Digital Hollywood: 3D needs to make money on DVD

Lee Stewart · 05-05-2009, 10:06 PM

Digital Hollywood: 3D needs to make money on DVD

Quote:

PHYSICAL: Better technology necessary for consumer adoption

By Susanne Ault -- Video Business, 5/5/2009
MAY 5 | PHYSICAL: SANTA MONICA, Calif.—If studios hope to maintain their 3D theatrical momentum, the industry needs to start delivering the same technology into homes, Digital Hollywood participants here said on Tuesday.

Hollywood receives higher ticket revenue for 3D films, such as Bolt and Monsters vs. Aliens, over versions projected in 2D. But in order to justify the typically higher budget of 3D productions, which can be $15 million to $20 million over 2D, studios need to generate additional money from the movies on TV and DVD/Blu-ray Disc. Theatrical films, whose profits are derived from these secondary markets, usually aren’t greenlit unless there is a clear plan for them on TV and/or DVD/Blu-ray.

However, 3D movies are downgraded to lesser quality anaglyph technology for DVD/Blu-ray release. Although advanced 3D-at-home equipment and delivery is achievable now, there is a lack of standards guaranteeing that the 3D content will play on various 3D-ready devices.

Digital Hollywood participants worried that viewers will turn away from DVDs featuring 3D because of the weaker anaglyph presentation.

“So much monetization of content needs to happen in the home channel,” said James Dix, an analyst at Wedbush Morgan Securities. “But with 3D in theaters, does that hurt their sales on DVD? Does that hurt their monetization at home?”

Dix said he’s concerned about Jeffrey Katzenberg’s past remarks forecast a true 3D-at-home market will likely not develop for another five to seven years. Katzenberg doubted that consumers will rush to upgrade to 3D-ready TVs if they’ve already just purchased high-definition sets.

“You don’t break even theatrically,” A. Dale Mayo, chairman/president/CEO of 3D exhibiting firm Cinedigm, said at Digital Hollywood, noting the importance of such ancillary streams as DVD, TV and paid downloads.

Companies are plowing ahead on releasing theatrical-quality 3D-at-home products, despite whether standards are yet in place. Kerner New York, a 3D production firm that spun off from Lucasfilm’s Industrial Light & Magic, is developing a device that will enable consumers’ existing TVs to playback dramatically improved 3D imagery.

“Let’s say anaglyph is at a 1 and [state-of-the-art theatrical] is at a 10, then this device can allow TVs to show 3D at a level 5,” Neal Weinstock, chairman and CEO of Kerner, told Video Business following the session.

Weinstock declined to specify when the device would roll out for sale.

David Naranjo, director of product development at 3D-ready TV maker Mitsubishi, agreed that the creation of such a device to motivate 3D consumption is a hot topic. There are 2.5 million 3D-ready TVs now in homes, but that base will have to greatly expand to break the technology into the mainstream.

“There are so many more TV sets out there that aren’t 3D-ready—so how can we get them 3D?” asked Naranjo. “There are many discussions about that.”

Naranjo believes that 3D at home needs to become a reality soon.

“Kids are more forgiving about having to view content in anaglyph, but others are going to have different expectations,” he said. “We’re trying to create the same environment in the home as people experience in theaters.”

There is relative ease in transitioning to 3D TV series production, claimed session participants. One episode would cost just $25,000 over the same episode rendered in 2D, according to Kerner’s Weinstock.

http://www.videobusiness.com/article...?desc=topstory

**PFC5** · 05-07-2009, 12:56 AM

If they do not come up with a "standard" for 3D fast then many early adopters buying non-standard 3D devices will not want to rebuy again and will be disenchanted IMO. I know i would be, so I think the best thing is to delay avoid the non Industry standard solutions until we have a standard to only have to buy once.

Lee Stewart · 05-07-2009, 02:31 AM

Quote:

Originally Posted by PFC5

If they do not come up with a "standard" for 3D fast then many early adopters buying non-standard 3D devices will not want to rebuy again and will be disenchanted IMO. I know i would be, so I think the best thing is to delay avoid the non Industry standard solutions until we have a standard to only have to buy once.

3D to the consumer can be accomplished in more than one way - and there lies the problem.

There are a number of companies who want THEIR 3D system to be the choosen one. Lots of money in IP's and royalties.

Consumers now have expectations, as far as what a 3D system should look like. They are voting with their wallets at the box office. They are paying the extra $$ to see films in 3D. The home system has to look as good as what they see in the theater.

And not all 3D systems are created equal.

It would be a shame if 3D was rushed into production for home video and because it fell below consumers expectations, it flopped as a consumer product but continues to flourish as a commerical theater product.

05-07-2009, 12:56 AM	#2
PFC5 Super Moderator Join Date: May 2005 Posts: 28,349	If they do not come up with a "standard" for 3D fast then many early adopters buying non-standard 3D devices will not want to rebuy again and will be disenchanted IMO. I know i would be, so I think the best thing is to delay avoid the non Industry standard solutions until we have a standard to only have to buy once. __________________ Denon AVR-887 Klipsch RP-5 Pwred Towers (mains) (525 watts peak each 12"Subs) All Klipsch RC-25(ctr),(2)SS1(surr),(2)SS1(rearSurr) Toshiba (2)HD-A20,PS3,BD35 For SACD/DVD-A Samsung HD-841 Panny 50pz80u plasma SETTINGS RCA HD50LPW162 50"DLP w/HD2+ SA 3250HD 47" LCD+Yamaha5790+HD-A1(bedroom) Harmony 680 + (2) 670s (amazing remote/support) Game room with Onkyo receiver & B&W Speakers The_Cable_Game Take the high ground and be happier

Similar Threads to Digital Hollywood: 3D needs to make money on DVD
Thread	Thread Starter	Forum	Replies	Last Post
direct from Toshiba	grizzhcky	HD DVD Players	1	02-16-2008 07:23 AM
Amazon.com: 50% off Paramount HD DVD titles	Nikopol	High Definition Media	34	02-09-2008 10:08 PM
Toshiba needs new marketing agency	toms89	HD DVD Players	18	02-06-2008 07:32 PM
HDD's Best and Worst of 2007 (HD DVD/BD)	KEEBS1984	High Definition Media	17	12-30-2007 01:23 AM
HD DVD with 70% of stand alones. Can Sony win?	Buford_Pusser	High Definition Media	86	12-05-2007 10:18 PM