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Viewing report
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The Business Case for Digital 3D Cinema Exhibition
Screen Digest, June 2007, Pages: 85
The report examines the potential market for digital 3D cinema, based on box office results from the first four titles released to date.
The market for digital 3D cinema is still relatively minor and the number of screens not yet large enough to justify a major Studio release. The report provides an economic basis for continued investment in digital 3D cinema, looking at opportunities for the sector against the potential threats to its pace of development worldwide. On a technical level, the report considers each of the stereoscopic formats available, including the range of investments, as an addition, to basic D-cinema systems.
For the first time, the report looks at the economics of digital 3D cinema, including the potential revenues and profit margins at the exhibition level. The report also highlights the various business models available for exhibitors to commence a large scale roll out of 3D-ready screens.
Key findings:
-High concentration of digital 3D screens among the leading exhibitors
-Nearly two thirds of all 3D equipped screens were added in first half 2007 alone
-Digital 3D acting as a catalyst for digital cinema deployments worldwide
-3D screenings have outperformed their 2D counterparts by more than double in attendance rates and over three times in revenue.
-Exhibitors require at least three movies to make a return on investment per annum
-Globally, there will be over 5,900 digital 3D screens by 2009, 70 per cent of those housed in the USA
In the report:
-List of digital 3D movies to 2010
-Studio involvement in digital 3D cinema
-Box office analysis of digital 3D titles released to date
-Review of stereoscopic technology formats and investments required at each level
-Business models for digital 3D cinema roll-out
-Analysis of potential revenues and profit margins for exhibitors
-Digital 3D cinema forecasts to 2011 by territory and region
-Break-even analysis: number of movies needed for a return on investment
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