3D ROLL OUT
Last summer as i sat at the Hollywood Bowl enjoying the Bowl orchestra play some of my favorite composers, i realized i was watching the concert as much on one of two giant screens as i was watching the orchestra. It occurred to me, if the screen was in 3D and i was anywhere else in the world i would enjoy the concert as much as i was sitting here at the Bowl. Maybe even more, without the thought of all that Hollywood traffic, i was about to encounter. 3D can bring to consumers some of the most interesting and unavailable entertainment right in the comfort of their local movie theaters and eventually right into the comfort of their homes.
But theaters are going to have to get going. Time can be their enemy if the digital rollout does not happen and happen quickly.
At the most recent SHOWEST convention, an annual meeting of theater owners and movie distributors, held in Las Vegas, the discussion again focused on 3D. Everyone was in agreement that 3D can bring to the theater owners, as well as the film makers, a new and exciting revenue producing, consumer experience. Based on the opening weekend results for MONSTERS VERSUS ALIENS it is clear consumers like it and are willing to pay extra to experience it.
However it is not going to be effective until there are a sufficient number of available 3D screens and right now that is not the case.
The theater owners need to complete the digital installation in their theaters. With only around 2,000 screens 3D ready they are really about 3,000 shy of a critical mass of theaters. Until that number is reached the film makers cannot recover the extra costs associated with 3D production and the theaters will not be able to add the premium for the 3D experience.
When the rollout is complete then the true benefits will accrue to the theaters. First they will be able to offer more than 40 amazing, new 3D films set for release in the next 24 months, to an audience looking for reasonably priced, family oriented entertainment.
Second, theater owners can then begin to really understand the true value of digital distribution. Keep in mind all live entertainment is local and to make it international the experience has to be as real as being there. 3D is as close as we will get to being there. International events can be local events. Through imaginative deal making there is virtually no form of entertainment available anywhere in the world that theater owners cannot offer to their markets.
However none of the benefits of 3D will accrue to the theaters until they complete their digital rollout. And time, as i said, is not in their favor as the Television industry is also desperate to offer the consumer something new and exciting, for home consumption and 3D has an awfully attractive ring to it for home viewing as well.
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By the time the movie companies and the biggest exhibitors finally reached an agreement on a digital rollout last year, they couldn’t get the $1 billion in financing that was needed to implement it because of the credit crisis. So everything is on hold, for months or maybe longer.
Timing is everything. The studios dithered for years about reaching a deal based on fees for money saved on prints. This is their comeuppance.Just when they see 3-D as the answer to future profitability, they are unable to get the screens.. .
Hi, interesting post. I have been pondering this topic,so thanks for writing. I will definitely be coming back to your blog.
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