A new dimension
The market for 3D in film, television and video games is proving to be 'extremely profitable', according to a new report by PricewaterhouseCoopers.
PwC's report branded 2010 the year of 3D, with 8 of the top 20 highest revenue making films at the box office available in 3D, compared to just 3 in 2009 and what's more it predicts that by 2015, 15 percent of all films will be made in three dimensions, driving demand for 3D TVs and games consoles.
Phil Stokes, head of media and entertainment at PwC believes Avatar was the film that raised consumer awareness of 3D plus created an appetite in consumers for 3D entertainment and noted that resolutions of the definition of a 3D Blu-Ray standard and progress on HDMI 1.4 has boosted the 3D industry.
However, he warned there are still some challenges to overcome, including the ‘sometimes prohibitively large expense' for cinemas of converting to digital projection and the cost of 3D TVs are also too dear for most people.
"The market for 3D televisions is less developed than that of the film industry and the affordability of TV sets is a major factor impacting the growth of the sector. However, prices are beginning to fall and that, together with the availability of attractive 3D content, is helping to grow the market," said Stokes.
He, like many consumers, thinks that having to wear glasses to watch telly is a ‘major issue' but with the Olympics and World Cup coming round again, he reckons consumers unable to attend the events will no doubt splash out on the best quality experience they can at home- which could be in 3D. Another recent report by In-Stat predicted that 1 in 5 TVs bought in 2013 will be 3D- compatible.
PwC's report said many market sources believe there is a natural fit between video games and 3D as the players demand immersive game play. However, it also said: "At the moment, 3D reduces both the resolution and the frame rate so there's a current reluctance, both from the industry and in apparent consumer demand, to increase the production of 3D video games."
While PwC thinks the mass market potential of 3D entertainment is still unclear, there is potential for is to increasingly find its way from the cinema into homes.
The report predicted that 15 percent of new films will have a 2D version by 2015, while Hollywood has set the bar at 25 percent. PwC expects the production of 3D films in Europe to grow and a 100 percent adoption of digital distribution among large cinemas and complexes in the medium-term. In short, it seems to think that 3D cinema is here to stay.
In line with other analysts' expectations, the firm also predicted that there will be more 3D TV offerings in the future, with the price of sets falling. It also reckons TV promos for the London 2012 Olympics will be in 3D.
While motion-sensitive console add-ons are currently all the rage for consoles, PwC predicted that the next-generation of consoles will focus on 3D and the increased availability of 3D games. However, in the PC space, the firm thinks that while 3D internet content will develop, its adoption will remain limited to the early-adopter segment.
"There are 3D-ready laptops already available but the price premium they command limits their market attractiveness," the report said.
The report noted that there are still problems with interoperability among the different 3D mobile phone standards so a 3D picture captured on one model cannot be displayed on another manufacturer's model, but "the first auto-stereoscopic mobile phones are already available in Japan and will be introduced in Europe and the US shortly."
PwC also said the introduction of portable 3D consoles such as Nintendo's 3DS ‘will boost mobile penetration'.
David Lancefield, media and entertainment partner at PwC, added: "The opportunities and possibilities for 3D continue to generate great excitement within the industry, with many companies predicting increased revenues from 3D. But, in their attempts to make money and adopt 3D universally, the industry must ensure that they continue to deliver high quality content. If the quality drops, so does consumers' enthusiasm for 3D and their willingness to pay a premium for the experience."
