Despite the initial scepticism about 3D technology, many are starting to see its potential to generate revenue and help with the declining ticket sales in the movie industry.
This is according to the 3D Here and Now report by professional services firm PricewhitehouseCoopers (PwC), which notes that although this is great progress, industry players risk killing this potential by overselling or overpricing the 3D experience.
"From the movie industry perspective, these films generate two to three times the revenue of 2D theatres, giving theatre operators a powerful incentive to change to the new technology," says Vicki Myburgh, South African entertainment and media industry leader for PwC. "Converting from traditional prints to digital is a big expense but once a theatre employs the digital technology, the transition to 3D is relatively easy and inexpensive."
Overall, the findings anticipate that over the next five years, an average of 15% of released movies in markets such as SA will have a 3D version. The Hollywood film studios anticipate that 25% of the film slate will have a 3D version, but smaller studios are expected to have a more limited involvement in the production of 3D movies.
"The reality is that a 3D film must be good to generate strong sales. In the DVD and theatre market, consumers are willing to pay a premium for a superior product and the abundance of less-than-thrilling products can dilute the overall excitement about 3D. Quality 3D films are important to protect the ticket premium, otherwise 3D will be limited to animation and horror movies and remain a niche market."
The report states also that TV channels across the globe have successfully put in place an end-to-end broadcasting solution for 3D content since 2010, while few of them would have put any money on 3D just a year and a half ago. It further reveals that the introduction of the 3D home entertainment system, comprising a 3D TV set, a 3D Blu-ray player, a digital sound system and a growing inventory of 3D films and television content in Blu-ray format will drive progress in the 3D TV market.
"For developing markets, the success of the 3D television market hinges on affordability of 3D TV sets, the availability of attractive 3D content, a sound business model for TV channels and the viability of end-to-end 3D broadcasting, says Myburgh. Despite the fact that the premium consumers pay for a 3D set is not as extreme as the premium paid for HDTV, consumers are not responding to 3D television as quickly. Economic conditions and the relatively recent acquisition of flat screens may explain the lack of customer eagerness for 3D television."
She adds that one positive factor for consumers is that fierce competition among manufacturers is driving down the price with Samsung cutting prices in 2010 and capturing 88% of the market share in the US between March and July, proving that 3D TV sales and home penetration will pick up.
According to PwC, the opportunities and possibilities for 3D continue to generate great excitement within the video games industry, with many companies predicting increased revenues from 3D.
It urges, however, that in its attempts to make money and adopt 3D universally, the industry must ensure that it continues to deliver high quality content. If the quality drops, so does the consumers' enthusiasm for 3D and their willingness to pay a premium for the experience.
For the foreseeable future, PwC concludes that while the lack of interoperability among the different standards - a 3D picture captured by one model not being able to be displayed on a 3D model from a different manufacturer - 3D mobile penetration will be boosted by the introduction of 3D portable phones game consoles.
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