Monday, June 15, 2009

More than 10% of US and Japanese households will be '3D enabled' by 2012, Western Europe not far behind

DIGITAL HOME DESIGN LINE
http://www.digitalhomedesignline.com/217300430;jsessionid=HFY5NZHHBDZ2KQSNDLOSKH0CJUNN2JVN?printableArticle=true

May 06, 2009

More than 10% of US and Japanese households will be '3D enabled' by
2012, Western Europe not far behind

By Gregory Quirk

Now more than ever 3D is coming to the fore, with backing from all
major sectors of the entertainment and consumer electronics
industries. 3D movie production is intensifying, cinemas all over the
world are investing in 3D technologies and feedback from audiences has
been highly positive, with encouraging ticket sales. Yet the ultimate
goal is to bring 3D to the home.

"Consumers are starting to experience the new wave of 3D technologies
at the cinema and through Digital Out of Home advertising, and it
won't be long before there's a groundswell of demand for 3D within the
home," says Sarah Carroll, Director of Continuous Services,
Futuresource Consulting. "With over 200 million new TVs sold across
the globe every year, the potential is huge, but the industry needs to
overcome some serious obstacles in order to kick start and fully
realise the revenue streams.

"Most notably, technical and standards issues still need to be
resolved and there is a limited supply of 3D content, with the current
economic climate making new investment in production and distribution
a challenge, particularly for the broadcast industry. That said, there
is a real feeling of excitement surrounding 3D and here at
Futuresource we believe this will translate into commercial success
within the next three to five years."

All eyes will be on the consumer electronics industry, with '3D Ready'
TVs a prerequisite to consumer adoption in much the same way as
'HD-Ready' sets were used to seed the high definition market five
years ago. An early decision on the Blu-ray 3D standard will also be
critical, as packaged media will be necessary to help drive the
market.

"Custom chipsets can be embedded into next gen hardware at relatively
low cost," says Carroll. "Combine this with an integrated consumer
awareness programme and a coherent '3D-Ready' branding strategy, and
the resulting price premium on hardware will more than offset the
additional manufacturing costs."

"Our analysis points to the emergence of two distinct phases as we
move through the diffusion curve," says Jim Bottoms, Managing Director
of Corporate Development at Futuresource. "Currently, we're easing
into the preparatory phase, which will stretch out to 2011. Here we'll
see 3D movies primarily being made for theatrical release and the
continued rollout of 3D digital cinema. TV manufacturers will start to
roll out multi-format '3D-Ready' sets and glasses from 2010, VoD
delivery systems will begin to include limited 3D movie, concert and
sport content, and the market for 3D PC games will continue to
develop.

"Our probability modelling shows the permeation phase will kick in
from 2011, where - among other initiatives - we'll see new 3D movie
releases on Blu-ray, remasters of classic blockbusters like Star Wars,
The Matrix and The Lord of the Rings, a wider range of 3D TV content
for sports, wildlife documentaries and concerts, and studios
introducing selective production of 3D TV shows and series. By 2012,
more than 10% of US and Japanese homes will be '3D enabled', and
Western Europe won't be too far behind, with 6% household penetration.
Moving forward, a new generation of videogame consoles will begin to
emerge, fully embracing 3D technologies, and in the long term we'll
see the industry shift to autostereoscopic (no glasses) displays."


May 06, 2009

More than 10% of US and Japanese households will be '3D enabled' by
2012, Western Europe not far behind

By Gregory Quirk

Now more than ever 3D is coming to the fore, with backing from all
major sectors of the entertainment and consumer electronics
industries. 3D movie production is intensifying, cinemas all over the
world are investing in 3D technologies and feedback from audiences has
been highly positive, with encouraging ticket sales. Yet the ultimate
goal is to bring 3D to the home.

"Consumers are starting to experience the new wave of 3D technologies
at the cinema and through Digital Out of Home advertising, and it
won't be long before there's a groundswell of demand for 3D within the
home," says Sarah Carroll, Director of Continuous Services,
Futuresource Consulting. "With over 200 million new TVs sold across
the globe every year, the potential is huge, but the industry needs to
overcome some serious obstacles in order to kick start and fully
realise the revenue streams.

"Most notably, technical and standards issues still need to be
resolved and there is a limited supply of 3D content, with the current
economic climate making new investment in production and distribution
a challenge, particularly for the broadcast industry. That said, there
is a real feeling of excitement surrounding 3D and here at
Futuresource we believe this will translate into commercial success
within the next three to five years."

All eyes will be on the consumer electronics industry, with '3D Ready'
TVs a prerequisite to consumer adoption in much the same way as
'HD-Ready' sets were used to seed the high definition market five
years ago. An early decision on the Blu-ray 3D standard will also be
critical, as packaged media will be necessary to help drive the
market.

"Custom chipsets can be embedded into next gen hardware at relatively
low cost," says Carroll. "Combine this with an integrated consumer
awareness programme and a coherent '3D-Ready' branding strategy, and
the resulting price premium on hardware will more than offset the
additional manufacturing costs."

"Our analysis points to the emergence of two distinct phases as we
move through the diffusion curve," says Jim Bottoms, Managing Director
of Corporate Development at Futuresource. "Currently, we're easing
into the preparatory phase, which will stretch out to 2011. Here we'll
see 3D movies primarily being made for theatrical release and the
continued rollout of 3D digital cinema. TV manufacturers will start to
roll out multi-format '3D-Ready' sets and glasses from 2010, VoD
delivery systems will begin to include limited 3D movie, concert and
sport content, and the market for 3D PC games will continue to
develop.

"Our probability modelling shows the permeation phase will kick in
from 2011, where - among other initiatives - we'll see new 3D movie
releases on Blu-ray, remasters of classic blockbusters like Star Wars,
The Matrix and The Lord of the Rings, a wider range of 3D TV content
for sports, wildlife documentaries and concerts, and studios
introducing selective production of 3D TV shows and series. By 2012,
more than 10% of US and Japanese homes will be '3D enabled', and
Western Europe won't be too far behind, with 6% household penetration.
Moving forward, a new generation of videogame consoles will begin to
emerge, fully embracing 3D technologies, and in the long term we'll
see the industry shift to autostereoscopic (no glasses) displays."

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