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Summit digs deep into the 3D biz

Is 3D becoming a victim of its own success?

That question was suggested by some of the numbers in a generally sunny presentation on “The Business Case for 3D” at the 3D Entertainment Summit.

“Where 3D has permeated a genre, titles not in 3D are at a significant disadvantage,” said Screen Digest analyst Charlotte Jones.

Jones said that 3D screens continued to overperform 2D screens so far this year by about 3 to 1, on par with historical averages. But that figure is inflated by the extreme overperformance of “My Bloody Valentine.” Without that pic, the number is down to about 2.5 to 1.

“3D screen capacity is the major crucial factor (behind the decline), said Jones. “3D movie revenues are being squeezed because we’re seeing more 3D releases in the same time frame.”

Time per title is down from 8.7 weeks last year to just 3.1 weeks this year. “This situation will be exacerbated further in 2010 when we have over 30 3D titles released,” she said.

That undermines some of the advantages of 3D, she said, “including a stronger run over the duration of the title.”

Jones also said the disposable glasses business model favored by RealD and most exhibs, where studios pay for single use glasses, will come under pressure as more titles and more screens go 3D.

Overall, though, 3D remained a strong revenue driver, said Jones, especially over the summer.

“Without 3D premium pricing the summer would not have registered as positive,” she said.

Source: Variety