Published:
05-Sep-08
Cinema Buying Group (CBG), a consortium of independent cinema operators in North America administered by the National Association of Theatre Owners (NATO), has made a commitment to adding digital 3D technology from leading stereoscopic provider, RealD, once its transition to digital cinema is underway. Around 12.5 per cent or 1,000 of CBG's combined 8,000 screens will add the RealD system over the next two years, but like many other recent exhibitor pledges to add 3D technology, the arrangement is first contingent on the deployment of the underlying digital cinema platform. CBG's digital roll-out is being managed by AccessIT, as part of its 10,000 screen target for Phase Two scheduled to begin in October 2008, following the successful completion of just under 4,000 screens in Phase One in late 2007.
Our take...The 3D portion of the deal is non-exclusive, inferring that the group could choose to add digital 3D equipment from rival technology suppliers and therefore achieve a higher proportion than the current estimated 12.5 per cent 3D screen ratio. In comparison, leading US exhibitors, Regal and Cinemark have pledged an upgrade of 22 per cent and 33 per cent of screens to 3D respectively, once digital progress begins, although smaller independent exhibitors are likely to end up with a lower overall ratio, given the number of screens per complex.
The Studios are now actively encouraging d-cinema roll-out in order to have sufficient 3D screens in place for a plethora of specially-prepared 3D titles released in 2009. Wider 3D releases will help to offset 3D's incremental production costs by increasing the amount of revenues derived from premium priced 3D ticket sales, but they will also provide sufficient space in the market for the release of 3D titles simultaneously, avoiding the possible rescheduling of major 3D titles to secure a unique release window in the theatrical calendar.
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