‘Market Status of 3D in Europe’
Charlotte Jones Senior Analyst, Film and Cinema Screen Digest
Europa Distribution Annecy, June 2010 Market Status of 3D Cinema in Europe
• Introduction • Growth of the global digital cinema screen base • Digital 3D as a major driver of digital cinema • Focus on Stereoscopic 3D content – Release slate – Genres – Box office results • Opportunities and challenges for European producers • Forecasts and perspectives Global screen base rose by 87% in 2009 Asia and Europe saw higher growth in 09
D-Cinema screens by world region
18000 16000 14000 12000 10000 8000 6000 4000 2000 0 2000 2001 2002 2003 2004 2005 2006 2007 1H 08 2008 1H 09 2009
Other Asia North America Europe
Note: 2007 2K only installations or higher 3D is the single largest driver and differential of installing a d- cinema system
Digital/3D new installations
5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2004 2005 2006 H1 2007 2007 H1 2008 2008 H1 2009 2009
net new digital net new 3D 70% of West European digital screens are 3D 4,000+ digital 3D screens in Europe
2D and 3D digital screens in Western Europe 5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0
3D screens 2D screens Digital 3D base more than tripled in 2009: turning point as International exhibitors outperform North American circuits
Rapid growth in digital 3D screens
10000 Avatar 9000 U23D, Hannah Montana UP, Ice Age 8000 7000 MVA
6000 Journey Bolt
5000 Meet the Beowulf 4000 Robinsons 3000
2000 CL Monster House 1000 0 2005 H1 2006 2006 H1 2007 2007 H1 2008 2008 H1 2009 2009
International North America International markets adopting variety of 3D formats
North America: Europe: RealD is the dominant format Variety of 3D formats co-exist
RealD RealD XpanD XpanD Dolby 3D Dolby 3D Master Image Master Image Imax Imax
Source: Screen Digest 2009 France is leading territory for 3D screens: driven by competition between leading circuits
Top 20 European territories by digital 3D screens in Q1 2010 800 700 600 500 400 300 200 100 0 Studios turning key franchises over to 3D production One third of 2010’s titles are post-conversions
3D titles scheduled for release Origin of 3D productions
50 45 40 35 Europe 30 25 Asia 20 15 Americas 10 5 0
Live action Animation Animations driving Europe’s 3D momentum
Animation firms in Europe looking to capitalise on 3D momentum •NWave • Maur • Europa Corp • Studio 37 • Nexus • Filmkompaniet • Constantin Film • Medusa • CNF Anima • Alta Films • Dygra Films • Artefacto Productions Live-action overtakes Animation as largest individual 3D production format
Split of total digital 3D titles by format Breakdown of genres under Live Action
Documentar y
War Fantasy Drama Animation Comedy Horror Dance
Sci-fi Family
Action/ Adventure Live- Music Action Action 3D now a significant component of revenues of major feature films
My Bloody Valentine 2009 Bolt
Monsters vs Aliens
Coraline
Ice Age
G-Force
Final Destination
Cloudy with a Chance of Meatballs
UP
Christmas Carol 2010 Avatar
Alice in Wonderland
How Train Your Dragon
Clash of the Titans
Street Dance
Space Chimps
0% 3D revenue 2D revenue 100% Source: Screen Digest; UK box office Challenges for European film industry
Production • European producers have been slower to grasp 3D opportunities • Increased Hollywood’s dominance, piling pressure on film industry’s – Total value of Europe’s indigenous films dropped 14% in 2009 – Collectively, European market share fell to 21.5% (25.5%) • Increase average budgets in national film markets • Acquire necessary skills and equipment for stereoscopy Distribution • 3D needs to be managed as a premium product • Face marketing challenges – acquire and market 3D product • Size of relevant platform (limited screens, scheduling) Exhibition • Incremental investment required at each stage of product lifecycle Opportunities for European 3D productions
• 3D increases potential for Internationalisation and co-production • Decreases localisation trend, although this may impede variety • Niche titles emerging in 3D (Wim Wenders), but need to find platform • 3D film projects more likely to attract investment • Access to funding schemes dedicated to 3D – CNC stereoscopic 3D fund – Paris regional fund – South Korea investing $4m in 3D infrastructure – Singapore 3D film initiative – Street dance 3D (UKFC), Bait 3D (Screen Australia/Regional Funds) • Specialist companies emerging throughout the value chain – Companies looking to gain expertise in stereoscopic 3D – StudioCanal, Constantin Film will release at least one 3D title per year Globally, 21k digital 3D screens forecast worldwide, with major growth occurring in 2010 – 15k alone Forecast digital 3D screens
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
International North America
Source: Screen Digest. Includes updated forecasts April 2010 In summary…
• 3D has set a new benchmark for the future of animated films • 3D is more expensive, which is ok for studios but not necessarily many local producers • However, funding could help plug the gap • Animations are driving 3D momentum in Europe • Increasing drive towards alternative and cultural content in 3D, particularly live events • Stakeholders need to understand how to manage 3D films throughout the value chain • Cinemas have set a precedent for price premium, will drive interest in recreating throughout value chain Thank you [email protected]