With an average price tag of $100,000 per 3-D screen, movie exhibitors are searching for a magic number to help them make the best investment decision.
According to a recent study by Nielsen PreView, that magic number is twelve. If twelve 3-D movie titles are released during 2009, all theater sizes from large to small will see a payout. While this may seem like a tall order, studios are already making big bets on 3-D movie titles for 2009 and beyond.
Beyond cost of installation, another critical tipping point is consumer awareness and appetite for 3-D. While 95% of consumers are aware of 3-D technology, more than a third have never seen a 3-D movie, many citing lack of awareness that 3-D movies were available locally. More marketing around the availability and wow factor of 3-D would help drive demand. The investments should prove worthwhile as audiences are willing to pay more for 3-D, according to another recent Nielsen survey.
Large theaters (11 screens or more) are already getting into the action by upgrading to 3-D at a much faster pace than smaller theaters. However, this payout analysis shows that even medium-size theaters (8-10 screens) would reap large rewards. Even if the industry delivers just seven 3-D films a year for each of the next four years, these mid-size theaters would see positive gains.
For more insights, read the report at Nielsen PreView. [free PreView login required]
Use Nielsen Preview's 3-D payout tool. [free PreView login required]