INITIAL David Franklin,
[email protected], 415.364.3780 Ryan Duck,
[email protected], 415.364.3779 REPORT 3D Content, Screens Building, 3D TV Slow to Catch On Companies: DLB, RLD, SEO:034220/LPL, SNE, TSE:IMX/IMAX, TYO:6502/ETR:TSE1, TYO:6758/SNE February 24, 2011 Research Question: What is the future of 3D content viewing, and how will that affect box-office receipts and TV sales? Silo Summaries Summary of Findings 1) CONTENT PROVIDERS These two UK-based sources expect demand for 3D content viewing continues to grow. Production and conversion 3D movies to continue to grow. Adoption of 3D are starting to include genres outside of animation and live action. TV is expected to be slow because of consumers’ dislike of the glasses, the high 3D movies’ financial success has been restricted by a lack of cost of monitors and the lack of quality TV screens, especially in Europe and Asia. content. Most moviegoers are willing to pay the 3D premium, but industry 2) CONVERSION PROVIDERS professionals expect pricing to level out within the next few years. All four sources reported growing interest and 3D TV adoption is being stymied by the sets’ high prices, 3D improving quality for 3D movies. One source said glasses, the different technologies, and the lack of content for TV. the “perfect storm” of creative interest, 3D technology advancements and the switch to Passive glasses and no glasses 3D TV have limited availability. digital movies is driving 3D adoption. Once these technologies are more widely deployed, 3D TVs should see an increase in adoption.