Originally posted on the Berkeley DMEC blog page.
The movie industry is experience some better times with box offices revenues already running 8.8% ahead of 2009 figures (itself a $10B year). A huge driver has been the versioning for 3D and IMAX for tent-pole movies. Increased traffic for 3D coupled with significant price increases (reported as much as a 26% bump) have continued to feed the hype. This has been some positive news in terms as revenue as studios expect a 12% drop in DVD sales.
The question is how marginal traffic will making a 3D movie bring in?
With How to Train Your Dragon opening at 27% lower than Dreamwork’s Monster Vs. Aliens may indicate that new features like 3D may not necessarily trump good ole word of mouth. Indeed, the willingness to pay for a superior 3D experience for the family may not be enough to cover the $40-$60 required to take a family to the movies.
To convert a 3D movie, it takes studios an estimated $30 M, will the ROI remain? Wish three more 3D movies coming down this season’s pipeline, 3D may fast becoming the new normal.
