So, it's been a few weeks (again!), but here's part two of our discussion on 3D media. The big news today is that Digital Cinema Implementation Partners (DCIP), a consortium of the three leading motion picture exhibition companies in the U.S., has inked a deal with five big Hollywood studios. The deal? Well, it's a little complicated, but it basically amounts to having the studios help fund part of the per-location cost of converting movie theaters to digital cinema systems. It's fair to have the studios help fund the conversion costs because they save a bundle in the move to digital cinema, as it allows them to distribute films electronically, rather than having to make a physical copy -- called a "print"-- for each location. You can now basically upload a film to a theater when you're ready to distribute it, just like posting videos on YouTube.
But, why, you ask, does this make Presidential debates in 3D a certainty? For three reasons: 1) Digital cinema is necessary for 3D -- and it costs nothing extra to install 3D capabilities if you're already doing a digital upgrade; 2) the parameters of the deal mean that the number of 3D-enabled theaters in the US and Canada will jump from about 900 today to 14,000 by 2012, representing 30% of the screens in those markets; and 3) studios have a heck of a lot of 3D films coming out over the next year.
Studios are making more films and pushing for more screens because 3D and large-format films take in more box office: Journey to the Center of the Earth, a recent 3D release, brought in 65% of its gross ticket revenue from 3D screens -- which represented only 25% of its distribution.
And then there's the DVD market. The Blu-ray format already supports 3D. But there aren't that many 3D-enabled TV's out there. How long do you expect that situation to last, given that theatrical ticket sales represent only 14% of a successful film's revenue? (DVD sales represent 60%, television broadcast rights represent another huge chunk).
So, studios are pushing for more theaters, and more available content -- including all that fancy sports content with Michael Phelps that we talked about earlier -- will put more pressure on consumer electronics manufacturers to make devices available. And with companies like 3ality Digital making 3D broadcast possible over 2D pipes, it's guaranteed that the 2012 versions of John McCain and Barack Obama -- or Joe Biden and Sarah Palin -- will be arguing in 3D, for your political pleasure. It's up to you to decide which candidates would fare better in living, 3-dimensional, color. Leave your bets in the comments section, please.
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