Thursday, January 15, 2009

3D movie screens coming online slower than the movie industry projected

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While there have been a few prominent examples of blockbuster movies being shown in 3D movie theaters, the trickle is about to become a flood, the New York Times reports.

But even if the 3D movies are on the way, the number of theaters capable of displaying 3D films is lagging:

"It's starting to look like there will be a lot of disappointed producers unable to realize the upside of these 3-D investments," said Harold L. Vogel, a media analyst and the author of "Entertainment Industry Economics." Filming in 3-D adds about $15 million to production costs, he said, but can send profit soaring because of premium ticket pricing.

Only about 1,300 of North America's 40,000 or so movie screens support digital 3-D. (Imax adds 250.) Overseas, where films now generate up to 70 percent of their theatrical revenue, only a few hundred theaters can support the technology. It costs about $100,000 for each full upgrade.

Studios require about 3,000 screens in North America for most new releases. Popcorn movies like "Avatar" or "Monsters vs. Aliens," a 3-D entry from DreamWorks Animation, typically open on more than 4,000 screens.

"The crunch has everybody scrambling," said Chuck Viane, president for domestic distribution for Walt Disney Studios. "We had expected many more screens to be available by now, no doubt about it."

One barrier in the near term for 3D theaters is the cost, both to upgrade the screens and to buy a ticket to go see the films (the NYT story says tickets to 3D movies will go for as much as $25 each).

While the studios and theater chains are apparently hashing out agreements to split the upgrade costs, I think $25 movie tickets are going to be about as popular as bird flu.

Even in the best of economic times, $25 for a movie ticket borders on the larcenous unless the purchase includes free hot dog, popcorn and beverage, and all teenagers are automatically immobilized via tazer if they so much as whisper during the movie.

But cost aside, the 3D movie theater trend might be derailed before it even gets rolling, thanks to 3D television.

And, unlike 3D theaters, some of these 3D TVs won't require bulky glasses.

source

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