According to a new report from PwC, 3D Here and Now... a goose that lays a golden egg this trend will continue and by 2015 over 15% of all films will be produced in 3D.
Phil Stokes, head of media and entertainment at PwC, said: "A year ago the industry was grappling with some fairly major issues. Twelve months on, a number of these have been resolved including, on the technical side, the definition of a 3D Blu-Ray standard and progress on HDMI1.4. Meanwhile, Avatar's record breaking success has raised consumer awareness of 3D and created an appetite in consumers for 3D entertainment.
"The growth of the 3D industry still has some challenges to overcome. While 3D films generate considerable revenues for the cinema operators, the cost of converting from traditional prints to digital projection is still a major and, in some cases, prohibitively large expense. However, the clear mutual benefits for film studios and cinema operators are leading to innovative and practical cost-sharing partnerships to support a wide-scale digital roll-out."
A high revenue generating 3D film also impacts the sales of DVDs and, in the case of high grossing 3D films, DVD sales have also increased. High DVD sales continue to be critical to the economics of film production as they have the ability to generate over half the total revenues of a film.
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. However, the wearing of 3D glasses to watch programmes is still a major issue. Major sporting events such as the Olympics and football World Cups also have an impact on the sales of TVs as viewers, unable to attend the events in person, willingly pay for the best quality experience at home.
Many market sources also feel that there is a natural fit between video games and 3D as the players demand immersive game play. However, 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.
The mass market potential of 3D entertainment still remains unclear. However, there is potential across all delivery channels:
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. However, 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."
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