Rii
Rear Admiral
I love the smell of burning fads in the morning; smells like ... victory.
Slate: Is 3-D Dead in the Water?
For my part, I don't mind the 3D effect, but I don't think it adds much to the experience either, and am unwilling to pay for it.
Slate: Is 3-D Dead in the Water?
Another summer weekend, another 3-D blockbuster (Piranha 3-D), and yet one more round of industry speculation: Will newfangled stereographic technology save Hollywood? Or has the 3-D revival run its course?
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According to Daniel Frankel of TheWrap.com, who published a version of the graph late last month, "no matter how it's spun, the data on the expected 3-D explosion just isn't going in the right direction." Hollywood isn't ready to give up, he reports, but there's serious concern over the downward slope. As one theater-chain executive told Frankel, "the truth is probably that not everything should be in 3-D."
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Here's the simplest way to interpret this graph: 3-D has been getting less and less profitable, relative to 2-D, over the past five years. It's an ominous, downward trend that started long before Avatar and Alice in Wonderland and continued after. (The red dotted line represents a break-even point, where screenings in 3-D and 2-D theaters make exactly the same amount of money.)
The trend begins at what I take to be the start of the revival—the November 2004 release of The Polar Express, the first-ever IMAX 3-D feature. That film opened in 3,650 theaters around the country, of which just 59 were equipped to show in 3-D. But the revenue from each of those premium screens was almost $40,000, compared with $6,000 for flat-showings. At the beginning, the 3-D bonus was an incredible 575 percent.
Only a handful of 3-D movies came out over the next few years, but the format already appeared to be losing ground. Beowulf opened at 742 3-D theaters in the fall of 2007 and about 3,150 theaters overall. When you compare the 3-D showings to the ones in 2-D, the added revenue was 135 percent.
Flash-forward two more years, to Christmas 2009, and the undisputed king of 3-D movies, Avatar. As we've seen, the extra revenue from the sci-fi epic's 3-D screenings was 70 percent. When Alice in Wonderland came out three months later, the bonus had dropped to 53 percent. This past May, Shrek Forever After saw a boost of 48 percent. In July, The Last Airbender managed just 24 percent.
Then we come to the weekend of June 18, 2010, when Toy Story 3 opened in more than 4,000 theaters around the country. It was a huge weekend for the Pixar film—one of the biggest of all time, in fact, with more than $110 million in total revenue, and $66 million from 3-D. Yet a close look at the numbers shows something else: On average, Toy Story 3 pulled in $27,000 for every theater showing the movie in 3-D, and $28,000 for every one that showed it flat. In other words, the net effect of showing Woody, Buzz, and friends in full stereo depth was negative 5 percent. The format was losing money.
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Either way, the prognosis for 3-D seems dire: There's either too much supply or not enough demand. For mainstream movies that can be viewed in either format, the added benefit of screening in three dimensions is trending toward zero.
For my part, I don't mind the 3D effect, but I don't think it adds much to the experience either, and am unwilling to pay for it.