Taking their cue from the results of several movies that have done well with 3D technology, a number of businesses connected to the industry believe it will have a profound impact upon profits.
The info garnered from the 3D films that have been released has shown that audiences are willing to pay a premium to watch the film and prefer them be a 2-to-1 margin.
Michael Campbell, chairman and CEO of Regal Entertainment Group (RGC), said that there are "potential advantages for theaters, not just studios."
A lot of studios are on board with this, which makes it even more attractive to the theater owner. Included in the support are Disney (DIS) and DreamWorks Animation SKG Inc. (DWA), who announced that all of its movies will be made in 3D from now on, beginning with "Monsters vs. Aliens" in 2009.
This week Disney will release on Friday its animated feature, "Meet the Robinsons," which will make it the largest 3D release ever, which will be a good measuring rod for the times ahead. They've also gotten together with Robert Zemeckis to build a studio to product 3D movies exclusively.
The CEO of Dreamworks, Jeffrey Katzenberg said that making 3D films will add an additional $10 to $15 million to the costs of a film, but he still thinks it's worth the added expense.
"The audience actually feels in the (animated) world in a way that we have not really seen before. From a filmmaking standpoint, it is really exciting," Katzenberg said.
While this does sound exciting, and it is, the major question I have concerning it is when it becomes ubiquitous, will the premium factor existing now be able to keep its hold. That's important to know if they're going to increase the costs of production by up to $15 million.
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