Thursday, January 13, 2011

50-70% Of Box Office Revenue Is S3D: New PWC Report

Well it is not a surprising figure at all to me, and I find it interesting seeing the reaction of this news from the movie sites that have been anti-3D from the get-go, but PricewaterhouseCoopers has just released a review of a BTIG Research report that states 50 to 70% of ALL box office revenue is derived from stereoscopic 3D movies.

I have NOT seen this report yet, but those numbers sound about right to me.

From the report: "This supply of funds in a globally difficult film-financing environment has led to a push for the conversion of some films originally envisioned as 2D into the 3D format. This often proves ill-advised."

Also: "Many people are over-excited by it. The danger is that industry players risk killing a golden goose by overselling and, in some cases, overpricing the 3D experience -- and by providing too much mediocre content that doesn't do justice to the technology."

The BTIG research seems to have the correct stats, however PWC's analysis leaves room for much debate! Pricing will work itself out in our free markets just like anything else does. To cast fear, uncertainty and doubt on 3D for pricing what audiences will pay today vs. what they will be paying in the future is ridiculous. Will PWC alert the media that gold is over priced next? I am amazed they went there. I would suggest that they should have given reassurance to the markets and audiences that all will work itself out in the end.

Mediocre content is a problem for 2D, gaming and any form of entertainment. Again, a problem that is not intrinsic to 3D. PWC does however recognize the strength in 3D to provide stable and even growing revenues to an industry that could be shrinking somewhat today. It is important to remember though that Hollywood remains a bastion of escape for audiences everywhere that are going through some tough economic times. History, it seems, repeats itself.

My opinion is that ALL movies can be made and enjoyed readily in 3D. It is our human condition as much as seeing in color and hearing is to most of us. Any 2D production can be "ill-advised" as well if it is not properly planned out. I think the studios have learned their lesson from CLASH OF THE TITANS and will act accordingly.

With 38 movies planned for this year (complete and updated list here) in S3D, the format is alive and well.

Far from a fad or trend now, 3D is now cinema quite clearly.
I find it amusing to still see the same movie sites and individuals picking apart 3D while the very definition of their chosen career has fundamentally changed. It was one thing to denounce 3D years ago but today it is getting tired. 3D is the human condition and the reason why we are accepting it so readily. I personally love the immersion in a good 3D film and have since modern S3D has come upon us. I started covering 3D in 2006 because I saw the value in it. I still do as do MANY others, now proven to be true. I have 38 films listed in 3D for 2011, give or take as some productions wax and wane. The studios have embraced 3D. Most major directors have embraced 3D. And most importantly audiences have embraced 3D. Its time to realize this and get on with the task at hand: Covering movies. Movies we love and will continue to love over the coming years.

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