The Business Case for Digital 3D Cinema Exhibition

Table of Contents

Executive summary

• Introduction
• Screens
• Superior box office performance
• Competition among top US exhibitors
• Equipment providers
• Content
• Opportunities
• Threats
• Investment/Returns

The market for digital 3D cinema

• Introduction to digital 3D cinema
• Producing content in 3D
• CG Animations
• Dimensionalisation
• Live action - film
• Live action - digital/hybrid
• Challenges for 3D film production
• Studio involvement in digital 3D
• Walt Disney
• Sony Pictures Entertainment
• Warner Brothers
• Twentieth Century Fox
• Universal Pictures
• Paramount Pictures
• Dreamworks SKG
• Dreamworks Animation
• Independents
• Technical standards for digital 3D cinema
• Mastering
• Distribution
• Exhibition

Stereoscopic formats and technology

• Brief historical perspective
• Anaglyph
• Imax 3D
• Technology
• Advantages
• Content
• Digital
• Opportunities
• Digital 3D
• Technical attributes of digital 3D
• Image alignment
• Screen gain
• Silver screen
• Overview of digital 3D technology
• Active/Shutter glasses
• Technology
• Equipment
• List of complete system for active eyewear
• Eyewear
• Screen
• Advantages
• Disadvantages
• Active glasses manufacturers
• Macnaughton (NuVision Inc)
• Vrex
• SoftPixel
• Circular polarisation
• RealD
• Equipment
• Eyewear
• Screen
• Advantages
• Disadvantages
• RealD
• Linear Polarisation/Two Projector model
• Technology
• Equipment
• Eyewear
• Screen
• Advantages
• Disadvantages
• Wavelength triplet technology
• Dolby 3D Digital System
• Technology
• Equipment
• Eyewear
• Screen
• Advantages
• Disadvantages
• Autostereoscopic 3D
• Future technology prospects

Digital 3D cinema exhibition: Opportunities and threats

• Opportunities
• Differentiation
• Windows
• 3D franchises
• Stream of content
• Piracy
• 3D as a catalyst for digital
• Marketing opportunities
• Content
• New content
• Alternative content 3D
• Live 3D content
• Library 3D titles
• Commercial
• Trailers
• Advertising
• Exhibition
• Premium pricing
• Longer run
• 3D box office
• Higher attendance ratios
• Market Competition
• Threats
• 3D quality
• Longevity
• Novelty factor
• Linked to theatrical survival
• Content
• Maintaining a flow of content
• Industry
• Market niche
• Loss of downstream revenues
• Prime locations
• Screens
• Scale
• Access to screens
• Screen suitability
• Technology
• 4K projectors
• Competing 3D formats
• Light
• Silver screen
• VPF agreements

Digital 3D cinema: The numbers

• Market overview
• Regional
• Territories
• Driver territories
• 1. USA
• 2. Korea
• 3. Australia
• 4.Germany
• 5. UK

• US exhibitors
• International exhibitors
• Carmike
• Rave Motion Pictures
• National Amusements
• Regal
• Cinemark
• Digital 3D systems
• 3D box office
• Potential 3D releases
• Distribution of 3D movies
• Other 3D applications
• Mobile

Business models for digital 3D cinema

• Development of the digital 3D market
• Exhibitors driving growth
• Business Models for digital 3D cinema
• Third party schemes
• Leasing
• Real D
• Joint venture/profit sharing
• Xpand
• Exhibitor-led
• Capital investment
• Active glasses
• Capital investment
• Dolby 3D system
• Capital investment
• Premium pricing
• Fixed charge
• Flexible pricing
• Additional revenue generation - 3D
• Digital 3D facilitators
• Kodak
• AccessIT
• Ballantyne of Omaha
• Dolby
• Atlab Australia
• FTT

Market analysis of investments and returns

• Part one: Investments
• Part two
• Revenue/Profit
• Investments for the digital 3D stereoscopic format
• RealD
• Eyewear
• Equipment
• Screen
• Active eyewear
• Eyewear
• Equipment
• Screen
• Xpand
• Investments
• Glasses
• Equipment
• Screen
• Additional information
• Glasses
• Equipment
• Screen
• Part two
• Revenue and Profits
• Methodology
• Surcharge revenues
• Costs
• Profit generation
• Case Studies
• Chicken Little
• Monster House
• Nightmare before Christmas 3D
• Meet Th e Robinsons
• Summary
• Sliding scale model
• Additional revenues

• Digital 3D cinema titles to 2010
• Production budgets of digital 3D titles
• Number of digital 3D releases ranked by US studio distributor to 2010

• Main digital 3D technology providers
• Comparsion of digital 3D equipment by technology provider
• Comparison of required in-theatre maintenance of 3D formats

• Opportunities and threats
• Number of digital 3D titles per year
• Data from Cinecitta multiplex in
• Germany from two digital 3D screenings
• 3D performance in opening weekend vs total
• Total 3D box offi ce as % of total revenues in US market

• Number of digital 3D screens
• Digital 3D screens as a proportion of total digital cinema screens
• Leading International territories for digital 3D screens (H1 07)
• Market share of digital 3D screens by region (%)
• Number of digital 3D screens by region
• Number of digital 3D screens by world region
• Number of digital 3D screens ranked by territory (H1 2007)
• US D-3D screens ranked by US state (with more than 3 3D screens)
• US exhibitors with more than five D-3D screens (H1 2007)
• Market share of 3D formats H1 2007
• Global exhibitors with more than one digital 3D screen
• RealD deployments by territory (excluding USA)
• Number of deployments by digital 3D format
• Market Share of digital 3D formats by manufacturer
• RealD deployments by territory
• Box office results from opening weekend of Chicken Little
• Box office results from opening weekend of Monster House
• Box office results from opening weekend of Nightmare before Christmas 3D
• Box Office results from opening weekend of Meet The Robinsons
• Box office results from opening weekends of digital 3D titles
• Performance of digital 3D titles in opening weekend only
• Digital 3D cinema forecasts
• Digital 3D screen forecasts by territory

• Premium pricing short survey March 2007

• Investments required per 3D technology format
• Active glasses
• Dolby/Infi tec
• RealD
• Xpand
• Incremental revenue derived from Xpand screen
• Analysis of 3D box office returns from Chicken Little
• Analysis of 3D box office returns from Monster House
• Analysis of 3D box office returns from Nightmare 3D
• Analysis of 3D box office returns from Meet the Robinsons
• Average profit per screen from surcharge revenues of digital 3D screenings (based on $2 premium)
• Cumulative revenue and profit for number of digital 3D releases
• Profitability of digital 3D screen per annum (based on RealD licence fee and silver screen)
• Profitability of digital 3D screen per annum (based on RealD licence fee)
• Analysis of potential profit based on box office per screen
• Summary based on a sliding scale of surcharge fees
• Profit generation based on box office revenue per screen and amount of surcharge applied ($)