VARIETY - 3-D reaches a tipping point in Europe - Once-skeptical exhibs and distribs flock to format June 12, 2009

VARIETY

Posted: Fri., Jun. 12, 2009, 2:17pm PT

3-D reaches a tipping point in Europe
Once-skeptical exhibs and distribs flock to format

By JOHN HOPEWELL MADRID

— Suddenly, but decisively, Europe is embracing 3-D. Opening with
Pixar's "Up," Cannes underscored Europe's newfound 3-D faith.
"Cannes was the defining 3-D moment. It was all about 3-D," says Erik
Jensen at Belgium's CDC United Network.

A dozen or more 3-D films, five of which hail from Europe, hit Cannes'
market. At least 20 3-D indie pics, including pioneering Euro 3-D
tooners "Holy Night!" from Spain's Dygra, and Pascal Herold's
"Cinderella," are now in production.

And Cannes 3-D deals got done.

France's StudioCanal licensed "Around the World in 50 Years"
worldwide. Nu Image sold "Dark Country" to France, Italy and Spain.

Italy's Eagle Pics bought "Sanctum" and "Around the World," having
picked up "Ocean World" at Berlin. Even low-budget family picture
"Call of the Wild" sold to several territories.

With the economics of 3-D now in place and the B.O. upside clearly
demonstrated, and with Hollywood icons and Euro exhibitors trumpeting
3-D commitments, the format has gained critical mass.

For European exhibition, "The tipping point's December 2008 through
February 2009," says David Hancock, head of cinema at research company
Screen Digest. In December, Odeon/UCI, Europe's biggest theater loop
with 1,600 screens, announced it would outfit another 70 venues,
bringing its DCI-compliant total to 111 cinemas across Europe that
have digital or full-fledged 3-D systems. (It has also committed to
upgrade another 89 eventually).

"After Odeon's declaration, other exhibitors had to decide whether
they were out or in with 3-D," Hancock comments.

They were in: From late January through February, big chains --
Britain's Cineworld and Vue Entertainment, Holland's Amsterdam Booking
Co. -- made large 3-D announcements. France's Cineville followed in
March, rival CGR in April.

Combined, the exhibitors' promised around 1,000 additional 3-D screens.

For distribs, the main game changer's been 3-D B.O. Odeon/UCI's Drew
Kaza glows about 3-D grosses from "Chicken Little" to "Beowulf" and
"Journey to the Center of the Earth." European distributors also cite
a bevy of 3-D faith-forging B.O. milestones, most between October and
Cannes. Released in October in Gaul, Ben Stassen's "Fly Me to the
Moon" punched a $40,839 print average, doubling normal print figures,
one Gallic distrib enthuses.

The 3-D explosion comes, crucially, amid the broader-picture downturn.

"The straight-to-DVD market is dead. Sales agents need to sell movies
with clear theatrical potential. 3-D films are theatrical films by
definition," argues Vicente Canales, head of international at Filmax,
which received offers at Cannes from "nearly every major territory"
for "Magic Journey to Africa."

European 3-D rollout is still patchy: Germany -- a forecast year-end
149 screens -- and Scandinavia are off the pace, though Svensk
acquisitions head Robert Enmark hopes "Avatar" will boost Scandi
exhibitor investment.

Already, though, the indie 3-D boom threatens a bust.

"I saw a lot of promos in 3-D. The successes will have to be good
quality. It's going to be very hard to get the screens they need,"
Vairo says.

Read the full article at:
http://www.variety.com/article/VR1118004886.html