITE, a free image processing software library
Aurora (Automated Restoration of Film and Video Archives)